Asta Funding Posts Record Revenue and Net Income Gains for Fiscal 2001, EPS Increases to $2.06

Asta Funding, Inc., (NASDAQ:ASFI), a leading consumer receivables asset management and liquidation company today reported record revenue and net income gains for the fiscal year ended September 30, 2001.

For fiscal 2001, Asta’s revenues increased 33 percent to $24.1 million from $18.1 million for the period in 2000. Net income for the year increased 48 percent over the prior year to $8.6 million, or $2.06 per diluted share.

Total assets at September 30, 2001, rose 158 percent to $54.8 million from $21.2 million as compared to the same period in the prior year.

For the fourth ended September 30, 2001, revenue increased to $7.1 million compared with $5.8 million for fourth quarter ended September 30, 2000. Net income for the quarter rose 30 percent to $2.2 million, or $0.51 per diluted share compared with $1.7 million or $0.40 per diluted share for the same prior year period.

Notable in the quarter were the acquisitions of a $191 million portfolio of non-conforming consumer receivables from a major computer manufacturer/retailer and a $175 million portfolio of distressed consumer loans. Both portfolios were purchased at substantial discounts.

Chief executive officer Gary Stern said the Company’s fourth quarter and fiscal year results were consistent with management expectations.

“Asta has enjoyed strong continuing growth in revenues and net income for the year and has actually benefited in the face of a weakening US economy,” Mr. Stern declared. “The accelerated decline in consumer personal income and net wealth has created new purchase opportunities.”

“The year’s strong performance illustrates that our business is a prime benefactor of the current economic environment and Asta’s strong balance sheet and reputation provide a competitive advantage. Asta is financially strong and well positioned to take advantage of new opportunities that arise during an economic turnaround.”

Asta Funding will conduct a conference call today at 11:00 am ET. To participate please dial 877-575-1510 about 5 minutes prior to start.

About Asta Funding
Based in Englewood Cliffs, NJ, Asta Funding, Inc., is a leading consumer receivables asset management company that specializes in the purchase, liquidation and management of performing and non-performing consumer receivables, as well as factoring commercial receivables. Asta generates revenues and earnings primarily through purchase and collection of performing and non-performing consumer receivables and commercial factoring receivables. Asta has strategic alliances with the leading companies in the consumer receivables market. For additional information, please visit our Web site at www.astafunding.com.

(Except for historical information containing herein, the matters set forth in this news release are “forward looking” statements (as defined in the Private Securities Litigation Reform Act of 1995.) Although Asta Funding, Inc. believes the expectations reflected in such forward -looking statements are based upon reasonable assumptions; there can be no assurance that its expectations will be realized. Forward -looking statements involve certain risks and uncertainties that could cause actual results to differ materially from Asta Funding, Inc.’s expectations. Factors that could contribute to such differences include those identified in Asta Funding, Inc.’s 10-KSB for the fiscal year ended September 30, 2000, and those described from time to time in Asta Funding, Inc.’s other fillings with the Securities and Exchange Commission, news releases and other communications.)