Regrettably, the Commissioner's ruling will eliminate one of the few short term financial options North Carolina consumers have available to them
Kenneth E. Compton, President and CEO, Advance America

Advance America, Cash Advance Centers announced that the North Carolina Commissioner of Banks issued an order directing that its North Carolina subsidiary must cease further operation of its centers in North Carolina to the extent they make payday loans on behalf of a lending bank. A Notice of Appeal will be filed with the State Banking Commission as soon as possible. "While we knew that a ruling from the Commissioner of Banks was forthcoming, we are nevertheless disappointed by the Commissioner's order," stated Kenneth E. Compton, the President and Chief Executive Officer of the Company. "We continue to believe that we have always conducted business in North Carolina in compliance with all applicable laws and we will therefore continue to vigorously defend the agency business model. Regrettably, the Commissioner's ruling will eliminate one of the few short term financial options North Carolina consumers have available to them."

As previously disclosed, the lending bank for which the Company's North Carolina subsidiary has marketed, processed, and serviced payday cash advances and installment loans in North Carolina suspended its payday cash advance and installment loan origination as of the close of business on September 15, 2005. The North Carolina centers have continued to collect the balances due under advances or loans made prior to September 15, 2005 in accordance with the agreement with the lending bank. At December 22, 2005, there were 21 employees staffing 13 centers collecting outstanding balances. It is not clear if today's order from the Commissioner extends to the servicing of outstanding advances and loans. Pending clarification from the Commissioner, all remaining operations in North Carolina will be suspended starting Friday (12/23).

dvance America is the country's leading provider of payday cash advance services with approximately 2,600 centers in 37 states.