American Residential Reaffirms Full-Year 2003 Earnings Guidance; -- Reiterates Effective Hedging Strategy --.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Aug. 28, 2003

American Residential Investment Trust, Inc. (AMEX: INV), the parent company of American Mortgage Network (AmNet), a wholesale mortgage bank serving mortgage brokers nationwide, today reaffirmed its full-year 2003 earnings guidance.

The Company projects that 2003 consolidated net income will be in the range of $30 to $32 million, or between $3.50 and $3.75 per diluted share, inclusive of tax benefits recorded in the first and second quarters, totaling $9.1 million, or $1.04 per diluted share. The Company also reaffirmed annual 2003 mortgage loan production of $11 to $12 billion. Based on 2003 earnings guidance, the Company expects basic book value per share to be between $11.00 and $11.50 at December 31, 2003.

In light of current events impacting the mortgage market, the Company wanted to bring transparency to AmNet's conservative hedging strategy. AmNet hedges to mitigate the adverse impact that interest rate fluctuations can have on the value of its loan pipeline. The interest rate risk is represented by the interest rate commitments, or locks, AmNet makes to borrowers. AmNet's hedges are designed to protect profit margins on locked loans and on closed loans before they are committed for sale. The hedge instruments used by AmNet are forward sale commitments of mortgage backed securities ("TBA") and options to sell mortgage backed securities. The hedge instruments utilized are all mortgage-related, thereby significantly reducing basis risk. Basis risk is the term used to describe the risk created when the value of an instrument utilized to hedge interest rate increases or decreases does not move in the same proportion as the hedged mortgage rate.

"I feel it is important to let our shareholders know that our interest rate risk procedures have served us well," said John M. Robbins, Chief Executive Officer. "Using a disciplined process, we adjust the hedge coverage on our pipeline every business day with the singular goal of remaining interest rate neutral and protecting the profit margin built into our mortgage loans. Over the last several weeks, which have been marked by steadily rising yields and resulting declines in the price of mortgages, our hedge positions have worked very effectively. AmNet does not speculate on interest rate changes and is never in a position of being intentionally long or short in the mortgage market."

AmNet uses Mortgage Capital Management (MCM) to perform daily pipeline exposure analysis as well as provide daily hedging recommendations and execution. AmNet has been able to sustain its net loan sale margins consistently through periods of both declining and rising interest rates. The technology available to mortgage bankers today to quantify the interest rate exposure represented by a pipeline of mortgages has never been better. This technology, combined with sound hedging principles and strictly controlled execution, has enabled AmNet to produce consistent net loan sale margins over the last year.

About American Mortgage Network

Headquartered in San Diego, California, American Mortgage Network is a wholly owned subsidiary of American Residential Investment Trust, Inc. AmNet originates loans for the national mortgage broker community through its network of regional centers and business-to-business over the Internet. AmNet has loan production offices in Phoenix, Arizona; Orange County, Ontario, California; Sacramento, California; San Diego, California; Denver, Colorado; New Haven, Connecticut; Tampa, Florida; Atlanta, Georgia; Chicago, Illinois; Minneapolis, Minnesota; Cherry Hill, New Jersey; Charlotte, North Carolina; Portland, Oregon; Providence, Rhode Island; Houston, Texas; Richmond, Virginia and Bellevue, Washington. AmNet serves more that 3,300 brokers nationwide and has licenses to do business in 47 states. For more information, please visit www.amnetmortgage.com.

About American Residential Investment Trust

American Residential Investment Trust, Inc. is the parent company of American Mortgage Network. For more information, please visit www.amerreit.com.

Forward Looking Statement

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of federal securities laws. Forward-looking statements include statements regarding 2003 projected net income and mortgage loan production and expected basic book value per share at December 31, 2003. Actual results and the timing of certain events could differ materially from those projected in or contemplated by these forward-looking statements due to a number of factors, including but not limited to: the level of interest rates generally, economic conditions generally, uncertainty as to the percentage of the pipeline that will result in mortgage loan fundings; fluctuation in the margins, net of hedging, of loans in the Company's pipeline; the predictability of the Company's expenses; the future correlation of volatility in forward mortgage sale instruments to the Company's loan lock commitments; interest rate volatility; the availability of financing for the funding of mortgage loans; the Company's liquidity position; and other risk factors outlined in American Residential's SEC reports.