Asta Funding Announces Record First Quarter Financial Results

ENGLEWOOD CLIFFS, NJ – Asta Funding, Inc., (Nasdaq: ASFI), a leading consumer receivable asset management and liquidation company, today reported record results for its fiscal first quarter, the three months ended December 31, 2004. Net income for the three months ended December 31, 2004, rose 31.7% to $6,175,000, or $0.43 per diluted share, compared to $4,688,000, or $0.33 per diluted share, in the first quarter of the prior year. Revenues for the three months ended December 31, 2004 were $13,830,000, a 20.7% increase over revenues of $11,455,000 in the prior year’s quarter. Per share results reflect the 2-for-1 stock split in the form of a 100% stock dividend effective March 23, 2004.

Gary Stern, President and Chief Executive Officer of Asta Funding, noted, “The record first quarter reflects the benefits of the Company’s strategy of disciplined portfolio acquisitions. In the most recent quarter our selective approach to portfolio additions still resulted in purchases exceeding $1 billion at a cost of approximately $36.5 million.”

“Furthermore,” Mr. Stern declared, “our primarily outsourced collections management business strategy has allowed us to maintain excellent control of our overhead costs. This flexibility enables Asta to continue to collect aggressively on its current book of business, even while the number of portfolios that meet our disciplined purchasing guidelines may wane. In the interim, this approach will open more capital for Asta, which will be put to good use when opportunities arise.”

Mr. Stern concluded, “Our experience and success developed over 30 years show that profitable growth is the result of maintaining one’s disciplined approach even when others are, in our opinion, being over-aggressive in their purchasing policies. We will continue to adhere to the time-tested business strategies and disciplines that have proven to be successful.”

Asta Funding will conduct a teleconference today at 11:00 am EST. To participate please dial USA/Canada (877) 511-5818, International (706) 634-1462 about 5 -10 minutes prior to 11:00 am EST. Please refer to the Asta Funding earnings teleconference ID 3925512. A recording of the conference call will be available from 12:00 noon EST February 9th through February 16th, by dialing USA/ Canada (800) 642-1687, International (706) 645-9291, conference ID 5448172.