Nicholas also announced today that its Board of Directors approved the Company’s second stock repurchase plan.  The plan authorizes the purchase of up to 5% of its outstanding common stock, or approximately 250,000 shares, as adjusted to reflect the aforementioned two for one stock split that will become effective on September 10, 2001.  The repurchases will be made from time to time, in open market transactions, at the discretion of management. 

Commenting on the Company’s stock split Peter L. Vosotas, Chairman, CEO and President noted, “Our strong capital position and continued confidence in our earnings capability has played a large part in our decision to initiate Nicholas’ stock split, which we believe will enhance our market liquidity.” 

Currently there are approximately 2,500,000 shares of its common stock outstanding. As a result of the stock dividend, the Company will have approximately 5 million shares of common stock outstanding. 

With assets of $69 million at June 30, 2001, Nicholas is one of the largest publicly traded specialty auto finance company's based in the Southeast.  The Company operates 21 full service Business Development Centers throughout Florida, Georgia and North Carolina.   For an index of Nicholas Financial Inc.’s news releases or to obtain a specific release visit our website at www.nicholasfinancial.com.

Nicholas Financial, Inc., is a specialized Finance Company that provides funding for pre-owned automobiles and light trucks. The Company acquires and services non-prime installment sales contracts through a network of automobile dealerships through its branch network in Florida, Georgia and North Carolina. In addition, the company provides consumer loans primarily to its customer base. Its software subsidiary, Nicholas Data Services, Inc., designs, develops and supports all the systems related to the Finance Company and sells proprietary accounting software to small businesses. 

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that involve risks and uncertainties including competitive factors, the management of growth, and other risks detailed from time to time in the Company’s filings and reports with the Securities and Exchange Commission including the Company’s Annual Report on Form 10-K for the year ended March 31, 2000. Such statements are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to Company management. Actual events or results may differ materially.