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EZCORP Announces Yearend Results

Nov 8, 2007

EZCORP, Inc. (NASDAQ: EZPW) announced today results for its fourth fiscal quarter and 2007 fiscal year, which ended September 30, 2007.

For the quarter ended September 30, 2007, EZCORP's net income increased 22% to $11,155,000 ($0.26 per share) compared to $9,168,000 ($0.21 per share) for the quarter ended September 30, 2006. Total revenues for the quarter increased 19% to $103,892,000 while operating income improved 28% to $16,727,000.

For the twelve months ended September 30, 2007, net income increased 29% to $37,874,000 ($0.88 per share) compared to $29,259,000 ($0.69 per share) for the prior year twelve month period. Total revenues grew 18% to $372,215,000 while operating income increased 29% to $55,537,000.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, "It has been a busy quarter and year for us. In June, we completed the largest acquisition in our history with the acquisition of the 15 Jumping Jack Cash pawnshop locations in Colorado. In August, we entered into an agreement for our most strategic acquisition in our history, the acquisition of the 20 Mister Money pawnshop locations in Mexico. On October 22nd, we closed on that acquisition and we now operate 24 pawnshops in Mexico. During the year we continued the expansion of our EZMONEY locations adding a net 99 stores and expanded into four new states."

Rotunda continued, "In our fourth quarter we saw exceptionally strong performance in our pawn business and continued strong performance in our signature loan business. Our pawn net revenues increased almost 14% in the quarter resulting from 3% same store sales growth, 9% same store pawn service charge growth and the addition of net revenues from the Jumping Jack Cash locations. Our signature loan contribution, or fees less bad debt, increased approximately 30% from the prior year quarter. Our bad debt, measured as a percent of fees of 31% was up approximately five percentage points from the prior year quarter but improved roughly seven percentage points from the June quarter."

Rotunda concluded, "Looking forward, we will maintain our intensity on growing the business, improving profitability and strengthening our balance sheet. For our fiscal 2008 that began on October 1st, we expect to deliver earnings per share of approximately $1.12. For our first fiscal 2008 quarter, we expect to generate earnings per share of approximately $0.28. In fiscal 2008, we plan to open approximately 100 EZMONEY locations and seven to ten Mexico pawnshop locations."

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 294 U.S. and four Mexico EZPAWN locations and 20 Mister Money Mexico locations open on November 7, 2007. At these locations, the Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to consumers looking for good value. In 434 EZMONEY locations and 75 EZPAWN locations open on November 7, 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, anticipated benefits of acquisitions and investments 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 November 8, 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=43414
  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 September 30,
                                                  2007              2006
   1  Revenues:
   2      Merchandise sales                      $33,101           $30,022
   3      Jewelry scrapping sales                 18,198            16,804
   4      Pawn service charges                    22,055            18,337
   5      Signature loan fees                     30,215            21,891
   6      Other                                      323               301
   7          Total revenues                     103,892            87,355
   8  Cost of goods sold:
   9      Cost of merchandise sales               19,598            18,044
   10     Cost of jewelry scrapping sales         12,791            11,133
   11         Total cost of goods sold            32,389            29,177
   12 Net revenues                                71,503            58,178
   13
   14 Operations expense                          34,515            29,643
   15 Signature loan bad debt                      9,422             5,835
   16 Administrative expense                       8,221             7,402
   17 Depreciation and amortization                2,618             2,208
   18     Operating income                        16,727            13,090
   19
   20 Interest income                               (155)             (237)
   21 Interest expense                                67                45
   22 Equity in net income of unconsolidated
       affiliate                                    (760)             (688)
   23 Loss on sale/disposal of assets                 59                55
   24 Income before income taxes                  17,516            13,915
   25 Income tax expense                           6,361             4,747
   26 Net income                                 $11,155            $9,168
   27
   28 Net income per share, diluted                $0.26             $0.21
   29
   30 Weighted average shares, diluted            43,215            42,909



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

                                                  Year Ended September 30,
                                                   2007              2006
   1  Revenues:
   2      Merchandise sales                     $141,094          $134,326
   3      Jewelry scrapping sales                 51,893            43,098
   4      Pawn service charges                    73,551            65,325
   5      Signature loan fees                    104,347            71,840
   6      Other                                    1,330             1,263
   7          Total revenues                     372,215           315,852
   8  Cost of goods sold:
   9      Cost of merchandise sales               83,501            78,459
   10     Cost of jewelry scrapping sales         34,506            28,414
   11         Total cost of goods sold           118,007           106,873
   12 Net revenues                               254,208           208,979
   13
   14 Operations expense                         128,602           111,738
   15 Signature loan bad debt                     28,508            17,897
   16 Administrative expense                      31,749            27,749
   17 Depreciation and amortization                9,812             8,610
   18     Operating income                        55,537            42,985
   19
   20 Interest income                             (1,654)             (520)
   21 Interest expense                               281               441
   22 Equity in net income of unconsolidated
       affiliate                                  (2,945)           (2,433)
   23 Gain on sale/disposal of assets                (72)               (7)
   24 Income before income taxes                  59,927            45,504
   25 Income tax expense                          22,053            16,245
   26 Net income                                 $37,874           $29,259
   27
   28 Net income per share, diluted                $0.88             $0.69
   29
   30 Weighted average shares, diluted            43,230            42,264



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

                                                     As of September 30,
                                                   2007              2006
   1  Assets:
   2  Current assets:
   3  Cash and cash equivalents                  $22,533           $29,939
   4  Pawn loans                                  60,742            50,304
   5  Payday loans, net                            4,814             2,443
   6  Pawn service charges receivable, net        10,113             8,234
   7  Signature loan fees receivable, net          5,992             4,380
   8  Inventory, net                              37,942            35,616
   9  Deferred tax asset                           8,964             7,150
   10 Federal income taxes receivable                -                  35
   11 Prepaid expenses and other assets            6,146             3,907
   12     Total current assets                   157,246           142,008
   13
   14 Investment in unconsolidated affiliate      35,746            19,275
   15 Property and equipment, net                 33,806            29,447
   16 Deferred tax asset, non-current              4,765             3,749
   17 Goodwill                                    16,211               768
   18 Other assets, net                            3,412             2,611
   19 Total assets                              $251,186          $197,858
   20 Liabilities and stockholders' equity:
   21 Current liabilities:
   22 Accounts payable and other accrued
       expenses                                  $25,592           $22,579
   23 Customer layaway deposits                    1,988             1,890
   24 Federal income taxes payable                 4,795               -
   25     Total current liabilities               32,375            24,469
   26
   27 Deferred gains and other long-term
       liabilities                                 2,886             3,249
   28 Total stockholders' equity                 215,925           170,140
   29 Total liabilities and stockholders'
       equity                                   $251,186          $197,858
   30
   31 Pawn loan balance per ending pawn store       $204              $180
   32 Inventory per ending pawn store               $127              $127
   33 Book value per share                         $5.23             $4.20
   34 Tangible book value per share                $4.77             $4.13
   35 EZPAWN store count - end of period             298               280
   36 EZMoney signature loan store count - end
       of period                                     433               334
   37 Shares outstanding - end of period          41,306            40,485



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

                                         EZPAWN      EZMONEY
                                        Operations  Operations  Consolidated
   Three months ended September 30, 2007:
   1    Revenues:
   2      Sales                            $51,299        $-        $51,299
   3      Pawn service charges              22,055         -         22,055
   4      Signature loan fees                  828      29,387       30,215
   5      Other                                323         -            323
   6          Total revenues                74,505      29,387      103,892
   7
   8    Cost of goods sold                  32,389         -         32,389
   9          Net revenues                  42,116      29,387       71,503
   10
   11   Operating expenses:
   12     Operations expense                22,671      11,844       34,515
   13     Signature loan bad debt              347       9,075        9,422
   14         Total direct expenses         23,018      20,919       43,937
   15         Store operating income       $19,098      $8,468      $27,566
   16
   17   EZPAWN store count - end of period     298         -            298
   18   EZMoney signature loan store
         count - end of period                   6         427          433
   19
   20 Three months ended September 30, 2006:
   21   Revenues:
   22     Sales                            $46,826        $-        $46,826
   23     Pawn service charges              18,337         -         18,337
   24     Signature loan fees                  971      20,920       21,891
   25     Other                                301         -            301
   26         Total revenues                66,435      20,920       87,355
   27
   28   Cost of goods sold                  29,177         -         29,177
   29         Net revenues                  37,258      20,920       58,178
   30
   31   Operating expenses:
   32     Operations expense                21,453       8,190       29,643
   33     Signature loan bad debt              387       5,448        5,835
   34         Total direct expenses         21,840      13,638       35,478
   35         Store operating income       $15,418      $7,282      $22,700
   36
   37   EZPAWN store count - end of period     280         -            280
   38   EZMoney signature loan store
         count - end of period                   6         328          334



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

                                          EZPAWN      EZMONEY
                                        Operations  Operations  Consolidated
     Year ended September 30, 2007:
   1   Revenues:
   2     Sales                            $192,987        $-       $192,987
   3     Pawn service charges               73,551         -         73,551
   4     Signature loan fees                 3,314     101,033      104,347
   5     Other                               1,330         -          1,330
   6         Total revenues                271,182     101,033      372,215
   7
   8   Cost of goods sold                  118,007         -        118,007
   9         Net revenues                  153,175     101,033      254,208
  10
  11   Operating expenses:
  12     Operations expense                 87,555      41,047      128,602
  13     Signature loan bad debt             1,390      27,118       28,508
  14         Total direct expenses          88,945      68,165      157,110
  15         Store operating income        $64,230     $32,868      $97,098
  16
  17   EZPAWN store count - end of period      298         -            298
  18   EZMoney signature loan store
        count - end of period                    6         427          433
  19
  20 Year ended September 30, 2006:
  21   Revenues:
  22     Sales                            $177,424        $-       $177,424
  23     Pawn service charges               65,325         -         65,325
  24     Signature loan fees                 3,155      68,685       71,840
  25     Other                               1,263         -          1,263
  26         Total revenues                247,167      68,685      315,852
  27
  28   Cost of goods sold                  106,873         -        106,873
  29         Net revenues                  140,294      68,685      208,979
  30
  31   Operating expenses:
  32     Operations expense                 84,830      26,908      111,738
  33     Signature loan bad debt             1,286      16,611       17,897
  34         Total direct expenses          86,116      43,519      129,635
  35         Store operating income        $54,178     $25,166      $79,344
  36
  37   EZPAWN store count - end of period      280         -            280
  38   EZMoney signature loan store
        count - end of period                    6         328          334

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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