American Home Mortgage Files $50 Million Universal Shelf Registration

Business Wire, Oct 11, 2001

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 11, 2001

American Home Mortgage Holdings, Inc. (Nasdaq:AHMH) announced today that it has filed a universal shelf registration statement (the "Registration Statement") with the Securities and Exchange Commission ("SEC").

After the Registration Statement has become effective, the Company may, from time to time, offer up to $50,000,000 of its common stock, preferred stock and warrants to acquire common or preferred stock (the "Securities"). The Registration Statement also covers 1,567,295 shares of common stock held by certain stockholders of the Company.

Michael Strauss, Chairman, President and CEO stated, "This Registration Statement is intended to provide the Company with expanded financial flexibility, enabling us to raise up to an aggregate of $50,000,000, subject to market conditions and the Company's capital needs. We intend to use the net proceeds from the sale of the Securities for general corporate purposes, which may include, among other things, working capital, funding for acquisitions and capital expenditures."

The Securities may be offered in one or more separate offerings. They may be offered in amounts, at prices and based upon terms to be determined at the time of the offering. The terms of each offering will be stated in a prospectus supplement.

The Registration Statement has been filed with the SEC but has not yet become effective. The Securities may not be sold nor may offers to buy the Securities be accepted prior to the time the Registration Statement becomes effective. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

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 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 63 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 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; disruption in the economic and financial conditions primarily from the impact of recent terrorist attacks in the United States, threats of future attacks, police and military activities overseas and other disruptive worldwide political events, 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-3 as filed with the Securities and Exchange Commission.