Asta Funding to Buy $6.9 billion Debt Portfolio

Asta Funding, Inc., (Nasdaq: ASFI), a leading consumer receivable asset management and liquidation company,  announced late Friday that it has signed a definitive agreement to purchase a sizeable portfolio of approximately $6.9 billion in face value for a purchase price of $300 million.  The portfolio is being purchased from several sellers under common ownership with whom Asta enjoys a 20 plus year relationship.

The portfolio is made up of predominantly credit card accounts and includes accounts in collection litigation and accounts as to which the sellers have been awarded judgments and other traditional charge-offs. Asta has given the seller, Great Seneca Financial Corp. and related entities, a $60 million deposit and will fund an additional deposit of $15 million on February 16, 2007. Asta also anticipates closing this major portfolio acquisition in 4-6 weeks, at which time management will be prepared to conduct a conference call to discuss the details of this purchase along with its first quarter results for the period ended December 31, 2006.

Gary Stern, President and Chief Executive Officer of Asta Funding, commented, "We are very excited about the signing of this significant portfolio purchase as it further validates our leadership in the debt buying industry. Portfolios of this magnitude are rarely seen in the marketplace and our business model allows us to make an acquisition of this magnitude almost seamlessly. It is important to note that this purchase arises from a close relationship we have cultivated over many years. This purchase in particular, truly highlights the value of Asta’s solid relationships. I look forward to updating the investing public on this news after we close this transaction."

Kaulkin Ginsberg Company acted as advisors to the sellers in the marketing of this portfolio.

Editor’s Note: Kaulkin Ginsberg Company is the parent company of Kaulkin Media and insideARM.com.