Asta Funding Reports A 45% Increase in Net Income in First Quarter

Asta Funding, Inc. (Nasdaq:ASFI), a financial services company that specializes in the purchase, liquidation and management of non-conforming consumer receivables and the factoring of commercial receivables, today reported results for its first quarter ended December 31, 2000.

Net income for the first quarter ended December 31, 2000, rose 45% to $1,754,000 or $0.43 per diluted share, from $1,211,000 or $0.30 per diluted share, as compared to the prior year period. Revenues for the first quarter ended December 31, 2001, were $4,134,000, an increase of 32% over revenues of $3,136,000 for the prior year period.

Gary Stern, President and CEO of Asta Funding, said, ?I am very pleased with the Company’s progress and growth in earnings this fiscal quarter and during the past two fiscal years. Collections continue to be strong and the Company continues to maintain an efficient operating cost structure. Asta is very pleased with its recent factoring receivables acquisitions and will continue to pursue other business and consumer receivable acquisitions. The Company also anticipates continued growth this fiscal year in light of current economic conditions.?

About Asta Funding, Inc.
Headquartered in Englewood Cliffs, NJ, Asta Funding, Inc., is a financial services company that specializes in the purchase, liquidation and management of non-conforming consumer receivables and the factoring of commercial receivables. The company generates revenues and earnings primarily through the purchase and collection of non-conforming consumer receivables and commercial factoring receivables. For more information, please visit the company’s web site 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 10-KSB for the fiscal year ended September 30, 2000, 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.