Taken from the Yu-Gi-Oh! Wikia article (it says everything I would have said but saves me having to type it):
"Exceed Summons can be conducted when there are two or more monsters of the same Level on the field. Those monsters can be used as Exceed Material Monsters to Summon an Exceed Monster whose Rank is the same as the Levels of the monsters used.
In order to Exceed Summon an Exceed Monster, you must first take the required Exceed Material Monsters face-up on your side of the field and stack them together. Then, the Exceed Monster is Exceed Summoned from your Extra Deck, and placed on top of the stack.
Exceed Material Monsters are not sent to the Graveyard. Instead, they are placed on the same Monster Card Zone beneath the Summoned Exceed Monster."
Also, Exceed monster have a rank so for example, Gravity Bind won't work on them and they cannot be used as Tribute for a Ritual Summon or as Synchro Material and any other cards that refer to a level of the card do not have an effect on them.
