Cash America Agrees to Acquire CashNet USA Online Lender

Cash America International, Inc., announced today that it has signed a definitive agreement for the purchase of the assets of CashNetUSA. The purchase will catapult Cash America into the internet distribution channel for short term cash advances, complementing its network of 717 lending locations that offer cash advances in 20 states.

“By expanding our product delivery platform to include internet access, we believe that we are positioned to serve a new customer segment beyond the reach of our current bricks and mortar lending locations. This vehicle will allow us to satisfy customers who seek short term cash advances instead of higher cost alternatives to meet their credit needs with ease and convenience,” remarked Daniel R. Feehan, President and Chief Executive Officer of Cash America International, Inc.

CashNetUSA has emerged as a leader in the online cash advance business since its initial entry into the market in early 2004. It has grown significantly and offers cash advances in 27 states under applicable state laws and regulatory requirements in each market that it serves. Utilizing its proprietary software and delivery platform, CashNetUSA’s gross cash advance portfolio recently reached $22 million and it estimates that it has served over 250,000 customers since inception.

The transaction will allow Cash America to establish a significant presence in the rapidly growing online cash advance market. “We view this as an opportunity to leverage and immediately build on the success and momentum of CashNetUSA. The integration of this delivery channel provides us with an important foundation in this new avenue for growth in the cash advance industry,” commented Mr. Feehan.

The general terms of the transaction include an initial purchase price of approximately $35 million with the opportunity for additional consideration to be paid based on future earnings performance. The transaction is expected to be completed within approximately 60 days, subject to the receipt of required regulatory and other approvals and other customary closing conditions. The CashNetUSA assets are substantially all of the assets of The Check Giant, LLC and its affiliates. The Check Giant, LLC is a privately owned company based in Chicago, Illinois. Cash America’s financial and primary legal advisors in the subject transaction are Jefferies and Company, Inc. and Baker & McKenzie LLP, respectively.