FORT WORTH, Texas--(BUSINESS WIRE)--October 23, 2008--Cash America International, Inc. (NYSE: CSH) announced today that net income for the third quarter of 2008 was $18,925,000 (63 cents per share) after incurring a variety of one time and unusual items during the quarter which lowered reported net income. The third quarter 2008 net income was reduced by $2.0 million in non-recurring costs related to the Company’s contribution to support the cash advance industry’s efforts in an election referendum in Ohio and a ballot initiative in Arizona plus nearly $1.0 million in lost revenue due to the interruption of normal store activities as a result of Hurricane Ike. These two events combined reduced earnings per share by approximately 9 cents in the third quarter of 2008 leading to 63 cents per share in reported earnings rather than 72 cents per share.

The Company’s reported net income for the third quarter of 2008 of $18,925,000 was up 14% compared to $16,560,000 (55 cents per share) during the same period in 2007, which excludes a pre-tax gain of $6.3 million (13 cents per share after taxes) from the Company’s sale of its notes receivable and related minority ownership position in an overseas pawn lending business, Svensk Pantbelåning. Including the gain in the third quarter of 2007, the Company reported net income of $20,616,000 (68 cents per share).

Total revenue increased 9% during the third quarter 2008 to $252.2 million, up from $231.5 million during the same period in 2007. Contributing to the rise in total revenue was a 14% increase in total fees and service charges from pawn loans and an increase of 15% in the proceeds from the sale of merchandise during the quarter. Consolidated income from operations rose 18% to $36.2 million on the strength of the gains in total revenue and from lower losses on cash advance loans. Loan losses as a percent of cash advance fees decreased to 42.5% in the third quarter of 2008 compared to 45.7% in the third quarter of 2007.

For the first nine months of fiscal year 2008, Cash America produced a 32% increase in net income to $64,873,000 ($2.16 per share) compared to $49,003,000 ($1.61 per share) excluding one-time gains in 2007. Total revenue increased 12% to $751.1 million for the nine-month period ended September 30, 2008 from $668.3 million for the same period in 2007 and operating income increased 33% to $116,557,000 for the same year-over-year periods.

Commenting on the results for the third quarter, Daniel R. Feehan, President and Chief Executive Officer said, “While earnings in the third quarter were reduced by non-recurring items, we are pleased with the growth in net income and the strong business metrics present in our business as we prepare for the fourth quarter. Pawn loan balances are up 16% year-over-year and merchandise levels are well suited for the next two quarters of traditionally heavy retail activity. Our online distribution platform for cash advances continues to grow at a steady rate offering capital solutions to our customers in need of short-term credit alternatives.”

Cash America will conduct a conference call to discuss its third quarter earnings Thursday, October 23, 2008 at 7:45 AM CDT. A live web cast of the call will be available on the Company’s corporate web site in the Investor Relations section (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.

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 November 19, 2008 to shareholders of record on November 5, 2008.

Expectations for the remainder of fiscal 2008 will be impacted by earning asset levels based on customer demand for credit products and by customer demand for the sale of merchandise in pawn locations. The fourth quarter represents an important period of retail sales for the Company, and results will be affected by consumer sentiments during the period. In addition, the Company has deemphasized cash advance lending in the states of Pennsylvania and Minnesota as a result of expected regulatory changes in the economics of cash advance products in those states in early 2009 and late 2008, respectively. Cash America will incur additional expenses associated with the Ohio and Arizona election activities in the fourth quarter of 2008 and has adjusted its fourth quarter loan products for a negative result in the Ohio election. Based on its views and expectations related to the preceding factors management expects that the fourth quarter 2008 net income per share will be between 91 and 95 cents per share compared to 88 cents per share in the fourth quarter 2007. Therefore, management’s expectation for the full year 2008 earnings per share will be between $3.07 and $3.11 compared to $2.48 per share in fiscal 2007. The 2007 full year results exclude the pre-tax gain of $6.3 million (13 cents per share after taxes) in the third quarter 2007.

In addition, management is initiating its preliminary expectations for fiscal year 2009 with the perspective that certain markets for its cash advance product, specifically Pennsylvania, Minnesota, Florida and Ohio, which were all profitable in 2008 will either be unavailable, or will be available only at significantly reduced economics, in the coming year. Management believes that some of this decrease in cash advance fees will be offset by continued success in its pawn lending activities. Based on its current views of the coming year, management establishes its initial anticipated range of earnings per share of $3.35 to $3.55 for fiscal 2009. Management expects that the first two quarters of 2009 are likely to produce lower earnings per share than 2008 due to the anticipated absence of certain markets for its cash advance product and the expectation that the tax stimulus program distributions made in the second quarter of 2008 will not be repeated.

The preceding expectations of the Company’s potential earnings in the fourth quarter of 2008 and fiscal year 2009 do not include the Company’s announced intention to complete an acquisition of a large chain of pawn locations based in Mexico City.

Cash America International, Inc. is a provider of specialty financial services to individuals in the United States with 926 total locations. Cash America is the largest provider of secured non-recourse loans to individuals, commonly referred to as pawn loans, through 502 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 290 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 134 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				Nine Months Ended
	September 30,				September 30,
	2008		2007		2008		2007
Consolidated Operations:
Total revenue	$	252,150	$	231,512	$	751,063	$	668,265
Net revenue		184,117		173,819		544,773		495,863
Total operating expenses		147,926		143,022		428,216		408,034

Income from operations	$	36,191	$	30,797	$	116,557	$	87,829

Income before income taxes		32,007		32,829		105,695		83,032

Net Income	$	18,925	$	20,616	$	64,873	$	53,059

Earnings per share:
Basic	$	0.65	$	0.70	$	2.21	$	1.78
Diluted	$	0.63	$	0.68	$	2.16	$	1.74

Weighted average shares:
Basic		29,266		29,535		29,321		29,745
Diluted		30,035		30,235		30,082		30,464

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


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

Current assets:
Cash and cash equivalents	$	29,754	$	26,412	$	22,725
Pawn loans		158,226		136,722		137,319
Cash advances, net		87,034		82,785		88,148
Merchandise held for disposition, net		111,053		98,751		98,134
Finance and service charges receivable		29,658		25,528		26,963
Income taxes recoverable		1,306		-		-
Other receivables and prepaid expenses		13,658		15,349		16,292
Deferred tax assets		22,088		22,455		20,204
Total current assets		452,777		408,002		409,785

Property and equipment, net		181,524		147,813		161,676
Goodwill		420,840		283,554		306,221
Intangible assets, net		21,634		24,569		23,484
Other assets		3,501		3,017		3,478
Total assets	$	1,080,276	$	866,955	$	904,644

Liabilities and Stockholders’ Equity

Current liabilities:
Accounts payable and accrued expenses	$	66,414	$	61,484	$	65,399
Accrued supplemental acquisition payment		69,499		43,300		22,000
Customer deposits		8,754		8,211		7,856
Income taxes currently payable		-		16		3,755
Current portion of long-term debt		8,500		12,786		8,500
Total current liabilities		153,167		125,797		107,510

Deferred tax liabilities		25,826		15,854		18,584
Other liabilities		2,202		1,621		1,671
Long-term debt		343,692		251,427		280,277
Total liabilities		524,887		394,699		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		163,678		162,837		163,581
Retained earnings		424,999		337,909		363,180
Accumulated other comprehensive (loss) income		(59)		(4)		16
Treasury shares, at cost (1,217,927 shares, 1,088,493 shares and 1,136,203 shares at September 30, 2008 and 2007, and December 31, 2007, respectively)		(36,253)		(31,510)		(33,199)
Total stockholders’ equity		555,389		472,256		496,602
Total liabilities and stockholders’ equity	$	1,080,276	$	866,955	$	904,644

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


		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2008		2007		2008		2007
		(Unaudited)

Revenue
Finance and service charges	$	46,977	$	41,386	$	133,788	$	117,011
Proceeds from disposition of merchandise		105,517		91,366		330,189		277,342
Cash advance fees		96,301		95,417		274,610		260,880
Check cashing fees, royalties and other		3,355		3,343		12,476		13,032
Total Revenue		252,150		231,512		751,063		668,265

Cost of Revenue
Disposed merchandise		68,033		57,693		206,290		172,402
Net Revenue		184,117		173,819		544,773		495,863

Expenses
Operations		81,714		75,970		241,791		224,724
Cash advance loss provision		40,950		43,612		102,817		118,688
Administration		15,964		15,175		55,652		40,924
Depreciation and amortization		9,298		8,265		27,956		23,698
Total Expenses		147,926		143,022		428,216		408,034

Income from Operations		36,191		30,797		116,557		87,829
Interest expense		(4,292)		(4,378)		(11,005)		(12,119)
Interest income		113		145		220		999
Foreign currency transaction (loss) gain		(5)		5		(77)		63
Gain on sale of foreign notes		-		6,260		-		6,260
Income before Income Taxes		32,007		32,829		105,695		83,032
Provision for income taxes		13,082		12,213		40,822		29,973
Net Income	$	18,925	$	20,616	$	64,873	$	53,059

Earnings Per Share:
Basic	$	0.65	$	0.70	$	2.21	$	1.78
Diluted	$	0.63	$	0.68	$	2.16	$	1.74
Weighted average common shares outstanding:
Basic		29,266		29,535		29,321		29,745
Diluted		30,035		30,235		30,082		30,464

Dividends declared per common share	$	0.035	$	0.035	$	0.105	$	0.105

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


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2008			2007			2008			2007

PAWN LENDING OPERATIONS:
Pawn loans
Annualized yield on pawn loans		123.9	%		121.4	%		128.2	%		124.1	%
Total amount of pawn loans written and renewed	$	161,225		$	138,100		$	442,553		$	378,058
Average pawn loan balance outstanding	$	150,792		$	135,205		$	139,363		$	126,043
Average pawn loan balance per average location in operation	$	310		$	281		$	287		$	263
Ending pawn loan balance per location in operation	$	325		$	283		$	325		$	283
Average pawn loan amount at end of period (not in thousands)	$	121		$	109		$	121		$	109
Profit margin on disposition of merchandise as a percentage of proceeds from disposition of merchandise		35.5	%		36.9	%		37.5	%		37.8	%
Average annualized merchandise turnover		2.6	x		2.5	x		2.8	x		2.7	x
Average balance of merchandise held for disposition per average location in operation	$	213		$	192		$	204		$	182
Ending balance of merchandise held for disposition per location in operation	$	228		$	204		$	228		$	204

Pawnshop locations in operation –
Beginning of period, owned		487			480			485			475
Acquired		-			2			1			5
Start-ups		-			1			1			4
Combined or closed		-			-			-			(1)
End of period, owned		487			483			487			483
Franchise locations at end of period		15			12			15			12
Total pawnshop locations at end of period		502			495			502			495
Average number of owned pawnshop locations		487			482			486			479

Cash advances ^(b)
Pawn locations offering cash advances at end of period		432			429			432			429
Average number of pawn locations offering cash advances		432			427			431			425

Amount of cash advances written at pawn locations:
Funded by the Company	$	15,100		$	16,652		$	43,229		$	48,899
Funded by third-party lenders ^{(a) (d)}		35,534			49,634			111,309			141,510
Aggregate amount of cash advances written at pawn locations ^{(a) (f)}	$	50,634		$	66,286		$	154,538		$	190,409

Number of cash advances written at pawn locations (not in thousands):
By the Company		46,777			54,821			137,518			160,253
By third-party lenders ^{(a) (d)}		75,031			105,873			236,729			308,729
Aggregate number of cash advances written at pawn locations^{(a) (f)}		121,808			160,694			374,247			468,982

Cash advance customer balances due at pawn locations (gross):
Owned by Company ^(c)	$	7,096		$	8,803		$	7,096		$	8,803
Owned by third-party lenders ^(a)(d)		6,594			9,179			6,594			9,179
Aggregate cash advance customer balances due at pawn locations (gross) ^(a)(f)	$	13,690		$	17,982		$	13,690		$	17,982

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


		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2008		2007		2008		2007

CASH ADVANCE OPERATIONS ^(e):
Storefront operations:
Amount of cash advances written:
Funded by the Company	$	146,504	$	187,302	$	449,571	$	522,719
Funded by third-party lenders ^{(a) (d)}		21,600		30,212		71,585		84,884
Aggregate amount of cash advances written ^{(a) (f)}	$	168,104	$	217,514	$	521,156	$	607,603

Number of cash advances written (not in thousands):
By the Company		422,009		513,135		1,267,211		1,438,490
By third-party lenders ^{(a) (d)}		37,867		55,090		127,651		159,427
Aggregate number of cash advances written ^{(a) (f)}		459,876		568,225		1,394,862		1,597,917

Cash advance customer balances due (gross):
Owned by the Company ^(c)	$	40,295	$	51,316	$	40,295	$	51,316
Owned by third-party lenders ^{(a) (d)}		4,462		5,259		4,462		5,259
Aggregate cash advance customer balances due (gross) ^{(a) (f)}	$	44,757	$	56,575	$	44,757	$	56,575

Cash advance locations in operation (excluding online lending) –
Beginning of period		292		296		304		295
Start-ups		-		7		-		10
Combined or closed		(2)		(2)		(14)		(4)
End of period		290		301		290		301
Average number of cash advance locations		291		299		298		297

Internet lending operations:
Amount of cash advances written:
Funded by the Company	$	202,706	$	157,887	$	551,222	$	435,665
Funded by third-party lenders ^{(a) (d)}		113,997		96,096		327,725		251,880
Aggregate amount of cash advances written ^{(a) (f)}	$	316,703	$	253,983	$	878,947	$	687,545

Number of cash advances written (not in thousands):
By the Company		487,572		400,942		1,318,454		1,117,466
By third-party lenders ^{(a) (d)}		168,553		159,711		493,134		441,402
Aggregate number of cash advances written ^{(a) (f)}		656,125		560,653		1,811,588		1,558,868

Cash advance customer balances due (gross):
Owned by the Company ^(c)	$	64,944	$	53,591	$	64,944	$	53,591
Owned by third-party lenders ^{(a) (d)}		19,960		16,631		19,960		16,631
Aggregate cash advance customer balances due (gross) ^{(a) (f)}	$	84,904	$	70,222	$	84,904	$	70,222

Number of states with online lending at end of period		33		31		33		31
Number of foreign countries with online lending at end of period		1		1		1		1

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


		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2008		2007		2008		2007

Combined Storefront and Internet lending operations:
Amount of cash advances written:
Funded by the Company	$	349,210	$	345,189	$	1,000,793	$	958,384
Funded by third-party lenders ^{(a) (d)}		135,597		126,308		399,310		336,764
Aggregate amount of cash advances written ^{(a) (f)}	$	484,807	$	471,497	$	1,400,103	$	1,295,148

Number of cash advances written (not in thousands):
By the Company		909,581		914,077		2,585,665		2,555,956
By third-party lenders ^{(a) (d)}		206,420		214,801		620,785		600,829
Aggregate number of cash advances written ^{(a) (f)}		1,116,001		1,128,878		3,206,450		3,156,785

Cash advance customer balances due (gross):
Owned by the Company ^(c)	$	105,239	$	104,907	$	105,239	$	104,907
Owned by third-party lenders ^{(a) (d)}		24,422		21,890		24,422		21,890
Aggregate cash advance customer balances due (gross) ^{(a) (f)}	$	129,661	$	126,797	$	129,661	$	126,797

CONSOLIDATED CASH ADVANCE PRODUCT SUMMARY ^{(a) (b)} ^(e):
Amount of cash advances written:
Funded by the Company	$	364,310	$	361,841	$	1,044,022	$	1,007,283
Funded by third-party lenders ^{(a) (d)}		171,131		175,942		510,619		478,274
Aggregate amount of cash advances written ^{(a) (f)}	$	535,441	$	537,783	$	1,554,641	$	1,485,557

Number of cash advances written (not in thousands):
By the Company		956,358		968,898		2,723,183		2,716,209
By third-party lenders ^{(a) (d)}		281,451		320,674		857,514		909,558
Aggregate number of cash advances written ^{(a) (f)}		1,237,809		1,289,572		3,580,697		3,625,767

Average amount per cash advance written (not in thousands):
By the Company	$	381	$	373	$	383	$	371
By third-party lenders ^{(a) (d)}		608		549		595		526
Aggregate average amount per cash advance ^{(a) (f)}	$	433	$	417	$	434	$	410

Cash advance customer balances due (gross):
Owned by the Company ^(c)	$	112,335	$	113,710	$	112,335	$	113,710
Owned by third-party lenders ^{(a) (d)}		31,016		31,069		31,016		31,069
Aggregate cash advance customer balances due (gross) ^{(a) (f)}	$	143,351	$	144,779	$	143,351	$	144,779

Total locations offering cash advances at end of period (excluding online lending)		722		730		722		730
Average total locations offering cash advances (excluding online lending)		723		726		729		722
Number of states with online lending at end of period		33		31		33		31
Number of foreign countries with online lending at end of period		1		1		1		1

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


		Three Months Ended						Nine Months Ended
		September 30,						September 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)		129			135			129			135
Combined centers in operations at end of year ^(a)		134			140			134			140

Revenue from Company-owned locations	$	89		$	106		$	313		$	379
Revenue from franchise royalties and other		689			713			2,323			2,438
Total revenue ^(c)	$	778		$	819		$	2,636		$	2,817

Face amount of checks cashed:
Company-owned locations	$	7,106		$	7,902		$	22,322		$	25,724
Franchised locations ^(a)		295,791			291,255			968,000			958,277
Combined face amount of checks cashed ^(a)	$	302,897		$	299,157		$	990,322		$	984,001

Fees collected from customers:
Company-owned locations	$	89		$	106		$	313		$	379
Franchised locations ^(a)		4,073			3,968			13,740			13,544
Combined fees collected from customers ^(a)	$	4,162		$	4,074		$	14,053		$	13,923

Fees as a percentage of checks cashed:
Company-owned locations		1.3	%		1.3	%		1.4	%		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		$	375		$	405		$	396
Franchised locations ^(a)		437			416			465			442
Combined average check cashed ^(a)	$	437		$	415		$	463		$	441

^(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)


		September 30,
		2008		2007
Funded by the Company ^(a)
Active cash advances and fees receivable	$	73,097	$	69,005
Cash advances and fees in collection		25,857		28,817
Total funded by the Company ^(a)		98,954		97,822

Funded by third-party lenders ^(b) ^(c)
Active cash advances and fees receivable		31,072		31,069
Cash advances and fees in collection		13,325		15,888
Total funded by third-party lenders ^(b) ^(c)		44,397		46,957
Combined gross portfolio ^(b) ^(d)		143,351		144,779
Less: Elimination of cash advances owned by third-party lenders		31,016		31,069
Company-owned cash advances and fees receivable, gross		112,335		113,710
Less: Allowance for losses		25,301		30,925
Cash advances and fees receivable, net	$	87,034	$	82,785

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2008		2007		2008		2007
Allowance for company-owned cash advances

Balance at beginning of period	$	27,401	$	32,173	$	25,676	$	19,513
Cash advance loss provision		41,302		43,604		102,688		118,011
Charge-offs		(47,762)		(48,283)		(123,443)		(117,133)
Recoveries		4,360		3,431		20,380		10,534
Balance at end of period	$	25,301	$	30,925	$	25,301	$	30,925

Accrual for third-party lender-owned cash advances

Balance at beginning of period	$	2,309	$	1,824	$	1,828	$	1,155
(Decrease) Increase in loss provision		(352)		8		129		677
Balance at end of period	$	1,957	$	1,832	$	1,957	$	1,832

Combined statistics ^(d)
Combined cash advance loss provision	$	40,950	$	43,612	$	102,817	$	118,688
Combined cash advance loss provision as a % of combined cash advances written ^(b)		7.6%		8.1%		6.6%		8.0%
Charge-offs (net of recoveries) as a % of combined cash advances written ^(b)		8.1%		8.3%		6.6%		7.2%
Combined allowance for losses and accrued third-party lender losses as a % of combined gross portfolio ^(b)		19.0%		22.6%		19.0%		22.6%

^(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 SEPTEMBER 30, 2008 AND 2007 (in thousands)


	Pawn Lending		Cash Advance ⁽¹⁾		Check Cashing		Consolidated

Three months ended September 30, 2008:

Revenue
Finance and service charges	$	46,977	$	-	$	-	$	46,977
Proceeds from disposition of merchandise		105,517		-		-		105,517
Cash advance fees		8,584		87,717		-		96,301
Check cashing fees, royalties and other		967		1,610		778		3,355

Total revenue		162,045		89,327		778		252,150

Cost of revenue – disposed merchandise		68,033		-		-		68,033

Net revenue		94,012		89,327		778		184,117

Expenses
Operations		52,344		29,065		305		81,714
Cash advance loss provision		2,725		38,225		-		40,950
Administration		6,183		9,505		276		15,964
Depreciation and amortization		5,995		3,246		57		9,298

Total expenses		67,247		80,041		638		147,926

Income from operations	$	26,765	$	9,286	$	140	$	36,191

As of September 30, 2008:

Total assets	$	625,192	$	448,057	$	7,027	$	1,080,276
Goodwill	$	143,998	$	271,532	$	5,310	$	420,840


Three months ended September 30, 2007:

Revenue
Finance and service charges	$	41,386	$	-	$	-	$	41,386
Proceeds from disposition of merchandise		91,366		-		-		91,366
Cash advance fees		11,301		84,116		-		95,417
Check cashing fees, royalties and other		698		1,826		819		3,343

Total revenue		144,751		85,942		819		231,512

Cost of revenue – disposed merchandise		57,693		-		-		57,693

Net revenue		87,058		85,942		819		173,819

Expenses
Operations		48,230		27,461		279		75,970
Cash advance loss provision		4,973		38,639		-		43,612
Administration		8,312		6,632		231		15,175
Depreciation and amortization		5,272		2,901		92		8,265

Total expenses		66,787		75,633		602		143,022

Income from operations	$	20,271	$	10,309	$	217	$	30,797

As of September 30, 2007:

Total assets	$	582,072	$	277,986	$	6,897	$	866,955
Goodwill	$	143,665	$	134,579	$	5,310	$	283,554

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


		Pawn Lending		Cash Advance ⁽¹⁾		Check Cashing		Consolidated

Nine months ended September 30, 2008:

Revenue
Finance and service charges	$	133,788	$	-	$	-	$	133,788
Proceeds from disposition of merchandise		330,189		-		-		330,189
Cash advance fees		26,514		248,096		-		274,610
Check cashing fees, royalties and other		2,969		6,871		2,636		12,476

Total revenue		493,460		254,967		2,636		751,063

Cost of revenue – disposed merchandise		206,290		-		-		206,290

Net revenue		287,170		254,967		2,636		544,773

Expenses
Operations		157,575		83,219		997		241,791
Cash advance loss provision		7,667		95,150		-		102,817
Administration		28,914		25,914		824		55,652
Depreciation and amortization		17,525		10,249		182		27,956

Total expenses		211,681		214,532		2,003		428,216

Income from operations	$	75,489	$	40,435	$	633	$	116,557


Nine months ended September 30, 2007:

Revenue
Finance and service charges	$	117,011	$	-	$	-	$	117,011
Proceeds from disposition of merchandise		277,342		-		-		277,342
Cash advance fees		31,411		229,469		-		260,880
Check cashing fees, royalties and other		2,438		7,777		2,817		13,032

Total revenue		428,202		237,246		2,817		668,265

Cost of revenue – disposed merchandise		172,402		-		-		172,402

Net revenue		255,800		237,246		2,817		495,863

Expenses
Operations		143,706		80,074		944		224,724
Cash advance loss provision		11,542		107,146		-		118,688
Administration		22,842		17,326		756		40,924
Depreciation and amortization		15,406		7,998		294		23,698

Total expenses		193,496		212,544		1,994		408,034

Income from operations	$	62,304	$	24,702	$	823	$	87,829

		Storefront		Internet Lending		Total Cash Advance

Three months ended September 30, 2008:

Revenue
Cash advance fees	$	26,859	$	60,858	$	87,717
Check cashing fees, royalties and other		1,553		57		1,610

Total revenue		28,412		60,915		89,327

Expenses
Operations		17,763		11,302		29,065
Cash advance loss provision		6,411		31,814		38,225
Administration		2,651		6,854		9,505
Depreciation and amortization		1,883		1,363		3,246

Total expenses		28,708		51,333		80,041

Income from operations	$	(296)	$	9,582	$	9,286


Three months ended September 30, 2007:

Revenue
Cash advance fees	$	34,249	$	49,867	$	84,116
Check cashing fees, royalties and other		1,826		-		1,826

Total revenue		36,075		49,867		85,942

Expenses
Operations		17,194		10,267		27,461
Cash advance loss provision		11,585		27,054		38,639
Administration		2,780		3,852		6,632
Depreciation and amortization		2,072		829		2,901

Total expenses		33,631		42,002		75,633

Income from operations	$	2,444	$	7,865	$	10,309

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


Nine months ended September 30, 2008:		Storefront		Internet Lending		Total Cash Advance

Revenue
Cash advance fees	$	82,979	$	165,117	$	248,096
Check cashing fees, royalties and other		6,810		61		6,871

Total revenue		89,789		165,178		254,967

Expenses
Operations		51,637		31,582		83,219
Cash advance loss provision		17,421		77,729		95,150
Administration		7,992		17,922		25,914
Depreciation and amortization		6,688		3,561		10,249

Total expenses		83,738		130,794		214,532

Income from operations	$	6,051	$	34,384	$	40,435


Nine months ended September 30, 2007:

Revenue
Cash advance fees	$	95,240	$	134,229	$	229,469
Check cashing fees, royalties and other		7,772		5		7,777

Total revenue		103,012		134,234		237,246

Expenses
Operations		50,539		29,535		80,074
Cash advance loss provision		28,716		78,430		107,146
Administration		7,935		9,391		17,326
Depreciation and amortization		5,924		2,074		7,998

Total expenses		93,114		119,430		212,544

Income from operations	$	9,898	$	14,804	$	24,702

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE MONTHS ENDED SEPTEMBER 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, including PBSI, which was acquired in July 2008. The following table summarizes the results from each channel’s contributions to the Cash Advance segment as of September 30, 2008 and 2007: