Asta Funding Announces Continued Earnings Growth, Revenue Up 76%

Asta Funding, Inc. (NASDAQ:ASFI), a financial services company that specializes in the purchase, liquidation and management of performing and non-performing consumer receivables and the factoring of commercial receivables, today reported results for its third quarter ended June 30, 2001.

Net income for the three months ended June 30, 2001, rose 49% to $2,435,000 or $0.58 per diluted share, from $1,571,000 or $0.39 per diluted share, as compared to the prior year period. Revenues for the three months ended June 30, 2001, were $6,720,000, an increase of 75% over revenues of $3,834,000 for the prior year period.

Net income for the nine months ended June 30, 2001, rose 54% to $6,400,000 or $1.55 per diluted share from $4,145,000 or $1.03 per diluted share, as compared to the prior year period. Revenues for the nine months ended June 30, 2001, were $16,970,000, an increase of 38% over revenues of $12,291,000 for the prior year period.

Gary Stern, President and CEO of Asta Funding, said, “I am very pleased that for the seventh consecutive quarter the Company experienced an increase in earnings. In addition, I believe the Company is well poised to take advantage of new opportunities to purchase receivable portfolios and will continue to actively pursue additional purchases of consumer and commercial finance receivables. We continue to adhere to our disciplined strategy of evaluating and purchasing new portfolios.”

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 performing and non-performing 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.

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