Equitable Group Inc. closes over-allotment option on "bought deal" financing


    TSX Symbol: ETC

    TORONTO, Aug. 12 /CNW/ - Equitable Group Inc. (the "Company") is pleased
to announce that it has closed the over-allotment option from its previously
announced $34.4 million "bought deal" financing, which closed July 16, 2008.
    The underwriters co-led by GMP Securities L.P. and TD Securities Inc.,
and a syndicate comprised of BMO Nesbitt Burns Inc., Cormark Securities Inc.,
CIBC World Markets Inc., Scotia Capital Inc. and Clarus Securities Inc.
exercised the over-allotment option and purchased 60,000 common shares at a
purchase price of $21.50 per share, for aggregate gross proceeds to the
Company of $1,290,000. The exercise of the over-allotment option brings the
aggregate gross proceeds of the offering to $40,850,000 inclusive of the
private placement which closed concurrently with the "bought deal" financing.
    The Company intends to use the net proceeds to invest in the equity of
the Company's wholly-owned subsidiary, The Equitable Trust Company to augment
its Tier 1 capital regulatory capital base, to support the continued growth of
its single-family mortgage portfolio, and the balance for general corporate

    About Equitable Group Inc.

    Equitable Group Inc. is a leading niche mortgage lender. Its primary
business is first mortgage financing, which it offers through The Equitable
Trust Company, its wholly-owned subsidiary. Founded in 1970, Equitable Trust
is a federally regulated trust company. It serves single family, small and
large commercial borrowers and their mortgage advisors, as well as the
investing public as a provider of Guaranteed Investment Certificates.
Equitable's non-branch business model, valued relationships with third-party
mortgage professionals and deposit-taking agents, and disciplined lending
practices have allowed the Company to grow profitably and efficiently for many
years. The common shares of Equitable Group Inc. are listed on the Toronto
Stock Exchange under the trading symbol of "ETC". For more information, visit

    This press release contains "forward-looking statements" within the
meaning of applicable Canadian securities legislation. Generally,
forward-looking statements can be identified by the use of forward- looking
terminology such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "planned", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results "may"
,"could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, closing of transactions, performance or achievements of the Company
to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks related to
capital markets and additional funding requirements, fluctuating interest
rates and general economic conditions, legislative and regulatory
developments, the nature of our customers and rates of default, and
competition as well as those factors discussed in the Company's documents
filed on SEDAR (www.sedar.com).
    Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. The Company does not undertake to update any forward-looking
statements that are contained herein, except in accordance with applicable
securities laws. Further information on the Company is available at

    This news release and the information contained herein does not
constitute an offer of securities for sale in the United States and securities
may not be offered or sold in the United States absent registration or
exemption from registration.

For further information:

For further information: John Ayanoglou, (416) 513-3535

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