---

Asta Funding Reports a Loss for the Third Quarter

7 August 1997

Asta Funding Reports a Loss for the Third Quarter

    ENGLEWOOD CLIFFS, N.J., Aug. 7 -- Asta Funding, Inc.
today announced its unaudited results for the Company's third
quarter ended June 30, 1997.

    Three Month Results
    The Company reported a net loss of $263,275 or $.07 per share, compared to
net income of $207,542 or $.06 per share, for the same period in the prior
year.  Revenues for the quarter totaled $1,103,178 compared to $1,082,314 for
the same period in the prior year.

    Nine Month Results
    For the nine months ended June 30, 1997, the Company reported a net loss
of $564,203 or $.14 per share, compared to net income of $369,809 or $.11 per
share, for the same period in the prior year.  Revenues for the nine months
totaled $2,814,088, compared to $2,371,977 for the same period in the prior
year.
    Except for the historical information contained herein, the matters set
forth in this news release are forward-looking statements.  Although Asta
Funding, Inc. believes that 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 most recent Registration Statement on Form S-1, its 1996 Annual Report
on Form 10-KSB 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.
    Asta Funding, Inc. is a sub-prime automobile lender located in Englewood
Cliffs, New Jersey.  The Company currently is licensed in eight eastern
states.

SOURCE  Asta Funding, Inc.