Exhibit 99.1

For Immediate Release

Encore Capital Group Announces Second Quarter 2008 Results

SAN DIEGO, August 4, 2008 /PRNewswire-FirstCall/ — Encore Capital Group, Inc. (Nasdaq: ECPG), a leading distressed consumer debt management company, today reported consolidated financial results for the second quarter ended June 30, 2008.

For the second quarter of 2008:

• Gross collections were $102.1 million, a 9% increase over the $93.6 million in the same period of the prior year.

• Investments in receivable portfolios were $52.5 million, to purchase $1.8 billion in face value of debt, compared to $41.1 million, to purchase $1.3 billion in face value of debt in the same period of the prior year.

• Revenues from receivable portfolios were $66.3 million, a 4% increase over the $64.0 million in the same period of the prior year. Revenue recognized on receivable portfolios, as a percentage of portfolio collections, excluding the effects of impairment provisions, was 68%, compared to 67% in the same period of the prior year.

• Revenues from bankruptcy servicing were $3.7 million, compared to $3.2 million in the same period of the prior year.

• Total operating expenses were $55.9 million, a 6% increase over the $52.6 million in the same period of the prior year. Operating expense (excluding stock-based compensation expense, bankruptcy servicing operating expenses and costs related to the consideration of strategic alternatives) per dollar collected decreased to 50.0% compared to 50.5% in the same period of the prior year.

• Adjusted EBITDA, defined as net income before interest, taxes, depreciation and amortization, stock-based compensation expense and portfolio amortization, was $53.7 million, a 17% increase over the $46.1 million in the same period of the prior year.

• Total interest expense was $3.6 million, compared to $16.0 million in the same period of the prior year.

• Net income was $7.3 million or $0.31 per fully diluted share, compared to a net loss of $0.8 million or $0.04 per fully diluted share in the same period of the prior year.

Additional information:

Certain events affected the comparability of 2008 versus 2007 quarterly results, as outlined below. For a more detailed comparison of 2008 versus 2007 results, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2008.

Encore Capital Group, Inc.

Page 2 of 7

• In the second quarter of 2008, the Company recorded a net impairment provision of $3.4 million, compared to an impairment reversal of $1.0 million in the same period of the prior year.

• In the second quarter of 2008, the Company repurchased $5.0 million principal amount of its outstanding convertible senior notes, for a total price of $3.5 million, plus accrued interest. This repurchase resulted in a net gain of $1.4 million.

• In the second quarter of 2007, approximately $11.7 million of total interest expense was attributable to the agreement reached with the Company’s previous lender to pay off all future contingent interest payments.

Non-GAAP Financial Measures

The Company has included information concerning Adjusted EBITDA because management utilizes this information, which is materially similar to a financial measure contained in covenants used in the Company’s credit agreement, in the evaluation of its operations and believes that this measure is a useful indicator of the Company’s ability to generate cash collections in excess of operating expenses through the liquidation of its receivable portfolios. The Company has included information concerning total operating expenses excluding stock-based compensation expense, bankruptcy servicing operating expenses and costs related to the consideration of strategic alternatives in order to facilitate a comparison of approximate cash costs to cash collections for the debt purchasing business in the periods presented. These non-GAAP financial measures should not be considered as alternatives to, or more meaningful than, net income and total operating expenses as indicators of Encore Capital Group’s operating performance. Neither Adjusted EBITDA nor operating expenses excluding stock-based compensation expense, bankruptcy servicing operating expenses and costs related to the consideration of strategic alternatives has been prepared in accordance with generally accepted accounting principles (GAAP). These non-GAAP financial measures, as presented by Encore Capital Group, may not be comparable to similarly titled measures reported by other companies. The Company has included a reconciliation of Adjusted EBITDA to reported earnings under GAAP, and a reconciliation of operating expenses excluding stock-based compensation expense, bankruptcy servicing operating expenses and costs related to the consideration of strategic alternatives to the GAAP measure total operating expenses in the attached financial tables.

About Encore Capital Group, Inc.

Encore Capital Group, Inc. is a systems-driven purchaser and manager of charged-off consumer receivables portfolios. More information on the company can be found at www.encorecapitalgroup.com.

Encore Capital Group, Inc.

Page 3 of 7

Contact:

Encore Capital Group, Inc.

Paul Grinberg (858) 309-6904

paul.grinberg@encorecapitalgroup.com

or

Ren Zamora (858) 560-3598

ren.zamora@encorecapitalgroup.com

FINANCIAL TABLES FOLLOW

Encore Capital Group, Inc.

Page 4 of 7

ENCORE CAPITAL GROUP, INC.

Condensed Consolidated Statements of Financial Condition

(In Thousands, Except Par Value Amounts)

(Unaudited)

	June 30, 2008			December 31, 2007
Assets
Cash and cash equivalents	$	5,047		$	4,900
Restricted cash		3,649			3,776
Accounts receivable, net		3,588			4,136
Investment in receivable portfolios, net		414,559			392,209
Deferred court costs		25,155			20,533
Property and equipment, net		5,344			4,390
Prepaid income tax		1,518			10,346
Forward flow asset		10,302			15,863
Other assets		8,180			8,800
Goodwill		15,985			15,985
Identifiable intangible assets, net		2,148			2,557
Total assets	$	495,475		$	483,495
Liabilities and stockholders’ equity
Liabilities:
Accounts payable and accrued liabilities	$	20,156		$	20,346
Deferred tax liabilities, net		13,659			13,669
Deferred revenue and purchased servicing obligation		4,370			3,898
Debt		265,635			272,420
Other liabilities		1,668			1,642
Total liabilities		305,488			311,975
Commitments, contingencies and subsequent events
Stockholders’ equity:
Convertible preferred stock, $.01 par value, 5,000 shares authorized, no shares issued and outstanding		—			—
Common stock, $.01 par value, 50,000 shares authorized, 23,016 shares and 22,992 shares issued and outstanding as of June 30, 2008, and December 31, 2007, respectively		230			230
Additional paid-in capital		76,963			73,310
Accumulated earnings		113,805			98,975
Accumulated other comprehensive loss		(1,011	)		(995	)
Total stockholders’ equity		189,987			171,520
Total liabilities and stockholders’ equity	$	495,475		$	483,495

Encore Capital Group, Inc.

Page 5 of 7

ENCORE CAPITAL GROUP, INC.

Condensed Consolidated Statements of Operations

(In Thousands, Except Per Share Amounts)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
Revenues
Revenue from receivable portfolios, net	$	66,275		$	64,021		$	130,343		$	126,174
Servicing fees and other related revenue		3,745			3,207			7,231			6,429
Total revenues		70,020			67,228			137,574			132,603
Operating expenses
Salaries and employee benefits (excluding stock-based compensation expense)		15,689			16,064			30,540			33,250
Stock-based compensation expense		1,228			1,204			2,322			2,005
Cost of legal collections		23,829			21,159			44,135			38,780
Other operating expenses		5,987			6,239			11,638			11,983
Collection agency commissions		3,781			2,867			7,812			6,161
General and administrative expenses		4,581			4,232			9,041			8,503
Depreciation and amortization		766			840			1,488			1,709
Total operating expenses		55,861			52,605			106,976			102,391
Income before other (expense) income and income taxes		14,159			14,623			30,598			30,212
Other (expense) income
Interest expense		(3,583	)		(3,336	)		(7,529	)		(6,256	)
Contingent interest expense		—			(888	)		—			(4,123	)
Pay-off of future contingent interest		—			(11,733	)		—			(11,733	)
Gain on repurchase of convertible notes, net		1,417			—			1,417			—
Other income (expense)		352			(42	)		373			74
Total other expense		(1,814	)		(15,999	)		(5,739	)		(22,038	)
Income (loss) before income taxes		12,345			(1,376	)		24,859			8,174
(Provision) benefit for income taxes		(5,015	)		555			(10,029	)		(3,338	)
Net income (loss)	$	7,330		$	(821	)	$	14,830		$	4,836
Weighted average shares outstanding:
Basic		23,007			22,803			23,000			22,794
Diluted		23,512			22,803			23,468			23,388
Earnings (loss) per share:
Basic	$	0.32		$	(0.04	)	$	0.64		$	0.21
Diluted	$	0.31		$	(0.04	)	$	0.63		$	0.21

Encore Capital Group, Inc.

Page 6 of 7

ENCORE CAPITAL GROUP, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited, In Thousands)

	Six Months Ended June 30,
	2008			2007
Operating activities
Gross collections	$	206,485		$	184,152
Amounts collected on behalf of third parties		(145	)		(266	)
Amounts applied to principal on receivable portfolios		(75,997	)		(57,711	)
Provision for impairment (reversal)		8,725			(1,263	)
Servicing fees		61			64
Operating expenses		(99,572	)		(100,744	)
Interest payments		(6,792	)		(6,010	)
Contingent interest payments		—			(22,724	)
Other income		373			74
Decrease in restricted cash		127			718
Income tax refund (payments)		236			(5,362	)
Tax provision (benefit) from stock-based payment arrangements		12			(123	)
Net cash provided by (used in) operating activities		33,513			(9,195	)
Investing activities
Purchases of receivable portfolios, net of forward flow allocation		(94,833	)		(80,035	)
Collections applied to investment in receivable portfolios		67,272			58,974
Proceeds from put-backs of receivable portfolios		2,047			1,574
Purchases of property and equipment		(2,034	)		(878	)
Net cash used in investing activities		(27,548	)		(20,365	)
Financing activities
Proceeds from notes payable and other borrowings		15,000			27,000
Repayment of notes payable and other borrowings		(17,169	)		(4,000	)
Repurchase of convertible notes		(3,500	)		—
Proceeds from exercise of stock options		8			263
Tax (provision) benefit from stock-based payment arrangements		(12	)		123
Repayment of capital lease obligations		(145	)		(122	)
Net cash (used in) provided by financing activities		(5,818	)		23,264
Net increase (decrease) in cash		147			(6,296	)
Cash and cash equivalents, beginning of period		4,900			10,791
Cash and cash equivalents, end of period	$	5,047		$	4,495

Encore Capital Group, Inc.

Page 7 of 7

ENCORE CAPITAL GROUP, INC.

Supplemental Financial Information

Reconciliation of Adjusted EBITDA to GAAP Net Income and Operating Expenses, Excluding Stock-based Compensation

Expense, Bankruptcy Servicing Operating Expenses and Costs Related to the Consideration of Strategic Alternatives to

GAAP Total Operating Expenses

(Unaudited, In Thousands)

	Three Months Ended June 30,
	2008			2007
GAAP net income (loss), as reported	$	7,330		$	(821	)
Interest expense		3,583			3,336
Contingent interest expense		—			888
Pay-off of future contingent interest		—			11,733
Provision (benefit) for income taxes		5,015			(555	)
Depreciation and amortization		766			840
Amount applied to principal on receivable portfolios		35,785			29,452
Stock-based compensation expense		1,228			1,204
Adjusted EBITDA	$	53,707		$	46,077
GAAP total operating expenses, as reported	$	55,861		$	52,605
Stock-based compensation expense		(1,228	)		(1,204	)
Bankruptcy servicing operating expenses		(3,576	)		(4,006	)
Costs related to the consideration of strategic alternatives		—			(97	)
Operating expenses, excluding stock-based compensation expense, bankruptcy servicing operating expenses and costs related to the consideration of strategic alternatives	$	51,057		$	47,298

# # #