Xceed Company Profile

Helping Canadians Make It Home

Forward-Looking And Other Statements

This presentation contains forward-looking statements which reflect management’s expectations regarding Xceed Mortgage Corporation’s future growth, performance (both operational and financial), and business prospects and opportunities. Past results do not constitute a guarantee of future performance. A number of factors could cause actual results, performance, or achievements to differ materially from the results expressed or implied in these materials. Business prospects and opportunities considered are based on approximation extrapolation of potential market indicators. These factors should be considered carefully and prospective investors should not place undue reliance on any forward-looking statements.

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Corporate Overview

Established in Canada in 1997 as a subsidiary of IMC Mortgage Corporation.

Current investor group purchased 90% of common stock from BMO in April 2002 and recapitalized firm with $22.2MM.

IPO of June 2004 raised additional $24.34MM.

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Value Proposition

Focused Origination– Established mortgage broker relationships– Financial Institution channel– Direct business

Risk-Reward Management– Credit risk– Market risk

Business Model– Securitization program– Entrepreneurial culture– Structured management processes– Technology

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Executive TeamIvan Wahl – Chairman, CEO & Director

– 30 years of experience in the Canadian mortgage finance industry.– Played a leading role in the development of the mortgage-backed securitization industry in Canada.– Founded FirstLine Trust Company in 1985, grew and sold the business to CIBC in 1995.– Vice-Chairman and Director of CIBC Mortgages Inc. from 1995 to 2001.– Recipient of the Ernst & Young Financial Services Entrepreneur of the Year award for 2005.

Michael Jones – President & COO– Previously Vice President, Commercial Mortgages for CIBC Mortgages Inc. where he also oversaw the

CIBC Access Program.– Joined FirstLine Trust in 1992.

John Ayanoglou – CFO & Corporate Secretary– Previously the Chief Financial Officer of publicly-listed Cartier Partners Financial Group.– Practiced within Financial Services Group of PricewaterhouseCoopers LLP from 1996 to 2000.

Karen Martin – VP, Securitization and Capital Markets – Previously the Treasurer of Amicus Holdings (division of CIBC), Director of Balance Sheet Management,

and General Manager of Securitization for CIBC.– Manager, Financial Analysis and Manager, Financial Reporting for FirstLine Trust Co. from 1988 to 1996.

Majority of Board consists of non-related independent directors

30% of common shares controlled by management or directors

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Financial Performance

Revenue $1,824M $58,015M116%

AUM $132MM $1,976MM83%

Net Income(2) ($1,127)M $21,993M91%

ROAE (3) (34.8%) 24.6%21.9%

2001 2006(1)

(1) Trailing twelve months ended April 30, 2006, except for Mortgages.

(2) The CAGR figure for Net Income is calculated from fiscal year 2002 as net income was negative in 2001.

(3) The percentage presented is the average ROAE calculated from fiscal year 2002 as net income was negative in 2001.

CAGR

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Revenue Growth

$1,824

$8,514

$17,090

$29,942

$51,153

$58,015

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Re

ve

nu

e (

C$

00

0)

2001 2002 2003 2004 2005 2006*

CAGR 116%

Under Current Management

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*Xceed’s fiscal year end is October 31. The 2006 balance represents the trailing twelve months ended April 30, 2006.

Under Previous

Management

Total Assets Under Administration Growth

$132

$284

$663

$1,190

$1,841$1,976

-$300

$200

$700

$1,200

$1,700

$2,200

To

tal A

sse

ts U

nd

er

Ad

min

istr

ati

on

(C

$mill

ion

)

2001 2002 2003 2004 2005 2006*

CAGR 83%

Under PreviousManagement after 5

years

Under Current Management

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*Xceed’s fiscal year end is October 31. The 2006 balance represents the trailing twelve months ended April 30, 2006.

Increasing Profitability

($1,127)

$2,289

$5,703

$10,412

$20,275

$21,993

-$3,000

$1,000

$5,000

$9,000

$13,000

$17,000

$21,000

$25,000N

et

Inc

om

e (

C$

00

0)

2001 2002 2003 2004 2005 2006*

Under Current Management

Under Previous

Management

Net Income Growth

CAGR 91%

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*Xceed’s fiscal year end is October 31. The 2006 balance represents the trailing twelve months ended April 30, 2006.

Effective Use of Capital

-34.8%

14.9%

22.7% 21.9%25.5% 24.6%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Re

turn

on

Av

era

ge

Eq

uit

y (

%)

2001 2002 2003 2004 2005 2006*

Under Current Management

Under Previous

Management

Return on Equity

Average 21.9%

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*Xceed’s fiscal year end is October 31. The 2006 ratio represents the trailing twelve months ended April 30, 2006.

Growth Potential

Potential size of Canadian non-traditional market is estimated

at 10% of the total residential mortgage financing market

(approximately $650 billion)

Total outstandings of the non-conforming market in Canada are

approximately $10 billion

About $55 billion in untapped potential!!

This represents 300,000 families living in apartments who may

meet our underwriting requirements and would love to own

their own homes.

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Market Niche

Focus on non traditional market:

• Non Conforming Credit

• High Loan to Value Uninsured

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25% 50% 75% 100%

A

B

C

Traditional Lenders(Big 6 Banks)

Home Capital / Equitable Trust

Mortgage Loan to Value (LTV) Ratio

Bo

rro

wer

Cre

dit

Rat

ing

Market Position

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XCEED

Wells Fargo / GMAC / First National

Fundamentals

Opportunity for product innovation beyond vanilla 3 year & 5 year offerings.

Low variable cost business model provides significant operating leverage: electronic approval / funding system, with single location (in Toronto).

Efficient method of raising capital provides opportunity for high ROE

Effective improvements in funding ratios to leverage increased volumes.

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Funding Methodology

$62 Million combined warehouse and revolving facility

Securitization of mortgages thru regular (non-recourse) sale to Trusts.

– Trust senior notes funded through established $100 billion dollar asset-backed commercial paper market

– Trust credit enhancement provided by third party investors and Xceed

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Solid Risk Control

Interest Risk immunization thru swaps and other hedging mechanisms.

Credit Risk control thru frequent asset quality and compliance reviews by DBRS and Trusts’ securitization agent

– First charge, residential mortgages only, regionally diversified, in pre-approved locales

– Average mortgage size is $160,000

– For mortgages with LTV > 90%, retain only the risk associated with 80% piece and sell the subordinated piece > 80% to third party financial institution

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Credit Risk

Typical Xceed Mortgage:

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Homeowner Equity

Interest Sold To 3rd Party F.I.

Credit Risk Managed by Xceed

100%

92%

81%

Securitized Portfolio

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Diversification

Financial Model: Pro-Forma Economics

.

Recurring Yield Spreads

Mortgage Coupon (1) 7.18%

Swap Cost of Funds (1) (4.06%)

Gross Spread 3.12%

Trust Costs (2) (1.15%)

Net Spread 1.97%

Net Origination Costs (3)(4) (0.19%)

Net Operating Expenses (4) (0.71%)

Recurring Income (5) 1.07%

1) Approximate mortgage coupon rate and

cost of funds are based on historical

average in the securitized portfolio.

2) Trusts costs consist of allowance for

losses, historical cost of credit

enhancement in the existing securitized

portfolio, program fees, and MCAP

servicing costs.

3) Net Origination Costs are comprised of

application fee revenue based on Xceed’s

historical product mix, less other costs

incurred up to mortgage funding. These

other costs include commissions and

volume bonuses, cost of yield “buy up” on

subordinate co-owned interest, and other

origination costs.

4) This estimate is calculated by spreading the

costs incurred in a trailing twelve month

look back ending April 30, 2006 over the

expected life of the mortgages originated.

5) Recurring income is before applicable taxes

and does not consider prepayment fee

income and certain pipeline hedging costs.

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Disciplined Underwriting

0.45%

1.80%

0.38%

1.80%

0.21%

0.81%

0.14%

0.69%

0.08%

1.11%

0.15%

1.43%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

An

nu

aliz

ed C

red

it L

oss

& A

vera

ge

Mo

rtg

age

Def

ault

Rat

e (%

)

2001 2002 2003 2004 2005 2006

Annualized Credit Loss Average Mortgage Default (90 Days+)

Under Previous Management Under Current Management

Reduction in Loss & Default Percentages(1)

Mortgage Default CAGR (5)%

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(1) Ratios are a percentage of average securitized portfolio under administration.

(2) Xceed’s fiscal year end is October 31. The 2006 percentages represent the trailing twelve months ended April 30, 2006.

(2)

SummaryLimited competition.

Nascent, rapidly growing niche.

Strong experienced management.

Capital markets proprietary funding models.

Performance based culture.

Focused multi-channel origination.

Disciplined underwriting.

Disciplined default management.

Risk adjusted pricing model.

Flexible, scalable technology with comprehensive relevant reporting capability.

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Questions

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