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

Revenue	$	—		$	138,752		$	2,872	$	—	$	141,624
Costs and expenses:
Land and housing	—			116,269			—		—		116,269
Impairment of inventory and investment in Unconsolidated LLCs	—			1,697			—		—		1,697
General and administrative	—			11,914			1,982		—		13,896
Selling	—			11,213			—		—		11,213
Interest	—			3,181			203		—		3,384
Total costs and expenses	—			144,274			2,185		—		146,459

(Loss) income before income taxes	—			(5,522		)	687		—		(4,835		)

(Benefit) provision for income taxes	—			(366		)	249		—		(117		)

Equity in subsidiaries	(4,718		)	—			—		4,718		—

Net (loss) income	$	(4,718	)	$	(5,156	)	$	438	$	4,718	$	(4,718	)



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

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

Revenue	$	—		$	380,271		$	9,367	$	—	$	389,638
Costs and expenses:
Land and housing	—			322,886			—		—		322,886
Impairment of inventory and investment in Unconsolidated LLCs	—			18,013			—		—		18,013
General and administrative	—			32,606			5,458		—		38,064
Selling	—			30,621			—		—		30,621
Interest	—			10,240			644		—		10,884
Total costs and expenses	—			414,366			6,102		—		420,468

(Loss) income before income taxes	—			(34,095		)	3,265		—		(30,830		)

(Benefit) provision for income taxes	—			(1,003		)	1,074		—		71

Equity in subsidiaries	(30,901		)	—			—		30,901		—

Net (loss) income	$	(30,901	)	$	(33,092	)	$	2,191	$	30,901	$	(30,901	)



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

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

Revenue	$	—		$	132,003		$	3,606	$	—	$	135,609
Costs and expenses:
Land and housing	—			108,659			—		—		108,659
Impairment of inventory and investment in Unconsolidated LLCs	—			1,796			—		—		1,796
General and administrative	—			11,216			1,932		—		13,148
Selling	—			11,735			—		—		11,735
Interest	—			1,718			234		—		1,952
Total costs and expenses	—			135,124			2,166		—		137,290

(Loss) income before income taxes	—			(3,121		)	1,440		—		(1,681		)

(Benefit) provision for income taxes	—			(710		)	1,099		—		389

Equity in subsidiaries	(2,070		)	—			—		2,070		—

Net (loss) income	$	(2,070	)	$	(2,411	)	$	341	$	2,070	$	(2,070	)



CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

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

Revenue	$	—		$	440,602		$	10,800	$	—	$	451,402
Costs and expenses:
Land and housing	—			373,030			—		—		373,030
Impairment of inventory and investment in Unconsolidated LLCs	—			11,206			—		—		11,206
General and administrative	—			33,673			5,928		—		39,601
Selling	—			36,482			—		—		36,482
Interest	—			5,568			604		—		6,172
Total costs and expenses	—			459,959			6,532		—		466,491

(Loss) income before income taxes	—			(19,357		)	4,268		—		(15,089		)

(Benefit) provision for income taxes	—			(1,741		)	1,864		—		123

Equity in subsidiaries	(15,212		)	—			—		15,212		—

Net (loss) income	$	(15,212	)	$	(17,616	)	$	2,404	$	15,212	$	(15,212	)



CONDENSED CONSOLIDATING BALANCE SHEET

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

ASSETS:
Cash	$	—	$	32,388		$	14,441		$	—		$	46,829
Restricted cash	—		46,218			—			—			46,218
Mortgage loans held for sale	—		—			36,666			—			36,666
Inventory	—		491,361			—			—			491,361
Property and equipment - net	—		14,604			137			—			14,741
Investment in Unconsolidated LLCs	—		—			10,256			—			10,256
Investment in subsidiaries	384,684		—			—			(384,684		)	—
Intercompany	124,261		(114,647		)	(9,614		)	—			—
Other assets	5,861		8,732			1,061			—			15,654
TOTAL ASSETS	$	514,806	$	478,656		$	52,947		$	(384,684	)	$	661,725

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Accounts payable	$	—	$	45,111		$	731		$	—		$	45,842
Customer deposits	—		5,377			—			—			5,377
Other liabilities	—		41,028			6,209			—			47,237
Community development district obligations	—		6,348			—			—			6,348
Obligation for consolidated inventory not owned	—		4,600			—			—			4,600
Note payable bank - financial services operations	—		—			31,658			—			31,658
Note payable - other	—		5,857			—			—			5,857
Senior notes	238,914		—			—			—			238,914
TOTAL LIABILITIES	238,914		108,321			38,598			—			385,833

Shareholders' equity	275,892		370,335			14,349			(384,684		)	275,892

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	514,806	$	478,656		$	52,947		$	(384,684	)	$	661,725



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		)	—			—
Other assets	7,141		7,625			2,606			—			17,372
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

	Nine Months Ended September 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	—			(37,939		)	13,373			—		(24,566		)

CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	—			(4,532		)	—			—		(4,532		)
Purchase of property and equipment	—			(851		)	(38		)	—		(889		)
Acquisition, net of cash acquired	—			(4,654		)	—			—		(4,654		)
Proceeds from the sale of property	—			—			—			—		—
Distributions from Unconsolidated LLCs	—			—			(648		)	—		(648		)
Net cash used in investing activities	—			(10,037		)	(686		)	—		(10,723		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of bank borrowings - net	—			—			(539		)	—		(539		)
Proceeds from (principal repayments of) note payable-other and community development district bond obligations	—			4			—			—		4
Intercompany financing	(1,665		)	8,636			(6,971		)	—		—
Debt issue costs	—			(150		)	(70		)	—		(220		)
Proceeds from exercise of stock options	1,500			—			—			—		1,500
Excess tax expense from stock-based payment arrangements	165			—			—			—		165
Net cash provided by (used) in financing activities	—			8,490			(7,580		)	—		910

Net (decrease) increase in cash	—			(39,486		)	5,107			—		(34,379		)
Cash balance at beginning of period	—			71,874			9,334			—		81,208
Cash balance at end of period	$	—		$	32,388		$	14,441		$	—	$	46,829



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

	Nine Months Ended September 30, 2010
				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	—			(49,864		)	6,877			—		(42,987		)

CASH FLOWS FROM INVESTING ACTIVITIES:
Restricted cash	—			(16,448		)	—			—		(16,448		)
Purchase of property and equipment	—			(1,375		)	(80		)	—		(1,455		)
Investment in Unconsolidated LLCs	—			—			(661		)	—		(661		)
Return of investment from Unconsolidated LLCs	—			—			13			—		13
Net cash used in investing activities	—			(17,823		)	(728		)	—		(18,551		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of bank borrowings - net	—			—			(369		)	—		(369		)
Principal repayments of note payable - other and community development district bond obligations	—			(246		)	—			—		(246		)
Intercompany financing	9			4,749			(4,758		)	—		—
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 provided by (used in) financing activities	—			935			(5,433		)	—		(4,498		)

Net (decrease) increase in cash	—			(66,752		)	716			—		(66,036		)
Cash balance at beginning of period	—			96,464			13,466			—		109,930
Cash balance at end of period	$	—		$	29,712		$	14,182		$	—	$	43,894