Asta Funding Cuts Dividend, Announces Board Resignation

Asta Funding, Inc., (Nasdaq: ASFI), a consumer receivable asset management and liquidation company, today announced that the Board of Directors have approved a quarterly dividend of $0.02 per share, down from $0.04 in prior quarters. The record date for this dividend is December 29, 2008 and the payable date will be February 1, 2009. The Board will continue to monitor its dividend policy on a quarterly basis.

The Company also announced that Mr. Alan Rivera has resigned from the Board of Directors. The Company thanks Alan for his service to Asta during his tenure and has no immediate plans to fill this position.

Based in Englewood Cliffs, NJ, Asta Funding, Inc., is a 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.