ASTA Funding Reports Purchase of $175 Million of Distressed Consumer Receivables

Asta Funding, Inc. (NASDAQ:ASFI), a financial services company in the consumer receivables liquidation and management business and commercial factoring business, today reported that Palisades Collection, LLC, a wholly-owned subsidiary of the Company, acquired $175 million of distressed consumer loans at a substantial discount. This acquisition was funded by the Company with its own cash.

Gary Stern, President & CEO said, “I am very pleased with the acquisition of this distressed consumer portfolio. In addition, the Company is well positioned to capitalize on receivable opportunities that meet our business model.”

About Asta Funding, Inc.
Headquartered in Englewood Cliffs, NJ, Asta Funding, Inc., is a financial services company engaged in the consumer receivables liquidation and management business and commercial factoring business. The company generates revenues and earnings primarily through the purchase and collection of distressed and non-distressed consumer receivables and commercial factoring receivables. For more information, please visit the company’s web site at www.astafunding.com.

Except for historical information contained herein, the matters set forth in this news release are “forward-looking” statements (as defined in the Private Securities Litigation Reform Act of 1995). Although Asta Funding, Inc. believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions; there can be no assurance that its expectations will be realized. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from Asta Funding, Inc.’s expectations. Factors that could contribute to such differences include those identified in Asta Funding, Inc.’s 10-KSB for the fiscal year ended September 30, 2000, and those described from time to time in Asta Funding, Inc.’s other filings with the Securities and Exchange Commission, news releases and other communications.