ASTA Funding Reports Record Revenue and Earnings For The Fiscal Year Ending September 30, 2002

Asta Funding, Inc., (Nasdaq: ASFI – News), a leading consumer receivables asset management and liquidation company, today reported record results for the fiscal year ending September 30, 2002. Net income for the year ended September 30, 2002, rose 21% to $10,383,000 or $2.38 per diluted share, from $8,591,000 or $2.06 per diluted share, as compared to the same prior year period. Revenues for the year ended September 30, 2002, were $36,012,000, an increase of 49% over revenues of $24,114,000 for the year ended September 30, 2001.

Gary Stern, Chief Executive Officer, stated, “The fiscal year results were very gratifying and represent records in revenues, earnings and earnings per share. This performance is a result of our disciplined approach to acquiring distressed receivables and the successful utilization of our organization. During the past two years, Asta Funding has seen a dramatic improvement in results and our balance sheet has never been more solid. At our fiscal year end, our borrowing debt was approximately $2.2 million compared to nearly $30 million a year earlier and our borrowing debt-to-equity stood at a very moderate 6.5% compared to nearly 132% a year ago. In addition, as of October 31, 2002, we had no borrowing debt and approximately $4.3 million in cash on hand. Thus, we are in a very strong financial position to take advantage of any opportunity that meets our strategic objectives. While we continue to look to improve earnings, we are also mindful of the need to be disciplined in this uncertain economic and financial climate.

As previously reported, Asta Funding will conduct a teleconference today at 11:30 a.m. Eastern time. To participate please dial USA (877) 511-5818, International (706) 634-1462 about 5 minutes prior to start.

Asta Funding, Inc.
Based in Englewood Cliffs, NJ, Asta Funding, Inc., is a leading consumer receivables asset management company that specializes in the purchase, liquidation and management of performing and non-performing consumer receivables. Asta generates revenues and earnings primarily through purchase and collection of performing and non-performing consumer receivables. Asta has strategic alliances with the leading companies in the consumer receivables market. For additional information, please visit our Web site at www.astafunding.com.

Except for historical information containing 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, 2001, and those described from time to time in Asta Funding, Inc.’s other fillings with the Securities and Exchange Commission, news releases and other communications.

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