EDISON, N.J., April 17 /PRNewswire-FirstCall/ -- Hanover Capital Mortgage Holdings, Inc. (NYSE Amex: HCM) (the "Company" or "Hanover") announced today that on April 15, 2009, the Company's stockholders approved its merger with Walter Investment Management LLC ("Spinco"), the financing business of Walter Industries, Inc. ("Walter Industries") at a special meeting held on that date. The Company's stockholders also approved the other proposals presented to them at the meeting, including each of the proposals required to be approved to satisfy conditions to the closing of the merger. A final tabulation of the votes conducted after the meeting confirmed the same. Separately, Walter Industries announced that it received a favorable ruling from the Internal Revenue Service regarding the partially tax-free nature of the spin-off and certain other matters, which satisfies an additional condition to the closing of the merger. The closing of the merger and related transactions continue to be subject to the satisfaction of other conditions. However, the Company currently expects Walter Industries to complete the spin-off of Spinco and the closing of the merger of Hanover and Spinco to occur after the close of trading on the New York Stock Exchange Amex on April 17, 2009. The newly formed company, which will be named Walter Investment Management Corp. (NYSE Amex: WAC), is expected to begin "regular way" trading on the NYSE Amex when the market opens on Monday, April 20, 2009. About Hanover Capital Mortgage Holdings Hanover Capital Mortgage Holdings, Inc. is a mortgage REIT staffed by seasoned mortgage capital markets professionals. Hanover invests in prime mortgage loans and mortgage securities backed by prime mortgage loans. For further information, visit Hanover's Web site at http://www.hanovercapitalholdings.com/. Additional Information and Where to Find It In connection with the proposed spin-off of the financing business of Walter Industries, Inc. through its wholly-owned subsidiary, Walter Investment Management LLC, and the proposed merger of Walter Investment Management LLC with Hanover Capital Mortgage Holdings, Inc. and certain related transactions, Hanover Capital Mortgage Holdings, Inc. filed a registration statement with the SEC on Form S-4, as amended, containing a proxy statement/prospectus (Registration No. 333-155091), and Hanover Capital Mortgage Holdings, Inc. will be filing other documents regarding the proposed transaction with the SEC as well. Copies of the proxy statement/prospectus, as well as other filings containing information about Hanover Capital Mortgage Holdings, Inc. and Walter Industries, Inc., can be obtained, without charge, at the SEC's website (http://www.sec.gov/) . Copies of the proxy statement/prospectus and the other filings with the SEC that will be incorporated by reference in the proxy statement/prospectus can also be obtained, without charge, at Hanover Capital Mortgage Holdings, Inc.'s website (http://www.hanovercapitalholdings.com/). Safe Harbor Statement Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including expressions such as "believe," "anticipate," "expect," "estimate," "intend," "may," "will," and similar expressions involve known and unknown risks, uncertainties, and other factors that may cause Hanover's or Walter Industries' actual results in future periods to differ materially from the expectations expressed or implied by such forward-looking statements. These factors include, among others, the following: the market demand for Hanover's and Walter Industries' products as well as changes in costs and the availability of raw material, labor, equipment and transportation; changes in weather and geologic conditions; changes in extraction costs, pricing and assumptions and projections concerning reserves in Walter Industries' mining operations; changes in customer orders; pricing actions by Hanover's and Walter Industries' competitors, customers, suppliers and contractors; changes in governmental policies and laws; further changes in the mortgage-backed capital markets; changes in general economic conditions; and the successful implementation and anticipated timing of any strategic actions and objectives that may be pursued, including the announced separation of the financing business from Walter Industries. In particular, the separation of Walter Industries' financing business is subject to a number of closing conditions which may be outside of Walter Industries' control. Forward-looking statements made by Hanover in this release, or elsewhere, speak only as of the date on which the statements were made. Any forward-looking statements should be considered in context with the various disclosures made by Hanover and Walter Industries about our respective businesses, including the Risk Factors described in Hanover's 2008 Annual Report on Form 10-K, the Risk Factors described in Walter Industries' 2008 Annual Report on Form 10-K, and each of Hanover's and Walter Industries' other filings with the Securities and Exchange Commission. Neither Hanover nor Walter Industries undertakes any obligation to update its forward-looking statements as of any future date. DATASOURCE: Hanover Capital Mortgage Holdings, Inc. CONTACT: John Burchett, CEO, or Irma Tavares, COO, or Harold McElraft, CFO, all of Hanover Capital Mortgage Holdings, Inc., +1-732-593-1044 Web Site: http://www.hanovercapitalholdings.com/

Copyright