Asta Funding Acquires $75 Million of Distressed Consumer Receivables

ENGLEWOOD CLIFFS, NJ — Asta Funding, Inc. (Nasdaq: ASFI), a leading consumer receivables asset management and liquidation company, today announced that the company has acquired $75 million of distressed consumer receivables. These receivables were distressed unsecured consumer loans and were purchased at a substantial discount.

About Asta Funding

Based in Englewood Cliffs, NJ, Asta Funding, Inc., is a leading consumer receivables asset management company specializing in the purchase, liquidation and management of performing and non-performing consumer receivables, and the factoring of 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 some of the leading companies in the consumer receivables market.

Except for historical information contained 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, 2001, 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.