World Acceptance Corporation Reports Record Fourth Quarter

GREENVILLE, SC – World Acceptance Corporation (Nasdaq: WRLD) today reported record revenue and net income for its fourth fiscal quarter and year ended March 31, 2005. The Company also announced its plan to expand its lending office network into Mexico during the next six months.

“Revenues for the fourth quarter rose 14.0% to $60.4 million and net income increased 15.0% to $14.3 million due to the continued growth in the loan portfolio, more fees generated from tax preparation services and the contribution from more offices in operation,” stated Douglas R. Jones, President and CEO of World Acceptance Corporation. “Our fourth quarter is the most profitable for the Company because customer balances are typically at their highest level following the Christmas season, customer repayments increase due to factors such as income tax refunds, and fees generated from our tax preparation services are at a seasonal high during the key tax filing months of January through March.”

Net income for the fourth quarter rose 15.0% to $14.3 million, or $0.73 per diluted share, compared with $12.4 million, or $0.63 per diluted share, for the same quarter of the prior year. Total revenues for the quarter increased 14.0% to $60.4 million from $52.9 million for the prior year quarter.

Gross loans outstanding amounted to $351.5 million at March 31, 2005, a 13.3% increase over the $310.1 million in balances outstanding at March 31, 2004. This includes $7.6 million in gross loans that were purchased in two separate acquisitions at the end of the fiscal year.

Expansion into Mexico
“We identified Mexico as an excellent market for expansion based on the favorable regulatory environment, the flexible interest rate structure and the large segment of the population with demographics suitable for our type of lending,” continued Mr. Jones. “We made the decision to expand into Mexico following an extensive study performed by a third-party consultant who was very familiar with conducting business in Mexico. All indications are that Mexico is an excellent market for future growth of World Acceptance Corporation. Our plans call for opening two offices in Mexico by the end of the second quarter of fiscal 2006. We will evaluate our plans for future offices in Mexico based on our initial experience and the results from our two pilot offices.”

Twelve-Month Results
For the fiscal year, net income was a record $34.0 million, or $1.74 per diluted share, representing an 18.2% increase over the $28.8 million, or $1.49 per diluted share, for the prior fiscal year. Total revenues for fiscal 2005 were $210.8 million, a 17.6% increase over the $179.2 million during the previous year.

Several key return ratios remained very high during the fiscal year. The Company’s return on average assets was 11.8% and the return on average equity was 20.1%. Total general and administrative expenses as a percent of total revenues decreased slightly to 53.2% during the year compared to 53.8% during the prior fiscal year.

During the 2005 fiscal year, the Company opened or acquired 57 offices and closed four non-performing offices, leaving a total of 579 offices at March 31, 2005.

About World Acceptance
World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 579 offices in 12 states. It is also the parent company of ParaData Financial Systems, a provider of computer software solutions for the consumer finance industry.