CompuCredit Reports Record Quarterly Earnings

ATLANTA, GA – CompuCredit (NasdaqNM: CCRT) reported record net income attributable to common shareholders of $66.5 million, or $1.29 per diluted share for the second quarter of 2005, as compared to $13.8 million, or $0.28 per diluted share from a year ago.

“We were very pleased with our record earnings this quarter,” said David G. Hanna, Chairman and CEO. “The sale of a significant portfolio of previously charged-off receivables this quarter was a major contributor to our results, and we also feel very good about the performance of each of our business units in a terrific economic environment for our business.”

The net interest margin was 22.7 percent in the second quarter of 2005, as compared to 20.2 percent for the second quarter of 2004. The adjusted charge-off rate was 8.0 percent in the second quarter of 2005, as compared to 8.8 percent for the second quarter of 2004. Also, at June 30, 2005, the 60-plus day delinquency rate was 8.3 percent, as compared to 9.6 percent at June 30, 2004.

Various references within this press release and the accompanying financial information are to the Company’s managed receivables, which include the Company’s non-securitized receivables, as well as the receivables underlying the Company’s off balance sheet securitization facilities. Financial, operating and statistical data based on these aggregate managed receivables are key to any evaluation of the Company’s performance in managing (including underwriting, valuing purchased receivables, servicing and collecting) the aggregate of the portfolios of receivables reflected on the Company’s balance sheet and underlying the Company’s securitization facilities. In allocating the Company’s resources and managing the Company’s business, management relies heavily upon financial, operating and statistical data prepared on a so-called “managed basis.” It is also important to analysts, investors and others that the Company provides selected metrics and data on a managed basis because this allows a comparison of CompuCredit to others within the specialty finance industry. Moreover, the Company’s management, analysts, investors and others believe it is critical that they understand the credit performance of the entire portfolio of the Company’s managed receivables because it reveals information concerning the quality of loan originations and the related credit risks inherent within the securitized portfolios and the Company’s retained interests in its securitization facilities.

Managed receivables data assume that none of the credit card receivables underlying the Company’s off balance sheet securitization facilities were ever transferred to securitization facilities and present the net credit losses and delinquent balances on the receivables as if the Company still owned the receivables. Reconciliation of the managed receivables data to the Company’s GAAP financial statements requires: (1) recognition that a significant majority of the Company’s loans and fees receivable (i.e., all but $357.0 million of GAAP loans and fees receivables at gross face value) had been sold in securitization transactions as of June 30, 2005; (2) a look-through to the Company’s economic share of the receivables that it manages for its two equity-method investees; (3) removal of the Company’s minority interest holders’ interests in the managed receivables underlying the Company’s GAAP consolidated results; and (4) recognition that the de-securitized Fingerhut managed receivables are recorded at a $0.0 basis in the Company’s GAAP financial statements.

Our expectation with regard to performance of our business units is a forward-looking statement. Forward looking statements are subject to a number of risks and uncertainties, many of which are beyond CompuCredit’s control. Actual results may differ materially from those suggested by the forward looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the factors set forth in “Item 1. Business-Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2004, changes in the general economy that might make originated and acquired receivables more difficult to collect (and future receivables less profitable), our ability to transfer acquired receivables to our systems and effectively collect them, and our ability to successfully integrate and grow acquired businesses. CompuCredit expressly disclaims any obligation to update any forward-looking statements except as may be required by law.

Further details regarding CompuCredit’s second quarter financial performance will be discussed during management’s conference call on Thursday, August 4, 2005 at 8:00 a.m., Eastern Time. The media and public are invited to listen to the live webcast of the call, accessible on the Internet at www.CompuCredit.com. A replay of the conference call also will be available on the web site.

CompuCredit Corporation is a specialty finance company and marketer of branded credit cards and related financial services. CompuCredit provides these services to consumers who are underserved by traditional financial institutions. Through corporate and affinity contributions focused on the underserved and un-banked communities, CompuCredit also uses its financial resources and volunteer efforts to address the numerous challenges affecting its customers. For more information about CompuCredit, visit http://www.CompuCredit.com.