Clearwater, Florida, - July 18, 2002: Nicholas Financial, Inc., (Nasdaq, NICK) today announced record revenues and earnings for the first quarter ended June 30, 2002. The Company reported that net income increased 15% to $1,013,165 for the three months ended June 30, 2002 as compared to $881,013 for the three months ended June 30, 2001. Revenue for the first quarter rose 15% to $5,315,725 from $4,630,871. Earnings per share rose 12% to $.19 for the three months ended June 30, 2002, as compared to $.17 for the three months ended June 30, 2001.

The Company will hold its annual meeting at the Countryside Country Club in Clearwater, Florida, on August 7, 2002 at 9 AM.

Founded in 1985, with current assets of $80,381,000 as of June 30, 2002, Nicholas Financial is one of the largest publicly traded specialty consumer finance companies based in the Southeast. The Company has approximately 5,000,000 shares of common stock outstanding and has reported increased revenues and earnings for the past 12 years. For an index of Nicholas Financial Inc.’s news releases or to obtain a specific release, visit our web site at www.nicholasfinancial.com.

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, 2002. 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.