News Release

Newport Beach, California – Impac Mortgage Holdings, Inc. (the "Company" or "IMH": AMEX-IMH), a real estate investment trust ("REIT"), announces a $2.0 million common stock repurchase plan in compliance with Rule 10b-18 and the suspension of its common stock dividend. Mr. Joseph R. Tomkinson, Chairman and CEO, said that "The Board of Directors has decided to cease payment of future common stock dividends until the Company has utilized its tax loss carry forwards”. The Company estimates that by December 31, 2000, the Company will have approximately $25.0 million in tax loss carry forwards that can be utilized to reduce future taxable income.

Mr. Tomkinson said, “Based upon our 2001 business plan it is best to retain capital for re-investing back into the Company”. Mr. Tomkinson noted that "The Company’s loan acquisitions are running at historical highs. Its warehouse lending operations are in excess of $350 million in outstanding commitments. The logical conclusion is to take advantage of the tax loss carry forward and retain capital to continue the expansion and growth of its operating businesses or the repurchase of its common stock in the open market”. Mr. Tomkinson further stated, “This is the time to reinvest our capital in the Company. We believe that the retention of earnings will allow the Company to increase its assets, book value and return to higher dividends in the near future”.

The Board of Directors has authorized the Company to purchase, during the 4th quarter, up to $2.0 million of the Company’s common stock in open market purchases from time to time at the discretion of the Company’s Management, the timing and extent of the repurchases will depend on market conditions. The Company intends to effect such repurchases, if any, in compliance with Rule 10b-18 under the Securities Exchange Act of 1934. The acquired shares will be cancelled. The Board of Directors stated that the decision to purchase the Company’s common stock would be reevaluated each quarter. The Board of Director’s stated there will be no assurances that the Company will continue its common stock repurchase plan in the future.

Impac Mortgage Holdings, Inc. is a Mortgage REIT which operates three businesses: (1) the Long -Term Investment Operations, (2) the Mortgage Operations, and (3) the Warehouse Lending Operations. The Long -Term Investment Operations invests primarily in non-conforming residential mortgage loans and securities backed by such loans. The Mortgage Operations primarily acquires and sells or securitizes non-conforming mortgage loans, and the Warehouse Lending Operations provide short-term lines of credit to originators of mortgage loans. The Company is organized as a REIT for tax purposes, which allows it generally to pass through earnings to stockholders without federal income tax at the corporate level.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by the use of forward-looking terminology such as “may”, “will”, “intend”, “expect”, “anticipate”, “estimate” or “continue” or the negatives thereof or other comparable terminology. The Company’s actual results could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including but not limited to, changes in the origination and resale pricing of mortgage loans, changes in management’s estimates and expectations, general financial markets and economic conditions and other factors described in this press release. The financial information presented in this release pertaining to actual results should not be taken to predict future earnings, as the Company may not experience similar earnings in future periods.

For more information call:
Investor Relations:
Thom Singha/Tania Jernigan
(949) 475-3600
e-mail: tsingha@impaccompanies.com or tjernigan@impaccompanies.com