Asta Funding Announces Accelerated Vesting of Options

Asta Funding, Inc., a leading consumer receivable asset management and liquidation company, today announced that its Board of Directors, at its meeting on September 30, 2005, accelerated the vesting of unvested stock options previously awarded to employees, officers and directors in light of new accounting regulations that is effective as of the beginning of the Company's fiscal year ended September 30, 2006. The effective date of the accelerated vesting was September 30, 2005.

In order to prevent unintended personal benefits to employees, officers and directors, the Board imposed restrictions on any shares received through the exercise of accelerated options held by those individuals. These restrictions prevent the sale of any stock obtained through exercise of an accelerated option prior to the earlier of the original vesting date or the individual's termination of employment.

The primary purpose of the accelerated vesting is to eliminate compensation expense the Company would otherwise recognize in its income statement with respect to these accelerated stock options based upon the adoption of Financial Accounting Standards Board Statement of Financial Accounting Standards No. 123 (Revised 2005), Share-Based Payment ("SFAS 123R"). SFAS 123R is effective as of the beginning of the first annual reporting period that begins after June 15, 2005, and will require that compensation expense associated with stock options be recognized in the income statement, rather than a disclosure in the notes to the Company's consolidated financial statements.

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.