American Home Mortgage Initiates Hedging Program For Servicing Portfolio

Business Wire, August 16, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 16, 2002

CEO and CFO File Certification With SEC Under Sarbanes-Oxley

Act of 2002

American Home Mortgage Holdings, Inc. (NASDAQ: AHMH), a leading independent retail mortgage banking company, announced that on August 15, 2002, it began a hedging program against impairment of its mortgage servicing assets.

The cost of the program is not expected to materially impact the company's financial results and is expected to prevent impairment loss to its servicing assets during the third quarter of 2002, as well as in future quarters.

Certification Filed With SEC Under Sarbanes-Oxley Act of 2002

Separately, the company announced that its chief executive officer, Michael Strauss and chief financial officer, Stephen Hozie, have signed and filed a certification letter with the U.S. Securities and Exchange Commission attesting to the accuracy of the company's quarterly report on Form 10-Q for the second quarter ended June 30, 2002.

About American Home Mortgage

American Home Mortgage Holdings, Inc. is an 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 131 community loan offices across the country. For additional information, please visit the company's Web site at www.americanhm.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, including, but not limited to earnings guidance and forecasts, and projections of financial results, may be deemed to be a forward-looking statement. Such forward-looking statements involve known 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-3 as filed with the Securities and Exchange Commission.