CompuCredit Reports Third Quarter Results

CompuCredit (NASDAQ: CCRT) reported third quarter 2007 managed earnings of $46.5 million, or $0.95 per fully diluted share, as compared to managed earnings of $53.4 million, or $1.07 per fully diluted share for the third quarter of 2006.

Under GAAP, CompuCredit reported a third quarter 2007 net loss of $53.2 million, or $1.10 per fully diluted common share, as compared to net income of $38.8 million, or $0.78 per common share for the third quarter of 2006.

Third quarter 2007 results include an after-tax net loss of $21.2 million (or $0.43 per fully diluted share) resulting from investments in third-party asset-backed securities owned by one of CompuCredit's subsidiaries.

"CompuCredit once again experienced tremendous account growth as we added over 500,000 net new customer accounts through a variety of distribution channels," said David G. Hanna, CompuCredit's Chairman and Chief Executive Officer. "We also executed $500 million in capital markets funding during the quarter and continue to focus on ways to deploy our capital in ways that generate strong returns for our shareholders."

CompuCredit's net interest margin was 18.6 percent in the third quarter of 2007, as compared to 26.0 percent for the third quarter of 2006 and 18.9 percent in the second quarter of this year. The other income ratio was 17.2 percent in the third quarter of 2007, as compared to 15.7 percent for the third quarter of 2006 and 12.3 percent in the previous quarter. The adjusted charge-off rate was 10.2 percent in the third quarter of 2007, as compared to 9.4 percent for the third quarter of 2006 and 9.2 percent in the previous quarter. As of September 30, 2007, the 60-plus day delinquency rate was 14.6 percent, as compared to 14.0 percent as of September 30, 2006 and 13.2 percent as of June 30, 2007.

Various references within this press release and the accompanying financial information are to CompuCredit's "managed" results, which include the results of its on-balance-sheet, non-securitized receivables, together with the receivables underlying its off-balance-sheet securitization facilities. Financial, operating and statistical data based on these aggregate managed receivables are key to any evaluation of CompuCredit's performance in managing (including underwriting, valuing purchased receivables, servicing and collecting) the portfolios of receivables reflected on CompuCredit's balance sheet and underlying its securitization facilities. In allocating CompuCredit's resources and managing its business, management relies heavily upon financial, operating and statistical data prepared on this "managed basis." It is also important to analysts, investors and others that CompuCredit provide selected metrics and data on a managed basis because this allows a more accurate comparison of CompuCredit to others within the specialty finance industry. Moreover, CompuCredit's management, analysts, investors and others believe it is critical that they understand the credit performance of the entire portfolio of CompuCredit's managed receivables because it reveals information concerning the quality of loan originations and the related credit risks inherent within the securitized portfolios and CompuCredit's retained interests in its securitization facilities.

Managed receivables data assume that none of the credit card receivables underlying CompuCredit's off-balance-sheet securitization facilities was ever transferred to securitization facilities and present the net credit losses and delinquent balances for the receivables as if CompuCredit still owned the receivables. Reconciliation of the managed receivables data to CompuCredit's GAAP financial statements requires: (1) recognition that a majority of CompuCredit's loans and fees receivable (i.e., all but $1.7 billion of GAAP loans and fees receivable at gross face value) had been sold in securitization transactions as of September 30, 2007; (2) an understanding that CompuCredit's managed receivables data are based on billings and actual charge offs as reported to us through underlying systems of record (i.e., without regard to an allowance for uncollectible loans and fees receivable); (3) a look-through to CompuCredit's economic share of (or equity interest in) the receivables that CompuCredit manages for its equity-method investees; and (4) removal of CompuCredit's minority interest holders' interests in the managed receivables underlying CompuCredit's GAAP consolidated results.

Further details regarding CompuCredit's third quarter 2007 financial performance will be discussed during management's conference call on Monday, November 5, 2007 at 5:00 p.m., Eastern Time. The media and public are invited to listen to the live webcast of the call, accessible on the Internet at www.compucredit.com . A replay of the conference call also will be available on the web site.

CompuCredit is a specialty finance company and marketer of branded credit cards and related financial services. CompuCredit provides these services to consumers who are underserved by traditional financial institutions. Through corporate and affinity contributions focused on the underserved and un-banked communities, CompuCredit also uses its financial resources and volunteer efforts to address the numerous challenges affecting its customers. For more information about CompuCredit, visit www.CompuCredit.com .