Equity Sells its Transfer Agent and Corporate Trust Business

Equity Financial Holdings Inc. (TSX:EQI), a Canadian financial services company
serving the corporate and institutional markets and the retail mortgage market,
today announced that it had reached an agreement with TMX Group Limited (TSX:X)
to sell its transfer agent and corporate trust business. Equity has made the
strategic decision to focus on its rapidly growing retail mortgage lending and
deposit-taking business. 


"This is a great day for Equity. Over the years we have built a strong and
diversified company that has excelled in the transfer agent and corporate trust
business and, more recently, entered the mortgage lending and deposit-taking
business," said Equity President & CEO, Paul G. Smith. "We have made the
strategic decision to move exclusively into the mortgage and deposit business
and will now have the necessary capital to invest in and support our new
business strategy. At the same time, we see TMX Group as an organization that is
well-positioned to support the future growth and continued success of the
transfer agent and corporate trust business, which is great news for employees
and clients." 


Under the terms of the agreement, TMX Group will acquire Equity's transfer agent
and corporate trust business for $64 million payable in cash at closing, subject
to certain post-closing price adjustments. With 700 transfer agent clients, the
business serves companies from its offices in Toronto, Vancouver, Calgary and
Montreal. A critical component of the transfer agent and corporate trust
business is the highly skilled and experienced management and client service
teams, who will be joining TMX Group. The agreement is subject to certain
conditions, including Equity shareholder approval, which will be sought at the
annual and special meeting of shareholders, planned for late March or early
April.


Significant Growth Segment 

Having grown significantly since Equity first entered the business in 2011, the
mortgage lending and deposit-taking business gained significant strength over
the past fiscal year. It represents the Company's fastest growing income stream,
with $42 million in new mortgage loans in the fourth quarter alone, for a total
of more than $198.0 million in total loans outstanding as at December 31, 2012.
As announced at the end of its fourth quarter, Equity's mortgage business is the
primary driver of the 260 per cent year-to-date increase in net interest income.


Focusing on Future Growth Opportunities 

Nick Kyprianou, CEO of Equity Financial Trust Company added, "Since starting in
the mortgage and deposit business, Equity has demonstrated its expertise and
superior ability to serve our mortgage broker partners and deposit dealers. This
transaction allows us to make the necessary investments to leverage the
infrastructure we have developed for continued growth." 


Transfer Agent and Trust Clients to Benefit from new Ownership 

Mr. Smith noted, "Equity has been a major player in the transfer agency and
corporate trust markets in Canada. We are confident that clients will benefit
from being part of a larger organization like TMX Group that is not only
committed to providing the same level of customer service excellence, but also
has the ability to invest in the future growth of the business." 


"The expansion of our company services business in this area makes a great deal
of sense for TMX Group," said Kevan Cowan, President TSX Markets and Group Head
of Equities, TMX Group. "The stock transfer and corporate trust businesses fit
very well with the other products and services we provide to companies listed on
Toronto Stock Exchange and TSX Venture Exchange. We have the key relationships
and resources to enhance the great business that the Equity team has built. We
look forward to working with this group of dedicated professionals from Equity."



Advisors 

Equity Financial Holdings Inc. engaged Blair Franklin Capital Partners Inc. as
its financial advisor in connection with the transaction. Blair Franklin has
provided the Board of Directors with an opinion that, as of the date hereof, the
consideration to be received pursuant to the transaction is fair from a
financial point of view to Equity Financial Holdings Inc. 


Blake, Cassels & Graydon LLP acted as legal counsel for Equity Financial
Holdings Inc. 


Investor and Analyst Conference Call 

Equity will hold a conference call on February 13, 2013 at 9:00AM Eastern Time
to discuss the transaction agreement and answer questions from its investors and
analysts. 


Participants can dial 416-340-2218 or toll free 1-866-226-1793. 

About Equity Financial Holdings Inc. 

Through its wholly owned subsidiaries, EQI provides transfer agent, corporate
trust, foreign exchange and retail mortgage services to the corporate and
institutional markets, and the retail mortgage market. Learn more at
www.equityfinancialholdings.com.


Statements regarding Forward-Looking Information

Certain portions of this press release as well as other public statements by the
Corporation contain "forward-looking information" within the meaning of
applicable Canadian securities legislation, which is also referred to as
"forward-looking statements", which may not be based on historical fact.
Wherever possible, words such as "will", "plans," "expects," "targets,"
"continue", "estimates," "scheduled," "anticipates," "believes," "intends,"
"may," and similar expressions or statements that certain actions, events or
results "may," "could," "would," "might" or "will" be taken, occur or be
achieved, have been used to identify forward-looking information. Such
forward-looking statements include, without limitation, the Corporation's
earnings expectations, fee income, expense levels, general economic, political
and market factors in North America and internationally, interest and foreign
exchange rates, global equity and capital markets, business competition,
technological change, changes in government regulations, unexpected judicial or
regulatory proceedings, catastrophic events, and the Corporation's ability to
complete strategic transactions and integrate acquisitions and other factors. 


All material assumptions used in making forward-looking statements are based on
management's knowledge of current business conditions and expectations of future
business conditions and trends, including their knowledge of the current credit,
interest rate and liquidity conditions affecting the Corporation and the
Canadian economy. Certain material factors or assumptions are applied by the
Corporation in making forward-looking statements, including without limitation,
factors and assumptions regarding interest and foreign exchange rates,
availability of key personnel, the effect of competition, government regulation
of its business, computer failure or security breaches, future capital
requirements, its ability to fund its mortgage business, the value of mortgage
originations, the competitive nature of the alternative mortgage market, the
expected margin between the interest earned on its mortgage portfolio and the
interest to be paid on its deposits, the relative continued health of real
estate markets, acceptance of its products in the marketplace, as well as its
operating cost structure and the current tax regime. 


Forward-looking statements reflect the Corporation's current views with respect
to future events and are subject to a number of risks and uncertainties. Actual
results may differ materially from results contemplated by the forward-looking
statements. Readers should not place undue reliance on such forward-looking
statements, as they reflect the Corporation's current views with respect to
future events and are subject to risks and uncertainties and are necessarily
based upon a number of estimates and assumptions that, while considered
reasonable by the Corporation, are inherently subject to significant business,
economic, regulatory, competitive, political and social uncertainties and
contingencies. 

Many factors could cause the Corporation's actual results, performance or
achievements to be materially different from any future results, performance, or
achievements that may be expressed or implied by such forward-looking
statements, including among others a significant downturn in capital markets or
the economy as a whole, reduced large-volume foreign exchange revenue which
could lead to an impairment of goodwill in our foreign exchange unit, errors or
omissions by the Corporation in providing services to its customers, significant
changes in foreign currency exchange rates, extreme price and volume
fluctuations in the stock markets, significant increases in the cost of
complying with applicable regulatory requirements, civil unrest, economic
recession, pandemics, war and acts of terrorism which may adversely impact the
North American and global economic and financial markets, inability to raise
funds through public or private financing in the event that the Corporation
incurs operating losses or requires substantial capital investment in order to
respond to unexpected competitive pressures, significant changes in interest
rates, failure by Equity Financial Trust Company ("EFT") to meet ongoing
regulatory requirements, the failure of borrowers or counterparties to honour
their financial or contractual obligations to EFT, failure by the Corporation to
generate or obtain sufficient cash or cash equivalents in a timely manner and at
a reasonable price or to meet its commitments as they become due, failure by EFT
to adequately monitor and/or adjust its mortgage portfolio management practices
for changing circumstances, failure by the Corporation to attract and to retain
the necessary employees to meet its needs, failure by EFT to adequately monitor
the services provided by third party service providers or to establish
alternative arrangements if required, failure by EFT to secure sufficient
deposits from securities dealers or a sufficient level of mortgage origination
from its mortgage broker network, a failure of the computer systems of the
Corporation or one or more of its service providers or the risks detailed from
time-to-time in the Corporation's quarterly filings, annual information forms,
annual reports and annual filings with securities regulators. Forward-looking
information will be updated as required pursuant to the requirements of
applicable securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Investor contact:
Equity Financial Holdings Inc.
Paul G. Smith
President & CEO
[phone] Ext.270


Equity Financial Trust Company
Nick Kyprianou
CEO
[phone] Ext.290


Media contact:
NATIONAL Public Relations
Jennifer Lee
416-848-1383
[e-mail]


NATIONAL Public Relations
Jeff Roman
416-848-1464
[e-mail]