Consumer Portfolio Services, Inc. Reports 2004 Third Quarter Results

IRVINE, CA – Consumer Portfolio Services, Inc. (Nasdaq: CPSS) today announced results for its third quarter ended September 30, 2004. For the three months ended September 30, 2004 total revenues increased approximately $6.2 million, or 24%, to $32.3 million, compared to $26.0 million for the three months ended September 30, 2003. Pretax loss for the third quarter of 2004 was $2.1 million, compared to pretax loss of $2.9 million for the comparable 2003 period. Expenses for the third quarter of 2004 included a $7.6 million provision for credit losses vs. $4.2 million during the third quarter of 2003. Net loss for the quarter ended September 30, 2004 was $2.1 million, or $(0.10) per diluted share, compared to net loss of $2.9 million, or $(0.14) per diluted share, for the quarter ended September 30, 2003. Diluted shares outstanding were 21.3 million and 20.2 million for the quarters ended September 30, 2004 and 2003, respectively.

Revenues for the nine months ended September 30, 2004 totaled $92.5 million, an increase of $19.2 million, or 26%, compared to $73.3 million in the 2003 period. For the nine months ended September 30, 2004 pretax loss was $3.6 million. For the nine months ended September 30, 2003 pretax income was $2.6 million. Net loss for the nine months ended September 30, 2004 was $3.6 million, or $(0.17) per diluted share, compared to net income of $6.1 million, or $0.28 per diluted share, for the nine months ended September 30, 2003. Net income during the 2003 period included a net tax benefit of $3.4 million. The income tax benefit in the prior period was primarily the result of the resolution of certain IRS examinations of tax returns filed by MFN Financial Corporation prior to its having been acquired in 2002 by CPS. The resulting tax benefit of $4.9 million was offset in part by an income tax provision of $1.5 million. Diluted shares outstanding were 21.0 million and 21.7 million for the nine-month periods ended September 30, 2004 and 2003, respectively.