News Release

NEWPORT BEACH, Calif., March 30 /PRNewswire/ -- Impac Mortgage Holdings, Inc. (Amex: IMH) (the "Company or "IMH"), a Maryland corporation, being taxed as a Real Estate Investment Trust ("REIT") announces today that its subsidiary, Impac Funding Corporation signed an agreement to purchase the remaining $5.0 million of IMH's 10.5% Cumulative Convertible Preferred Stock owned by LBP, Inc (OTC Bulletin Board: LBPI). The Preferred Stock will be purchased at a premium of $250,000 over its face value, plus accrued interest through the date of sale. The scheduled settlement date is expected to be no later than April 30, 2001. Mr. Joseph R. Tomkinson, CEO and Chairman of Impac Mortgage Holdings, Inc. commented, "The Preferred Stock again is not intended to be retired, but will be purchased as an investment that may be sold."

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 purchases and sells or securitizes non-conforming mortgage loans, and the Warehouse Lending Operations provides 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.

For further information please contact Investor Relations: Tania Jernigan at 949-475-3722, or email tjernigan@impaccompanies.com. SOURCE Impac Mortgage Holdings, Inc.

CONTACT: Investor Relations, Tania Jernigan of Impac Mortgage Holdings,