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, 2012, 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, and certain subsidiaries that are otherwise designated by the Company as Unrestricted Subsidiaries in accordance with the terms of the indenture.

In the condensed financial tables presented below, the parent company presents all of its wholly-owned subsidiaries as if they were 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, 2012
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated

Revenue	$	—	$	166,070		$	4,924	$	—		$	170,994
Costs and expenses:
Land and housing	—		137,111			—		—			137,111
Impairment of inventory and investment in Unconsolidated LLCs	—		472			—		—			472
General and administrative	—		11,033			2,793		—			13,826
Selling	—		12,825			—		—			12,825
Interest	—		3,150			311		—			3,461
Total costs and expenses	—		164,591			3,104		—			167,695

Income (loss) before income taxes	—		1,479			1,820		—			3,299

(Benefit) provision for income taxes	—		(519		)	614		—			95

Equity in subsidiaries	3,204		—			—		(3,204		)	—

Net income (loss)	$	3,204	$	1,998		$	1,206	$	(3,204	)	$	3,204



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



	Six Months Ended June 30, 2012
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated

Revenue	$	—	$	292,879		$	9,240	$	—		$	302,119
Costs and expenses:
Land and housing	—		244,441			—		—			244,441
Impairment of inventory and investment in Unconsolidated LLCs	—		567			—		—			567
General and administrative	—		21,513			4,770		—			26,283
Selling	—		23,835			1		—			23,836
Interest	—		7,388			679		—			8,067
Total costs and expenses	—		297,744			5,450		—			303,194

(Loss) income before income taxes	—		(4,865		)	3,790		—			(1,075		)

(Benefit) provision for income taxes	—		(2,400		)	1,307		—			(1,093		)

Equity in subsidiaries	18		—			—		(18		)	—

Net income (loss)	$	18	$	(2,465	)	$	2,483	$	(18	)	$	18



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

	June 30, 2012
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated

ASSETS:
Cash and cash equivalents	$	—	$	27,914		$	16,383		$	—		$	44,297
Restricted cash	—		12,593			—			—			12,593
Mortgage loans held for sale	—		—			49,779			—			49,779
Inventory	—		521,956			—			—			521,956
Property and equipment - net	—		12,812			90			—			12,902
Investment in Unconsolidated LLCs	—		—			10,904			—			10,904
Investment in subsidiaries	379,727		—			—			(379,727		)	—
Intercompany	115,581		(105,709		)	(9,872		)	—			—
Other assets	7,308		10,255			766			—			18,329
TOTAL ASSETS	$	502,616	$	479,821		$	68,050		$	(379,727	)	$	670,760

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	50,625		$	682		$	—		$	51,307
Customer deposits	—		10,508			—			—			10,508
Other liabilities	—		32,995			4,859			—			37,854
Community development district obligations	—		5,326			—			—			5,326
Obligation for consolidated inventory not owned	—		6,040			—			—			6,040
Note payable bank - financial services operations	—		—			46,343			—			46,343
Note payable - other	—		10,766			—			—			10,766
Senior notes	227,470		—			—			—			227,470
TOTAL LIABILITIES	227,470		116,260			51,884			—			395,614

Shareholders' equity	275,146		363,561			16,166			(379,727		)	275,146

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	502,616	$	479,821		$	68,050		$	(379,727	)	$	670,760



CONDENSED CONSOLIDATING BALANCE SHEET

	December 31, 2011
(In thousands)	M/I Homes, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated

ASSETS:
Cash and cash equivalents	$	—	$	43,539		$	16,254		$	—		$	59,793
Restricted cash	—		41,334			—			—			41,334
Mortgage loans held for sale	—		—			57,275			—			57,275
Inventory	—		466,772			—			—			466,772
Property and equipment - net	—		14,241			117			—			14,358
Investment in Unconsolidated LLCs	—		—			10,357			—			10,357
Investment in subsidiaries	381,709		—			—			(381,709		)	—
Intercompany	125,272		(115,058		)	(10,214		)	—			—
Other assets	5,385		8,455			756			—			14,596
TOTAL ASSETS	$	512,366	$	459,283		$	74,545		$	(381,709	)	$	664,485

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	40,759		$	497		$	—		$	41,256
Customer deposits	—		4,181			—			—			4,181
Other liabilities	—		33,589			5,759			—			39,348
Community development district obligations	—		5,983			—			—			5,983
Obligation for consolidated inventory not owned	—		2,944			—			—			2,944
Note payable bank - financial services operations	—		—			52,606			—			52,606
Note payable - other	—		5,801			—			—			5,801
Senior notes	239,016		—			—			—			239,016
TOTAL LIABILITIES	239,016		93,257			58,862			—			391,135

Shareholders' equity	273,350		366,026			15,683			(381,709		)	273,350

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	512,366	$	459,283		$	74,545		$	(381,709	)	$	664,485



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	Six Months Ended June 30, 2012
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated

CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	—		$	(32,922	)	$	9,393		$	—	$	(23,529	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	—			28,756			—			—		28,756
Purchase of property and equipment	—			(242		)	(10		)	—		(252		)
Acquisition, net of cash acquired	—			(4,707		)	—			—		(4,707		)
Investments in and advances to Unconsolidated LLC's	—			—			(563		)	—		(563		)
Return of investment from Unconsolidated LLCs	—			—			—			—		—
Net cash provided by (used in) investing activities	—			23,807			(573		)	—		23,234

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of Senior Notes	(41,443		)	—			—			—		(41,443		)
Repayments of bank borrowings - net	—			—			(6,263		)	—		(6,263		)
Principal repayments of note payable - other and community development district bond obligations	—			4,965			—			—		4,965
Proceeds from issuance of senior notes	29,700			—			—			—		29,700
Intercompany financing	11,003			(8,606		)	(2,397		)	—		—
Debt issue costs	—			(2,869		)	(31		)	—		(2,900		)
Proceeds from exercise of stock options	740			—			—			—		740
Excess tax benefits from stock-based payment arrangements	—			—			—			—		—
Net cash used in financing activities	—			(6,510		)	(8,691		)	—		(15,201		)

Net (decrease) increase in cash and cash equivalents	—			(15,625		)	129			—		(15,496		)
Cash and cash equivalents balance at beginning of period	—			43,539			16,254			—		59,793
Cash and cash equivalents balance at end of period	$	—		$	27,914		$	16,383		$	—	$	44,297



	Six Months Ended June 30, 2011
(In thousands)	M/I Homes, Inc.			Guarantor Subsidiaries			Non-Guarantor 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		)
Investments in and advances to Unconsolidated LLC's	—			—			(454		)	—		(454		)
Return of investment from Unconsolidated LLCs	—			—			21			—		21
Net cash used in investing activities	—			(28,601		)	(443		)	—		(29,044		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of 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 deficiency 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 and cash equivalents	—			(43,012		)	6,704			—		(36,308		)
Cash and cash equivalents balance at beginning of period	—			71,874			9,334			—		81,208
Cash and cash equivalents balance at end of period	$	—		$	28,862		$	16,038		$	—	$	44,900