Clearwater, Florida, - August 11, 2003 - Nicholas Financial, Inc. Chairman, CEO & President, Peter L. Vosotas, today announced that the Company has established its first semi-annual cash dividend of $.05 cents per share. The Company declared an annual cash dividend rate of $.10 cents a share on its common shares, which will be paid on September 22, 2003 to shareholders of record on September 8, 2003. Based on the Company’s closing stock price on August 8, 2003 of $6.50, a $.10 cent yearly dividend would return a 1.54% yield on investment.

Mr. Vosotas stated, "Our Company has now reported record same quarter increases in revenues, net income and earnings per share in 51 out of the past 52 quarters. Given our track record and the Board's confidence in the business going forward, we are instituting this dividend as a means to increase shareholder value. We believe that the issuance of a dividend, in a very large measure, is an indication of the financial strength of the Company. At this time, the Company plans to continue the cash dividend program, provided that future earnings meet expectations.”

Founded in 1985, with current assets of $94,853,000 as of June 30, 2003, 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 record revenues and earnings for the past 13 years. For an index of Nicholas Financial Inc.’s news releases or to obtain a specific release, please 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, 2003. 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.