Supplemental Guarantor Information

The Company's obligations under the 2018 Senior Notes are not guaranteed by all of the Company's subsidiaries and therefore, the Company has disclosed condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.

The following condensed consolidating financial information includes balance sheets, statements of operations and cash flow information for the parent company, the Guarantors, as defined and listed in the indenture for the 2018 Senior Notes (the “Guarantor Subsidiaries”), collectively, and for all other subsidiaries and joint ventures of the Company (“the Non-Guarantor Subsidiaries”), collectively. Each Guarantor Subsidiary is a direct or indirect wholly-owned subsidiary of M/I Homes, Inc. and has fully and unconditionally guaranteed the 2018 Senior Notes, on a joint and several basis.

There are no significant restrictions on the parent company's ability to obtain funds from its Guarantor Subsidiaries in the form of a dividend, loan, or other means.

As of June 30, 2011, each of the Company's subsidiaries is a Guarantor Subsidiary, with the exception of subsidiaries that are primarily engaged in the business of mortgage financing, the origination of mortgages for resale, title insurance or similar financial businesses relating to the homebuilding and home sales business and certain subsidiaries that are not wholly-owned by the Company or another subsidiary.

In the condensed financial tables presented below, the parent company presents all of its wholly-owned subsidiaries accounted for under the equity method. All applicable corporate expenses have been allocated appropriately among the Guarantor Subsidiaries and Non-Guarantor Subsidiaries.



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	Three Months Ended June 30, 2011
				Guarantor			Non-Guarantor
(In thousands)	M/I Homes, Inc.			Subsidiaries			Subsidiaries		Eliminations		Consolidated

Revenue	$	—		$	134,149		$	3,295	$	—	$	137,444
Costs and expenses:
Land and housing	—			114,043			—		—		114,043
Impairment of inventory and investment in Unconsolidated LLCs	—			5,445			—		—		5,445
General and administrative	—			10,994			1,772		—		12,766
Selling	—			10,754			—		—		10,754
Interest	—			3,294			171		—		3,465
Total costs and expenses	—			144,530			1,943		—		146,473

(Loss) income before income taxes	—			(10,381		)	1,352		—		(9,029		)

(Benefit) provision for income taxes	—			(282		)	397		—		115

Equity in subsidiaries	(9,144		)	—			—		9,144		—

Net (loss) income	$	(9,144	)	$	(10,099	)	$	955	$	9,144	$	(9,144	)



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	Six Months Ended June 30, 2011
				Guarantor			Non-Guarantor
(In thousands)	M/I Homes, Inc.			Subsidiaries			Subsidiaries		Eliminations		Consolidated

Revenue	$	—		$	241,519		$	6,495	$	—	$	248,014
Costs and expenses:
Land and housing	—			206,617			—		—		206,617
Impairment of inventory and investment in Unconsolidated LLCs	—			16,316			—		—		16,316
General and administrative	—			20,692			3,476		—		24,168
Selling	—			19,408			—		—		19,408
Interest	—			7,059			441		—		7,500
Total costs and expenses	—			270,092			3,917		—		274,009

(Loss) income before income taxes	—			(28,573		)	2,578		—		(25,995		)

(Benefit) provision for income taxes	—			(637		)	825		—		188

Equity in subsidiaries	(26,183		)	—			—		26,183		—

Net (loss) income	$	(26,183	)	$	(27,936	)	$	1,753	$	26,183	$	(26,183	)



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	Three Months Ended June 30, 2010
				Guarantor			Non-Guarantor
(In thousands)	M/I Homes, Inc.			Subsidiaries			Subsidiaries		Eliminations		Consolidated

Revenue	$	—		$	192,917		$	3,487	$	—	$	196,404
Costs and expenses:
Land and housing	—			165,063			—		—		165,063
Impairment of inventory and investment in Unconsolidated LLCs	—			6,294			—		—		6,294
General and administrative	—			11,511			2,050		—		13,561
Selling	—			14,153			—		—		14,153
Interest	—			1,838			241		—		2,079
Total costs and expenses	—			198,859			2,291		—		201,150

(Loss) income before income taxes	—			(5,942		)	1,196		—		(4,746		)

(Benefit) provision for income taxes	—			(187		)	248		—		61

Equity in subsidiaries	(4,807		)	—			—		4,807		—

Net (loss) income	$	(4,807	)	$	(5,755	)	$	948	$	4,807	$	(4,807	)



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	Six Months Ended June 30, 2010
				Guarantor			Non-Guarantor
(In thousands)	M/I Homes, Inc.			Subsidiaries			Subsidiaries		Eliminations		Consolidated

Revenue	$	—		$	308,599		$	7,194	$	—	$	315,793
Costs and expenses:
Land and housing	—			264,371			—		—		264,371
Impairment of inventory and investment in Unconsolidated LLCs	—			9,410			—		—		9,410
General and administrative	—			22,458			3,995		—		26,453
Selling	—			24,747			—		—		24,747
Interest	—			3,850			370		—		4,220
Total costs and expenses	—			324,836			4,365		—		329,201

(Loss) income before income taxes	—			(16,237		)	2,829		—		(13,408		)

(Benefit) provision for income taxes	—			(1,031		)	765		—		(266		)

Equity in subsidiaries	(13,142		)	—			—		13,142		—

Net (loss) income	$	(13,142	)	$	(15,206	)	$	2,064	$	13,142	$	(13,142	)



CONDENSED CONSOLIDATING BALANCE SHEET

	June 30, 2011
			Guarantor			Non-Guarantor
(In thousands)	M/I Homes, Inc.		Subsidiaries			Subsidiaries			Eliminations			Consolidated

ASSETS:
Cash	$	—	$	28,862		$	16,038		$	—		$	44,900
Restricted cash	—		68,902			—			—			68,902
Mortgage loans held for sale	—		—			35,725			—			35,725
Inventory	—		462,796			—			—			462,796
Property and equipment - net	—		15,324			137			—			15,461
Investment in Unconsolidated LLCs	—		—			10,026			—			10,026
Investment in subsidiaries	390,903		—			—			(390,903		)	—
Intercompany	121,602		(111,596		)	(10,006		)	—			—
Income tax receivable	—		1,163			—			—			1,163
Other assets	6,336		7,101			873			—			14,310
TOTAL ASSETS	$	518,841	$	472,552		$	52,793		$	(390,903	)	$	653,283

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	42,434		$	757		$	—		$	43,191
Customer deposits	—		4,974			—			—			4,974
Other liabilities	—		36,197			4,492			—			40,689
Community development district obligations	—		6,639			—			—			6,639
Obligation for consolidated inventory not owned	—		1,015			—			—			1,015
Note payable bank - financial services operations	—		—			32,133			—			32,133
Note payable - other	—		5,801			—			—			5,801
Senior notes	238,813		—			—			—			238,813
TOTAL LIABILITIES	238,813		97,060			37,382			—			373,255

Shareholders' equity	280,028		375,492			15,411			(390,903		)	280,028

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	518,841	$	472,552		$	52,793		$	(390,903	)	$	653,283



CONDENSED CONSOLIDATING BALANCE SHEET

	December 31, 2010
			Guarantor			Non-Guarantor
(In thousands)	M/I Homes, Inc.		Subsidiaries			Subsidiaries			Eliminations			Consolidated

ASSETS:
Cash	$	—	$	71,874		$	9,334		$	—		$	81,208
Restricted cash	—		41,923			—			—			41,923
Mortgage loans held for sale	—		—			43,312			—			43,312
Inventory	—		450,936			—			—			450,936
Property and equipment - net	—		16,340			214			—			16,554
Investment in Unconsolidated LLCs	—		—			10,589			—			10,589
Investment in subsidiaries	418,085		—			—			(418,085		)	—
Intercompany	116,875		(102,884		)	(13,991		)	—			—
Income tax receivable	—		994			—			—			994
Other assets	7,141		6,631			2,606			—			16,378
TOTAL ASSETS	$	542,101	$	485,814		$	52,064		$	(418,085	)	$	661,894

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	28,631		$	399		$	—		$	29,030
Customer deposits	—		3,017			—			—			3,017
Other liabilities	—		37,305			4,811			—			42,116
Community development district obligations	—		7,112			—			—			7,112
Obligation for consolidated inventory not owned	—		468			—			—			468
Note payable bank - financial services operations	—		—			32,197			—			32,197
Note payable - other	—		5,853			—			—			5,853
Senior notes	238,610		—			—			—			238,610
TOTAL LIABILITIES	238,610		82,386			37,407			—			358,403

Shareholders' equity	303,491		403,428			14,657			(418,085		)	303,491

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	542,101	$	485,814		$	52,064		$	(418,085	)	$	661,894



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

	Six Months Ended June 30, 2011
				Guarantor			Non-Guarantor
(In thousands)	M/I Homes, Inc.			Subsidiaries			Subsidiaries			Eliminations		Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	—			(20,847		)	12,328			—		(8,519		)

CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	—			(23,248		)	—			—		(23,248		)
Purchase of property and equipment	—			(699		)	(10		)	—		(709		)
Acquisition, net of cash acquired	—			(4,654		)	—			—		(4,654		)
Proceeds from the sale of property	—			—			(454		)	—		(454		)
Distributions from Unconsolidated LLCs	—			—			21			—		21
Net cash used in investing activities	—			(28,601		)	(443		)	—		(29,044		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank borrowings - net	—			—			(64		)	—		(64		)
Principal repayments of note payable - other and community development district bond obligations	—			(52		)	—			—		(52		)
Intercompany financing	(1,591		)	6,638			(5,047		)	—		—
Debt issue costs	—			(150		)	(70		)	—		(220		)
Proceeds from exercise of stock options	1,433			—			—			—		1,433
Excess tax expense from stock-based payment arrangements	158			—			—			—		158
Net cash provided by (used) in financing activities	—			6,436			(5,181		)	—		1,255

Net (decrease) increase in cash	—			(43,012		)	6,704			—		(36,308		)
Cash balance at beginning of period	—			71,874			9,334			—		81,208
Cash balance at end of period	$	—		$	28,862		$	16,038		$	—	$	44,900



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

	Six Months Ended June 30, 2010
				Guarantor			Non-Guarantor
(In thousands)	M/I Homes, Inc.			Subsidiaries			Subsidiaries			Eliminations		Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash used in operating activities	—			(7,819		)	(10,219		)	—		(18,038		)

CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	—			(14,961		)	—			—		(14,961		)
Purchase of property and equipment	—			(691		)	(80		)	—		(771		)
Investments in and advances to Unconsolidated LLCs	—			—			(289		)	—		(289		)
Distributions from Unconsolidated LLCs	—			—			13			—		13
Net cash used in investing activities	—			(15,652		)	(356		)	—		(16,008		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank borrowings - net	—			—			9,769			—		9,769
Principal repayments of note payable - other and community development district bond obligations	—			(168		)	—			—		(168		)
Intercompany financing	9			153			(162		)	—		—
Debt issue costs	—			(3,568		)	(306		)	—		(3,874		)
Proceeds from exercise of stock options	5			—			—			—		5
Excess tax benefit from stock-based payment arrangements	(14		)	—			—			—		(14		)
Net cash (used in) provided by financing activities	—			(3,583		)	9,301			—		5,718

Net decrease in cash	—			(27,054		)	(1,274		)	—		(28,328		)
Cash balance at beginning of period	—			96,464			13,466			—		109,930
Cash balance at end of period	$	—		$	69,410		$	12,192		$	—	$	81,602