ACE has been able to contact all employees and has offered alternative employment to these employees at other ACE locations

ACE Cash Express (AACE) employees and customers in New Orleans and its surrounding suburbs were severely impacted by Hurricane Katrina. The company operates 20 stores in these markets and had another two stores under construction. At this time, four stores have re-opened. ACE is continuing to evaluate its options for re-opening each of the closed stores. ACE has been able to contact all employees and has offered alternative employment to these employees at other ACE locations.

Based upon existing information, ACE expects to record an after-tax charge of $1.0 million, or approximately $0.07 per diluted share in the first fiscal quarter of 2006 related to losses from Hurricane Katrina. This charge will include the write-off of fixed assets and an addition to the loan loss provision related to current and past due loans to customers of these stores. This charge does not include any income expected to be lost during the period of time that the stores are closed. During fiscal 2005 the 20 stores in these markets generated revenue of $3.9 million.

ACE is in discussions with its insurance carrier to determine how much, if any, of these losses will be covered by its casualty insurance and the extent of its business interruption coverage.

Commenting on the quarter's expected operating results, Jay B. Shipowitz, President and CEO said, "Overall demand for short-term consumer loans remains strong across our entire system. Same store sales for loan fees in states not impacted by the revised FDIC Guidelines are up approximately 11%. In the states of Arkansas, Pennsylvania and Texas that are impacted by the revised FDIC Guidelines, customer acceptance of our new First Bank of Delaware loan product introduced on August 1st is meeting our expectations and we continue to believe that under the current regulatory environment that this is the correct loan product for our customers and our business. However the lower income potential of this product compared to the Republic Bank loan product has impacted our results this quarter as same store sales for loan fees in states impacted by the revised FDIC Guidelines are down approximately 16%."