Asta Funding Reports Increased Revenues and Earnings

ENGLEWOOD CLIFFS, N.J., Aug. 9 /PRNewswire-FirstCall/ — Asta Funding, Inc., (Nasdaq: ASFI), a leading consumer receivable asset management and liquidation company, today reported results for the three months and nine months ended June 30, 2005.

Net income for the three months ended June 30, 2005, rose 52% to a record $8,536,000, or $0.59 per diluted share, compared to $5,607,000, or $0.39 per diluted share, in the same prior year period. Revenues for the three months ended June 30, 2005, were $19,028,000, an increase of 58% compared to revenues of $12,050,000 a year ago.

Net income for the nine months ended June 30, 2005 grew 40% to a record $21,992,000 or $1.53 per diluted share, from $15,728,000, or $1.10 per diluted share, for the same period a year earlier. Revenues for the nine months ended June 30, 2005 were a record $49,520,000, an increase of 36% compared to revenues for the nine months ended June 30, 2004 of $36,369,000.

Mr. Gary Stern, Asta’s Chief Executive Officer, stated, “We are extremely pleased to report another record quarter and nine months. Our performance continues to demonstrate that our business model is sound. We continue to buy attractively priced distressed consumer receivable portfolios for liquidation and for the June quarter we purchased portfolios with a face amount exceeding $481 million, bringing our aggregate purchases for the nine months to $2.3 billion, at prices that will allow us to attain our desired financial returns. Additionally, we are in the final negotiations for the purchase of portfolios with an aggregate face amount in excess of $500 million, which we anticipate announcing within the next two weeks.”

“Our financial metrics,” Mr. Stern added, “are strong with cash collections in the quarter of $43.5 million, up significantly from the $26.0 million collected in the same quarter a year earlier. We remain highly disciplined in our portfolio purchases and have the funds and credit resources to acquire portfolios when the appropriate opportunities arise. At June 30, 2005 stockholder’s equity was $136.4 million and our book value was $10.05, an increase of roughly 25% from June 30, 2004.”

Mr. Stern concluded, “Asta has been steadfast in its business focus. We are disciplined buyers of distressed consumer receivable portfolios and recognize our superior performance is the result of maintaining that discipline. We will continue to build shareholder value by applying the same principles in the future. We are confident that this is the path to long term success.”

Asta Funding will conduct a teleconference today at 10:30 a.m. EDT. To participate please dial USA/Canada (877) 511-5818, International (706) 634-1462 about 5 -10 minutes prior to 10:30 a.m. EDT. Please refer to the Asta Funding earnings teleconference ID 8395599. A recording of the conference call will be available from 12:00 noon EDT August 9th through August 16th, by dialing USA/ Canada (800) 642-1687, International (706) 645-9291, conference ID 8395599.

Asta Funding, Inc.
Based in Englewood Cliffs, NJ, Asta Funding, Inc., is a leading consumer receivable asset management company that specializes in the purchase, management and liquidation of performing and non-performing consumer receivables. For additional information, please visit our website at http://www.astafunding.com.