Asta Funding Reports Record Third Quarter and Nine Months Net Income

ENGLEWOOD CLIFFS, NJ – Asta Funding, Inc., (Nasdaq: ASFI), a leading consumer receivable asset management and liquidation company, today reported results for the three months and nine months ended June 30, 2004.

Net income for the three months ended June 30, 2004, rose 121% to a record $5,607,000, or $0.39 per diluted share, compared to $2,540,000, or $0.27 per diluted share, in the same prior year period. Revenues for the three months ended June 30, 2004, were $12,050,000, an increase of 31% compared to revenues of $9,208,000 a year ago.

Net income for the nine months ended June 30, 2004 grew 116% to a record $15,728,000 or $1.10 per diluted share, from $7,281,000, or $0.81 per diluted share, for the same period a year earlier. Revenues for the nine months ended June 30, 2004 were a record $36,369,000, an increase of 54% compared to revenues for the nine months ended June 30, 2003 of $23,679,000.

Per share results for both the three and nine month periods have been adjusted for a 2-for-1 stock split, effected through a 100% stock dividend, which became effective March 23, 2004, and give effect to the additional shares which were issued through our June 2003 common stock secondary offering.

Commenting on the Company’s performance, Asta chief executive officer Gary Stern said, “Asta continues to produce record financial results. The third quarter and nine month comparative results reflect significantly increased cash collections resulting from the value we have built in our existing book of business and the early returns on our more recently-added portfolios, as well as the continued efficiencies driven by our expense controls.”

Mr. Stern added, “Our outstanding results are a testament to our long-term disciplined strategy, which is not dependent on receivable purchases in any one quarter. With our financial and operational resources, our stringent pricing standards and our proven business model, I am confident that Asta will continue to maximize long-term value for our shareholders.”

Asta Funding will conduct a teleconference today at 11:00 a.m. EDT. To participate please dial USA (877) 511-5818, International (706) 634-1462 about 5-10 minutes prior to 11:00 a.m. EDT. Please refer to the Asta Funding earnings teleconference ID 9002003. A recording of the conference call will be available from 1:00 p.m. EDT August 4th through August 11th, by dialing USA/ Canada (800) 642-1687, International (706) 645-9291, conference ID 9002003.

Asta Funding, Inc.
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 www.astafunding.com.

Except for historical information contained herein, the matters set forth in this news release are “forward- looking” statements (as defined in the Private Securities Litigation Reform Act of 1995.) Although Asta Funding, Inc. believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from Asta Funding, Inc.’s expectations. Factors that could contribute to such differences include those identified in Asta Funding, Inc.’s Form 10-K for the fiscal year ended September 30, 2003, and those described from time to time in Asta Funding, Inc.’s other filings with the Securities and Exchange Commission, news releases and other communications, including that Asta may not be able to purchase consumer receivable portfolios at favorable prices or on sufficiently favorable terms or at all. Asta Funding, Inc.’s reports with the Securities and Exchange Commission are available free of charge through its website at http://www.astafunding.com.