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EZCORP Announces Third Fiscal Quarter Results

Jul 24, 2007

EZCORP, Inc. (NASDAQ: EZPW) announced today results for its third fiscal quarter and nine month period, which ended June 30, 2007.

For the quarter ended June 30, 2007, EZCORP's net income increased 21% to $6,762,000 ($0.16 per share) compared to $5,608,000 ($0.13 per share) for the quarter ended June 30, 2006. Total revenues for the quarter increased 18% to $86,993,000 while operating income improved 16% to $9,307,000.

For the nine months ended June 30, 2007, net income increased 33% to $26,719,000 ($0.62 per share) compared to $20,091,000 ($0.48 per share) for the prior year nine month period. Total revenues grew 17% to $268,323,000 while operating income increased 30% to $38,810,000.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, "We are pleased to report, once again, that our growth in earnings reflected a solid contribution from all segments of our business. Pawn net revenues grew 7% led by a 13% increase in pawn service charges. Same store pawn loan balances for the quarter increased 11% over the prior year. Our signature loan contribution, fees less bad debt, increased 37% over the prior year quarter as a result of a 52% increase in signature loan fees offset by higher relative levels of bad debt. As a result of the higher levels of bad debt, we fine tuned our underwriting, primarily with new customers, and saw significant improvement late in the quarter."

Rotunda continued, "On June 18th we completed the acquisition of Jumping Jack Cash's Colorado locations. Since we closed late in the quarter, these stores had a nominal impact on the quarter's results. We expect these stores to contribute $0.04 to $0.05 per share over a full year, with most of that benefit coming in the seasonally strong December and March quarters."

Rotunda concluded, "We expect our fourth fiscal 2007 quarter's earnings to be approximately $0.26 per share compared to $0.21 for the fiscal 2006 fourth quarter. You may recall that our fiscal 2006 fourth quarter included a net benefit of approximately $0.01 per share from three nonrecurring items. This fourth quarter guidance and our nine month results will bring our guidance for our 2007 fiscal year to approximately $0.88 per share compared to fiscal 2006's $0.69 per share. Based on new EZMONEY locations in the pipeline, we expect to open approximately 45 EZMONEY stores during the fourth quarter for approximately 100 net new EZMONEY locations this fiscal year. In May we opened our third EZPAWN location in Mexico and we expect to open our fourth location in the September quarter."

EZCORP is primarily a lender or provider of credit services to individuals who do not have cash resources or access to credit to meet their short-term cash needs. The Company offers non-recourse loans collateralized by tangible personal property, commonly known as pawn loans, in 295 U.S. and three Mexico EZPAWN locations open at June 30, 2007. At these locations, the Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to consumers looking for good value. In 390 EZMONEY locations and 80 EZPAWN locations open at June 30, 2007, the Company offers short-term non- collateralized loans, often referred to as payday loans, or fee based credit services to customers seeking loans.

This announcement contains certain forward-looking statements regarding the Company's expected performance for future periods including, but not limited to, new store expansion and expected future earnings. 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 the regulatory environment, and other factors periodically discussed in the Company's annual, quarterly and other reports filed with the Securities and Exchange Commission. You are invited to listen to a conference call discussing these results on July 24, 2007 at 3:30pm Central Time. The conference call can be accessed over the Internet or replayed at your convenience at the following address. http://www.videonewswire.com/event.asp?id=40904

  For additional information, contact Dan Tonissen at (512) 314-2289.


                               EZCORP, Inc.
     Highlights of Consolidated Statements of Operations (Unaudited)
                  (in thousands, except per share data)


                                               Three Months Ended June 30,
                                                  2007                2006
  1 Revenues:
  2    Merchandise sales                       $30,607             $29,612
  3    Jewelry scrapping sales                  12,069              11,028
  4    Pawn service charges                     16,978              15,021
  5    Signature loan fees                      27,024              17,821
  6    Other                                       315                 304
  7        Total revenues                       86,993              73,786
  8 Cost of goods sold:
  9    Cost of merchandise sales                17,745              16,868
  10   Cost of jewelry scrapping
        sales                                    7,676               6,830
  11        Total cost of goods sold            25,421              23,698
  12 Net revenues                               61,572              50,088
  13
  14 Operations expense                         31,595              27,544
  15 Signature loan bad debt                    10,142               5,531
  16 Administrative expense                      8,033               6,830
  17 Depreciation and amortization               2,495               2,143
  18    Operating income                         9,307               8,040
  19
  20 Interest income                              (618)               (193)
  21 Interest expense                               67                  43
  22 Equity in net income of
      unconsolidated affiliate                    (720)               (557)
  23 Gain on sale/disposal of assets              (155)                (70)
  24 Income before income taxes                 10,733               8,817
  25 Income tax expense                          3,971               3,209
  26 Net income                                 $6,762              $5,608
  27
  28 Net income per share, diluted               $0.16               $0.13
  29
  30 Weighted average shares, diluted           43,482              42,557



                               EZCORP, Inc.
     Highlights of Consolidated Statements of Operations (Unaudited)
                  (in thousands, except per share data)

                                                 Nine Months Ended June 30,
                                                   2007               2006
  1 Revenues:
  2    Merchandise sales                       $107,993           $104,304
  3    Jewelry scrapping sales                   33,695             26,294
  4    Pawn service charges                      51,496             46,988
  5    Signature loan fees                       74,132             49,949
  6    Other                                      1,007                962
  7        Total revenues                       268,323            228,497
  8 Cost of goods sold:
  9    Cost of merchandise sales                 63,903             60,415
  10   Cost of jewelry scrapping
        sales                                    21,715             17,281
  11
           Total cost of goods sold              85,618             77,696
  12 Net revenues                               182,705            150,801
  13
  14 Operations expense                          94,087             82,095
  15 Signature loan bad debt                     19,086             12,062
  16 Administrative expense                      23,528             20,347
  17 Depreciation and amortization                7,194              6,402
  18    Operating income                         38,810             29,895
  19
  20 Interest income                             (1,499)              (283)
  21 Interest expense                               214                396
  22 Equity in net income of
     unconsolidated affiliate                    (2,185)            (1,745)
  23 Gain on sale/disposal of assets               (131)               (62)
  24 Income before income taxes                  42,411             31,589
  25 Income tax expense                          15,692             11,498
  26 Net income                                 $26,719            $20,091
  27
  28 Net income per share, diluted                $0.62              $0.48
  29
  30 Weighted average shares, diluted            43,393             41,923



                                EZCORP, Inc.
            Highlights of Consolidated Balance Sheets (Unaudited)
           (in thousands, except per share data and store counts)


                                                          As of June 30,
                                                      2007            2006
  1  Assets:
  2  Current assets:
  3  Cash and cash equivalents                      $31,686         $22,731
  4  Pawn loans                                      58,053          48,932
  5  Payday loans, net                                4,514           1,966
  6  Pawn service charges receivable, net             8,150           7,037
  7  Signature loan fees receivable, net              5,439           3,708
  8  Inventory, net                                  33,641          32,937
  9  Deferred tax asset                               7,150           8,365
  10 Prepaid expenses and other assets                5,197           3,340
  11    Total current assets                        153,830         129,016
  12
  13 Investment in unconsolidated affiliate          21,250          17,870
  14 Property and equipment, net                     31,895          27,283
  15 Deferred tax asset, non-current                  4,536           3,669
  16 Goodwill                                        16,205             631
  17 Other assets, net                                3,648           2,614
  18 Total assets                                  $231,364        $181,083
  19 Liabilities and stockholders' equity:
  20 Current liabilities:
  21 Accounts payable and other accrued
      expenses                                      $21,658         $18,517
  22 Customer layaway deposits                        1,888           1,734
  23 Federal income taxes payable                     1,255             752
  24    Total current liabilities                    24,801          21,003
  25
  26 Deferred gains and other long-term
      liabilities                                     2,977           3,339
  27 Total stockholders' equity                     203,586         156,741
  28 Total liabilities and stockholders'
      equity                                       $231,364        $181,083
  29
  30 Pawn loan balance per ending pawn store           $195            $175
  31 Inventory per ending pawn store                   $113            $118
  32 Book value per share                             $4.93           $3.95
  33 Tangible book value per share                    $4.47           $3.88
  34 EZPAWN store count - end of period                 298             280
  35 EZMoney signature loan store count -
      end of period                                     390             288
  36 Shares outstanding - end of period              41,300          39,679



                               EZCORP, Inc.
                  Operating Segment Results (Unaudited)
                   (in thousands, except store counts)

                                         EZPAWN      EZMONEY
                                       Operations   Operations Consolidated
   Three months ended June 30, 2007:

  1  Revenues:
  2  Sales                                $42,676          $--      $42,676
  3  Pawn service charges                  16,978           --       16,978
  4  Signature loan fees                      808       26,216       27,024
  5  Other                                    315           --          315
  6     Total revenues                     60,777       26,216       86,993
  7
  8  Cost of goods sold                    25,421           --       25,421
  9     Net revenues                       35,356       26,216       61,572
  10
  11 Operating expenses:
  12 Operations expense                    21,613        9,982       31,595
  13 Signature loan bad debt                  570        9,572       10,142
  14     Total direct expenses             22,183       19,554       41,737
  15     Store operating income           $13,173       $6,662      $19,835
  16
  17 EZPAWN store count - end of period       298           --          298
  18 EZMoney signature loan store count
      - end of period                           7          383          390
  19
  20 Three months ended June 30, 2006:
  21 Revenues:
  22 Sales                                $40,640           --      $40,640
  23 Pawn service charges                  15,021           --       15,021
  24 Signature loan fees                      838       16,983       17,821
  25 Other                                    304           --          304
  26     Total revenues                    56,803       16,983       73,786
  27
  28 Cost of goods sold                    23,698           --       23,698
  29     Net revenues                      33,105       16,983       50,088
  30
  31 Operating expenses:
  32 Operations expense                    20,747        6,797       27,544
  33 Signature loan bad debt                  406        5,125        5,531
  34     Total direct expenses             21,153       11,922       33,075
  35     Store operating income           $11,952       $5,061      $17,013
  36
  37 EZPAWN store count - end of period       280           --          280
  38 EZMoney signature loan store count
      - end of period                           7          281          288


                                EZCORP, Inc.
                    Operating Segment Results (Unaudited)
                     (in thousands, except store counts)

                                         EZPAWN      EZMONEY
                                       Operations   Operations Consolidated
   Nine Months ended June 30, 2007:

  1  Revenues:

  2  Sales                               $141,688          $--     $141,688
  3  Pawn service charges                  51,496           --       51,496
  4  Signature loan fees                    2,554       71,578       74,132
  5  Other                                  1,007           --        1,007
  6     Total revenues                    196,745       71,578      268,323
  7
  8  Cost of goods sold                    85,618           --       85,618
  9     Net revenues                      111,127       71,578      182,705
  10
  11 Operating expenses:
  12 Operations expense                    64,926       29,161       94,087
  13 Signature loan bad debt                1,070       18,016       19,086
  14     Total direct expenses             65,996       47,177      113,173
  15     Store operating income           $45,131      $24,401      $69,532
  16
  17 EZPAWN store count - end of period       298           --          298
  18 EZMoney signature loan store count
      - end of period                           7          383          390
  19
  20 Nine Months ended June 30, 2006:
  21 Revenues:
  22 Sales                               $130,598           --     $130,598
  23 Pawn service charges                  46,988           --       46,988
  24 Signature loan fees                    2,237       47,712       49,949
  25 Other                                    962           --          962
  26     Total revenues                   180,785       47,712      228,497
  27
  28 Cost of goods sold                    77,696           --       77,696
  29     Net revenues                     103,089       47,712      150,801
  30
  31 Operating expenses:
  32 Operations expense                    63,401       18,694       82,095
  33 Signature loan bad debt                  920       11,142       12,062
  34     Total direct expenses             64,321       29,836       94,157
  35     Store operating income           $38,768      $17,876      $56,644
  36
  37 EZPAWN store count - end of period       280           --          280
  38 EZMoney signature loan store count
      - end of period                           7          281          288

First Call Analyst:
FCMN Contact: sharon_lemond@ezcorp.com

SOURCE: EZCORP, Inc.

CONTACT: Dan Tonissen of EZCORP, Inc., +1-512-314-2289

Web site: http://www.ezcorp.com/

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