"The second quarter was another good quarter for us," said QC Chairman and Chief Executive Officer Don Early. "Our customers have adjusted to the struggling economy by borrowing less and taking care of outstanding debts. In such a cycle, key factors to success include superior customer service, disciplined cost management and efficient operations.

"Throughout the first half of 2009, we have focused on these key factors, which have fueled the strong performance to date," Early said. "With this sound foundation, we will be prepared to seize the opportunities that arise when the economy begins to improve and our customers adjust their approach to credit."

Highlights for the second quarter included:

Income from continuing operations of $4.5 million, or $0.25 per diluted share, compared to $2.3 million, or $0.13 per diluted share, in second quarter 2008;

Revenues of $52.0 million compared to $52.3 million in second quarter 2008;

A loss ratio of 22.6% for the current quarter, down from 26.9% in last year's second quarter; and

Adjusted EBITDA, which is income from continuing operations before interest, taxes, depreciation, amortization, charges related to stock options and restricted stock awards, and non-cash gains or losses associated with property disposition, of $10.5 million, a 32.9% improvement over prior year's second quarter.

Highlights for the six months ended June 30, 2009, included:

Income from continuing operations of $11.0 million, or $0.61 per diluted share, compared to $7.8 million, or $0.42 per diluted share, in the same 2008 period;

A 2.0% increase in revenues to $107.1 million compared to $105.0 million in the same 2008 period;

A 7.9% improvement in gross profit over prior year's six month period; and

Adjusted EBITDA of $24.9 million versus $20.9 million during the first six months of 2008.

The three months and six months ended June 30, 2009 and 2008, include discontinued operations relating to branches that were closed during each period, partly due to changes in payday loan laws that effectively preclude the product as offered.

For the three months and six months ended June 30, 2009 and 2008, schedules reconciling adjustments to net income pursuant to generally accepted accounting principles (GAAP), and adjusted EBITDA to income from continuing operations, are provided below. The results for the three months and six months ended June 30, 2008, include ballot referendum expenditures in Arizona and Ohio of approximately $609,000 and $826,000, respectively, that were not deductible for income tax purposes. QC believes that it is useful to management and investors to analyze results after adjusting for these items to provide a more comparable basis for evaluating QC's operating results and financial performance over time. See the reconciliation tables for additional information.

** Second Quarter **

Revenues decreased slightly quarter-to-quarter, primarily due to reduced payday loan volumes, substantially offset by higher automotive loan volumes (due to an increase in the number of locations). QC originated approximately $277.9 million of payday loans during second quarter 2009, a 10.1% decrease from the $309.2 million during second quarter 2008. This decline is partially attributable to reduced payday volume in Virginia, where the company introduced an open-end credit product in late 2008. During late second quarter 2009, the company re-introduced the payday loan product in Virginia and discontinued the open-end product offering. Installment and automotive loan volumes totaled $10.2 million for second quarter 2009 versus $8.4 million in prior year's second quarter.

Revenues for comparable branches (those branches that were open for the 15 months since March 31, 2008) decreased 5.5%, or $2.8 million, to $48.3 million during the three months ended June 30, 2009. This decrease reflects reduced customer demand across most states.

Branch operating costs, exclusive of loan losses, decreased to $22.8 million during the three months ended June 30, 2009, compared to $23.1 million in the same 2008 quarter. The decrease was attributable to a reduction in overtime compensation and occupancy costs, partially offset by higher cost of sales associated with the company's automotive sales locations.

During the three months ended June 30, 2009, the company reported a $2.4 million reduction in loan losses to $11.7 million compared to $14.1 million in the same 2008 period. The loss ratio for the current quarter totaled 22.6% compared to 26.9% in second quarter 2008. Fewer returned items and a better collection rate on those returns produced the improvement period-to-period. This improvement was partially offset by a higher allowance associated with the company's open-end credit product in Virginia and the developing automotive sales and finance business. The loss ratio at comparable branches declined to 23.0% during second quarter 2009 compared to 28.2% in prior year's second quarter.

QC's branch gross profit in second quarter 2009 was $17.5 million, a 15.9% increase over prior year's quarter. Gross profit for comparable branches during second quarter 2009 increased $1.8 million to $17.4 million, with the improvement resulting from stronger results in the majority of states. Aggregate results from newer branches, the automotive sales locations and closed branches were essentially breakeven during the quarter.

Regional and corporate expenses declined to $8.6 million during the three months ended June 30, 2009 from $9.4 million in second quarter 2008 ($8.8 million, exclusive of ballot referendum costs in 2008). This decline resulted from cost management efforts throughout the organization.

Net interest expense decreased to $811,000 in the current quarter compared to $1.0 million in second quarter 2008 as a result of lower average debt balances and reduced interest rates.

"We expect to continue to focus on the details in our core lending operations," noted QC President and Chief Operating Officer Darrin Andersen. "Our objective is to maximize profitability at each of our branches. Each branch will work to that objective, whether it is achieved through revenue growth, reduced loan losses, lower operating costs, or some combination of these.

"Our five automotive sales locations continue to improve. With the recent addition of a service center to the mix, we are positioned to streamline our acquisition-to-lot process, which will enable our customer service sales force to focus on matching customers with the right automobile."

** Six Months Ended June 30 **

The company's revenues grew $2.1 million, or 2.0%, to $107.1 million during the six months ended June 30, 2009, versus 2008 as a result of an increase in automobile loan sales, partially offset by reduced payday loan volume.

Revenues for comparable branches (those branches that were open for the 18 months since December 31, 2007) decreased 4.2% to $97.9 million during the six months ended June 30, 2009 for the same reasons as noted in the quarterly discussion.

Branch operating costs, exclusive of loan losses, increased 2.6% to $47.3 million, primarily as a result of higher cost of sales for automobile purchases, partially offset by reduced salaries and benefits as noted in the quarterly discussion. Comparable branches averaged approximately $12,500 per month in operating expenses during 2009 compared to $13,100 per month in prior year.

During the six months ended June 30, 2009, the company reported loan losses of $20.4 million compared to $22.5 million for the same period in 2008. The company's loss ratio improved to 19.0% during the six months ended June 30, 2009, (versus 21.4% in the same 2008 period) for the same reasons noted in the quarterly discussion. The company sold approximately $552,000 of older debt during the first half of 2009 compared to $243,000 in last year's first half.

Branch gross profit increased 7.9% to $39.4 million in 2009 from $36.5 million. Gross profit for comparable branches during 2009 increased by 4.6% to $38.4 million. This increase reflects improvements in most states, partially offset by reduced gross profit in Virginia as the company transitioned to the open-end credit product, and then back to the payday product.

Exclusive of the 2008 referendum expenditures, regional and corporate expenses decreased approximately $1.0 million to $18.0 million during the six months ended June 30, 2009. This decline reflects reduced governmental affairs and public education expenditures period-to-period.

Net interest expense declined approximately $350,000 during the first half of 2009 compared to the first half of 2008 due to lower average debt balances and interest rates throughout 2009.

-DIVIDEND DECLARATION -

QC's Board of Directors declared a regular quarterly dividend of $0.05 per common share, payable September 1, 2009, to stockholders of record as of August 18, 2009.

-BUSINESS OUTLOOK -

"As we look to the second half of 2009, we do not see dramatic changes in the economic landscape that will alter the trends we have seen over the last few quarters with respect to revenues and loan losses," Early said. "We continue to emphasize to our field management and employees the importance of focusing on our core competencies -- making short-term loans, providing superior customer service and collecting in a professional, friendly manner.

"On a daily basis, there are new and different reports as to developments in consumer credit. Our company is actively involved in monitoring, evaluating, managing, discussing and supporting the various components of this dynamic and complex issue. We believe that consumers benefit from having access to a variety of competitive credit sources, including the products we offer. And when given the choice, customers have overwhelmingly demonstrated their desire for our products based on a reasoned consideration of available alternatives.

"With an efficient branch network focused on maximizing profit, a strong and flexible balance sheet, and a proven history of success in all types of economic cycles, we are well-positioned to manage the various opportunities and challenges that are sure to arise."

About QC Holdings, Inc.

Headquartered in Overland Park, Kansas, QC Holdings, Inc. is a leading provider of short-term loans in the United States, operating 557 branches in 24 states at June 30, 2009. With more than 25 years of operating experience in the retail consumer finance industry, the company entered the short-term loan market in 1992 and, since 1998, has grown from 48 branches to 557 branches through a combination of de novo branches and acquisitions. During fiscal 2008, the company advanced nearly $1.4 billion to customers and reported total revenues of $227.7 million.

Forward Looking Statement Disclaimer: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the company's current expectations and are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those forward-looking statements. These risks include (1) changes in laws or regulations or governmental interpretations of existing laws and regulations governing consumer protection or payday lending practices, (2) litigation or regulatory action directed towards us or the payday loan industry, (3) volatility in our earnings, primarily as a result of fluctuations in loan loss experience and the rate of growth in, or closures of, branches, (4) risks associated with the leverage of the company, (5) negative media reports and public perception of the payday loan industry and the impact on federal and state legislatures and federal and state regulators, (6) changes in our key management personnel, and (7) the other risks detailed under Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission. QC will not update any forward-looking statements made in this press release to reflect future events or developments.

                                                                                                                        QC Holdings, Inc.Consolidated Statements of Income(in thousands, except per share amounts) (Unaudited)                                                                                                                                                                                             Three Months EndedJune 30,     Six Months EndedJune 30,                                                                                                                                                                                     2008           2009            2008            2009            Revenues                                                                                                              Payday loan fees                                       $  43,112      $  38,474       $  85,600       $  77,749       Other                                                     9,182          13,541          19,426          29,323       Total revenues                                            52,294         52,015          105,026         107,072      Branch expenses                                                                                                       Salaries and benefits                                     11,820         11,321          23,326          22,981       Provision for losses                                      14,084         11,746          22,458          20,353       Occupancy                                                 6,470          6,030           12,754          12,273       Depreciation and amortization                             1,077          1,035           2,162           2,066        Other                                                     3,741          4,420           7,820           9,953        Total branch expenses                                     37,192         34,552          68,520          67,626       Branch gross profit                                       15,102         17,463          36,506          39,446                                                                                                                             Regional expenses                                         3,309          3,382           6,752           6,846        Corporate expenses                                        6,126          5,225           13,031          11,176       Depreciation and amortization                             688            827             1,364           1,560        Interest expense, net                                     1,010          811             2,208           1,858        Other expense, net                                        241            18              319             153          Income from continuing operationsbefore income taxes      3,728          7,200           12,832          17,853       Provision for income taxes                                1,433          2,726           5,012           6,886        Income from continuing operations                         2,295          4,474           7,820           10,967       Loss from discontinued operations, net ofincome tax       (800    )      (217    )       (931     )      (953     )   Net income                                             $  1,495       $  4,257        $  6,889        $  10,014                                                                                                                             Earnings (loss) per share:                                                                                            Basic                                                                                                                 Continuing operations                                  $  0.13        $  0.25         $  0.42         $  0.61         Discontinued operations                                   (0.05   )      (0.01   )       (0.05    )      (0.05    )   Net income                                             $  0.08        $  0.24         $  0.37         $  0.56                                                                                                                               Diluted                                                                                                               Continuing operations                                  $  0.13        $  0.25         $  0.42         $  0.61         Discontinued operations                                   (0.05   )      (0.01   )       (0.05    )      (0.05    )   Net income                                             $  0.08        $  0.24         $  0.37         $  0.56                                                                                                                               Weighted average number of commonshares outstanding:                                                                  Basic                                                     17,739         17,459          18,232          17,465       Diluted                                                   17,939         17,634          18,406          17,581                                                                                                                              -------------------------------------------------------------------------------  

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Non-GAAP ReconciliationsConsolidated Statements of Income(in thousands, except per share amounts)(Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          The company analyzes historical results after adjusting for certain items. With respect to the results for the three months endedJune 30, 2008, the company believes that excluding the 2008 referendum expenditures is useful to management and investorsbecause it provides a more comparable basis for evaluating the company's operating results and financial performance overtime. Internally, these adjusted results are used to evaluate the performance of the company.