Clearwater, Florida, - October 25, 2001 - Clearwater, Florida: Nicholas Financial, Inc. (Nasdaq, NICK), today announced record revenues, net income and earnings per share for the second quarter ended September 30, 2001. The Company reported that revenues increased 14% to $4,948,000, compared to $4,350,000 for the period ended September 30, 2000. Net income for the quarter increased 11% to $930,508 from $838,419. Earnings per share for the quarter increased 6% to $0.18 compared to $0.17 in the same quarter a year ago. 

For the six months ended September 30, 2001, revenues increased 14% to $9,579,000, compared to $8,376,000 for the six months ended September 30, 2000. Net income for the six-month period increased 17% to $1,811,521 from $1,541,733. Earnings per share increased 13% to $0.35 per share, compared to $0.31 for the six-month period ended September 30, 2000. 

On August 28, 2001 the Board of Directors declared a two-for one stock split on the Company’s outstanding common stock, payable in the form of a 100% stock dividend, on September 10, 2001 to shareholders of record as of the close of business on August 28, 2001. 

Nicholas Financial currently operates 22 Business Development Centers (BDC’s) in Florida, Georgia and North Carolina. The company is also in the process of opening its first business development center in South Carolina. In addition, the company has commenced lending operations in Virginia and Ohio, and plans to establish full service BDC’s in those states in the future. Accordingly Peter Vosotas, CEO and President stated, “The company will employ the same consistent lending and collection methodologies in Virginia and Ohio, that it has employed in every BDC since the inception of its non-prime installment sales contract acquisition business in 1990. Our strategy will be to establish a presence in these new territories before we commit the resources to full service offices. We hope to achieve this by cultivating every aspect of our underwriting and collections business in these new locations, that has allowed us to grow successfully and profitably throughout the Southeast.” 

Nicholas Financial, Inc., is a specialized Finance Company that provides funding for pre-owned automobiles and light trucks. The Company acquires and services installment sales contracts through a network of automobile dealerships.