Franklin Credit Management Report Revenue and Earnings for 2004

NEW YORK – Franklin Credit Management Corporation (OTC Bulletin Board: FCSC), a specialty consumer finance company primarily engaged in the acquisition, origination, servicing and resolution of performing, subperforming and nonperforming residential mortgage loans, today announced increased revenues and earnings for 2004.

For the three months ended December 31, 2004, revenues increased 77% to $27.7 million, compared with $15.6 million in the fourth quarter of 2003. Net Income increased 70% to $3,314,212, or $0.49 per diluted share, compared with $1,953,412, or $0.30 per diluted share, in the quarter ended December 31, 2003.

For the twelve months ended December 31, 2004, the Company reported revenues of $80.5 million, which represented an increase of 40% when compared with 2003 revenues of $57.6 million. Net income increased 42% to a record $9,506,310, or $1.43 per diluted share in 2004, versus net income of $6,685,457, or $1.02 per diluted share, in the year ended December 31, 2003.

“We are very pleased to report substantially higher revenue and earnings for the quarter and year ended December 31, 2004,” commented Jeffrey Johnson, Chief Executive Officer of Franklin Credit Management Corporation.

“Large portfolio acquisitions during the second half of the year, primarily related to bulk purchases of subprime mortgage loans from Bank One and Master Financial, allowed us to increase our notes receivable portfolio by more than 74% to $811.9 million (face value) during 2004.”