ACE Cash Express Second Quarter Earnings Per Share Increases 43 Percent (1/01)

ACE Cash Express, Inc., the nation's largest check-cashing chain and a significant provider of related retail financial services, achieved record revenue during its second fiscal quarter ended December 31, 2000, resulting in a 42 percent increase in net income, and a 43 percent increase in earnings per share, from the second quarter of the prior fiscal year.

During the second quarter of fiscal 2001, total revenue increased 40 percent, to $45.1 million from $32.3 million in the second quarter of fiscal 2000. Net income for the second quarter of fiscal 2001 reached $2.0 million, a 42 percent rise over fiscal 2000's second quarter net income of $1.4 million. The increased revenue and net income produced diluted earnings per share of 20 cents, a 43 percent increase over diluted earnings per share of 14 cents in last fiscal year's second quarter. Earnings before interest, taxes, depreciation and amortization increased 47 percent, to $9.1 million for the second quarter of fiscal 2001 from $6.2 million for the second quarter of fiscal 2000.

ACE's core revenue categories showed continued growth in the fiscal 2001 second quarter compared to the fiscal 2000 second quarter; check cashing fees increased 13 percent to $22.9 million and loan fees increased 220 percent to $12.9 million. The ACE network expanded by a total of 120 stores, consisting of 5 newly constructed company-owned stores, 112 acquired company-owned stores and 3 franchised locations during the second quarter of this fiscal year. Same store sales in the fiscal 2001 second quarter increased by 20 percent over those in last fiscal year's second quarter.

"ACE continued its strong growth in the second quarter of fiscal 2001," said Jay B. Shipowitz, president and chief operating officer of ACE. "We expanded our total credit facility to $245 million, and completed the acquisition and integration of 112 stores. Additionally, we have provided H&R Block with 50 self-service check-cashing machines to be placed in various H&R Block locations. This is the first significant introduction of our self- service machines outside of an ACE store, and we look forward to the new opportunities that our self-service machines may provide in the future."

ACE Cash Express, Inc. is headquartered in Irving, Texas and is the largest owner, operator and franchiser of check-cashing stores in the United States. Founded in 1968, the company has a total network of 1,221 stores, consisting of 1,055 company-owned stores and 166 franchised stores in 33 states and the District of Columbia. ACE also maintains automatic check- cashing machines, which provide Financial Services without the need for a service associate, at 21 locations. ACE offers a broad range of financial and check-cashing services and is one of the largest providers of MoneyGram wire transfer transactions. In addition, ACE offers money orders, bill payment services, and prepaid local and long distance telecommunication services. Under ACE's agreement with Goleta National Bank (GNB), GNB currently makes small consumer loans available to customers at various ACE company-owned stores.