An Exceed Summon can be conducted when there are two or more monsters of the same level on the field. Those monsters can be used as Material Monsters to Summon an Exceed Monster whose Level is equal to the combined Levels of the monsters on the field.
Material Monsters are not sent to the Graveyard. Instead, they are used as overlay and stay on the field.
This type of Summon will be in the upcoming Yu-Gi-Oh! ZEXAL series.