News Release

NEWPORT BEACH, Calif., May 25 /PRNewswire-FirstCall/ -- Impac Mortgage Holdings, Inc. (NYSE: IMH), or the "Company", a Maryland corporation taxed as a Real Estate Investment Trust ("REIT"), announced today that it has priced an offering of 2.0 million shares of its 9.375% Series B Cumulative Redeemable Preferred Stock at a public offering price of $25.00 per share. Investors will receive cumulative cash dividends on the Series B Preferred Stock from May 28, 2004 (the expected closing date of the offering), in the amount of $2.34375 per share each year, which is equivalent to 9.375% of the $25.00 liquidation preference per share. Dividends on the Series B Preferred Stock will be payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, beginning on June 30, 2004. The shares of Series B Preferred Stock have no stated maturity, will not be subject to any sinking fund or mandatory redemption and will not be convertible into any other securities. Proceeds from the public offering are expected to be used for general corporate purposes. The aggregate net proceeds, before expenses, to the Company are estimated to be approximately $48.4 million. We have applied to list our Series B Preferred Stock on the New York Stock Exchange under the symbol "IMH PrB."

The public offering is managed by Bear, Stearns & Co. Inc, Stifel, Nicolaus & Company Incorporated., JMP Securities, RBC Dain Rauscher, Inc., Advest, Inc., Flagstone Securities, LLC and are acting as a co-managers.

The Company has granted the underwriters an option, exercisable for 30 days, to purchase up to an additional 300,000 shares of Series B Preferred Stock to cover over-allotments, if any. If the underwriters' option is exercised, the additional net proceeds will be approximately $7.3 million. This release shall not constitute an offer to sell or the solicitation of an offer to buy.

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.

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

SOURCE  Impac Mortgage Holdings, Inc.
    -0-                             05/25/2004
    /CONTACT:  Tania Jernigan of Impac Mortgage Holdings, Inc.,
+1-949-475-3722, tjernigan@impaccompanies.com/
    (IMH)

CO:  Impac Mortgage Holdings, Inc.
ST:  California, Maryland
IN:  FIN RLT
SU:  OFR DIV

CM 
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2589 05/25/2004 20:28 EDT http://www.prnewswire.com