Asta Funding Increases Credit Line for Strategic Acquisitions

Asta Funding, Inc., (NASDAQ:ASFI), a leading consumer receivables asset management and liquidation company, today announced that it has reached an agreement with its primary lender to increase its credit facility to $20 million from $10 million on more favorable terms.

Mitchell Herman, Asta Funding’s chief financial officer stated that the facility will be used in the future for strategic acquisitions of new consumer and commercial finance receivables. “In the past 60 days we were able to purchase two very attractive consumer receivable portfolios at substantial discounts and we will continue our disciplined strategy of evaluating and purchasing new portfolios.”

Gary Stern, president and CEO of Asta Funding commented: “With the additional $10 million increase to our credit facility, we believe we are extremely well positioned to take advantage of portfolio opportunities as they become available.”

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.)