News Release

NEWPORT BEACH, Calif., May 7 /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 a public offering of 1.5 million shares of its common stock at a public offering price of $19.75 per share. 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 $28.1 million.

The public offering was managed by UBS Securities LLC. RBC Capital Markets Corporation acted as a co-manager.

The Company has granted the underwriters an option, exercisable for 30 days, to purchase up to an additional 225,000 shares of common stock to cover over-allotments. If the underwriters' option is exercised, the additional net proceeds will be approximately $4.2 million. A copy of the prospectus supplement and accompanying prospectus may be obtained from UBS Securities LLC at 299 Park Avenue, New York, NY 10171 (telephone: 212-821-3000). 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-                             05/07/2004
    /CONTACT:  Tania Jernigan of Impac Mortgage Holdings, Inc.,
+1-949-475-3722, tjernigan@impaccompanies.com/
    (IMH)

CO:  Impac Mortgage Holdings, Inc.; UBS Securities LLC; RBC Capital Markets
     Corporation
ST:  California
IN:  FIN RLT
SU:  OFR

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9127 05/07/2004 09:41 EDT http://www.prnewswire.com