Xceed Mortgage Corporation Indicates Early Amortization Likely for Xceed Mortgage Trust Series 2006-T1 Notes

    TORONTO, April 13 /CNW/ - Xceed Mortgage Corporation (TSE: XMC) (Xceed),
as financial services agent of Xceed Mortgage Trust (XMT or the Trust), has
today notified the Indenture Trustee for XMT's Series 2006-T1 Notes that the
Class A-2 Senior Notes, Series 2006-T1 (the Class A-2 Notes) will mature on
April 17, 2009 and will likely not be fully repaid on that date.
    XMT is required to use its best efforts to arrange for the refinancing of
the Class A-2 Notes on April 17, 2009 by issuing a new tranche of Class A-C
Notes, Series 2006-T1 (the Class A-C Notes). Xceed, as the financial services
agent of XMT, has been exploring, and will continue to explore, all available
viable alternatives in an attempt to refinance the Class A-2 Notes but has
been unsuccessful to date. If XMT is unable to issue a new tranche of Class
A-C Notes on April 17, 2009 to refinance the Class A-2 Notes, an amortization
period would commence.
    During an amortization period (a) principal and interest collections from
the asset pool will be paid to holders of Class A-2 Notes monthly with coupon
interest of 4.584% (converted to monthly equivalent rate of 4.541%), and (b)
holders of Class B, C, D, and E Subordinated Notes, Series 2006-T1 will be
sequentially paid in priority sequence after the Class A-2 Notes have been
fully repaid, with the most subordinate tranche being paid last, in each case,
as is described more fully in the prospectus of the Trust relating to the
Series 2006-T1 Notes.
    If an amortization event for the Series 2006-T1 Notes occurs, no funds
will be paid to Xceed in respect of the applicable asset pool until all
holders of the Series 2006-T1 Notes have been fully repaid.

    About Xceed

    Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of
insured residential mortgages that it originates in Canada. The company has
approximately $2.1 billion of mortgages and other assets under administration.
Xceed's shares are traded on the Toronto Stock Exchange (TSX: XMC). To find
out more about Xceed Mortgage Corporation, visit our website at

    Forward-Looking Statements

    Forward-looking statements in this document are based on current
expectations that are subject to significant risks and uncertainties. Actual
results might differ materially due to various factors such as the competitive
nature of the mortgage industry, the ability of Xceed to continue to execute
its growth and development strategy, and the reliance of Xceed on key
personnel. Xceed assumes no obligation to update these forward-looking
statements, or to update the reasons why actual results could differ from
those reflected in these. Additional information identifying risks and
uncertainties is contained in Xceed's regulatory filings available on its
website and at www.sedar.com. Additional information identifying risks and
uncertainties is also contained in XMT's regulatory filings, which are
separately available at www.sedar.com.

    %SEDAR: 00020677E

For further information:

For further information: Investor and Media Relations: Richard Wertheim,
Wertheim + Company Inc., (416) 594-1600 or (416) 518-8479 cell,

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