1001258--2/20/2009--ASTA_FUNDING

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{capital, credit, financial}

{acquisition, growth, future}

{condition, economic, financial}

{loss, insurance, financial}

{stock, price, operating}

{debt, indebtedness, cash}

{customer, product, revenue}

{operation, international, foreign}

{tax, income, asset}

{gas, price, oil}

{regulation, change, law}

{financial, litigation, operation}

{provision, law, control}

{control, financial, internal}

{stock, price, share}

{cost, contract, operation}

{loan, real, estate}

The anticipated benefits of the Portfolio Purchase have not and may not meet our expectations. We incurred substantial debt in connection with the Portfolio Purchase Agreement. The BMO Facility has been amended on a number of occasions and has required additional credit support from the Company. We are highly leveraged and may incur further debt in the future which could adversely affect our ability to obtain additional funds. Business issues with a significant third party servicer (the Servicer ) has led to the need to secure subordinated financing reduced purchases and other disruptions in the business relationship. We are highly leveraged which places constraints on our business and increases our vulnerability to economic and business downturns. The current economic environment has slowed our ability to collect from our debtors. We may not be able to purchase consumer receivable portfolios at favorable prices or on sufficiently favorable terms or at all. Our future operating results will suffer as we have not replaced our defaulted consumer receivables at historic levels. Our inability to purchase sufficient quantities of receivables portfolios may necessitate workforce reductions, which may harm our business. We have seen at certain times that the market for acquiring consumer receivable portfolios has become more competitive, thereby diminishing from time to time our ability to acquire such receivables at prices we are willing to pay. With portfolios classified under the interest method, our projections of future cash flows from our portfolio purchases may prove to be inaccurate, which could result in reduced revenues or the recording of an impairment charge if we do not achieve the collections forecasted by our model. We use estimates for recognizing finance income on a portion of our consumer receivables acquired for liquidation and our earnings would be reduced if actual results are less than estimated. We may not be able to collect sufficient amounts on our consumer receivable portfolios to recover the costs associated with the purchase of those portfolios and to fund our operations. We are subject to competition for the purchase of consumer receivable portfolios. We are dependent upon third parties to service a majority of our consumer receivable portfolios. We rely on our third party collectors to comply with all rules and regulations and maintain proper internal controls over their accounting and operations. We may rely on third parties to locate, identify and evaluate consumer receivable portfolios available for purchase. Our collections may decrease if bankruptcy filings increase. If we are unable to access external sources of financing, we may not be able to fund and grow our operations. The loss of an asset type could impact our ability to acquire receivable portfolios. We may not be successful at acquiring receivables of new asset types or in implementing a new pricing structure. The loss of any of our executive officers may adversely affect our operations and our ability to successfully acquire receivable portfolios. The Stern family effectively controls Asta, substantially reducing the influence of our other stockholders. We have experienced rapid growth over the past several years, which has placed significant demands on our administrative, operational and financial resources and could result in an increase in our expenses. Current economic conditions, have had a significant impact on our ability to sell accounts. Government regulations may limit our ability to recover and enforce the collection of our receivables. Class action suits and other litigation in our industry could divert our management s attention from operating our business and increase our expenses. We may seek to make acquisitions that prove unsuccessful or strain or divert our resources. Our investments in other businesses and entry into new business ventures may adversely affect our operations. If our technology and phone systems are not operational, our operations could be disrupted and our ability to successfully acquire receivable portfolios and receive collections from debtors could be adversely affected. Our organizational documents and Delaware law may make it harder for us to be acquired without the consent and cooperation of our board of directors and management. Future sales of our common stock may depress our stock price. The Company purchased a portfolio in a South American country exposing the Company to currency rate fluctuations. Our quarterly operating results may fluctuate and cause our stock price to decline.

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1001258--2/20/2009--ASTA_FUNDING_INC