American Home Mortgage Reports Record Year-End Results on a 126% Jump in Loan Origination Volume; EPS Up 62% to $0.63 Despite Overall Weak Industry Conditions.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 22, 2001

American Home Mortgage Holdings, Inc. (NASDAQ: AHMH), a leading online and offline retail mortgage banker, today reported record year-end results. The financial highlights for the year ended December 31, 2000 were as follows:

- Total loan origination volume was $3.0 billion, an increase of 126% over $1.3
billion in 1999.

- Total Internet origination volume was $519.0 million, an increase of 278%
over $137.4 million in 1999.

- Total branch network origination volume was $2.5 billion, an increase of 109%
over $1.2 billion in 1999.

- Total revenue was $58.3 million, an increase of 135% over $24.9 million in
1999.

- Net income was $5.4 million, an increase of 86% over $2.9 million pro forma
in 1999.

- Net income per share was $0.63, an increase of 62% over $0.39 pro forma in
1999.

"We are pleased with our quarterly and annual results and are committed to our ongoing business strategies," said Michael Strauss, Chairman, President and CEO of American Home Mortgage Holdings. "On the Internet, we continue to focus on customer acquisition strategies that involve variable cost, call centers delivering a high-touch customer experience, and controlling costs. In our branches, we strive to deliver the right mix of price, product, technology and distribution. Our central overhead for our core functions - secondary marketing, information technology, accounting, insuring and pooling - continues to be scaleable, affording us positive operating leverage as we grow our business."

"Due to our cost-effective business model, we had a strong year in 2000, outperforming the industry averages," continued Mr. Strauss. "Our expanded online and offline network, coupled with the significant increase in mortgage refinancing applications that began in the fourth quarter, should positively influence our 2001 results. Specifically, we believe that to a limited extent, during the first quarter of 2001, and to a larger extent during the second through fourth quarters of 2001, we may realize higher loan production and greater earnings than current analysts' estimates."

ANNUAL CORPORATE HIGHLIGHTS

- American Home Mortgage grew its branch network from 14 loan

offices, on the East Coast, to 53 offices across the nation

through the acquisitions of Marina Mortgage (transaction

closed 12/99), First Home Mortgage (6/00), the mortgage

offices of Roslyn National Mortgage Corp. (10/00) and ComNet

(transaction expected to close in first quarter 2001), and

through organic growth.

- American Home Mortgage's Internet subsidiary, MortgageSelect,

launched a new Web site.

- MortgageSelect.com grew to rank third among all active online

mortgage lenders according to U.S. Bancorp Piper Jaffray.

- Internet loan closings grew 388%.

- Annual growth was accretive to shareholders, with annual EPS

increasing 62% to $0.63 from pro forma $0.39 in 1999.

- The Company entered into a new credit facility from Morgan

Stanley for $75 million, increased its First Union agented

facility to $115 million, and increased its Paine Webber

conduit facility to $200 million.

- The Company entered into an agreement with Patriot Bank to be

its mortgage processing and secondary marketing provider.

FOURTH QUARTER FINANCIAL HIGHLIGHTS

- Total loan origination volume was $961.7 million, an increase

of 136% over $407.9 million for the same period last year.

- Total Internet origination volume was $152.1 million, an

increase of 113% over $71.4 million for the same period last

year.

- Total branch network origination volume was $809.6 million, an

increase of 141% over $336.5 million for the same period last

year.

- Total revenue was $20.4 million, an increase of 197% over $6.9

million for the same period last year.

- Net income was $1.8 million, an increase of 144% over $747,000

for the same period last year.

- Net income per share was $0.20, an increase of 100% over $0.10

in the same period in 1999.

FINANCIAL COMMENTARY AND OUTLOOK FOR 2001

It is noteworthy that the Company's fourth quarter and 2000 year-end results did not include benefits from the current surge in refinance applications, or the benefits from the Company's recent acquisition of ComNet. The annual results contain only a partial benefit from the acquisition of Roslyn's mortgage offices. The Company's merger activity has made its franchise much larger co-incidental with the mortgage origination market substantially improving. The Company is now benefiting from these acquisitions more than it had initially expected, and believes these factors should positively influence results for 2001. For these reasons, earnings and loan production may, to a limited extent during the first quarter, and to a larger extent, during the second through fourth quarters, exceed current analyst forecasts.

An example of how the refinance market in particular and the Company's increased franchise in general may improve 2001 results is the Company's volume of new loan applications. In January, 2001 the dollar volume of applications the Company received was $777 million, compared to $451 million of applications in December, 2000 and $204 million of applications in January, 2000. Internet applications in January, 2001 were $139 million, compared to $98 million in December, 2000 and $36 million in January, 2000. It is important to note that January applications were exceptionally high and will likely decline in coming months. It is also important to note that the Company's pull through percentage of applications that close is likely to decline since a higher portion of current applications are for refinances that traditionally suffer a higher fall-out rate. Finally, it is also important to note that January's applications may not be indicative of full-year performance, and the changes in market conditions, interest rates, as well as many other factors could cause the Company to fail to meet analysts' estimates.

"We anticipate continued strong growth in our Internet channel," commented Mr. Strauss. "In addition, we will continue to acquire traditional loan offices opportunistically. We believe that many banks that originate $200 million to $500 million of mortgages annually can not justify the costs of a mortgage operation, and that there are additional opportunities for our company to grow through the acquisition of these entities mortgage units at minimal cost."

Mr. Strauss concluded, "We intend to continue focusing on the pursuit of these opportunities in growing our branch office network. We are committed to both increasing our online presence through additional strategic partnerships, as well as expanding our existing branch networks' volume of business."

ABOUT AMERICAN HOME MORTGAGE

American Home Mortgage Holdings (NASDAQ: AHMH) is a leading independent retail originator of residential mortgage loans both online and offline. Its online operation, Mortgageselect.com, is ranked #3 among active lenders in 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 53 community loan offices in 12 states across the country. The Company has overcome the cyclical nature of its industry by focusing on the homebuyers market rather than the refinance market, and by gaining market share with its broad product line, competitive rates, and consultative sales approach. For additional information, please visit the Company's Web site 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 HOLDING, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                  (In millions except per share data)
                              (Unaudited)

                               Quarter Ended      Twelve Months Ended
                               December 31,           December 31,
                              2000       1999       2000       1999
 Total revenues              $20.4       $6.9      $58.3      $24.9

Operating expenses            16.7        5.4       48.2       19.5

Net income                    $1.8       $0.7       $5.4       $3.9
                            ------      ------     -----      ------
Earnings per share of
  common stock-
  Basic and diluted          $0.20      $0.10      $0.63      $0.69
Weighted average
  shares-basic           8,955,001  7,550,077  8,579,859  5,595,251
Weighted average
  shares-diluted         8,955,001  7,579,423  8,579,859  5,602,587

Pro forma net
  operating income                       $0.7                  $2.9
                                       ------                ------
Pro forma earnings per
  share of common stock
  basic and diluted (1)                                       $0.39
Pro forma weighted
  average shares-basic                                    7,550,077
Pro forma weighted
  average shares-diluted                                  7,579,423

    (1) Pro forma net income per share has been computed by dividing
        pro forma net income by the pro forma weighted average number
        of shares outstanding at December 31, 1999. Pro forma net
        income represents the results of operations adjusted to
        reflect the Company's change in income tax status from an S
        corporation to a C corporation using a pro forma income tax
        rate of 44% and excludes a $625,000 non-cash, non-recurring
        tax expense resulting from the actual conversion in the
        quarter ended September 30, 1999.