Asta Funding Purchases Distressed Consumer Receivable Portfolios Totaling $936 Million

ENGLEWOOD CLIFFS, NJ – Asta Funding, Inc. (Nasdaq: ASFI), a leading consumer receivable asset management and liquidation company, today announced that since the end of its fiscal third quarter ended June 30, 2004 the company has purchased eight distressed consumer receivable portfolios aggregating approximately $935.7 million, for a total purchase price of approximately $30.6 million. Since the beginning of fiscal 2004 distressed consumer receivable portfolios aggregating approximately $2.4 billion have been purchased at a total cost of approximately $86.9 million.

Commenting on the recent purchases, Gary Stern, President and Chief Executive Officer, said, “We are pleased with our purchasing activity. Our disciplined approach toward portfolio acquisitions, combined with the strength of our financial resources and operational capabilities, has enabled Asta to continue to grow our business in a sensible fashion, despite a competitive pricing environment.”

Asta Funding, Inc.
Based in Englewood Cliffs, NJ, Asta Funding, Inc., is a leading consumer receivable asset management company that specializes in the purchase, management and liquidation of performing and non-performing consumer receivables. Asta generates revenues and earnings primarily through the purchase and collection of performing and non-performing consumer receivables. For additional information, please visit our website 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 Form 10-K for the fiscal year ended September 30, 2003, 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, including that Asta may not be able to purchase consumer receivable portfolios at favorable prices or on sufficiently favorable terms or at all. Asta Funding, Inc.’s reports with the Securities and Exchange Commission are available free of charge through its website at http://www.astafunding.com.