fantastic job providing the DDL and sample data!
I think in this case, you need to match partial strings, right?
you will want to join the tables together, but use a LIKE statement for the join criteria,(where you might be used to A.ID = B.ID
this seems to do what i think we are after:
SELECT Products.*
FROM Products
LEFT OUTER JOIN Exceptions
ON Exceptions.ProductDesc LIKE '%' + Products.ProductDesc + '%'
WHERE Exceptions.ProductDesc IS NULL
Lowell