News Release

NEWPORT BEACH, Calif., Nov 12, 2004 /PRNewswire-FirstCall via COMTEX/ -- Impac Mortgage Holdings, Inc. (NYSE: IMH), or the "Company," a Maryland corporation taxed as a Real Estate Investment Trust ("REIT"), announced today that it intends to commence a public offering of 3,750,000 Common Shares. At or about the same time, IMH also proposes to offer 2,000,000 Series C Cumulative Redeemable Preferred Shares.

It is contemplated that the underwriters of the common share offering will be granted an option to purchase up to a maximum of 562,500 additional Common Shares to cover over-allotments. It is also contemplated that the underwriters of the preferred share offering will be granted an option to purchase up to a maximum of 300,000 additional Series C Cumulative Redeemable Preferred Shares to cover over-allotments. Both offerings will be made under an effective shelf registration statement of Impac Mortgage Holdings, Inc.

UBS Investment Bank is managing the offering of Common Shares. Copies of the preliminary prospectus supplement and related prospectus relating to the offering may be obtained, when available, from the offices of UBS Securities LLC, 299 Park Avenue, New York, NY 10171 (212-821-3000).

Bear, Stearns & Co. Inc. is managing the offering of Series C Cumulative Redeemable Preferred Shares. Copies of the preliminary prospectus supplement and related prospectus relating to the offering may be obtained, when available, from the offices of Bear, Stearns & Co. Inc., 383 Madison Avenue, New York, NY 10179 (212-272-2000).

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offering of these securities will be made solely by means of a prospectus and an accompanying prospectus supplement.

About Impac Mortgage Holdings, Inc.

Impac Mortgage Holdings, Inc. is a mortgage real estate investment trust, which operates three core 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 Alt-A mortgage loans. The Mortgage Operations acquires, originates, sells and securitizes primarily Alt-A mortgage loans and the Warehouse Lending Operations provides short-term financing to mortgage loan originators. The Company is organized as a REIT for tax purposes, which generally allows it to pass through earnings to stockholders without federal income tax at the corporate level.

Forward-Looking Statements

Certain of the information discussed herein constitutes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements regarding the financing plans and proposed offerings of Impac Mortgage Holdings, Inc, their prospects and future results. Such statements are based on current expectations, and the 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, financial market conditions, interest rate volatility and the level of interest rates generally; the ability to access the equity markets; the ability to consummate the offerings; general political and economic conditions; and other risk factors outlined in Impac Mortgage Holdings, Inc. filings with the Securities and Exchange Commission ("SEC"), including those listed in the prospectus supplement and accompanying prospectus for the offering of the Common Shares and those listed in the prospectus supplement and accompanying prospectus for the offering of the Series C Cumulative Preferred Shares, Impac Mortgage Holdings, Inc. report on Form 10-K/A filed with the SEC on October 14, 2004, its most recent report on Form 10-Q filed with the SEC on November 9, 2004, and other SEC filings.

For further information, please contact Investor Relations: Tania Jernigan at (949) 475-3722, or tjernigan@impaccompanies.com

SOURCE Impac Mortgage Holdings, Inc.

Investor Relations, Tania Jernigan of Impac Mortgage Holdings,
Inc., +1-949-475-3722, tjernigan@impaccompanies.com

http://www.impaccompanies.com