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With respect to the restructure of the Company's outstanding trustpreferred securities, we are in final negotiations with three of the fourtrusts, which consists of $78.6 million of the outstanding $99.2 million oftrust preferred securities. Further, as previously announced, in July 2008,the Company's stockholders approved the potential issuance of common shares inexcess of 20 percent of the existing common shares in connection with apossible exchange of the Company's Series B and Series C Preferred Stock forcommon shares. We hope to complete an exchange offer by the end of the year.

The Company is also pleased to announce that it has executed a subleaseagreement for approximately 90 thousand square feet of its offices in Irvine,CA. This new sublease agreement combined with the potential reduction andelimination of the preferred stock dividends through a possible exchangeoffering and resolution of restructuring almost all of the trust preferredsecurities is expected to provide the Company annual lease expense savings,interest expense savings and dividend reduction totaling between $23 and $25million beginning in the fourth quarter 2008.

The Company also anticipates completing the acquisition of a specialservicer, which we expect to be closed by the end of this year, andanticipates creating a new REO disposition business, "Real Estate OwnedSolutions," beginning in December 2008. With the current level of revenuesand expenses, and based on the anticipated net revenues from these newbusinesses, the Company does not anticipate the need to raise capital to fundthese new businesses. We will concentrate on growing all of these businessesas the Company's new focus will be mortgage and real estate services, andmortgage asset management.

Mr. Joseph R. Tomkinson, Chairman and Chief Executive Officer of ImpacMortgage Holdings, Inc. commented that, "The restructuring of the trustpreferred securities, the anticipated completion of a preferred stock exchangeoffering and the reduced lease expense is expected to significantly improvethe Company's cash flow. This accomplishment will also provide the Company theopportunity to grow its new businesses in 2009."

The Company plans to update its stockholders as more progress is made inregards the strategic direction of the Company.

Forward-Looking Statements

This press release contains certain forward-looking statements within themeaning of Section 27A of the Securities Act of 1933 and Section 21E of theSecurities Exchange Act of 1934. Forward-looking statements, some of which arebased on various assumptions and events that are beyond our control, may beidentified by reference to a future period or periods or by the use offorward-looking terminology, such as "may," "will," "believe," "expect,""should," "could," "anticipate," "proposed," "possible," or similar terms orvariations on those terms or the negative of those terms and includestatements related to a potential preferred stock exchange offering, themodification of outstanding trust preferred securities, the closing of anacquisition of a special servicer, the creation of a new REO dispositionbusiness, expense savings, anticipated net revenues and need to raise capital.The forward-looking statements are based on current management expectations.Actual results may differ materially as a result of several factors,including, but not limited to management's ability to successfully implementthe current strategies and initiatives, including the reduction of operatingexpenses; our ability to reduce operating expenses and other outstandingliabilities, such as the ability to successfully modify outstanding trustpreferred obligations during October 2008 or at all; our ability to reducedividend payments on preferred stock through an exchange offer and toimplement and complete an exchange offer prior to the end of the year; theneed to seek additional capital in order to grow or maintain our current andanticipated business operations; risks related to the acquisition of a specialservicing platform, which involve or require, among other things, continuingdue diligence, which could reveal matters not now known that affect ourdecision to seek to complete the acquisition on different terms than thoseannounced or at all, obtaining necessary approvals and consents, includingregulatory approvals related to servicing, which consents and approvals may bedelayed or unobtainable, difficulties and delays in obtaining regulatoryapprovals for the proposed transaction, potential difficulties in meetingconditions set forth in the definitive purchase agreement, and the parties'timely performance of their respective pre-closing covenants and thesatisfaction of other conditions, some of which may be beyond the control ofthe parties or render the acquisition uneconomical; the Company's ability tosuccessfully integrate the new servicing platform with its existing services;and the Company's ability to successfully manage through the current marketenvironment.

For a discussion of these and other risks and uncertainties that couldcause actual results to differ from those contained in the forward-lookingstatements, see "Risk Factors" and "Management's Discussion and Analysis ofFinancial Condition and Results of Operations" in the Company's Annual Reporton Form 10-K for the period ended December 31, 2007 and subsequent quarterlyreports on Form 10-Q and 10-Q/A. This press release speaks only as of its dateand we do not undertake, and specifically disclaim any obligation, to publiclyrelease the results of any revisions that may be made to any forward-lookingstatements to reflect the occurrence of anticipated or unanticipated events orcircumstances after the date of such statements.

This press release is not an offer to buy, tender or exchange oursecurities. If an offer is made, it will be exempt from registration under theSecurities Act of 1933, as amended, in accordance with Section 3(a)(9) thereofand will be made pursuant to materials distributed only to the holders of ourSeries B and Series C Preferred Stock.

About the Company

Impac Mortgage Holdings, Inc. is a mortgage REIT, which through its LongTerm Investment Operations is primarily invested in non-conforming Alt Amortgage loans (Alt-A) and to a lesser extent small balance commercial andmulti-family loans. The Company is organized as a REIT for tax purposes,which generally allows it to pass through earnings to stockholders withoutfederal income tax at the corporate level.

For additional information, questions or comments, please call JustinMoisio in Investor Relations at (949) 475-3988 or emailjmoisio@impaccompanies.com. Web site: http://www.impaccompanies.com

SOURCE Impac Mortgage Holdings, Inc.