Equity Financial Holdings Inc. Announces Common Share Offering

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE,
PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR
IN PART, IN OR INTO THE UNITED STATES.


Equity Financial Holdings Inc. (TSX:EQI) ("EQI" or "the Corporation"), a
Canadian financial services company serving the corporate and institutional
market, today filed a preliminary short form prospectus in each of the provinces
of Canada other than Quebec in connection with a proposed public offering of its
common shares designed to raise gross proceeds of approximately $10 million (the
"Offering"). The Offering will be conducted through an offering syndicate led by
Cormark Securities Inc. and including Jennings Capital Inc. and National Bank
Financial Inc. Final pricing and determination of the number of common shares to
be sold pursuant to the Offering will occur immediately prior to the filing of
the final short form prospectus in respect of the Offering.


The net proceeds from the Offering are expected to be used primarily by EQI to
purchase additional shares of EQI's wholly-owned subsidiary, Equity Financial
Trust Company ("EFT", formerly Equity Transfer & Trust Company), to enable EFT
to attain a regulatory capital balance of not less than $20 million.


In January 2010, the Corporation announced that EFT had applied for regulatory
approval to become a deposit-taking institution ("DTI") in order to enter the
growing field of residential mortgage lending. If approved, EFT will focus on
the 5-10% of this market represented by alternative residential mortgages. The
approval process also requires EFT to become a member of the Canada Deposit
Insurance Corporation ("CDIC"), as deposits must be CDIC-insured. 


Since that announcement, EFT has taken steps to leverage its existing
infrastructure, hired key personnel to support the mortgage and deposit
operations, developed and tested new processes and systems and enhanced its risk
management, compliance and control structures. 


The Offering is expected to close on or about February 25, 2011 and is subject
to certain conditions including, but not limited to, the receipt of all
necessary approvals, including the approval of the Toronto Stock Exchange. Upon
the completion of the Offering, the Corporation believes that it will have met
all the regulatory requirements necessary to become a DTI. 


Subject to the receipt of all necessary approvals, EFT expects to commence
mortgage and deposit operations shortly after the new capital investment has
taken place and it is targeting originations of $100 million over the initial
twelve month period. It is expected that the mortgage and deposit business will
reach break-even EBITDA within twelve months and be accretive to earnings
thereafter.


EQI President & CEO Paul G. Smith said, "Our strategic plan calls for growth
through diversification into financial services that are adjacent and
complementary to our existing operations. By leveraging EFT's regulatory status,
trust charter, financial, and technology infrastructure, we believe that the
achievement of DTI status has the potential to create significant shareholder
value."


Nick Kyprianou, EFT's President, Mortgage Operations said, "In an industry
facing ever-increasing regulatory expectations and oversight, the achievement of
DTI status will be a significant milestone for the Corporation. With the
relatively low level of competition in this segment and with EFT's robust
foundation, the Corporation is confident in its ability to launch and operate a
successful mortgage operation." 


This news release does not constitute an offer to sell or a solicitation of an
offer to buy any of the securities in the United States. The securities have not
been and will not be registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act") or any state securities laws and may not
be offered or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.


About Equity Financial Holdings Inc. 

Through its wholly owned subsidiaries, EQI provides transfer agent, corporate
trust, corporate secretarial and foreign exchange services to corporations in
North American capital markets. The Corporation's Consolidated Financial
Statements and Management's Discussion and Analysis for the year ended December
31, 2010 can be found in the Corporation's filings on SEDAR at www.sedar.com and
on the Corporation's website at www.equityfinancialholdings.com.


This press release contains "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," "estimates,"
"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. This press release includes, without limitation,
statements regarding the Corporation's intention to commence operations as a
deposit-taking institution, the Corporation's belief that it will receive all
necessary regulatory approvals in connection therewith, the Corporation's EBITDA
and earnings expectations for the mortgage and deposit business, 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. Such 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.
Prospective investors and others 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, errors or omissions by the Corporation in providing
services to its customers, significant changes in interest rates, foreign
currency exchange rates or the cost of complying with applicable regulatory
requirements, inability to raise funds through public or private financing
(including through the Offering), failure by EFT to obtain the approvals
required to carry on its proposed deposit-taking and mortgage activities in a
timely manner and/or on acceptable terms and conditions, the failure of
borrowers or counterparties to honour their financial or contractual obligations
to EFT, 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 secure sufficient deposits from investment advisors or deposit
brokers 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.
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