Saxon Financial ends 2006 with continued strong performance

    Revenue up 24%, earnings up 34% over Q4 2005
    Quarterly dividend increases 17%

    TORONTO, March 7 /CNW/ - Saxon Financial Inc. (TSX:SFI) reported record
financial results for the fourth quarter and year ended December 31, 2006. The
Company continued its strong performance with a 24% growth in revenue and a
34% increase in net income in the fourth quarter over Q4 2005. Saxon's assets
under management grew 14% during the year, reaching a record $12.5 billion.
    "Saxon's strong financial results conclude a year in which we launched
new retail products and enjoyed significant wins in the institutional
business," said Allan Smith, President and CEO of Saxon Financial. "We are
proud of our financial performance. Our dividend increase, the second in the
past year, reflects our confidence that Saxon can deliver long-term
shareholder value."

    Highlights: A year of growth, expansion & investment

    The following table summarizes Saxon's fourth-quarter and year-end
results for 2006.

    Financial Highlights
    (in $thousands, except          Three month period        Year ended
     per share data)                 ended December 31,       December 31,
                                      2006       2005       2006       2005
    Revenue(*)                      $12,926    $10,396    $48,646    $38,072
    EBITDA(xx)                       $6,129     $4,521    $23,201    $17,608
    Net income                       $3,916     $2,922    $14,732    $10,784
    Earnings per diluted share        $0.29      $0.21      $1.08      $0.83

    (*)  Revenue refers to management fee revenue and excludes investment
    (xx) The amount of earnings before interest, taxes, depreciation and
         amortization ("EBITDA") is a non-GAAP measure used by management,
         investors and analysts to evaluate and analyze the Company's
         results. EBITDA does not have a standardized meaning and may not
         be comparable to similar measures presented by other companies.
         EBITDA is defined as earnings before investment income, interest
         expense, income taxes, depreciation, amortization and non-
         controlling interest.

    -   Saxon's assets under management climbed to $12.5 billion at the close
        of 2006; an increase of 14% or $1.6 billion over 2005 year-end

    -   Saxon's Q4 revenue was $12.9 million; a 24% increase over the fourth
        quarter of 2005. For the year ended December 31, 2006, revenue
        increased 28% compared to the same period in 2005, totaling
        $48.6 million over last year's $38.1 million.

    -   Saxon's net income for the quarter was $3.9 million, up 34% over the
        same period in 2005. Comparing year-end earnings, 2006 net income
        reached $14.7 million, an increase of 37% over 2005.

    -   Saxon increased its dividend to $0.21 per common share; an increase
        of 17% over the previous quarter.

    -   Saxon extended its reach into the advisor channel with the successful
        launch of deposit notes tied to the performance of the award-winning
        Saxon Balanced Fund.

    -   Saxon's institutional business ended the year with 15 new mandates,
        building on the momentum gained earlier in the year with the high
        profile wins of Clarington Canadian Balanced Fund, Altamira Canadian
        Value Fund and Altamira Global Value Fund.

    For detailed financial statements, including management's discussion and
analysis, please refer to Saxon's website at

    Conference call

    Saxon will host a conference call to discuss these results on Wednesday
March 7, 2007, at 11:00 am EST. Please dial 416-695-6120, or toll-free
1-877-461-2816 to participate. This conference call will be recorded and
available for replay for two weeks following the earnings announcement at
888-509-0081 and 416-695-5275, pass code: 639876 followed by the number sign.

    About Saxon Financial Inc. (

    Saxon Financial Inc. is one of Canada's most respected value-style
investment management firms. The Company has three principal lines of
business: Saxon Funds Management Limited, which manages a family of
high-performing, low-fee mutual funds; Howson Tattersall Investment Counsel
Limited, an institutional asset management business; and Howson Tattersall
Private Asset Management Inc., a private client asset management business.

For further information:

For further information: Mel Gabel, Chief Financial Officer, Saxon
Financial Inc., (416) 227-1617,; Jason Graham or
Daniel Tisch (media only), Argyle Communications, (416) 968-7311, ext. 229 or

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