Asta Funding Purchases Two Receivable Portfolios Totaling Approximately $500 Million

ENGLEWOOD CLIFFS, NJ – Asta Funding, Inc. (Nasdaq: ASFI), a leading consumer receivables asset management and liquidation company, today announced that the company has purchased two portfolios of distressed consumer receivables totaling approximately $500 million. These portfolios were acquired at a substantial discount to their face value.

Since the end of May 2003, Asta Funding has acquired or participated in financing distressed consumer receivable portfolios with a cumulative face value of approximately $2.6 billion.

Asta Funding, Inc.
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. Asta generates revenues and earnings primarily through purchase and collection of performing and non-performing consumer receivables. For additional information, please visit our website 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 Form 10-KSB for the fiscal year ended September 30, 2002, its prospectus dated June 27, 2003, 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, including that Asta may not be able to purchase consumer receivable portfolios at favorable prices or on sufficiently favorable terms or at all, and may not be able to continue our new quarterly dividend program. Asta Funding, Inc.’s reports with the Securities and Exchange Commission are available free of charge through its website at www.astafunding.com.