Asta Funding Board Votes to Raise their Own Pay

The Board of Directors of debt purchaser Asta Funding (Nasdaq: ASFI) approved an increase in annual cash compensation paid to non-employee directors of the Company of $10,000 per director. Each director who is not an employee of the Company shall receive, for fiscal 2007, a fee of $30,000.

The Board also approved an increase in cash compensation paid to those directors selected to chair certain committees of the Board of Directors. The Audit Committee Chair will receive a fee $7,500 for fiscal 2007. The Chair of the Compensation Committee will receive a fee of $5,000 for fiscal 2007.

In addition, the Board approved a grant of 3,000 shares of restricted stock and 3,000 options to purchase shares of Common Stock of the Company, to each non-employee director of the Company. The exercise price of the stock options is $28.75 per share. In early trading Friday, Asta’s stock price was around $30.50.  The shares of restricted stock and the stock options shall each vest in three equal annual installments. The first installment shall vest 90 days from the date of grant, the second, one year and 90 days from the date of grant, and the third shall vest two years and 90 days from the date of grant.