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EZCORP Annual Shareholder Meeting

Feb 11, 2002

EZCORP, Inc. (NASDAQ: EZPW) held its Annual Shareholder Meeting in Austin, Texas on February 6, 2002.

President and Chief Executive Officer, Joseph L. Rotunda, stated, "This past year we have accomplished a lot. First, we built an experienced management team. Many team members have experience serving the very same cash and credit constrained consumer; they have managed highly profitable operations in a growth environment; and they have participated in industry consolidations. Second, we had a significant improvement in profitability by bringing customers back into our stores and managing expenses. Finally, we reduced debt by almost 40% in the last twelve months. Our leverage ratio, or the ratio of total debt to EBITDA, improved to 2.8 times, well below the double-digit levels of a year ago. EZCORP today is a well-managed company that generates substantial free cash flow. As we continue to refine our business processes and execution, our operating results will continue to improve."

At the meeting, results for EZCORP's fiscal 2001 and first fiscal 2002 quarter were reviewed. Operating income before depreciation, amortization, and restructuring for the 2001 fiscal year increased $13.3 million over the 2000 fiscal year to approximately $17.8 million. For the first fiscal 2002 quarter, operating income before depreciation and amortization increased 7% to $6.6 million compared to $6.2 million for the prior year period; and net income increased 30% to $1.4 million ($0.11 per share) compared to $1.1 million ($0.09 per share) a year ago. These results and the completion of twenty-nine sale leasebacks enabled EZCORP to reduce total debt $33 million from December 2000 to approximately $51 million at December 2001.

Rotunda added, "Our roadmap to the future is outlined in our four phase plan which includes building the basics, establishing world class levels of execution, redefining the store model, and industry consolidation. The first two phases are well underway. Phase three has begun with the introduction of our short-term-loan product; but it won't stop there. Industry consolidation, phase four, represents a tremendous opportunity for our company. However, we will consider consolidation only when we can execute at a very high level and when we have a store model that produces a superior economic result."

Rotunda concluded, "We are very pleased with the progress of our UK affiliate Albemarle and Bond. In their last fiscal year ended June 30th, they saw total revenues and operating income increase over 30% from the prior year. This investment offers a number of strategic opportunities. On February 11th they will announce their fiscal 2002 mid-year results."

Dan Tonissen, Senior Vice President and Chief Financial Officer commented, "Given EZCORP's high level of free cash flow, we believe the most accurate way to value the stock is enterprise value relative to EBITDA rather than price to earnings. At recent price levels, EZCORP's net enterprise value is only 3.9 times our last twelve months' EBITDA. We believe our stock is undervalued and represents an appreciation opportunity to our shareholders and future investors."

EZCORP offers consumers convenient, non-recourse loans collateralized by tangible personal property and short-term, non-collateralized loans, often referred to as payday loans. A secondary, but related, business activity is the selling of previously owned merchandise consisting primarily of forfeited collateral. Currently, the Company operates 281 stores in eleven states. EZCORP also owns 29% of Albemarle & Bond Holdings PLC, is its largest shareholder, and holds two of their seven board seats. Albemarle & Bond is the largest operator of pawnshops in the UK, with 50 stores, and trades on the London Stock Exchange under the symbol ABM.

                               EZCORP Valuation

                                                  $ million

  Market capitalization
   (12.1 million shares outstanding X closing
   price on 2/7/02 of $2.74)                       $  33.2
  Total debt                                          51.1

  Enterprise value                                    84.3

  Less value of EZCORP's investment in
   Albemarle & Bond Holdings PLC ("A&B")
   A&B trades on the London Stock Exchange
   under the symbol ABM.(13.3 M shares X closing
   price on 2/7/02 of 0.62 Pounds X exchange rate
   $1.41 per Pound)                                   11.6

  Net enterprise value ("NEV")                     $  72.6

  Last twelve months' EBITDA                       $  18.5

  NEV to EBITDA                                        3.9
  Total debt to EBITDA                                 2.8


         Summary Financial Data for First Fiscal Quarter 2002 v. 2001

                                                    Three Months Ended
                                                 12/31/01       12/31/00
  1  Total revenues ($ million)                    54.6           47.2
  2  Net revenues ($ million)                      31.4           29.1
  3  Operating expense ($ million)                 24.8           23.0
  4  Operating income before depreciation
      and amortization ($ million)                  6.6            6.2
  5  Net income ($ million)                         1.4            1.1
  6  Earnings per share (cents)                      11              9
  7  EBITDA ($ million)                             6.7            6.2
  8  Total debt ($ million)                        51.1           84.4
  9  Same store sales growth                         10%            (9%)
  10 Same store pawn loan growth                      5%            (2%)


                Summary Financial Data for Fiscal 2001 v. 2000

                                                   Twelve Months Ended
                                                 9/30/01        9/30/00
  1  Total revenues ($ million)                   186.2          197.4
  2  Net revenues ($ million)                     107.1          109.3
  3  Operating expense ($ million)                 89.3          104.8
  4  Operating income before depreciation,
      amortization, and restructuring ($ million)  17.8            4.5
  5  Restructuring charge ($ million)              (0.7)          10.6
  6  Income/(loss) before the cumulative
      effect of accounting change ($ million)      (0.6)         (18.2)
  7  Cumulative effect of accounting
      change ($ million)                            ---          (14.3)
  8  Net income/(loss) ($ million)                 (0.6)         (32.6)
  9  EBITDA ($ million)                            18.1            4.7
  10 Total debt ($ million)                        60.2           81.1
  11 Same store sales growth                         (3%)           (0%)
  12 Same store pawn loan growth                      5%            (9%)

This announcement contains certain forward-looking statements regarding the Company's expected performance for future periods including. Actual results for these periods may materially differ from these statements. Such forward-looking statements involve risks and uncertainties such as changing market conditions in the overall economy and the industry, consumer demand for the Company's services and merchandise, changes in regulatory environment, and other factors periodically discussed in the Company's annual, quarterly and other reports filed with the Securities and Exchange Commission.

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SOURCE: EZCORP, Inc.

Contact: Dan Tonissen of EZCORP, Inc., +1-512-314-2220

Website: http://www.ezcorp.com/

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