Asta Funding Reports Acquisitions of Finance Receivables

Asta Funding, Inc. (Nasdaq:ASFI), an emerging financial services company in the consumer receivables liquidation and management business and commercial factoring business, today reported that Asta Commercial, LLC a wholly-owned subsidiary of the Company had acquired the finance receivables and customers of two factoring companies. These two acquisitions have doubled the finance receivable portfolio and will bring the annual factoring receivable volume to between $20 – $25 million over the next twelve months.

Gregg Rubin, Senior Vice President of Asta Commercial, LLC, said, ?I am very pleased with these two acquisitions and the Company will continue to pursue other finance receivable acquisitions that meet our business model. In addition, the Company will continue to expand our commercial factoring business from within the Company. With these acquisitions, Asta Commercial, LLC has become profitable within its first year of operations.?

About Asta Funding, Inc.
Headquartered in Englewood Cliffs, NJ, Asta Funding, Inc., is an emerging financial services company engaged in the consumer receivables liquidation and management business and commercial factoring business. The company generates revenues and earnings primarily through the purchase and collection of previously charged-off consumer credit card 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, 1999, 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.