CompuCredit Reports Second Quarter Results

CompuCredit (NASDAQ:CCRT) reported second quarter 2001 earnings of $14.7 million, or $0.32 per diluted share, compared with $6.4 million, or $0.14 per diluted share, for the first quarter of 2001.

The company also announced the addition of 167,000 new customers for the second quarter of 2001.

``We are pleased with our financial performance during the second quarter and are confident that the company is on track to maintain profitable growth in the future,'' said David Hanna, chairman and CEO of CompuCredit.

The managed net interest margin was 22.0 percent as compared to 21.6 percent in the first quarter of 2001. The pro forma net charge-off rate was 14.6 percent in the second quarter of 2001 as compared to 14.8 percent for the first quarter of 2001. At June 30, 2001, the 60+ day managed delinquency rate was 10.6 percent as compared to 9.4 percent as of March 31, 2001. The increase in the managed delinquency rate is due partly to seasonality and partly as a result of strong collection performance during the quarter which lowered charge-offs, but increased the delinquency rate as many late stage delinquent accounts made payments but were not cured to current status.

Further details regarding CompuCredit's second quarter financial performance will be discussed during management's conference call on Thursday, July 19, 2001 at 4:30 p.m. Eastern Standard Time. The media and public are invited to listen to the live webcast of the call, accessible on the Internet at www.CompuCredit.com. The conference call will be archived at the above web site for those interested parties that are unable to attend at this time.

CompuCredit Corporation is a credit card company that uses analytical techniques, including sophisticated computer models, to identify consumers who it believes are credit-worthy and are overlooked by more traditional consumer credit providers. CompuCredit markets unsecured general purpose credit cards through direct mail, telemarketing and the Internet. In July 1999, CompuCredit launched its consumer web site, www.aspirecard.com, through its Internet marketing services subsidiary AspireCard.com, Inc. Consumers can apply online and receive a credit decision within seconds. CompuCredit also markets credit life insurance, card registration, buying club memberships and travel services to its cardholders. Credit cards marketed by CompuCredit are issued by Columbus Bank and Trust Company under an agreement with CompuCredit. CompuCredit completed its initial public offering in April of 1999 and was included in the Russell 2000® Index in July 1999 and the NASDAQ FIN-100 Index in May 2000.

All statements in this press release concerning our growth and earnings expectations are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to various assumptions, risks, uncertainties and other factors that could cause our actual results to differ materially from those that are suggested by these forward-looking statements. These factors include, among others, the following risks and others set forth under the caption ``Risk Factors'' in CompuCredit's Report on Form 10-K for the year ended December 31, 2000, on file with the Securities and Exchange Commission: we have a limited experience with our receivables; we may be unable to meet our future capital and liquidity needs or may be forced to rely on more expensive funding sources than securitizations to sustain our growth; we may encounter other unanticipated difficulties as we seek to sustain and manage our growth; we may be unable to successfully evaluate the creditworthiness of our clients and price our credit products so as to remain profitable; we may experience increased delinquencies and defaults resulting from lack of seasoning of our credit card portfolio; increases in interest rates may increase our cost of funds and reduce the payment performance of our clients; unpredictable economic and other factors could adversely affect our business; changes in consumer protection or other laws may adversely affect our ability to collect credit card account balances or otherwise adversely affect our business or expose us to litigation; adverse publicity could impair acceptance of our products; intense competition for credit card customers could cause us to lose accounts or account balances; we may not be able to successfully target internet clients or evaluate their creditworthiness; our reputation and business may be damaged by internet security breaches or other internet related problems; we may encounter unanticipated difficulties integrating and managing acquired companies or businesses; and we may not realize the benefits or net income we expect from acquisitions. Moreover, as a consequence of those or other factors, CompuCredit's plans or expectations may change. CompuCredit disclaims any obligation, publicly or otherwise, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.