Asta Funding Announces Purchase of $135 Million of Severely Distressed Consumer Receivables

Asta Funding, Inc., (NASDAQ:ASFI), a leading consumer receivables asset management and liquidation company today announced that it acquired $135 million of severely distressed consumer loans at a substantial discount.

Gary Stern, president & CEO commented, “This latest portfolio purchase is consistent with our long-term strategy. We continue to pursue these opportunities in a conservative manner and are looking to maximize our returns.”

About Asta Funding
Based in Englewood Cliffs, NJ, Asta Funding, Inc., is a leading consumer receivables asset management company that specializes in the purchase, liquidation and management of performing and non-performing consumer receivables, as well as factoring commercial receivables. Asta generates revenues and earnings primarily through purchase and collection of performing and non-performing consumer receivables and commercial factoring receivables. Asta has strategic alliances with the leading companies in the consumer receivables market. For additional information, please visit our Web site at www.astafunding.com.

(Except for historical information containing 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 fillings with the Securities and Exchange Commission, news releases and other communications.)