Asta Funding Announces New Credit Line

ENGLEWOOD CLIFFS, N.J. — Asta Funding, Inc., (Nasdaq: ASFI), a leading consumer receivables asset management and liquidation company, today announced that it has successfully renegotiated its line of credit and increased the available credit from $20 million to $25 million.

Gary Stern, CEO of Asta, stated, “We are very pleased that we have been able to negotiate a new credit facility with our existing lender. We have had a long standing relationship with our lender, a leading international bank, and we are gratified that they recognize the soundness of our strategic growth plans by renewing our credit line and raising the credit limit to $25 million.”

“At the current time”, Mr. Stern added, “Asta has over $10 million in cash and no outstanding bank debt. The new credit facility and internal cash resources will give Asta the financial flexibility to acquire significant new receivable portfolios at attractive prices.”

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. Asta generates revenues and earnings primarily through purchase and collection of performing and non-performing consumer receivables. 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, 2001, 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.