Cervus Appoints New Chair.

TORONTO -- Cervus Financial Group Inc. ("Cervus"), (TSX:CFG), is a financial services company dedicated to providing mortgages through select mortgage brokers. Cervus Financial Group Inc. announced today that Peter Williams is appointed Executive Chairman effective immediately. Mr. Williams will operate on a fulltime basis within the Company. Mr. Williams will also be the Chair of the newly established Executive Committee which will be responsible for reviewing and overseeing all operating and financial decisions. The other members of the Executive Committee will be Gary Bartholomew, David Banks, Bill Hewitt and Victor Hum.

Mr. Williams commented, "I am excited to have this opportunity. While I recognize the challenges Cervus has as a pioneering venture, the market opportunity is proving to be better than we anticipated when we started.

Peter Williams joined the Board of Cervus Financial Group on February 2004. Most recently, Mr. Williams was the Founding Chairman and Chief Executive Officer of Ameritrade Canada, and stepped down this month, after TD Waterhouse completed its acquisition of Ameritrade Canada. Mr. Williams' prior experience includes Chairman and CEO of CT Securities Inc. responsible for establishing the online brokerage business, CEO & President of Equitable Life Insurance, Partner with KPMG Canada responsible for consulting to the financial services sector, and General Manager Treasury following this Senior Vice President Capital Markets & Merchant Banking at Scotia Bank. He received an MBA from Queens University in the UK and is a Certified General Accountant in Canada.

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 $22.5 billion 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's 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 accurac y of this release.

Cervus Financial Group Inc. (TSX:CFG)