Xceed Settlement of lawsuit with HSBC Financial Corporation Limited

TORONTO, Aug. 18, 2011 /CNW/ -- 
TORONTO, Aug. 18, 2011 /CNW/ - Xceed Mortgage Corporation (TSX: XMC), a
 Canadian provider of residential mortgages, today announced that it has
 entered into a settlement agreement with HSBC Financial Corporation
 Limited and related parties ["HSBC"] which ends all outstanding
 litigation between the two companies.


Under the terms of the settlement agreement, without admitting any
 liability or wrongdoing, and solely to settle the action, Xceed has
 made a one-time lump sum payment of $1.7 million to HSBC.  Xceed will
 record this amount as a charge to income (before tax) in the third
 quarter ended July 31, 2011.


About Xceed 


Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of
 residential mortgages that it originates in Canada.  The company has
 approximately $1.3 billion of mortgages and other assets under
 administration.  Xceed's shares are traded on the Toronto Stock
 Exchange.  To find out more about Xceed Mortgage Corporation, visit our
 website at www.xceedmortgage.com.


Forward-Looking Statements


Forward-looking statements in this document are based on current
 expectations that are subject to significant risks and uncertainties. 
 Specifically, there can be no assurance that the company will be
 successful in making new arrangements for the funding of mortgages or
 that further changes to Xceed's mortgage offering will not be required
 as a result.  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.


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p  /p table valign="top" border="0" tr td br/ Telephone:br/ Email:     /td td   /td td   /td td   /td td   /td td Michael Jonesbr/ 416-364-7944 Ext 3434br/ a href="mailto:[e-mail]"MJones@Xceed/aa href="mailto:[e-mail]"M/aa href="mailto:[e-mail]"ortgage.com/a /td /tr /table p   /p 

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