Fiscal 2010 First Quarter Highlights

Total consolidated revenue, which was $141.8 million for the quarter, was unfavorably impacted by higher unemployment and the Company's more conservative approach to consumer lending and cashing checks in the midst of the weakened global economy, as well as the closure of a number of underperforming U.S. financial services stores during the prior fiscal year. However, on a constant currency basis, consolidated revenue was $151.8 million representing a slight year-over-year decline of less than 1.0% compared to the first quarter of the prior fiscal year.

On a sequential quarter basis, total consolidated revenue for the three months ended September 30, 2009 increased by $11.3 million or 9.1%, on a constant currency basis, compared to the three months ended June 30, 2009.

The consolidated loan loss provision, expressed as a percentage of gross consumer lending revenue, improved to 14.8% for the fiscal first quarter compared to 18.7% for the three months ended September 30, 2008, again reflecting the Company's conservative approach to extending consumer credit in the midst of the weakened economy, and the implementation of what the Company believes to be industry leading proprietary credit scoring models for the Company's global loan products.

On a constant currency basis, consolidated adjusted EBITDA was $44.9 million for the quarter compared to $39.3 million for the three months ended September 30, 2008, representing an increase of 14.4%.

On a sequential quarter basis, consolidated adjusted EBITDA for the three months ended September 30, 2009 increased by $6.8 million or 21.6%, on a constant currency basis, compared to the quarter ended June 30, 2009.

On a constant currency basis, pro forma income before income taxes excluding non-recurring charges and the adoption of FSP APB-14-1 was $28.3 million for the quarter compared to $24.1 million for the three months ended September 30, 2008, while pro forma net income, considering a pro forma effective income tax rate of 43.0%, was $16.1 million for the quarter compared to $13.7 million for the first quarter of the prior fiscal year.

Income before income taxes on a GAAP basis was $13.3 million for the quarter, including non-cash mark-to-market losses, compared to $16.5 million for the three months ended September 30, 2008. Net income, which was also impacted by non-cash mark-to-market losses and the related tax effects thereof, was $5.3 million for the fiscal first quarter compared to $11.3 million for the first quarter of the prior fiscal year.

Pro forma fully-diluted earnings per share, excluding non-recurring charges and the adoption of FSP APB-14-1, and considering a pro forma effective income tax rate of 43.0%, was $0.66 for the quarter on a constant currency basis compared to $0.56 for the first quarter of the prior fiscal year, representing an increase of 17.9%.

Fully-diluted earnings per share on a GAAP basis was $0.22 for the quarter, including non-cash mark-to-market losses, compared to $0.46 for the three months ended September 30, 2008.

Discussion on Presentation of Information

The U.S. Dollar was stronger for the three months ended September 30, 2009 compared to the prior year's first quarter, with the relative value of the Canadian Dollar down approximately 5% to the U.S. Dollar, while the U.K. Pound Sterling was down about 13% to the U.S. currency. However, compared to the preceding sequential quarter for the three months ended June 30, 2009, the U.S. currency weakened further this quarter with the relative value of the Canadian Dollar and U.K. Pound Sterling both increasing by approximately 5% during the fiscal first quarter ended September 30, 2009. As a strong majority of the Company's consolidated revenue is generated outside of the United States in Canada and the U.K., the reported results for the Company's foreign subsidiaries are impacted by fluctuations in currency exchange rates when translated into U.S. Dollars, as required by U.S. generally accepted accounting principles. As a result, to facilitate comparisons of operating performance with prior quarter results, we are continuing to provide metrics on our year-over-year financial results on a constant currency basis.

Fiscal 2010 First Quarter Overview and Business Updates

Commenting on the first quarter results, Jeff Weiss, the Company's Chairman and Chief Executive Officer, stated, "I am pleased to announce another quarter of strong financial results with all of our business units reporting higher year-over-year store margins. Primarily as a result of an increased focus on improving the efficiency and reducing the cost structure of our global store base and field support groups, total consolidated adjusted EBITDA for the Company, on a constant currency basis increased by $5.6 million or 14.4% for the three months ended September 30, 2009 compared to the prior year's first quarter ended September 30, 2008. This growth was achieved despite slightly lower year-over-year revenue on a constant currency basis amid the significantly weakened global economy."

Jeff Weiss continued, "Our customer base is generally composed of small business owners and service sector workers who typically work non-discretionary jobs, such as working cash registers in gas stations and convenience stores, providing daily required services in hospitals, and stocking shelves in grocery stores and supermarkets. The nature of these jobs tends to dampen fluctuations in employment from cyclical swings in the overall economy, which is a significant reason for our strong business performance throughout this historically long recession. However, with unemployment rates near 10% in all of our markets, a segment of our customer base has been moderately impacted by job losses, furloughs, and a reduction in working hours. We do believe, though, there is a real need for the basic services provided by our customers and expect that employment for this socio-economic group will rebound faster than most other sectors of the economy as economic growth resumes.

We believe we are witnessing early signs of just such a dynamic, as past customers are beginning to return to our store locations to take advantage of the many products and services we provide. As a result, including the effects of a number of recent acquisitions and growth initiatives, total consolidated revenue for the fiscal first quarter grew by $11.3 million or 9.1% compared to the most recent quarter ended June 30, 2009, while adjusted EBITDA over the same time period increased by a robust $6.8 million or 21.6%, all on a constant currency basis."

In conclusion, Jeff Weiss stated, "Despite the significantly weakened global economy, our business continues to perform very well, as our diversified multi-product, multi-country, and multi-channel business model continued to deliver strong earnings and cash flow throughout the long recession, and is continuing in what we now believe is the early stage of global economic recovery. During the economic downturn, we steadfastly focused on reducing our cost structure and improving the operating efficiency of our global store base and field support network. We implemented what we believe to be industry leading proprietary credit scoring models for our global loan products, and leveraged new technologies and expertise in our debt collection processes. These activities are beginning to pay large dividends, as the profitability of our business has never been better from the perspective of how much an incremental dollar of revenue translates into store margins. We are excited about the very strong start to fiscal 2010 and look to build upon this early success as we move through the remainder of the fiscal year."

In Canada, check cashing fees and consumer lending revenue declined modestly in the first quarter compared to the prior year period, reflecting significantly higher unemployment rates across all of our geographic markets compared to this point in time last year. However, over the past few months, the Company has begun to see signs of moderate employment recovery amongst its customer base, as total consolidated revenue in Canada grew by C$5.3 million or 8.1% for the quarter compared to the three months ended June 30, 2009. Previous declines in check cashing revenue, primarily due to fewer and smaller payroll checks being cashed, appears to have stabilized this quarter with check cashing fees approximately flat on a sequential quarter basis. Consumer lending revenue, for which the primary requirement to get a loan is that the customer be employed at the time of application, increased by C$5.5 million or 16.5% compared to the immediately preceding quarter ended June 30, 2009.

In the U.K., the Company's extensive geographic coverage and strong brand recognition continues to drive organic customer growth despite the significantly weakened economy, as same store sales from consumer lending increased by 8.7% when compared to the prior year's first quarter. Furthermore, total revenue in the U.K. for the quarter on a year-over-year basis increased by £5.1 million or 23.6%. Store and regional margin in the U.K., as a result of a number of operating efficiency improvements and higher same store sales, improved to 41.8% of gross revenue for the fiscal first quarter compared to 40.6% for the prior year's first quarter. On a sequential quarter basis, including the acquisition of an internet lending business in April 2009, total consolidated revenue in the U.K. increased by £3.6 million or 15.6% compared to the three months ended June 30, 2009, with higher revenues across all of the major product categories. Consumer lending revenue in the U.K. increased by 16.2% or £2.1 million, compared to the three months ended June 30, 2009, while check cashing fees were slightly higher on a sequential quarter basis.

In the U.S., the Company closed a number of underperforming financial services stores during the fiscal year ended June 30, 2009 and significantly reduced the related field management and store support functions, as components of a plan to divest underperforming stores and focus its domestic store footprint in states with more favorable and stable regulatory environments. Primarily due to these initiatives, adjusted EBITDA for the Company's domestic financial services business was approximately flat for the quarter on a year-over-year basis despite $9.0 million of lower revenues. Store and regional margin in the U.S., as a percent of gross revenue, improved to 15.9% for the quarter compared to 12.0% for the first quarter of the previous year.

In July 2009, the Company announced its initial entry onto the European continent with the acquisition of an established consumer lending business in Poland. The acquired company, Optima, S.A., founded in 1999 and headquartered in Gdansk, offers unsecured loans of generally 40 - 50 week durations with an average loan amount of $250 to $500. The loan transaction includes a convenient in-home servicing feature, whereby loan disbursement and collection activities take place in the customer's home according to a mutually agreed upon and pre-arranged schedule. Customer sales and service activities are managed through an extensive network of local commission based representatives across five provinces in northwestern Poland. The country has a population of nearly 40 million people with a significant percentage of the population currently underserved by the traditional banking industry. This acquisition represents a planned first step into mainland Europe, and also provides a platform for further expansion throughout Poland and other Eastern European countries. The demographics of the neighboring Eastern European countries are similar to Poland, with the entire population of Eastern Europe nearing 200 million people across several countries, with a significant percentage of the population residing in urban-industrial areas. The Company is very pleased with the performance of this business thus far and is positioning it for further expansion throughout the region.

On October 21, 2009, the Company announced the acquisition of a merchant cash advance business in the United Kingdom. The acquired company primarily provides working capital funding to small retail businesses by providing cash advances against a percentage of future credit card sales. As part of the business model, the merchant's credit card processor, typically a third party bank, directs a predetermined percentage of the merchant's future daily credit card receivables to the acquired company until the advance is paid back in full. We believe this repayment process substantially reduces any risk of repayment default. The acquired company was "first to market" in the United Kingdom in 2005 and is still the only significant participant in this emerging industry. The acquisition further diversifies the Company by expanding into the small business financial services market. The Company believes financing the working capital requirements of small businesses is a significantly under-served market globally, with the potential opportunity in the United Kingdom alone encompassing approximately 400,000 small retail merchants.

On October 28, 2009, the Company announced the acquisition of Dealers' Financial Services, LLC, or "DFS". DFS, which is headquartered in Lexington, Kentucky, was founded in 1996. The acquired company provides services to military personnel who apply for auto loans to purchase new and low mileage used vehicles. The loans are funded and serviced under an exclusive agreement with a major third party national bank based in the United States. DFS operates through an established network of arrangements with more than 545 franchised and independent new and used car dealerships, according to underwriting protocols specified by the third party bank lender and servicer. The partner third party bank funds and maintains the loan portfolio on its balance sheet, as well as bears any risk of repayment default. DFS's revenues come from fees paid to the Company by the third party lender and by the sale of ancillary products such as warranty and GAP insurance coverage. DFS maintains strong relationships with an extensive network of franchised and independent new and used car dealerships through an experienced group of local, DFS sales agents. To be part of the DFS network, dealerships must first be certified by DFS and agree to comply with a number of vehicle quality and sale stipulations. The Company intends to operate DFS as a standalone business unit of Dollar, in order to focus on leveraging the existing dealership network and lending platform to other customer segments through a number of proprietary strategic growth initiatives.