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

    TORONTO, April 13 /CNW/ - Xceed Mortgage Corporation (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.
    Any current holders of XMT's Series 2006-T1 Notes who are interested in
exploring the terms on which they may participate in the refinancing of the
Class A-2 Notes should contact Karen Martin, President and Chief Financial
Officer of Xceed.

    About XMT

    XMT is a special purpose trust established under the laws of Ontario by
Computershare Trust Company of Canada, as issuer trustee, to, among other
things, purchase residential mortgages and related assets originated, acquired
or serviced by Xceed. Xceed is the financial services agent of XMT.

    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. 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 also contained
in XMT's regulatory filings, which are separately available at www.sedar.com.

    %SEDAR: 00022605E

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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