Asta Funding Announces 17% Increase in Regular Quarterly Dividend

ENGLEWOOD CLIFFS, NJ – Asta Funding, Inc. (Nasdaq: ASFI), a leading consumer receivable asset management and liquidation company, today announced that the Board of Directors voted to increase the regular quarterly dividend by 17% to $0.035 per share of common stock. The dividend is payable on November 1, 2004 to shareholders of record on September 30, 2004.

Gary Stern, President and Chief Executive Officer, said, “On behalf of the Board, I am pleased to announce another increase in Asta’s regular quarterly dividend. This marks the second dividend increase during the fiscal year ending September 30, 2004. As our business continues to grow and prosper, we are delighted to continue to return profits to our loyal shareholders by means of an increase in the regular quarterly dividend.”