Asta Funding First Quarter Revenues Increase 103%

Asta Funding, Inc., (NASDAQ:ASFI), a leading consumer receivables asset management and liquidation company, today reported both revenue and net income gains for the first quarter ended December 31, 2001.

Asta’s quarterly revenues increased 103 percent to $8.4 million from $4.1 million as compared to the prior year’s period. Net income increased 31 percent to $2.3 million or $0.53 per diluted share from $1.8 million or $0.43 per diluted share for the same period in the prior year.

Chief executive officer Gary Stern said the first quarter results were consistent with management expectations. “In 2001 we demonstrated that our business model performs well in a weak economy as well as in the strong economic environment of previous years. Our first quarter results illustrate that this positive trend continues.”

During the first quarter the Company announced that its primary lender had agreed to increase the Company’s credit facility to $20 million from $10 million. Mitchell Herman, Asta’s chief financial officer, said that the increase in the Company’s credit facility would be used to make selected acquisitions of consumer portfolios.

In early January, Asta announced that it had acquired $75 million of distressed consumer receivables and on January 15 the Company announced its participation in two non-conforming consumer receivable purchases with a combined face value of $90 million. All of these portfolios were purchased at substantial discounts.

“Our strategy has been to focus on niche opportunities in the consumer arena that meet our business model,” Mr. Stern said. “Our partners in both of these participation transactions are knowledgeable and further support our confidence in the attractive characteristics of the deals.”

Mr. Stern added that management is targeting additional growth throughout the year 2002. “We are financially strong and extremely well positioned to take disciplined advantage of portfolio opportunities as they become available,” he concluded.

Asta Funding will conduct a teleconference today at 11:00 a.m. Eastern time. To participate please dial USA (877) 575-1510, International (706) 679-5398 about 5 minutes prior to start.

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.)

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