TORONTO, Nov. 30, 2012 /CNW/ – HOMEQ Corporation (“HOMEQ”) (TSX: HEQ)
announced today the closing of the previously announced arrangement
under the Business Corporations Act (Ontario) (the “Arrangement”) involving HOMEQ and Monaco Acquisition
Inc., an entity controlled by Birch Hill Equity Partners (“Birch
Hill”). Under the Arrangement, Birch Hill has indirectly acquired all
of the outstanding common shares of HOMEQ for cash at a price of $9.50
per common share.

It is expected that the HOMEQ shares will be delisted from the Toronto
Stock Exchange shortly hereafter. HOMEQ will also apply to cease to be
a reporting issuer.

About HOMEQ

HOMEQ’s wholly owned subsidiary HomEquity Bank is the only national
provider of reverse mortgages to homeowners aged 55 and over, Canada’s
fastest growing demographic segment. HomEquity Bank originates and
administers Canada’s largest portfolio of reverse mortgages under the
CHIP Home Income Plan brand. As of September 30, 2012, the mortgage
portfolio comprised approximately 9,500 reverse mortgages with an
accrued value of $1.3 billion, secured by residential properties across
Canada worth approximately $3.5 billion. HomEquity Bank has been the
main underwriter of reverse mortgages in Canada since its predecessor,
Canadian Home Income Plan, pioneered the concept in 1986.

HOMEQ’s shares trade on the Toronto Stock Exchange under the symbol HEQ.
Additional information on HOMEQ, including annual and quarterly reports
can be viewed at www.homeq.ca.

About Birch Hill

With $2 billion in capital under management, Birch Hill has invested in
more than 50 investments since 1994; Birch Hill is the leader in
long-term value creation in the Canadian mid market. For more
information about Birch Hill Equity Partners, please visit www.birchhillequity.com.

Forward-Looking Information

Certain statements included herein constitute “forward-looking
statements”. All statements, other than statements of historical fact,
included in this release that address future activities, events,
developments or financial performance are forward-looking statements.
These forward-looking statements can be identified by the use of
forward-looking words such as “may”, “should”, “will”, “could”,
“expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe”,
“future” or “continue” or the negative thereof or similar variations.
In particular, statements about the steps to be taken by HOMEQ
following the Arrangement are or involve forward-looking information.
These forward-looking statements are based on certain assumptions and
analyses made by HOMEQ and its management, in light of their
experiences and their perception of historical trends, current
conditions and expected future developments, as well as other factors
they believe are appropriate in the circumstances. Shareholders are
cautioned not to put undue reliance on such forward-looking statements,
which are not a guarantee of performance and are subject to a number of
uncertainties, assumptions and other factors, many of which are outside
the control of Birch Hill and HOMEQ, that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements. Important factors that could cause actual
results to differ materially from those expressed or implied by such
forward-looking statements include, among other things; the parties’
ability to satisfy the conditions of the TSX and provincial securities
regulators. Readers are cautioned that the foregoing lists are not
exhaustive.

Such forward-looking statements should, therefore, be construed in light
of such factors. If any of these risks or uncertainties were to
materialize, or if the factors and assumptions underlying the
forward-looking information were to prove incorrect, actual results
could vary materially from those that are expressed or implied by the
forward-looking information contained herein. All forward-looking
statements attributable to HOMEQ, or persons acting on its behalf, are
expressly qualified in their entirety by the cautionary statements set
forth above. Readers are cautioned not to place undue reliance on
forward-looking statements contained herein, which reflect the analyses
of the management of HOMEQ, only as of the date of this release.

For more information regarding these and other risks, readers should
consult HOMEQ’s reports on file with applicable securities regulatory
authorities accessible online by going to SEDAR at www.sedar.com or by going to the HOMEQ website at www.homeq.ca. HOMEQ is under no obligation, and HOMEQ expressly disclaims any
intention or obligation, to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by applicable law.

SOURCE HOMEQ Corporation