Cervus Financial Group Inc.

Cervus Financial Group Inc.

September 14, 2005 08:44 ET

Cervus Achieves Highest Percentage Increase In Market Share Of Broker Lenders In Canada In Three Months Ended June 30, 2005

TORONTO, ONTARIO--(CCNMatthews - Sept. 14, 2005) -

"Cervus ranks 14th out of 44 Lenders in Canada"

Cervus Financial Group Inc. ("Cervus")(TSX:CFG), is a financial services company dedicated to providing mortgages to selected mortgage brokers. The company is pleased to announce the highest market share growth rate among 44 broker lenders in the mortgage broker market in Canada. The Company recorded an average monthly market share growth rate of 35% in mortgage originations for the three months ended June 30, 2005.

According to the Filogix Canadian Mortgage Broker Market Report ™, which reports all originations through the Filogix technology platform used by the majority of Canadian Mortgage Brokers, between March 2005 and June 2005, Cervus more than doubled their market share. As of June 2005, Cervus now ranks 14th out of 44 broker mortgage lenders in Canada.

"Cervus Q3 results showed $181 million of originations and we anticipate in Q4 that the originations will be between $345 million and $375 million making our quarter over quarter growth rate for new originations greater than 90%," states Gary Bartholomew, CEO, "Overall our total assets under administration are expected to be in the $600 million range at the end of Q4."

The company continues to see increasing adoption rates of the "Customer for Life" model. The model allows Mortgage Brokers to build their own book of business and provide the tools and products they need to retain the Customer for Life.

About "Customer for Life"

The Cervus "Customer for Life" model enables the mortgage professional to retain the relationship with the borrower as a customer throughout the life of the mortgage. The compensation model also creates a continued revenue stream in the form of trailer fees, a one time origination fee and a renewal fee every time the customer renews with Cervus. This creates income security for the mortgage professional allowing a long-term relationship to be developed with the borrower. This long-term relationship subsequently gets passed along to the institutional investor of the mortgage security, creating a higher yield long-term investment cash flow stream. The Cervus "Customer for Life" model creates profitable relationships for the borrowers, mortgage professionals, institutional investors and for Cervus.

About Cervus

Cervus Financial Group Inc. is a Canadian financial services company created as an industry initiative with leading mortgage broker companies and fixed income investment banks to become a high-yield residential mortgage producer and the largest mortgage broker lender of conventional insured and insurable mortgages in Canada. Our new and innovative business model demonstrates contracted asset accumulation of $22.5B in mortgages over five to seven years by fusing industry ownership, technology, service delivery and long term recurring revenue for the mortgage brokers.

Cervus works on the basis of a "Customer for Life" model, where the borrower is the client of the mortgage broker and Cervus is effectively the "Back Office - Servicer" between borrowers and investors. Cervus has assembled an experienced management team and board of directors who are knowledgeable in banking, financial services and related businesses. Cervus is focused on funding and servicing insurable conventional and high ratio insured residential mortgages originated through mortgage brokers. Cervus is currently licensed under Ontario, Quebec, British Columbia and Alberta mortgage broker/lender legislation and is seeking similar regulatory approvals in other Canadian Provinces as required. Cervus' head office and Ontario operations centre is located in Toronto, with additional sales offices in Vancouver, Calgary and in Montreal. Cervus Financial Group Inc. conducts all lending operations through its wholly-owned subsidiary, Cervus Financial Corp.

Forward-looking (safe harbour) statement

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes," plans," "expects" or "intends" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

Additional information about Cervus is available on SEDAR (www.sedar.com).

The TSX does not accept responsibility for the adequacy or accuracy of this release.

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