American Home Mortgage Reports Record Second Quarter Results; EPS Exceeds First Call Analyst Consensus

Business Wire,  July 25, 2001  

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Business Editors

NEW YORK--(BUSINESS WIRE)--July 25, 2001

American Home Mortgage Holdings, Inc. (NASDAQ: AHMH), a leading online and offline retail mortgage banker, today reported record results for the second quarter ended June 30, 2001.

During the quarter, American Home Mortgage achieved record loan production, revenue, net income, and earnings per share, marking the Company's seventh consecutive quarter of record net income since its IPO in 1999.

FINANCIAL HIGHLIGHTS

- Fully diluted earnings per share rose to $0.59, an increase of 321.4% over
$0.14 for the same period in 2000.

- Total revenue rose to $32.4 million, an increase of 182.1% over $11.5 million
for the same period in 2000.

- Total loan closings rose to $2.1 billion, an increase of 197.0% over $718
million during the same period in 2000.

- Total Internet loan closings rose to $403 million, an increase of 178.7% over
$145 million for the same period in 2000.

- Net income rose to $5.6 million, an increase of 369.5% over $1.2 million
during the same period in 2000.

"We are very excited about the second quarter's results," said Michael Strauss, Chairman, President, and CEO of American Home Mortgage. "We have consistently achieved record net income on a quarter over quarter basis since our IPO in 1999. However, it is important to note that the quarter's results were particularly enhanced by extraordinary refinance activity. As the year proceeds, and refinancings begin to taper off, our results should return to more normal levels, as we previously discussed last quarter. We reaffirm our guidance of annual earnings in excess of $1.50 per share on a go-forward basis."

"For the remainder of 2001, we expect quarterly EPS results of $0.35 to $0.40 per share. Our diligent focus on our three main growth drivers - - continued accretive acquisitions, growth of our Internet business, and organic growth in our existing branches - - has taken us to our projected run-rate of $1.50 per share for 2001. We intend to pursue this strategy with the goal of achieving continued rapid growth in 2002."

CORPORATE HIGHLIGHTS

- The Company's board of directors declared a regular quarterly

dividend of $0.03 per share. The dividend, the second in

fiscal year 2001, was payable on July 24, 2001, to

shareholders of record as of July 13, 2001.

- The Company raised net proceeds of approximately $23 million

through the sale of 2,400,000 shares of common stock in an

offering that settled July 3, 2001. These proceeds will be

used for general corporate purposes including working capital,

acquisitions, and capital expenditures.

- The Company closed on the acquisition of ComNet Mortgage,

thereby acquiring three loan production branches in Maryland,

and two in Pennsylvania.

- The Company's Internet channel, MortgageSelect.com, entered

into four new partnership agreements including outsourcing

agreements with Sterling Bank, Madison Bank, and Insurers

Bank, as well as becoming a key lender on Planet Realtor.

- MortgageSelect.com loan production reached $403 million, up

from $201 million during the first quarter.

- The Company launched its concierge service, American Home

Solutions, that provides homebuyers and homeowners with an

easy, one-step home buying experience through added savings

and solutions.

ABOUT AMERICAN HOME MORTGAGE

American Home Mortgage Holdings is a leading independent retail originator of residential mortgage loans both online and offline. Its online operation, MortgageSelect.com is a leader in online closed loan volume, and has outperformed its online competitors in terms of profitability. Offline, the Company has grown organically and by acquisition and now has 55 community loan offices across the country. For additional information please visit the Company's Website at www.mortgageselect.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains statements about future events and expectations, which are "forward-looking statements." Any statement in this release that is not a statement of historical fact, including, but not limited to earnings guidance and forecasts, and projections of financial results, may be deemed to be a forward-looking statement. Such forward-looking statements involve know and unknown risks, uncertainties and other factors which may cause the company's actual results to be materially different from any future results, performance or achievements expresses or implied by such forward-looking statements. Specific factors that might cause such a difference include, but are not limited to: the potential fluctuations in the company's operating results; the company's potential need for additional capital, the direction of interest rates and their subsequent effect on the company's business, federal and state regulation of mortgage banking; the company's competition; the company's ability to attract and retain skilled personnel; and those risks and uncertainties discussed in filings made by the company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading "Risk Factors" in the company's Registration Statement on Form S-1 as filed with the Securities and Exchange Commission.