TAMPA, Fla., Feb. 4 /PRNewswire/ -- IMC Mortgage Company
(Nasdaq-NNM: IMCC) ("IMC") announced today that it has acquired all of the
operating assets of American Mortgage Reduction, Inc. ("AMR").  The
acquisition provides for an initial payment in cash and a contingent payment
in cash (or at IMC's election, the contingent payment may be in shares of IMC
common stock) at the end of a three-year period.  The initial payment is based
on AMR's results for 1996 and the contingent payment will be based on the
future performance of the company.  IMC will account for the acquisition as a
purchase.  AMR will continue its lending activities as an independent
operating unit.
    American Mortgage Reduction, Inc., a non-conforming mortgage lender based
in Baltimore, Maryland, is headed by Harry Korotki and Marc Heyman.  The
company, which employs approximately 100 people, originates primarily
nonconforming residential mortgages through a network of six retail offices in
Maryland, Pennsylvania, and Virginia using telemarketing and direct mail.
AMR's current loan origination volume is approximately $10 million per month.
    Harry Korotki, who will remain as president, said, "All of AMR's employees
are excited about joining the IMC family of companies.  We recognized the
benefits of this industry's consolidation and selected IMC as a merger partner
to be a part of one of the fastest growing and most respected non-conforming
lenders in the United States.  AMR will benefit greatly from the additional
resources available with IMC."
    George Nicholas, Chairman of IMC, said, "AMR and its management are an
example of a company that is prospering in this market through hard work and
direct contact with its customers.  The acquisition of AMR helps us
consolidate our strengths and further expand our base of retail loan
originations."
    IMC Mortgage Company, based in Tampa, Florida, is a specialty finance
company engaged in the purchase, origination, servicing and sale of
non-conforming mortgage loans secured primarily by first liens on one-to-four
family residential properties.  The company originates and purchases loans
through a network of correspondent lenders, mortgage brokers and retail
offices throughout the United States and through a joint venture in the United
Kingdom.

    Statements in this press release concerning volume of loans, business
strategy and future operations are forward-looking statements.  Many important
factors could cause the actual results of IMC Mortgage Company and American
Mortgage Reduction, Inc. to differ materially from those suggested in such
forward-looking statements.  Those factors include, but are not limited to,
future residential real estate values, regulatory changes affecting the real
estate market and mortgage lending activities, competition, general economic
conditions such as changes in interest rates and the demand for nonconforming
loans, availability of funding, loan prepayment rates, delinquency and default
rates and changes in factors influencing the securitization market.

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