Clearwater, Florida, - October 3, 2003: Nicholas Financial, Inc. (Nasdaq, NICK) audit committee chairman, Alton R. “Charlie” Neal, today announced that the Company has been advised by Ernst & Young LLP, that the auditing firm would resign as the Company’s independent auditor following the completion of its review of the Company’s financial statements for the quarter ended September 30, 2003.

During the fiscal years ended March 31, 2003 and 2002, and the subsequent interim period ended September 30, 2003, there have not been any disagreements between Nicholas and Ernst & Young on any matter of accounting principles or practices, financial statement disclosures, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Ernst & Young, would have caused it to make reference to the subject matter of the disagreements in connection with its reports.

 Nicholas Financial is now in the process of retaining a new independent auditor. The Company has been assured by Ernst & Young that they will assist Nicholas in making an orderly transition to the firm ultimately selected by the Company’s audit committee.

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.