Business Services Industry

Dollar Financial Corp Completes Acquisition of Seven Financial Services Stores in the United Kingdom

Business Wire, Dec 27, 2007

BERWYN, Pa. -- Dollar Financial Corp (NASDAQ:DLLR), a leading international financial services company serving under-banked consumers, today announced the completion of the acquisition of seven financial services stores in the southwestern United Kingdom, bringing the total number of stores in the Company's global network to 1,445 locations. The stores are located in Southampton, Bournemouth, Worthing, Brighton, Reading, Kings Heath and Erdington, and will be converted to the Company's "Money Shop" brand. The total purchase price of the acquisition is approximately $3.5 million. The Company expects that these stores will generate approximately $2.4 million in revenue and $900,000 of Adjusted EBITDA during the first twelve months post-acquisition.

The Company used a portion of the proceeds from its recent $200.0 million senior convertible note offering, which was completed on June 27, 2007, to pay for the acquisition. This acquisition brings the total number of financial services stores in the United Kingdom to 222, and solidifies the Company's leading position in an underserved and rapidly expanding market.

Commenting on the acquisition, Jeff Weiss, the Company's Chairman and Chief Executive Officer, said, "I am extremely pleased to report the completion of another acquisition in the U.K. Over the past twelve months, we have opened or acquired 34 new branches to bring our U.K. Money Shop footprint to 222 company operated branches. This represents an increase of 17% over where the U.K. company-operated store network stood as of December 31, 2006. For the quarter ending September 30, 2007, our U.K. business unit recorded record revenue of $30.4 million, with comparable store sales on a native currency basis increasing by 19.0%."

Mr. Weiss continued, "For all of the evident success that we are currently enjoying in the U.K., I believe that our outlook for the future is even brighter. We have invested heavily in developing our business and now have a very strong management team, industry-leading information and collection systems and, perhaps most importantly, a brand - Money Shop - that is gaining awareness and value with a growing base of under-banked U.K. customers."

About Dollar Financial Corp

Dollar Financial Corp is a leading international financial services company serving under-banked consumers. Its customers are typically service sector individuals who require basic financial services but, for reasons of convenience and accessibility, purchase some or all of their financial services from the Company rather than from banks and other financial institutions. To meet the needs of these customers, the Company provides a range of consumer financial products and services primarily consisting of check cashing, short-term consumer loans, Western Union money order and money transfer products, reloadable VISA[R] and MasterCard[R] branded debit cards, electronic tax filing, bill payment services, and legal document processing services.

The Company's global store network consists of approximately 1,445 stores, including 1,080 company-operated financial services stores and 365 franchised locations in 32 states, the District of Columbia, throughout Canada and in the United Kingdom. The financial services store network is the largest network of its kind in each of Canada and the United Kingdom and the second-largest network of its kind in the United States. The Company's customers, many of whom receive income on an irregular basis or from multiple employers, are drawn to the convenient neighborhood locations, extended operating hours and high-quality customer service. The Company's financial products and services, principally check cashing and short-term consumer loan programs, provide immediate access to cash for living expenses or other needs. For more information, please visit the Company's website at www.dfg.com.

Forward Looking Statement

This news release contains forward looking statements, including statements regarding the following: the Company's future results, growth, guidance and operating strategy; the developing regulatory environment in Canada; the impact of future development strategy, new stores and acquisitions; and of the performance of new products and services. These forward looking statements involve risks and uncertainties, including risks related to the regulatory environment, current and potential future litigation, the integration and performance of acquired stores, the performance of new stores, the implementation and results of restructuring initiatives, the impact of debt financing transactions, the results of certain ongoing income tax appeals, and the effects of new products and services on the Company's business, results of operations, financial condition, prospects and guidance. There can be no assurance that the Company will attain its expected results, successfully integrate any of its acquisitions, attain its published guidance metrics, or that ongoing and potential future litigation or that the various FDIC, Federal, state, Canadian or foreign legislative or regulatory activities affecting the Company or the banks with which the Company does business will not negatively impact the Company's operations. A more complete description of these and other risks, uncertainties and assumptions is included in the Company's filings with the Securities and Exchange Commission, including those described under the heading "Risk Factors" in Form S-3 for the Company's Senior Convertible Note offering filed with the SEC on September 20, 2007 and its fiscal 2007 annual report on Form-10K. You should not place any undue reliance on any forward-looking statements. We disclaim any obligation to update any such factors or to publicly announce results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

 

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