Cervus Financial Group Inc.

Cervus Financial Group Inc.

February 28, 2005 10:23 ET

Cervus Financial Group appoints Murray Thomas as Chief Financial Officer


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CERVUS FINANCIAL GROUP INC.

TSX VENTURE SYMBOL: CFG

FEBRUARY 28, 2005 - 10:23 ET

Cervus Financial Group appoints Murray Thomas as Chief
Financial Officer

TORONTO, ONTARIO--(CCNMatthews - Feb. 28, 2005) - Cervus Financial Group
Inc. ("Cervus"), (TSX VENTURE:CFG), which is a financial services
company dedicated to providing mortgages through selected mortgage
brokers, announced today that it has appointed Murray Thomas as Chief
Financial Officer, succeeding Howard Broughton. Mr. Broughton will
continue to act as an advisor to Cervus.

"Cervus has moved very quickly through its start up phase in 2004 and
now is focused on operational execution. Murray Thomas, an experienced
operational and financial CFO will play a key role in facilitating the
next stage of the company's growth", states Gary Bartholomew, Chairman
and CEO of Cervus Financial Group Inc., "Mr. Broughton, former CFO and
one of the six founding management team members, has made a tremendous
contribution in the set up and structuring of the company and will
continue to provide ongoing support."

Mr. Thomas joined Cervus as VP Finance in October, 2004. Mr. Thomas is
a Chartered Accountant who articled with Ernst & Young. He has
experience in the mortgage, distribution, consumer electronics
industries and technology based businesses. Mr. Thomas was the former
CFO of Intrigue Technologies Inc., a private consumer electronic
business from August 2003 to October 2004. During his tenure at
Intrigue, monthly sales increased by 500% over seven months, prior to
being acquired by Logitech Inc. in May 2004 for $29 million (US
dollars). Previously, from September 1999 to July 2003, Mr. Thomas was
the VP Finance of Basis100 Inc., a public mortgage technology company.

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 $30B 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 planned offices in Vancouver (2005) serving Western
Canada and in Montreal serving Quebec (2005). 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).

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cervus Financial Group Inc.
    Jan Moir
    Investor Relations
    416-860-5230
    IR@cervus.com
    or
    Cervus Financial Group Inc.
    Gary Bartholomew
    Chairman and CEO
    416-861-1315 ext 226
    gbartholomew@cervus.com
    www.cervus.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.