Cash America Announces 52% Increase in Second Quarter Net Income and Declares Dividend

FORT WORTH, Texas--(BUSINESS WIRE)--Cash America International, Inc. (NYSE: CSH) reported that its 2008 second quarter net income increased 52% to $20,137,000 from $13,209,000 for the same period in 2007. The related earnings per share for the second quarter ended June 30, 2008 were up 56% to 67 cents per share compared to 43 cents per share for the same three months in 2007. These results exceeded the upwardly revised range of expected earnings per share of between 62 and 64 cents that the Company announced on July 7, 2008 due to more favorable loan loss expenses in the quarter.

Revenue from pawn loans increased 17% and sales of merchandise increased 26% during the second quarter of 2008, leading to $248.0 million in total revenue, up 16% from $213.9 million in the prior year period, an increase of $34.1 million. Also contributing to the growth in total revenue was a 7% increase in cash advance fees. Cash advance fees increased $5.9 million, to $92.8 million in the second quarter 2008, up from $86.9 million in the same period in 2007. Revenue from cash advance fees were led by a 24% increase in cash advance fees from the Company’s online distribution channel during the quarter which offset a drop in cash advance fees from storefront operations. Consolidated operating income increased 56% to $35.9 million in the three months ended June 30, 2008 compared to $23.0 million in the second quarter of 2007.

Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, “The results of the second quarter finished above our initial estimates as earnings from our pawn related lending activities were particularly strong during the quarter. Higher loan demand continued our trend of increased revenue from pawn loans and we experienced better than expected retail sales activity during the quarter, partially aided by the tax stimulus payments received by many of our customers. In addition, loan losses related to our cash advance product continued to moderate leading to a significant improvement in our operating income margins generating the 56% increase in earnings per share on a 16% rise in total revenue.”

For the first six months of fiscal year 2008 Cash America posted a 42% increase in net income to $45,948,000 ($1.53 per share, up 44%) compared to $32,443,000 ($1.06 per share) in the same period for the prior year. The increase in year over year net income for the first six months of 2008 was achieved on a 14% increase in total revenue, which reached $498.9 million in the six months ended June 30, 2008 compared to $436.8 million for the same period in the prior year.

Cash America will host a conference call to discuss the second quarter results on Thursday, July 24th at 7:45 AM CDT. A live web cast of the call will be available on the Investor Relations section of the Company’s corporate web site (http://www.cashamerica.com). To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. A replay will be available on the Company’s web site for 90 days following the conference call.

Additionally, the Company announced that the Board of Directors, at its regularly scheduled quarterly meeting, declared a $0.035 (3.5 cents) per share cash dividend on common stock outstanding. The dividend will be paid at the close of business on August 20, 2008 to shareholders of record on August 6, 2008.

Management believes that the opportunities for sustained growth in revenue and earnings will be largely associated with the customer demand for the credit products provided by the Company, which take the form of pawn loans and short-term cash advances. Other elements expected to affect the growth in revenue include the regulatory governance of loan products and the continued development and growth of the Company’s online distribution channel for cash advance products. As the Company enters the third quarter of 2008, management anticipates that demand for the Company’s products will continue to remain strong. Management is tempering its expectations, however, due to the possibility that the Company may close all or a portion of its cash advance lending locations in the state of Ohio as a result of recently enacted legislation which reduces the fees permitted to be charged to a level that it would not enable the Company to offer the cash advance product profitably (for additional details refer to the Company’s press release dated May 15, 2008). While the Company is evaluating alternatives to continue to serve customers in need of short-term loans in Ohio, management has phased out the results of its storefront cash advance business in Ohio in its expected results for the third quarter pending the outcome of this evaluation. Based on its views and on the preceding factors management expects that the third quarter 2008 net income per share will be between 62 and 66 cents per share (excluding one-time charges related to store closures in Ohio) compared to 55 cents per share in the third quarter 2007, which excludes the pre-tax gain of $6.3 million from the sale of the Company’s notes receivable and its rights to acquire a minority ownership position in an overseas pawn lending business, Svensk Pantbelåning which occurred in September of 2007.

Expectations for the remainder of fiscal 2008 will be impacted by earning asset levels in later periods based on customer demand for credit products and retail sales activities in the fourth quarter as well as loan loss expense in future periods. However, based on the strong start to the first half of the year, management increases its previously announced expectation for the full year 2008 earnings per share to between $3.00 and $3.20 up from between $2.85 and $3.00, which was announced on May 15, 2008. These expected results for fiscal 2008 also assume that the Company will close its Ohio cash advance locations in the third quarter of 2008, but do not include one-time charges for any store closures associated with this action. The new 2008 estimate compares to $2.48 per share in fiscal 2007. The full year 2007 results exclude the $6.3 million (13 cents per share after taxes) gain in the third quarter of 2007

Cash America International, Inc. is a provider of specialty financial services to individuals in the United States with 928 total locations as of June 30, 2008. Cash America is the largest provider of secured non-recourse loans to individuals, commonly referred to as pawn loans, through 501 locations in 22 states under the brand names Cash America Pawn and SuperPawn. The Company also offers short-term cash advances in many of its locations including 292 locations that offer this service under the brand names Cash America Payday Advance and Cashland. Short-term cash advances are also offered over the Internet to customers in 33 states in the United States and in the United Kingdom at http://www.cashnetusa.com and http://www.quickquid.co.uk, respectively. In addition, check cashing services are provided through its 135 franchised and Company-owned “Mr. Payroll” check cashing centers.

For additional information regarding the Company and the services it provides, visit the Company’s websites located at:

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release contains forward-looking statements about the business, financial condition and prospects of Cash America International, Inc. and its subsidiaries (the “Company”). The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including, without limitation, changes in demand for the Company's services, the actions of third parties who offer products and services at the Company’s locations, fluctuations in the price of gold, changes in competition, the ability of the Company to open new operating units in accordance with its plans, economic conditions, real estate market fluctuations, interest rate fluctuations, changes in foreign currency exchange rates, changes in the capital markets, changes in tax and other laws and governmental rules and regulations applicable to the Company's business, the ability to successfully integrate newly acquired businesses into the Company’s operations and other risks indicated in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this release, terms such as “believes,” “estimates,” “plans,” “expects,” “anticipates” and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements to reflect events or circumstances occurring after the date of this release.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
HIGHLIGHTS OF CONSOLIDATED RESULTS OF OPERATIONS
(in thousands, except per share data)

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2008		2007		2008		2007
Consolidated Operations:
Total revenue	$	247,979	$	213,881	$	498,913	$	436,753
Net revenue		181,238		161,097		360,656		322,044
Total operating expenses		145,344		138,063		280,290		265,012

Income from operations	$	35,894	$	23,034	$	80,366	$	57,032

Income before income taxes		32,698		19,491		73,688		50,203

Net Income	$	20,137	$	13,209	$	45,948	$	32,443

Earnings per share:
Basic	$	0.69	$	0.44	$	1.57	$	1.09
Diluted	$	0.67	$	0.43	$	1.53	$	1.06

Weighted average shares:
Basic		29,326		29,833		29,348		29,852
Diluted		30,094		30,557		30,103		30,579

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)

		June 30,						December 31,
		2008			2007			2007
		(Unaudited)
Assets

Current assets:
Cash and cash equivalents	$	29,963		$	26,207		$	22,725
Pawn loans		142,211			131,528			137,319
Cash advances, net		85,492			77,948			88,148
Merchandise held for disposition, net		96,807			83,522			98,134
Finance and service charges receivable		27,009			24,362			26,963
Other receivables and prepaid expenses		14,297			15,740			16,292
Deferred tax assets		22,271			21,722			20,204

Total current assets		418,050			381,029			409,785

Property and equipment, net		172,785			135,256			161,676
Goodwill		403,886			253,477			306,221
Intangible assets, net		21,423			25,538			23,484
Other assets		7,545			13,024			3,478
Total assets	$	1,023,689		$	808,324		$	904,644

Liabilities and Stockholders’ Equity

Current liabilities:
Accounts payable and accrued expenses	$	62,908		$	53,808		$	65,399
Accrued supplemental acquisition payment		56,000			14,250			22,000
Customer deposits		8,673			8,388			7,856
Income taxes currently payable		2,284			994			3,755
Current portion of long-term debt		8,500			16,786			8,500
Total current liabilities		138,365			94,226			107,510

Deferred tax liabilities		23,421			13,368			18,584
Other liabilities		2,025			1,589			1,671
Long-term debt		323,146			232,896			280,277
Total liabilities		486,957			342,079			408,042

Stockholders’ equity:
Common stock, $.10 par value per share, 80,000,000 shares authorized, 30,235,164 shares issued		3,024			3,024			3,024
Additional paid-in capital		162,977			162,620			163,581
Retained earnings		407,086			318,328			363,180
Accumulated other comprehensive (loss) income		(1	)		8			16
Notes receivable secured by common stock		-			(18	)		-
Treasury shares, at cost (1,222,742 shares, 683,754 shares and 1,136,203 shares at June 30, 2008 and 2007, and December 31, 2007, respectively)		(36,354	)		(17,717	)		(33,199	)
Total stockholders’ equity		536,732			466,245			496,602
Total liabilities and stockholders’ equity	$	1,023,689		$	808,324		$	904,644

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2008			2007			2008			2007
		(Unaudited)

Revenue
Finance and service charges	$	43,390		$	37,194		$	86,811		$	75,625
Proceeds from disposition of merchandise		108,089			85,808			224,672			185,976
Cash advance fees		92,849			86,947			178,309			165,463
Check cashing fees, royalties and other		3,651			3,932			9,121			9,689

Total Revenue		247,979			213,881			498,913			436,753

Cost of Revenue
Disposed merchandise		66,741			52,784			138,257			114,709

Net Revenue		181,238			161,097			360,656			322,044

Expenses
Operations		79,946			75,588			160,077			148,754
Cash advance loss provision		34,733			42,328			61,867			75,076
Administration		21,138			12,248			39,688			25,749
Depreciation and amortization		9,527			7,899			18,658			15,433

Total Expenses		145,344			138,063			280,290			265,012

Income from Operations		35,894			23,034			80,366			57,032

Interest expense		(3,204	)		(3,996	)		(6,713	)		(7,744	)
Interest income		76			439			107			857
Foreign currency transaction (loss) gain		(68	)		14			(72	)		58

Income before Income Taxes		32,698			19,491			73,688			50,203
Provision for income taxes		12,561			6,282			27,740			17,760

Net Income	$	20,137		$	13,209		$	45,948		$	32,443

Earnings Per Share:

Basic	$	0.69		$	0.44		$	1.57		$	1.09
Diluted	$	0.67		$	0.43		$	1.53		$	1.06

Weighted average common shares outstanding:

Basic		29,326			29,833			29,348			29,852
Diluted		30,094			30,557			30,103			30,579

Dividends declared per common share	$	0.035		$	0.035		$	0.070		$	0.070

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA
($ in thousands unless otherwise noted)
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2008			2007			2008			2007

PAWN LENDING OPERATIONS:
Pawn loans
Annualized yield on pawn loans		129.3	%		121.7	%		131.0	%		125.4		%
Total amount of pawn loans written and renewed	$	149,347		$	129,334		$	281,328		$	239,956
Average pawn loan balance outstanding	$	135,014		$	122,546		$	133,239		$	121,591
Average pawn loan balance per average location in operation	$	278		$	256		$	275		$	254
Ending pawn loan balance per location in operation	$	292		$	274		$	292		$	274
Average pawn loan amount at end of period (not in thousands)	$	119		$	105		$	119		$	105
Profit margin on disposition of merchandise as a percentage of proceeds from disposition of merchandise		38.3	%		38.5	%		38.5	%		38.3		%
Average annualized merchandise turnover		2.8	x		2.6	x		2.9	x		2.8		x
Average balance of merchandise held for disposition per average location in operation	$	194		$	170		$	198		$	175
Ending balance of merchandise held for disposition per location in operation	$	199		$	174		$	199		$	174

Pawnshop locations in operation –
Beginning of period, owned		485			477			485			475
Acquired		1			2			1			3
Start-ups		1			2			1			3
Combined or closed		-			(1	)		-			(1	)
End of period, owned		487			480			487			480
Franchise locations at end of period		14			12			14			12
Total pawnshop locations at end of period		501			492			501			492
Average number of owned pawnshop locations		486			479			485			478

Cash advances ^(b)
Pawn locations offering cash advances at end of period		432			429			432			429
Average number of pawn locations offering cash advances		431			427			431			426

Amount of cash advances written at pawn locations:
Funded by the Company	$	14,182		$	16,761		$	28,129		$	32,247
Funded by third-party lenders ^{(a) (d)}		37,779			46,891			75,775			91,876
Aggregate amount of cash advances written at pawn locations ^{(a) (f)}	$	51,961		$	63,652		$	103,904		$	124,123

Number of cash advances written at pawn locations (not in thousands):
By the Company		45,595			55,164			90,741			105,432
By third-party lenders ^{(a) (d)}		81,309			104,730			161,698			202,856
Aggregate number of cash advances written at pawn locations^{(a) (f)}		126,904			159,894			252,439			308,288

Cash advance customer balances due at pawn locations (gross):
Owned by Company ^(c)	$	7,216		$	8,137		$	7,216		$	8,137
Owned by third-party lenders ^(a)(d)		7,205			9,183			7,205			9,183
Aggregate cash advance customer balances due at pawn locations (gross) ^(a)(f)	$	14,421		$	17,320		$	14,421		$	17,320

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA (Continued)
($ in thousands unless otherwise noted)

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2008			2007			2008			2007

CASH ADVANCE OPERATIONS ^(e):
Storefront operations:
Amount of cash advances written:
Funded by the Company	$	150,004		$	177,661		$	303,066		$	335,417
Funded by third-party lenders ^{(a) (d)}		25,113			27,593			50,677			54,672
Aggregate amount of cash advances written ^{(a) (f)}	$	175,117		$	205,254		$	353,743		$	390,089

Number of cash advances written (not in thousands):
By the Company		426,605			496,404			845,202			925,355
By third-party lenders ^{(a) (d)}		45,347			53,974			91,056			104,337
Aggregate number of cash advances written ^{(a) (f)}		471,952			550,378			936,258			1,029,692

Cash advance customer balances due (gross):
Owned by the Company ^(c)	$	41,470		$	51,274		$	41,470		$	51,274
Owned by third-party lenders ^{(a) (d)}		4,368			5,115			4,368			5,115
Aggregate cash advance customer balances due (gross) ^{(a) (f)}	$	45,838		$	56,389		$	45,838		$	56,389

Cash advance locations in operation (excluding online lending) –
Beginning of period		304			296			304			295
Start-ups		-			1			-			3
Combined or closed		(12	)		(1	)		(12	)		(2	)
End of period		292			296			292			296
Average number of cash advance locations		300			296			301			295

Internet lending operations:
Amount of cash advances written:
Funded by the Company	$	188,595		$	149,284		$	348,516		$	277,778
Funded by third-party lenders ^{(a) (d)}		115,185			85,761			213,728			155,785
Aggregate amount of cash advances written ^{(a) (f)}	$	303,780		$	235,045		$	562,244		$	433,563

Number of cash advances written (not in thousands):
By the Company		441,466			387,209			830,882			716,524
By third-party lenders ^{(a) (d)}		175,634			153,954			324,581			281,691
Aggregate number of cash advances written ^{(a) (f)}		617,100			541,163			1,155,463			998,215

Cash advance customer balances due (gross):
Owned by the Company ^(c)	$	64,207		$	50,710		$	64,207		$	50,710
Owned by third-party lenders ^{(a) (d)}		21,187			15,157			21,187			15,157
Aggregate cash advance customer balances due (gross) ^{(a) (f)}	$	85,394		$	65,867		$	85,394		$	65,867

Number of states with online lending at end of period		33			30			33			30
Number of foreign countries with online lending at end of period		1			-			1			-

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA (Continued)
($ in thousands unless otherwise noted)

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2008		2007		2008		2007

Combined Storefront and Internet lending operations:
Amount of cash advances written:
Funded by the Company	$	338,599	$	326,945	$	651,582	$	613,195
Funded by third-party lenders ^{(a) (d)}		140,298		113,354		264,405		210,457
Aggregate amount of cash advances written ^{(a) (f)}	$	478,897	$	440,299	$	915,987	$	823,652

Number of cash advances written (not in thousands):
By the Company		868,071		883,613		1,676,084		1,641,879
By third-party lenders ^{(a) (d)}		220,981		207,928		415,637		386,028
Aggregate number of cash advances written ^{(a) (f)}		1,089,052		1,091,541		2,091,721		2,027,907

Cash advance customer balances due (gross):
Owned by the Company ^(c)	$	105,677	$	101,984	$	105,677	$	101,984
Owned by third-party lenders ^{(a) (d)}		25,555		20,272		25,555		20,272
Aggregate cash advance customer balances due (gross) ^{(a) (f)}	$	131,232	$	122,256	$	131,232	$	122,256

CONSOLIDATED CASH ADVANCE PRODUCT SUMMARY ^{(a) (b)} ^(e):
Amount of cash advances written:
Funded by the Company	$	352,781	$	343,706	$	679,711	$	645,442
Funded by third-party lenders ^{(a) (d)}		178,077		160,245		340,181		302,333
Aggregate amount of cash advances written ^{(a) (f)}	$	530,858	$	503,951	$	1,019,892	$	947,775

Number of cash advances written (not in thousands):
By the Company		913,666		938,777		1,766,825		1,747,311
By third-party lenders ^{(a) (d)}		302,290		312,658		577,335		588,884
Aggregate number of cash advances written ^{(a) (f)}		1,215,956		1,251,435		2,344,160		2,336,195

Average amount per cash advance written (not in thousands):
By the Company	$	386	$	366	$	385	$	369
By third-party lenders ^{(a) (d)}		589		513		589		513
Aggregate average amount per cash advance ^{(a) (f)}	$	437	$	403	$	435	$	406

Cash advance customer balances due (gross):
Owned by the Company ^(c)	$	112,893	$	110,121	$	112,893	$	110,121
Owned by third-party lenders ^{(a) (d)}		32,760		29,455		32,760		29,455
Aggregate cash advance customer balances due (gross) ^{(a) (f)}	$	145,653	$	139,576	$	145,653	$	139,576

Total locations offering cash advances at end of period (excluding online lending)		724		725		724		725
Average total locations offering cash advances (excluding online lending)		731		723		732		721
Number of states with online lending at end of period		33		30		33		30
Number of foreign countries with online lending at end of period		1		-		1		-

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA (Continued)
($ in thousands unless otherwise noted)

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2008			2007			2008			2007

CHECK CASHING OPERATIONS (Mr. Payroll):
Centers in operation at end of year (not in thousands):
Company-owned locations		5			5			5			5
Franchised locations ^(a)		130			135			130			135
Combined centers in operations at end of year ^(a)		135			140			135			140

Revenue from Company-owned locations	$	102		$	113		$	224		$	274
Revenue from franchise royalties and other		736			745			1,634			1,724
Total revenue ^(c)	$	838		$	858		$	1,858		$	1,998

Face amount of checks cashed:
Company-owned locations	$	7,542		$	8,212		$	15,216		$	17,822
Franchised locations ^(a)		310,073			299,800			672,209			667,021
Combined face amount of checks cashed ^(a)	$	317,615		$	308,012		$	687,425		$	684,843

Fees collected from customers:
Company-owned locations	$	102		$	113		$	224		$	274
Franchised locations ^(a)		4,297			4,130			9,667			9,576
Combined fees collected from customers ^(a)	$	4,399		$	4,243		$	9,891		$	9,850

Fees as a percentage of checks cashed:
Company-owned locations		1.4	%		1.4	%		1.5	%		1.5	%
Franchised locations ^(a)		1.4			1.4			1.4			1.4
Combined fees as a percentage of checks cashed ^(a)		1.4	%		1.4	%		1.4	%		1.4	%

Average check cashed (not in thousands):
Company-owned locations	$	400		$	383		$	408		$	406
Franchised locations ^(a)		440			413			478			454
Combined average check cashed ^(a)	$	439		$	412		$	476		$	453

^(a)Non-GAAP presentation. For informational purposes and to provide a greater understanding of the Company’s businesses.

Management believes that information provided with this level of detail is meaningful and useful in understanding the

activities and business metrics of the Company’s operations.

^(b) Includes cash advance activities at the Company’s pawn lending locations.

^(c) Amounts recorded in the Company’s consolidated financial statements.

^(d) Cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party

lenders, all at the Company’s pawn locations, cash advance locations and through the internet distribution

channel.

^(e) Includes cash advance activities at the Company’s cash advance storefront locations and through the Company’s internet

distribution channel.

^(f) Includes (i) cash advances written by the Company, and (ii) cash advances written by third-party lenders that were

arranged by the Company on behalf of the third-party lenders, all at the Company’s pawn and cash advance

locations and through the Company’s internet distribution channel.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED CASH ADVANCES OUTSTANDING AND RELATED ALLOWANCE FOR LOSSES
(in thousands)

		June 30,
		2008			2007
Funded by the Company ^(a)
Active cash advances and fees receivable	$	71,590		$	68,438
Cash advances and fees in collection		29,184			27,167

Total funded by the Company ^(a)		100,774			95,605

Funded by third-party lenders ^(b) ^(c)
Active cash advances and fees receivable		32,760			29,461
Cash advances and fees in collection		12,119			14,510

Total funded by third-party lenders ^(b) ^(c)		44,879			43,971

Combined gross portfolio ^(b) ^(d)		145,653			139,576
Less: Elimination of cash advances owned by third-party lenders		32,760			29,455

Company-owned cash advances and fees receivable, gross		112,893			110,121
Less: Allowance for losses		27,401			32,173

Cash advances and fees receivable, net	$	85,492		$	77,948

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2008			2007			2008			2007
Allowance for company-owned cash advances

Balance at beginning of period	$	20,815		$	23,141		$	25,676		$	19,513
Cash advance loss provision		34,412			41,758			61,386			74,406
Charge-offs		(34,859	)		(36,338	)		(75,681	)		(68,850	)
Recoveries		7,033			3,612			16,020			7,104

Balance at end of period	$	27,401		$	32,173		$	27,401		$	32,173

Accrual for third-party lender-owned cash advances

Balance at beginning of period	$	1,988		$	1,253		$	1,828		$	1,153
Increase in loss provision		321			570			481			670

Balance at end of period	$	2,309		$	1,823		$	2,309		$	1,823

Combined statistics ^(d)
Combined cash advance loss provision	$	34,733		$	42,328		$	61,867		$	75,076
Combined cash advance loss provision as a % of combined cash advances written ^(b)		6.5	%		8.4	%		6.1	%		7.9	%
Charge-offs (net of recoveries) as a % of combined cash advances written ^(b)		5.2	%		6.5	%		5.8	%		6.5	%
Combined allowance for losses and accrued third-party lender losses as a % of combined gross portfolio ^(b)		20.4	%		24.4	%		21.3	%		24.4	%

^(a)Cash advances written by the Company for its own account in pawn locations, cash advance locations, and

through the internet distribution channel.

^(b) Non-GAAP presentation. For informational purposes and to provide a greater understanding of the

Company’s businesses. Management believes that information provided with this level of detail is

meaningful and useful in understanding the activities and business metrics of the Company’s operations.

^(c) Cash advances written by third-party lenders that were arranged by the Company on behalf of the

third-party lenders, all at the Company’s pawn locations, cash advance locations and through the

internet distribution channel.

^(d) Includes (i) cash advances written by the Company, and (ii) cash advances written by third-party lenders

that were arranged by the Company on behalf of the third-party lenders, all at the Company’s pawn and

cash advance locations and through the Company’s internet distribution channel.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
THREE MONTHS ENDED JUNE 30, 2008 AND 2007
(in thousands)

		Pawn Lending		Cash Advance ⁽¹⁾		Check Cashing		Consolidated

Three months ended June 30, 2008:

Revenue
Finance and service charges	$	43,390	$	-	$	-	$	43,390
Proceeds from disposition of merchandise		108,089		-		-		108,089
Cash advance fees		8,645		84,204		-		92,849
Check cashing fees, royalties and other		985		1,828		838		3,651

Total revenue		161,109		86,032		838		247,979

Cost of revenue – disposed merchandise		66,741		-		-		66,741

Net revenue		94,368		86,032		838		181,238

Expenses
Operations		51,910		27,727		309		79,946
Cash advance loss provision		2,677		32,056		-		34,733
Administration		11,465		9,338		335		21,138
Depreciation and amortization		5,939		3,527		61		9,527

Total expenses		71,991		72,648		705		145,344

Income from operations	$	22,377	$	13,384	$	133	$	35,894

As of June 30, 2008:

Total assets	$	610,568	$	406,255	$	6,866	$	1,023,689
Goodwill	$	144,003	$	254,573	$	5,310	$	403,886



Three months ended June 30, 2007:

Revenue
Finance and service charges	$	37,194	$	-	$	-	$	37,194
Proceeds from disposition of merchandise		85,808		-		-		85,808
Cash advance fees		9,990		76,957		-		86,947
Check cashing fees, royalties and other		810		2,264		858		3,932

Total revenue		133,802		79,221		858		213,881

Cost of revenue – disposed merchandise		52,784		-		-		52,784

Net revenue		81,018		79,221		858		161,097

Expenses
Operations		47,560		27,670		358		75,588
Cash advance loss provision		3,725		38,603		-		42,328
Administration		6,008		5,992		248		12,248
Depreciation and amortization		5,127		2,671		101		7,899

Total expenses		62,420		74,936		707		138,063

Income from operations	$	18,598	$	4,285	$	151	$	23,034

As of June 30, 2007:

Total assets	$	557,180	$	244,149	$	6,995	$	808,324
Goodwill	$	142,590	$	105,577	$	5,310	$	253,477

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(in thousands)

		Pawn Lending		Cash Advance ⁽¹⁾		Check Cashing		Consolidated

Six months ended June 30, 2008:

Revenue
Finance and service charges	$	86,811	$	-	$	-	$	86,811
Proceeds from disposition of merchandise		224,672		-		-		224,672
Cash advance fees		17,930		160,379		-		178,309
Check cashing fees, royalties and other		1,998		5,265		1,858		9,121

Total revenue		331,411		165,644		1,858		498,913

Cost of revenue – disposed merchandise		138,257		-		-		138,257

Net revenue		193,154		165,644		1,858		360,656

Expenses
Operations		105,227		54,158		692		160,077
Cash advance loss provision		4,942		56,925		-		61,867
Administration		22,731		16,409		548		39,688
Depreciation and amortization		11,530		7,003		125		18,658

Total expenses		144,430		134,495		1,365		280,290

Income from operations	$	48,724	$	31,149	$	493	$	80,366



Six months ended June 30, 2007:

Revenue
Finance and service charges	$	75,625	$	-	$	-	$	75,625
Proceeds from disposition of merchandise		185,976		-		-		185,976
Cash advance fees		20,110		145,353		-		165,463
Check cashing fees, royalties and other		1,740		5,951		1,998		9,689

Total revenue		283,451		151,304		1,998		436,753

Cost of revenue – disposed merchandise		114,709		-		-		114,709

Net revenue		168,742		151,304		1,998		322,044

Expenses
Operations		95,476		52,613		665		148,754
Cash advance loss provision		6,569		68,507		-		75,076
Administration		14,530		10,694		525		25,749
Depreciation and amortization		10,134		5,097		202		15,433

Total expenses		126,709		136,911		1,392		265,012

Income from operations	$	42,033	$	14,393	$	606	$	57,032

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
THREE MONTHS ENDED JUNE 30, 2008 AND 2007
(in thousands)

⁽¹⁾The Cash Advance segment is comprised of two distribution channels for the same product, a multi-unit, “storefront” platform and an on-line, internet based lending platform. The following table summarizes the results from each channel’s contributions to the Cash Advance segment as of June 30, 2008 and 2007:

				Internet		Total Cash
		Storefront		Lending		Advance

Three months ended June 30, 2008:

Revenue
Cash advance fees	$	27,427	$	56,777	$	84,204
Check cashing fees, royalties and other		1,824		4		1,828
Total revenue		29,251		56,781		86,032


Expenses
Operations		16,993		10,734		27,727
Cash advance loss provision		6,664		25,392		32,056
Administration		2,939		6,399		9,338
Depreciation and amortization		2,380		1,147		3,527

Total expenses		28,976		43,672		72,648

Income from operations	$	275	$	13,109	$	13,384



Three months ended June 30, 2007:

Revenue
Cash advance fees	$	31,250	$	45,707	$	76,957
Check cashing fees, royalties and other		2,261		3		2,264

Total revenue		33,511		45,710		79,221


Expenses
Operations		17,435		10,235		27,670
Cash advance loss provision		9,899		28,704		38,603
Administration		2,850		3,142		5,992
Depreciation and amortization		1,969		702		2,671

Total expenses		32,153		42,783		74,936

Income from operations	$	1,358	$	2,927	$	4,285

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(in thousands)

				Internet		Total Cash
Six Months Ended June 30, 2008:		Storefront		Lending		Advance

Revenue
Cash advance fees	$	56,120	$	104,259	$	160,379
Check cashing fees, royalties and other		5,261		4		5,265

Total revenue		61,381		104,263		165,644


Expenses
Operations		33,874		20,284		54,158
Cash advance loss provision		11,010		45,915		56,925
Administration		5,341		11,068		16,409
Depreciation and amortization		4,805		2,198		7,003

Total expenses		55,030		79,465		134,495

Income from operations	$	6,351	$	24,798	$	31,149



Six Months Ended June 30, 2007:

Revenue
Cash advance fees	$	60,991	$	84,362	$	145,353
Check cashing fees, royalties and other		5,946		5		5,951

Total revenue		66,937		84,367		151,304


Expenses
Operations		33,345		19,268		52,613
Cash advance loss provision		17,131		51,376		68,507
Administration		5,155		5,539		10,694
Depreciation and amortization		3,852		1,245		5,097

Total expenses		59,483		77,428		136,911

Income from operations	$	7,454	$	6,939	$	14,393

http://www.cashamerica.com						http://www.cashnetusa.com
http://www.cashlandloans.com						http://www.quickquid.co.uk