Encore Capital Reports Strong Revenue and Earnings Increases in Q2

Encore Capital Group, Inc. (Nasdaq: ECPG) announced today a continuation of its trend in year-over-year increases in earnings.

Net income for the 2nd quarter of 2003 was $3.3 million as compared to $0.7 million earned in the 2nd quarter of 2002. On a fully diluted basis, Encore reported $0.17 per share for the second quarter of 2003 — a 325% increase over the $0.04 per fully diluted share reported in same quarter of 2002.

For the first six months of 2003, Encore reported net income of $11.5 million as compared to the $0.9 million earned in the first six months of 2002. On a fully diluted basis, Encore reported $0.58 per share for the first half of 2003 — an 867% increase over the $0.06 per fully diluted share reported for the first half of 2002. As previously disclosed, our results for the first half of 2003 reflected a one-time benefit in the amount of $7.2 million arising from the settlement of litigation. This settlement contributed $4.4 million after-tax, or $0.22 cents per fully diluted share, to the first six months’ results.