Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on Behalf of Investors in American Home Mortgage Investment Corp

Business Wire, August 17, 2007

NEW YORK -- On August 15, 2007, Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court, Eastern District of New York, on behalf of all persons who acquired the common stock of American Home Mortgage Investment Corp. ("AHM" or the "Company") [OTC:AHMIQ.PK] between April 19, 2005 and July 27, 2007, inclusive (the "Class Period"), against certain of its officers and directors, alleging violations under Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. SS78j(b) and the rules and regulations promulgated thereunder by the SEC, including Rule 10b-5, 17 C.F.R. SS240.10b-5 (the "Class").

The Complaint alleges that throughout the Class Period, defendants issued numerous, positive press releases, statements and financial reports filed with the SEC that described the Company's financial performance.

The Complaint alleges that throughout the Class Period, defendants issued numerous, positive financial statements, annual and quarterly financial reports filed with the SEC that described the Company's financial performance, press releases, and other public statements. These public statements were materially false and misleading because they misrepresented and failed to disclose the following adverse facts, among others, that: (a) the Company was experiencing an increasing number of loan delinquencies; (b) the Company failed to take adequate reserves against known or knowable future losses, including losses as a result loan delinquencies; (c) the Company failed to write down on its financial statements the value of certain loans that had substantially declined, thereby increasing the Company's overall exposure to loss; (d) as a result of the increased delinquencies, it was becoming increasingly more difficult for the Company to sell its loans absent sharp price discounts, thus reducing profit margins and profit; (e) even at reduced prices, the Company was unable sell many of its loans and was forced to hold them, thereby increasing its exposure; and (f) as a result of the foregoing, the Company reported overstated financial results and concealed from the investing public, including plaintiff and other members of the Class, the true nature and extent of the undisclosed credit risk facing the Company.

The complaint further alleges that as a result of defendants' false statements, AHM's stock traded at artificially inflated price during the Class Period, reaching a high of $39.84 per share on August 2, 2005. However, on July 31, 2007, when the Company issued a press release announcing its true financial condition and its inability to fund its lending obligations, the Company's stock price plummeted to an all time low of per share to $1.04 per share.

As a result of the dissemination of the false and misleading statements set forth in the complaint, the market price of AHM common stock was artificially inflated during the Class Period. In ignorance of the false and misleading nature of the statements described above, and the deceptive and manipulative devices and contrivances employed by said defendants, plaintiffs and the other members of the Class relied, to their detriment, on the integrity of the market price of AHM common stock. Had plaintiffs and the other members of the Class known the truth, they would not have purchased said common stock, or would not have purchased them at the inflated prices that were paid.

The case name is styled KT Investments, LLC v. Strauss, et al. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.

If you purchased AHM common stock during the Class Period, you may request that the Court appoint you as lead plaintiff by October 1, 2007.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City, San Diego, Washington, D.C., and West Palm Beach. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.