American Home Mortgage Reports Record First Quarter Results and Provides Earnings Guidance.

Business Editors

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

-- EPS Soars 155% to $0.28 --

-- Revenue Exceeds $22 Million --

-- Loan Production Increases 160% --

-- Sixth Consecutive Quarter of Record Net Income Since the IPO --

American Home Mortgage Holdings, Inc. (NASDAQ: AHMH), a leading online and offline retail mortgage banker, today reported record results for the first quarter ended March 31, 2001. During the quarter, American Home Mortgage achieved record loan production, revenue, net income, and earnings per share.

FINANCIAL HIGHLIGHTS

-- Earnings per share rose to $0.28, an increase of 40% over $0.20

for the preceding quarter, and an increase of 155.0% over $0.11

for the same period in 2000.

-- Total revenue rose to $22.1 million, an increase of 8.4% over

$20.4 million for the preceding quarter, and an increase of

133.0% over $9.5 million for the same period in 2000.

-- Total loan closings rose to $1.3 billion, an increase of 35.1%

over $961.7 million during the preceding quarter, and an increase

of 160.1% over $499.9 million during the same period in 2000.

-- Total Internet loan closings rose to $201 million, an increase of

32.1% over $152.1 million for the preceding quarter, and an

increase of 142.2% over $82.9 million for the same period in

2000.

-- Net income rose to $2.5 million, an increase of 40.8% over $1.8

million for the preceding quarter, and an increase of 185.3% over

$888,000 during the same period in 2000.

"We are pleased with the results of the first quarter," said Michael Strauss, Chairman, President, and CEO of American Home Mortgage. "Typically, the first quarter of the year is the weakest for the Company and its industry peers, yet, we were able to realize record loan closings and earnings per share. These results are due in large part to the benefit derived from the Company's recent mergers, increased Internet originations, and organic growth. These activities have enlarged our franchise and enabled us to benefit from significant economies of scale. The Company also experienced a surge in loan applications for refinancing during the quarter. Only a small portion of these refinance applications closed during the first quarter, most were being processed toward closing during the second and third quarters.

"We believe that the benefits of our mergers and Internet and organic growth are likely to enhance results into the foreseeable future," commented Strauss. "We also believe that the surge in refinancing will strongly enhance our second quarter results. For these reasons, we are giving guidance as to our estimates of our second quarter and full-year earnings.

"We believe that the combination of our mergers and growth, combined with the positive impact of refinancing, will result in second quarter income in excess of $0.50 per share. We further believe that, after refinance activity returns to normal levels, our mergers and growth will continue to enable us to produce earnings at enhanced levels, and that our full-year earnings for 2001 will exceed $1.50 per share. Our estimate of $1.50 per share assumes the above normal refinance activity will end this month. If it continues, we believe our earnings would benefit accordingly. We believe we will be able to continue to achieve year-over-year growth during 2002.

"Our company continues to pursue a strategy of growing by acquisitions, new Internet initiatives, and organic growth in our existing branches. We believe we can successfully execute on this growth strategy.

"Our company is indebted to the extraordinary efforts being put forth by our staff and management to cope with our high application volume. Their hard-work and dedication has been remarkable."

CORPORATE HIGHLIGHTS

-- The Company closed its acquisition of ComNet Mortgage, and

entered into a marketing agreement with Commonwealth Bank,

thereby acquiring five loan production offices. This

acquisition was completed on April 1, 2001.

-- The Company's Board of Directors established a policy of a

regular quarterly dividend of $0.03 per share, subject to

change based on future business prospects, market conditions

or company needs, and in accordance with this policy,

declared an initial quarterly dividend of $0.03 per share

that was payable April 19, 2001 to shareholders of record as

of April 5, 2001.

-- The Company announced the addition of two key executives to

its senior management team; Donald Henig as Senior Vice

President of New Sales Channels, and Dena Kwaschyn as Senior

Vice President of Operations.

-- The Company hired a loan origination group, and in connection

therewith, opened a loan origination regional office in the

Denver area.

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 lender 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 54 community loan offices in 12 states 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 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.

                AMERICAN HOME MORTGAGE HOLDINGS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                  (In millions except per share data)
                              (Unaudited)

                                                  Quarter Ended
                                                     March 31,
                                               2001            2000
Total revenues                                 $22.1           $9.5

Operating expenses                              17.3            7.9

Net income                                      $2.5           $0.9

Earnings per share of common stock-
 Basic and diluted                             $0.28          $0.11
Weighted average shares-basic                9,000,779     8,286,747
Weighted average shares-diluted              9,157,223     8,397,193