Clearwater, Florida, - August 17, 2004: Nicholas Financial, Inc. (Nasdaq, NICK), announced today that the Board of Directors has approved the payment of a cash dividend of $0.10 per share, payable semi-annually. The first cash dividend of $0.05 per share will be payable to shareholders of record as of August 27, 2004, with a payment date of September 17, 2004. The second cash dividend of $0.05 per share will be payable as determined by the Board of Directors.

Founded in 1985, with assets of $108,600,000 as of June 30, 2004, Nicholas Financial is one of the largest publicly traded specialty consumer finance companies based in the Southeast. The Company presently operates out of 32 branch locations in both the Southeast and the Mid-West States. The Company has approximately 6,500,000 shares of common stock outstanding. 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-KSB for the year ended March 31, 2004. 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.

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