American Home Mortgage Names WL Ross as Successful Bidder for American Home's Servicing Business.

MELVILLE, N.Y. -- American Home Investment Corp. (OTC:AHMIQ) ("American Home") today announced that the stalking horse bid of AH Mortgage Acquisition Co., an entity sponsored by WL Ross & Co. LLC, was selected as the highest and best offer for American Home's mortgage servicing platform and mortgage servicing rights. The sale of the servicing business is subject to the approval of the U.S. Bankruptcy Court for the District of Delaware. A sale approval hearing is scheduled for October 15, 2007. Financial closing of the transaction is anticipated by the end of October.

The purchase price payable under the agreement is based on a formula, tied primarily to the amount of unpaid principal loan balances and outstanding servicing advances as of the financial closing date. American Home estimates, based on current account balances and certain other assumptions, that the total purchase price will be approximately $500 million.

Located in Irving, Texas, the mortgage servicing business of American Home employs over 400 professionals servicing a portfolio of more than 200,000 loans and over $50 billion of unpaid principal balance. An objective of American Home through the sales process is to provide a seamless transition of mortgage servicing to homeowners while its servicing operations are transferred to AH Mortgage Acquisition Co.

This news release contains "forward-looking statements" that are based upon expectations, estimates, forecasts, projections and assumptions. Any statement in this news release that is not a statement of historical fact, including, but not limited to, projections of financial results, expected future financial position, or business strategy, and any other statements of plans, expectations, objectives, estimates and beliefs, is a forward-looking statement. Words such as "look forward," "will," "anticipate," "may," "expect," "plan," "believe," "intend," "opportunity," "potential," and similar words, or the negatives of those words, are intended to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that are difficult to predict, and are not guarantees of future performance. As a result, actual future events may differ materially from any future results, performance or achievements expressed in or implied by this news release. Such forward-looking statements are inherently uncertain, and actual results may differ from expectations. American Home does not assume any responsibility, and expressly disclaims any responsibility, to issue updates to any forward-looking statements discussed in this news release, whether as a result of new information, future events or otherwise.