<SUBMISSION>
<ACCESSION-NUMBER>0000950153-04-002493
<TYPE>S-3/A
<PUBLIC-DOCUMENT-COUNT>2
<FILING-DATE>20041213
<DATE-OF-FILING-DATE-CHANGE>20041213
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ENCORE CAPITAL GROUP INC
<CIK>0001084961
<ASSIGNED-SIC>6153
<IRS-NUMBER>481090909
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>S-3/A
<ACT>33
<FILE-NUMBER>333-115551
<FILM-NUMBER>041199561
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>8875 AERO DRIVE, SUITE 200
<CITY>SAN DIEGO
<STATE>CA
<ZIP>92123
<PHONE>8007590327
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>8875 AERO DRIVE, SUITE 200
<CITY>SAN DIEGO
<STATE>CA
<ZIP>92123
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>MCM CAPITAL GROUP INC
<DATE-CHANGED>19990430
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>MIDLAND CORP OF KANSAS
<DATE-CHANGED>19990423
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>S-3/A
<SEQUENCE>1
<FILENAME>p69520a3sv3za.htm
<DESCRIPTION>S-3/A
<TEXT>
<HTML>
<HEAD>
<TITLE>sv3za</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
 <FONT size="2"> <B>As filed with the Securities and Exchange
Commission on December&nbsp;13, 2004</B>
</FONT>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="right">
<B><FONT size="2">Registration No.&nbsp;333-115551</FONT></B>
</DIV>

<DIV align="left">
<HR size="4" noshade color="#000000" style="margin-top: -5px">
</DIV>

<DIV align="left">
<HR size="1" noshade color="#000000" style="margin-top: -10px">
</DIV>

<P align="center">
<B><FONT size="4">SECURITIES AND EXCHANGE COMMISSION</FONT></B>

<DIV align="center">
<B>Washington,&nbsp;D.C. 20549</B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center">
<B>Pre-Effective Amendment No.&nbsp;3</B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<B>to</B>
</DIV>

<DIV align="center">
<B><FONT size="5">Form S-3</FONT></B>
</DIV>

<DIV align="center">
<B>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="center">
<B><FONT size="6">Encore Capital Group,&nbsp;Inc.</FONT></B>

<DIV align="center">
<I><FONT size="2">(Exact name of Registrant as specified in its
charter)</FONT></I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="57%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT size="2">Delaware</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <B><FONT size="2">48-1090909</FONT></B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I><FONT size="2">(State or other jurisdiction of<BR>
    incorporation or organization)</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <I><FONT size="2">(I.R.S. Employer<BR>
    Identification Number)</FONT></I></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<B><FONT size="2">8875 Aero Drive, Suite 200</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<B><FONT size="2">San&nbsp;Diego, California 92123</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(877)&nbsp;445-4581</FONT></B>
</DIV>

<DIV align="center">
<I><FONT size="2">(Address, including zip code and telephone
number,</FONT></I>
</DIV>

<DIV align="center">
<I><FONT size="2">including area code, of registrant&#146;s
principal executive offices)</FONT></I>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="center">
<B><FONT size="2">Carl C. Gregory,&nbsp;III</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<B><FONT size="2">Vice Chairman and Chief Executive
Officer</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<B><FONT size="2">Encore Capital Group,&nbsp;Inc.</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<B><FONT size="2">8875 Aero Drive, Suite 200</FONT></B>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<B><FONT size="2">San&nbsp;Diego, California 92123</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(877)&nbsp;445-4581</FONT></B>
</DIV>

<DIV align="center">
<I><FONT size="2">(Name, address, including zip code and
telephone number, including area code, of agent for
service)</FONT></I>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="center">
<B><I><FONT size="2">Copies to:</FONT></I></B>

<P align="center">
<B><FONT size="2">Steven D. Pidgeon,&nbsp;Esq.</FONT></B>

<DIV align="center">
<B><FONT size="2">John W. Dorris,&nbsp;Esq.</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Snell&nbsp;&#38; Wilmer L.L.P.</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">One Arizona Center</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Phoenix, Arizona 85004-2202</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(602)&nbsp;382-6000</FONT></B>
</DIV>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Approximate date of commencement of proposed
sale to the public:</FONT></B><FONT size="2"> From time to time
after this registration statement becomes effective.
</FONT>

<P align="center">
<HR size="1" width="26%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the only securities being registered on this
Form are being offered pursuant to dividend or interest
reinvestment plans, please check the following
box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If any of the securities being registered on this
Form are to be offered on a delayed or continuous basis pursuant
to Rule&nbsp;415 under the Securities Act of 1933, other than
securities offered only in connection with dividend or interest
reinvestment plans, check the following
box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#254;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If this Form is filed to register additional
securities for an offering pursuant to Rule&nbsp;464(b) under
the Securities Act, please check the following box and list the
Securities Act Registration Statement number of the earlier
effective registration statement for the same
offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If this Form is a post-effective amendment filed
pursuant to Rule&nbsp;462(c) under the Securities Act, check the
following box and list the Securities Act registration statement
number of the earlier effective registration statement for the
same
offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If delivery of the prospectus is expected to be
made pursuant to Rule&nbsp;434, please check the following
box.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">The Registrant hereby amends this Registration
Statement on such date or dates as may be necessary to delay its
effective date until the Registrant shall file a further
amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with
Section&nbsp;8(a) of the Securities Act of 1933, or until this
Registration Statement shall become effective on such date as
the Commission, acting pursuant to said Section&nbsp;8(a), may
determine.</FONT></B>

<P align="left">
<HR size="1" noshade color="#000000" style="margin-top: -2px">

<DIV align="left">
<HR size="4" noshade color="#000000" style="margin-top: -10px">
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" border="1" cellpadding="5"><TR><TD>
<FONT size="2" color="#E8112D">The information in this
prospectus is not complete and may be changed. We may not sell
these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus
is not an offer to sell these securities and it is not
soliciting an offer to buy these securities in any state where
the offer or sale is not permitted.</FONT><FONT size="2"> <BR>
</FONT>
</TD></TR></TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center">
<FONT size="2"> <B><FONT color="#E8112D">SUBJECT TO COMPLETION,
DATED DECEMBER&nbsp;13, 2004</FONT></B>
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<B><FONT size="2">PROSPECTUS</FONT></B>

<P align="center">
<B><FONT size="6">Encore Capital Group,&nbsp;Inc.</FONT></B>

<P align="center">
<B><FONT size="4">3,084,574&nbsp;Shares</FONT></B>

<P align="center">
<B><FONT size="4">Common Stock</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus relates to the sale of up to
3,084,574&nbsp;shares of our common stock, representing 13.95%
of the total number of shares outstanding at November&nbsp;30,
2004. All of the shares covered by this prospectus, when and if
they are sold, will be sold by the selling stockholders
identified in the section of this prospectus entitled
&#147;Selling Stockholders&#148; or their transferees.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our common stock is publicly traded on the Nasdaq
National Market (&#147;Nasdaq&#148;) under the symbol
&#147;ECPG&#148;. On December&nbsp;3, 2004, the last reported
sale price for the common stock on the Nasdaq National Market
was $23.23&nbsp;per share.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The selling stockholders will receive all the
proceeds from any sales of the shares of common stock offered by
this prospectus. We will receive payments for certain option
exercises by selling stockholders. We will not receive any of
the proceeds from the sale of these shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The selling stockholders may from time to time
offer and sell their respective shares of common stock, in the
same offering or in separate offerings, to or through
underwriters, dealers and agents or directly to purchasers. Any
underwriters, brokers, dealers or agents may receive
compensation in the form of discounts, concessions or
commissions from the selling stockholders or commissions from
purchasers of shares for whom they may act as agent. The names
of any underwriters or agents involved in the sale of their
common stock and their compensation will be described in an
accompanying prospectus supplement. See &#147;Plan of
Distribution.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Investing in our common stock involves risks. See &#147;Risk
Factors&#148; beginning at page&nbsp;3.</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved
of these securities or passed upon the adequacy or accuracy of
this prospectus. Any representation to the contrary is a
criminal offense.</FONT></B>

<P align="center">
<FONT size="2">The date of this prospectus
is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2004
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV align="left">

</DIV>

<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<P align="center">
<B><FONT size="2">TABLE OF CONTENTS</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="90%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Page</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#101'>ABOUT THIS PROSPECTUS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">i</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#102'>THE COMPANY</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#104'>RISK FACTORS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#105'>FORWARD-LOOKING
    STATEMENTS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#106'>USE OF PROCEEDS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#107'>SELLING STOCKHOLDERS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#108'>RELATED PARTY
    TRANSACTIONS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#109'>DESCRIPTION OF COMMON
    STOCK</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#110'>PLAN OF DISTRIBUTION</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#111'>LEGAL MATTERS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#112'>EXPERTS</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#113'>WHERE YOU CAN FIND MORE
    INFORMATION</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;<A HREF='#114'>INCORPORATION OF CERTAIN
    DOCUMENTS BY REFERENCE</A>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="p69520a3exv23w2.htm">EX-23.2</A></FONT></TD></TR>
</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">You should rely only on the information
contained in this document or to which we have referred you. We
have not authorized anyone to provide you with information that
is different. This document may only be used where it is legal
to sell these securities. The information in this document may
only be accurate on the date of this document.</FONT></I>

<DIV align="left">
<A name='101'></A>
</DIV>

<!-- link1 "ABOUT THIS PROSPECTUS" -->

<P align="center">
<B><FONT size="2">ABOUT THIS PROSPECTUS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus is part of a registration
statement we filed with the Securities and Exchange Commission
using a shelf registration process. Under this process, the
selling stockholders may offer and sell from time to time up to
an aggregate of 3,084,574&nbsp;shares of our common stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus describes our common stock and
the general manner in which the selling stockholders will offer
our common stock. Each time shares of common stock are sold, we
will, if required, provide a supplemental prospectus that
describes the specific manner in which they may be offered. The
prospectus supplement may add, update or change information in
this prospectus. If there is any inconsistency between the
information in this prospectus and any prospectus supplement,
you should rely on the information in the prospectus supplement.
You should read the prospectus supplement and this prospectus,
along with the documents incorporated by reference and described
under the heading &#147;Incorporation of Certain Documents by
Reference&#148;, before making your investment decision.
</FONT>

<P align="center"><FONT size="2">i
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2"> <A name='102'></A>
</FONT>
</DIV>

<!-- link1 "THE COMPANY" -->

<P align="center">
<B><FONT size="2">THE COMPANY</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">This summary highlights important features of
this offering and the information included or incorporated by
reference in this prospectus. This summary does not contain all
the information you should consider before investing in our
common stock. You should read the following summary together
with the more detailed information included in this prospectus.
You should also carefully read the documents that are identified
under the heading &#147;Incorporation of Certain Documents by
Reference&#148; near the end of this prospectus.</FONT></I>

<P align="center">
<B><FONT size="2">Encore Capital Group,&nbsp;Inc.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are a systems-driven purchaser and manager of
charged-off consumer receivables portfolios. We acquire these
portfolios at deep discounts from their face values using our
proprietary valuation process that is based on the consumer
attributes of the underlying accounts. Based upon our ongoing
analysis of these accounts, we employ a dynamic mix of
collection strategies to maximize our return on investment.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We purchase discrete pools of consumer
receivables directly from credit card originators and other
lenders, as well as from a variety of resellers. We have
established certain relationships that allow us to purchase
portfolios directly through negotiated transactions, and we
participate in the auction-style purchase processes that typify
our industry in which we bid competitively with others to
purchase receivables portfolios. In addition, we enter into
&#147;forward flow&#148; arrangements in which we agree to buy
receivables that meet agreed upon parameters over the course of
the contract term. Since mid-2000, we have purchased pools of
consumer receivables from approximately&nbsp;40 credit
originators and resellers.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We evaluate each portfolio for purchase using our
proprietary valuation and underwriting processes developed by
our in-house team of statisticians. Unlike many of our
competitors which we believe often base their purchase decisions
primarily on numerous aggregated portfolio-level factors,
including the lender/originator, the type of receivables to be
purchased, or the number of collection agencies the accounts
have been placed with previously, we base our purchase decisions
primarily on our analysis of the specific accounts included in a
portfolio. Based upon this analysis, we determine a value for
each account, which we aggregate to produce a valuation of the
entire portfolio. We believe this capability allows us to
perform more accurate valuations of receivables portfolios. In
addition, we have successfully applied this methodology to other
types of consumer receivables.
</FONT>

<P align="center">
<B><FONT size="2">Dividend Policy</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a public company, we have never declared or
paid dividends on our common stock. However, the declaration,
payment and amount of future dividends, if any, is subject to
the discretion of our board of directors, which may review our
dividend policy from time to time in light of the then existing
relevant facts and circumstances. Under the terms of our
$75.0&nbsp;million Secured Financing Facility, we are permitted
to declare and pay dividends in an amount not to exceed, during
any fiscal year, 20% of our audited consolidated net income for
the then most recently completed fiscal year, so long as no
default or unmatured default under the facility has occurred and
is continuing or would arise as the result of the dividend
payment. The Secured Financing Facility requires us to meet and
maintain certain financial covenant and other requirements; if
we fail to meet those requirements, our ability to make dividend
payments is restricted. We may also be subject to additional
dividend restrictions under future financing facilities.
</FONT>

<P align="center"><FONT size="2">1
</FONT>

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<P align="center">
<B><FONT size="2">The Offering</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Common Stock offered by the selling stockholders
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">3,084,574&nbsp;shares
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD valign="top">
    <FONT size="2">Use of proceeds
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">We will not receive any proceeds from the sale of
    the shares in this offering. We will receive payments for option
    exercises by one of the selling stockholders, estimated at
    approximately $50,000, assuming that such selling stockholder
    exercises all options held by him with respect to shares covered
    by this prospectus.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">Nasdaq National Market symbol
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">ECPG
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD valign="top">
    <FONT size="2">Principal Office Address and Telephone Number
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Encore Capital Group,&nbsp;Inc. <BR>
     8875 Aero Drive, Suite 200 <BR>
     San Diego, CA 92123 <BR>
     (877) 445-4581
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<P align="center"><FONT size="2">2
</FONT>
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<DIV align="left">
<FONT size="2"> <A name='104'></A>
</FONT>
</DIV>

<!-- link1 "RISK FACTORS" -->

<P align="center">
<B><FONT size="2">RISK FACTORS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Investing in our common stock involves a high
degree of risk. You should carefully consider the risks
described below with all of the other information included in
this prospectus before making an investment decision. If any of
the possible adverse events described below actually occurs, our
business, results of operations, or financial condition would
likely suffer. In such an event, the market price of our common
stock could decline and you could lose all or part of your
investment.</FONT></I>

<P align="left">
<B><FONT size="2">Risks Related To Our Business</FONT></B>

<DIV>&nbsp;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I><FONT size="2">&nbsp;</FONT></I></B></TD>
    <TD>
    <B><I><FONT size="2">Our quarterly operating results may
    fluctuate and cause our stock price to decrease.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our quarterly operating results will likely vary
in the future, due to a variety of factors that could affect our
revenues and operating expenses in any particular quarter. We
expect that our operating expenses as a percentage of
collections will fluctuate in the future as we expand into new
markets, increase our new business development efforts, hire
additional personnel, and incur increased insurance and
regulatory compliance costs. In addition, our operating results
have fluctuated and may continue to fluctuate as the result of
the factors described below and elsewhere in this prospectus:
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<P>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
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<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the timing and amount of collections on our
    receivables portfolios, including the effects of seasonality;
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any charge to earnings resulting from an
    impairment in the carrying value of our receivables portfolios;
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">increases in operating expenses associated with
    the growth or change of our operations;
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the cost of credit to finance our purchases of
    receivables portfolios;&nbsp;and
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the timing and terms of our purchases of
    receivables portfolios.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There has been considerable variation in our
purchasing volume from quarter to quarter and we expect that to
continue. Further, our industry is currently experiencing
increased competition in the purchase of receivables portfolios,
resulting in rising prices and decreasing profitability. The
volume of our portfolio purchases may continue to be limited
while prices are high. Because we recognize revenue on the basis
of projected collections on purchased portfolios, we may
experience variations in quarterly revenue and earnings due to
the timing of portfolio purchases.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The American Institute of Certified Public
Accountants has issued a Statement of Position, which is
effective for us beginning in the first quarter of 2005, that
revises the accounting standard that governs underperforming
receivables portfolios. Under the revised standard, material
decreases in expected cash flows would result in an impairment
charge while the yield we recognize on the receivables portfolio
would remain unchanged, which would have an adverse effect on
our earnings.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Accordingly, results for any one quarter are not
necessarily indicative of results to be expected for any other
quarter or for any year and revenues and earnings for any
particular future period may decrease. We may not be able to
curtail our spending quickly enough if our revenues fall short
of our expectations. In the future, operating results may fall
below the expectations of securities analysts and investors. In
that event, the price of our common stock would likely decrease.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We may not be able to purchase receivables
    at sufficiently favorable prices or terms for us to be
    successful.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our ability to operate profitably in the long run
depends upon the continued availability of receivables for
purchase on a cost-effective basis. Based on our business model,
we seek to purchase receivables portfolios where projected
collections will exceed our acquisition costs by some multiple,
depending on the types of receivables involved. A hypothetical
25% increase in the purchase price of portfolios due to
increased market competition or other factors would not produce
a change in the projected collections of any given portfolio,
but such an increase would reduce the ratio of collections to
acquisitions costs for a given portfolio, and thereby negatively
affect our profitability.
</FONT>

<P align="center"><FONT size="2">3
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The availability of receivables portfolios at
favorable prices and on favorable terms depends on a number of
factors, including:
</FONT>
<P>

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    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the continuation of the current growth and
    charge-off trends in consumer debt and sales of receivables
    portfolios by originating institutions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to develop and maintain long-term
    relationships with key major credit originators;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to obtain adequate data from credit
    originators or portfolio resellers to appropriately evaluate the
    collectibility of, and estimate the value of,
    portfolios;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">competitive factors affecting potential
    purchasers and sellers of receivables, including competitive
    pricing pressures, which may increase the cost to us of
    acquiring portfolios of receivables and reduce our return on
    such purchased portfolios.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To operate profitably over the long term, we must
continually purchase and collect on a sufficient volume of
receivables to generate cash collections and the related
revenues that exceed our costs.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We rely on our forward flow purchase
    arrangements and a significant seller to provide sufficient
    quantities of receivables for our purchase.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We depend on a combination of individual
portfolio purchases and forward-flow purchase agreements to
provide the raw material (charged off receivables) for our
collections. Generally, our forward-flow contracts are
terminable by either us or the seller of the receivables on
60&nbsp;days notice without penalty. Because sellers looking to
enter into or renew forward flow arrangements commonly select
their purchasers through competitive bidding processes, the
renewal or continuation of these forward flow agreements is
dependent on market conditions and pricing terms. Accordingly,
while our forward flow arrangements provide significant benefits
to us in terms of continuity and operational efficiencies, we
cannot rely on our forward flow agreements to insulate us from
competitive pricing pressures or to provide a guaranteed source
of portfolios beyond the very short term.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, we expect that a significant
percentage of our portfolio purchases for any given fiscal year
may be concentrated with a few large sellers, some of which may
also involve forward flow arrangements. For example, our two
principal sellers of consumer receivables in recent years have
been among the top 10 consumer credit card companies in the
nation, one of which has accounted for more than twenty-five
percent of the charged-off receivables we have purchased since
2001. We cannot guarantee that any of our significant sellers
will continue to sell charged-off receivables to us on terms and
in quantities acceptable to us, or that we would be able to
replace such purchases with purchases from other sellers. We
also believe our long term purchasing relationships with key
sellers provide us with more reliable portfolio data (which we
use to guide us in our negotiation of pricing terms and to focus
our collection efforts with respect to their portfolios)
compared to the amount and quality of data we typically have
when we enter into agreements with new sellers.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any significant decrease in the volume of our
purchases from any of our principal sellers, including those
involving forward flow arrangements, would force us to seek
alternative sources of charged off receivables, which could take
time, be of lower quality, cost more, or any combination of
these factors, any of which could adversely affect our financial
performance.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We may not be able to collect sufficient
    amounts on our receivables portfolios to recover our costs and
    fund our operations.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We acquire and service receivables that the
obligors have failed to pay and the sellers have deemed
uncollectible and written off. The originating institutions
generally make numerous attempts to recover on their
non-performing receivables, often using a combination of their
in-house collection and legal departments as well as third party
collection agencies. These receivables are difficult to collect
and we may not be successful in collecting amounts sufficient to
cover the costs associated with purchasing the receivables and
funding our operations.
</FONT>

<P align="center"><FONT size="2">4
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">The statistical model we use to project
    remaining cash flows from our receivables portfolios may prove
    to be inaccurate, which could result in reduced revenues if we
    do not achieve the collections forecasted by our
    model.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We recently implemented our internally developed
Unified Collection Score (UCS) model to project the remaining
cash flows from our receivables portfolios. Our UCS model
considers known data about our customers&#146; accounts,
including, among other things, our collection experience and
changes in external customer factors, in addition to all data
known when we acquired the accounts. Our use of the UCS model
has resulted in an increase in revenues due to upward aggregate
adjustments to our projected collections. There can be no
assurance, however, that we will be able to achieve the
collections forecasted by our UCS model. If we are not able to
achieve these levels of collection, our revenues will be
reduced, which could result in a reduction of our earnings.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our industry is highly competitive, and we
    may be unable to continue to successfully compete with
    businesses that may have greater resources than we
    have.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We face competition from a wide range of
collection companies and financial services companies which may
have substantially greater financial, personnel and other
resources, greater adaptability to changing market needs and
more established relationships in our industry than we currently
have. We also compete with traditional contingency collection
agencies and in-house recovery departments. Competitive
pressures adversely affect the availability and pricing of
charged-off receivables portfolios, as well as the availability
and cost of qualified recovery personnel. As there are few
significant barriers to entry for new purchasers of charged-off
receivables portfolios, we cannot assure you that additional
competitors with greater resources than ours will not enter our
market. If we are unable to develop and expand our business or
adapt to changing market needs as well as our current or future
competitors are able to do, we may experience reduced access to
charged-off receivables portfolios at appropriate prices and
reduced profitability.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Moreover, we cannot assure you that we will be
able to continue to offer competitive bids for charged-off
receivable portfolios. We face bidding competition in our
acquisition of charged-off receivable portfolios. In our
industry, successful bids generally are awarded on a combination
of price, service, and relationships with the debt sellers. Some
of our current and future competitors may have more effective
pricing and collection models, greater adaptability to changing
market needs, and more established relationships in our
industry. They may also pay prices for portfolios that we
determine are not reasonable. There can be no assurance that we
will continue to offer competitive bids for charged-off consumer
receivables portfolios. In addition, there continues to be
consolidation of issuers of credit cards, which have been a
principal source of receivable purchases. This consolidation has
limited the number of sellers in the market and has
correspondingly given the remaining sellers increasing market
strength in the price and terms of the sale of credit card
accounts.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our failure to purchase sufficient
    quantities of receivables portfolios may necessitate workforce
    reductions, which may harm our business.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because fixed costs, such as certain personnel
salaries and lease or other facilities costs, constitute a
significant portion of our overhead, if we do not continually
augment the receivables portfolios we service with additional
receivables portfolios or collect sufficient amounts on
receivables owned or serviced by us, we may be required to
reduce the number of employees in our collection operations.
These practices could lead to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">lower employee morale, higher employee attrition
    rates, fewer experienced employees and higher recruiting and
    training costs;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">disruptions in our operations and loss of
    efficiency in collection functions;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">excess costs associated with unused space in
    collection facilities.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">High financing costs currently have an
    adverse effect on our earnings.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December&nbsp;2000, we entered into a
$75.0&nbsp;million Secured Financing Facility to fund portfolio
purchases. It provides the lender with interest at a stated rate
plus participation in the profits from acquired
</FONT>

<P align="center"><FONT size="2">5
</FONT>

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<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left">
<FONT size="2">portfolios. The effective borrowing rate under
this facility was 58.3% for the year ended December&nbsp;31,
2003 and 118.4% for the nine months ended September&nbsp;30,
2004. These effective borrowing rates are calculated by
including in the numerator the base interest paid to the lender,
plus the lender&#146;s participation in the residual collections
from the acquired portfolios, while the denominator is the
average loan principal outstanding for the specified period.
However, pursuant to a recent amendment to this facility, the
total amount owed the lender has been capped for most portfolios
financed under the facility between October&nbsp;15, 2004 and
the facility&#146;s termination date, December&nbsp;31, 2004,
which will result in a reduction of our effective borrowing rate
compared to what we would have owed under the facility absent
such amendment. Under an agreement with this lender, we are
required to offer the lender the opportunity to finance all
purchases of credit card receivables portfolios using this
facility through December&nbsp;31, 2004. Each note has a
maturity date not to exceed 27&nbsp;months after the borrowing
date. This facility limits the earning potential for portfolios
we own that are or were financed under it by increasing our
costs of borrowing, subject to the caps imposed by our recent
amendment. The sharing in residual cash flows constitutes a
future profit sharing obligation which continues for the entire
economic life of most receivables portfolios financed using this
facility, and will extend substantially beyond the expiration
date of the Secured Financing Facility. The nature of this
obligation to pay contingent interest is likely to continue to
result in substantial effective rates of interest paid with
respect to the Secured Financing Facility.
</FONT>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We may be unable to meet our future
    liquidity requirements.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We depend on both internal and external sources
of financing to fund our purchases of receivables portfolios and
our operations. Our need for additional financing and capital
resources increases dramatically as our business grows. Our
inability to obtain financing and capital as needed or on terms
acceptable to us would limit our ability to acquire additional
receivables portfolios and to operate our business.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We may not be able to continue to satisfy
    the restrictive covenants in our debt agreements.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our debt agreements impose a number of
restrictive covenants. Failure to satisfy any one of these
covenants could result in all or any of the following adverse
results:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">acceleration of indebtedness outstanding;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">cross defaults and acceleration of indebtedness
    under other financing agreements;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our removal as servicer under our secured
    financing transactions and possibly other cross-defaulted
    facilities and loss of servicing fees and other consequences;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">liquidation of the receivables in our secured
    financing transactions and loss of our expected future excess
    recoveries on receivables in the financed pools;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our inability to continue to make purchases of
    receivables needed to operate our business;&nbsp;or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our inability to secure alternative financing on
    favorable terms, if at all.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We use estimates in our accounting and our
    earnings will be reduced if actual results are less than
    estimated.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We utilize the interest method to determine
revenue recognized on substantially all of our receivables
portfolios. Under this method, each pool of receivables is
modeled upon its projected cash flows. A yield is then
established which, when applied to the outstanding balance of
the receivables, results in the recognition of revenue at a
constant yield relative to the remaining balance in the
receivables portfolio. The actual amount recovered by us on
portfolios may substantially differ from our projections and may
be lower than initially projected. If differences are material,
then we may reduce our yield, which would negatively affect our
earnings, or take a write off on all or a portion of our
investment.
</FONT>

<P align="center"><FONT size="2">6
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We will be required to change how we
    account for underperforming receivables portfolios, which will
    have an adverse effect on our earnings.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The American Institute of Certified Public
Accountants has issued a Statement of Position
(&#147;SOP&#148;)&nbsp;03-03, <I>&#147;Accounting for Loans and
Certain Debt Securities Acquired in a Transfer,&#148;</I> that
revises the accounting standard that governs underperforming
receivables portfolios. This SOP is effective for us beginning
in the first quarter of 2005. Under the standard, material
increases in expected cash flows will continue to result in a
prospective increase in the yield we recognize on a receivables
portfolio. However, material decreases in expected cash flows
would result in an impairment charge while the yield we
recognize on the receivables portfolio would remain unchanged,
which would have an adverse effect on our earnings.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our earnings will be reduced by the payment
    of substantial amounts in income taxes as a result of our full
    utilization of our federal net operating loss carry-forward in
    2003.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to fiscal year 2003, we did not pay Federal
income taxes for several years as we utilized our net operating
loss carry-forward to offset our Federal tax liability. As of
December&nbsp;31, 2002, we had an approximate $13.3&nbsp;million
Federal net operating loss carry-forward. In 2003, we fully
utilized this carry-forward to partially offset our 2003 Federal
tax obligation. As a result, we have begun to pay Federal income
taxes at a 35% rate on taxable income requiring us to use a
portion of our financial resources to pay Federal income taxes,
which will reduce the funds we have available to invest in new
receivables portfolios or for other corporate purposes.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We may not be successful at acquiring and
    collecting on portfolios consisting of new types of
    receivables.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may pursue the acquisition of portfolios
consisting of assets with which we have little collection
experience. We may not be successful in completing any of these
acquisitions. Our lack of experience with new types of
receivables may cause us to pay too much for these portfolios,
which may also result in losses. Our limited experience in
collection of these new types of receivables may result in
losses.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Government regulation may limit our ability
    to recover and enforce the collection of
    receivables.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Federal and state laws may limit our ability to
recover and enforce receivables regardless of any act or
omission on our part. Some laws and regulations applicable to
credit card issuers or other debt originators may preclude us
from collecting on receivables we purchase where the card issuer
or originator failed to comply with applicable federal or state
laws in generating or servicing the receivables that we have
acquired.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Laws relating to debt collections also directly
apply to our business. Additional consumer protection or privacy
laws and regulations may be enacted that impose additional
restrictions on the collection of receivables. Such new laws may
adversely affect our ability to collect on our receivables,
which could adversely affect our earnings. Our failure or the
failure of the originators of our receivables to comply with
existing or new laws, rules or regulations could limit our
ability to recover on receivables or cause us to pay damages to
the original debtors, which could reduce our revenues and harm
our business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because our receivables are generally originated
and serviced nationwide, we cannot assure you that the
originating lenders have complied with applicable laws and
regulations. While receivables acquisition contracts typically
contain provisions indemnifying us for losses due to the
originating institution&#146;s failure to comply with applicable
laws and other events, we cannot assure you that any indemnities
received from originating institutions will be adequate to
protect us from losses on the receivables or liabilities to
customers.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We are subject to ongoing risks of
    litigation, including individual or class actions under
    securities, consumer credit, collections, employment and other
    laws.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We operate in an extremely litigious climate and
may be named as defendants in litigation, including individual
or class actions under securities laws or employment laws as
well as consumer credit, collections, and various other
consumer-oriented laws.
</FONT>

<P align="center"><FONT size="2">7
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If our future quarterly operating results are
below the expectations of securities analysts or investors, the
price of our common stock may decline. Stock price fluctuations
may be exaggerated if the trading volume of our common stock
continues to be low. In the past, securities class action
litigation has often been filed against a company after a period
of volatility in the market price of its stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Defending a lawsuit, regardless of its merit,
could be costly and could divert management&#146;s attention
from the operation of our business. The use of certain
collection strategies could be restricted if class action
plaintiffs were to prevail in their claims. In addition,
insurance costs continue to increase significantly and policy
deductibles have also increased. All of these factors could have
an adverse effect on our consolidated financial condition and
results of operations.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We may make acquisitions that prove
    unsuccessful or strain or divert our resources.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">From time to time, we consider acquisitions of
other companies in our industry that could complement our
business, including the acquisition of entities in diverse
geographic regions and entities offering greater access to
businesses and markets that we do not currently serve. We may
not be able to successfully acquire other businesses or, if we
do, we may not be able to successfully integrate these
businesses with our own. Further, acquisitions may place
additional constraints on our resources such as diverting the
attention of our management from other business concerns.
Through acquisitions, we may enter markets in which we have
limited or no experience. The occurrence of one or more of these
events may divert management&#146;s attention from the
successful operation of our business, which may result in
decreased collections and earnings. Moreover, any acquisition
may result in a potentially dilutive issuance of equity
securities, incurrence of additional debt and amortization of
identifiable intangible assets, all of which could reduce our
profitability.
</FONT>

<DIV>&nbsp;</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><I><FONT size="2">&nbsp;</FONT></I></B></TD>
    <TD>
    <B><I><FONT size="2">Our failure to satisfy requirements
    pertaining to internal controls could subject us to fines and
    other regulatory penalties, and cause investors to lose
    confidence in our reported financial information, which could
    have a material adverse effect on our stock price.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are required to design, test and maintain
internal controls adequate to produce reliable financial
reports, minimize fraud and enable our independent auditors to
report on our financial statements. In addition, in conjunction
with the recently adopted regulations promulgated under
Section&nbsp;404 of the Sarbanes-Oxley Act and because of the
appreciation in our stock price as well as our increased float
resulting from our October 2003 public offering, as of
June&nbsp;30, 2004 we became subject to an accelerated
requirement to render an annual management assessment of the
effectiveness of our internal controls as of December&nbsp;31,
2004. Our independent auditors are required to provide a report
attesting to our assessment.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we have made significant progress in
performing the design and testing requirements underlying the
assessment and attestation required by SOX 404, we recognize
that there may not be sufficient time remaining for us
(including the Big 4 accounting firm assisting us with our
internal work) to timely complete by December&nbsp;31, 2004 all
steps required to permit management and the Company&#146;s
independent auditors to conclude that as of December&nbsp;31,
2004 our internal controls over financial reporting were
effective.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In particular, during the course of our ongoing
documentation and testing of our internal controls, we may
identify one or more deficiencies in our existing internal
controls that we would be required to remediate by
December&nbsp;31, 2004. If, after December&nbsp;31, 2004, our
outside auditors test our key controls and conclude that a
certain number of such controls were not properly documented or
were not functioning, we would not be able to timely remediate
these deficiencies for purposes of the 2004 management report
and auditor attestation. While we have yet to identify any
significant deficiencies that we do not expect to remediate by
year end, we believe that there is more than a remote
possibility that we will fail to complete all of
SOX&nbsp;404&#146;s requirements on a timely basis. If we cannot
timely satisfy the requirements of SOX&nbsp;404 (or if we are
unable to provide reliable financial reports, prevent fraud or
obtain an unqualified audit opinion), we could be subjected to
fines and other regulatory penalties, and investors could lose
confidence in our reported financial information, which could
have a material adverse effect on our stock price.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">8
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Recent legislative actions and proposed
    regulations will require corporate governance initiatives, which
    may be difficult and expensive to implement.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To implement required corporate governance
initiatives mandated by the Sarbanes-Oxley Act, the Securities
and Exchange Commission and the recently adopted Nasdaq rules,
we may be required to enhance our internal controls, hire
additional personnel and utilize additional outside legal,
accounting and advisory services, all of which would cause our
general and administrative expenses to substantially increase.
We also expect that the premiums we pay for directors&#146; and
officers&#146; insurance policies will increase in the future as
a result of higher claim rates incurred by insurers on other
insured companies in recent years. These increased costs will
adversely affect our operating results by increasing expenses by
an amount that is significant for a company of our size. In
addition, senior management&#146;s attention to our core
business may be diverted by these initiatives which could result
in decreased collections and earnings.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We may not be able to hire and retain
    enough sufficiently trained employees to support our operations,
    and/or we may experience high rates of personnel
    turnover.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our industry is very labor intensive. We
generally compete for qualified personnel with companies in our
business and in the collection agency, tele-services and
telemarketing industries. We will not be able to service our
receivables effectively, continue our growth and operate
profitably if we cannot hire and retain qualified collection
personnel. Further, high turnover rate among our employees
increases our recruiting and training costs and may limit the
number of experienced collection personnel available to service
our receivables. Our newer employees tend to be less productive
and generally produce the greatest rate of personnel turnover.
If the turnover rate among our employees increases, we will have
fewer experienced employees available to service our
receivables, which could reduce collections and therefore result
in lower revenues and earnings.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">The failure of our technology and phone
    systems could have an adverse effect on our
    operations.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our success depends in large part on
sophisticated telecommunications and computer systems. The
temporary or permanent loss of our computer and
telecommunications equipment and software systems, through
casualty, operating malfunction, software virus, or service
provider failure, could disrupt our operations. In the normal
course of our business, we must record and process significant
amounts of data quickly and accurately to properly bid on
prospective acquisitions of receivables portfolios and to
access, maintain and expand the databases we use for our
collection activities. Any simultaneous failure of our
information systems and their backup systems would interrupt our
business operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our business depends heavily on service provided
by various local and long distance telephone companies. A
significant increase in telephone service costs or any
significant interruption in telephone services could negatively
affect our operating results or disrupt our operations.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We may not be able to successfully
    anticipate, invest in or adopt technological advances within our
    industry.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our business relies on computer and
telecommunications technologies and our ability to integrate new
technologies into our business is essential to our competitive
position and our success. We may not be successful in
anticipating, managing, or adopting technological changes on a
timely basis. Computer and telecommunications technologies are
evolving rapidly and are characterized by short product life
cycles.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">While we believe that our existing information
systems are sufficient to meet our current and foreseeable
demands and continued expansion, our future growth may require
additional investment in these systems. We depend on having the
capital resources necessary to invest in new technologies to
acquire and service receivables. We cannot assure you that
adequate capital resources will be available to us.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We may not be able to adequately protect
    the intellectual property rights upon which we
    rely.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We rely on proprietary software programs and
valuation and collection processes and techniques and we believe
that these assets provide us with a competitive advantage. We
consider our proprietary software,
</FONT>

<P align="center"><FONT size="2">9
</FONT>

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<DIV align="left">
<FONT size="2">processes and techniques to be trade secrets. We
may not be able to adequately protect our technology and data
resources.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We have engaged in transactions with
    members of our Board of Directors, significant stockholders, and
    entities affiliated with them; future transactions with related
    parties could pose conflicts of interest.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the past, we have engaged in transactions with
members of our Board of Directors, significant stockholders, and
entities affiliated with them, which inherently give rise to
conflicts of interest. For example, certain of these parties
have previously provided financing and financial guarantees to
Encore and have received additional equity interests, such as
warrants, in connection with such transactions. Transactions
with related parties such as these pose a risk that such
transactions are on terms that are not as beneficial to the
Company as those that may be arranged with third parties. Our
Board of Directors monitors transactions entered into by the
Company and where such transactions involve a related party or
otherwise are perceived to present a conflict of interest, takes
steps designed to mitigate such conflicts, such as submitting
the proposed transaction to those directors who are unaffiliated
with the related party involved in the transaction or otherwise
not subject to a conflict of interest for their review and
approval.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For more information concerning the potential
conflicts that may arise, please see the section entitled
&#147;Related Party Transactions.&#148;
</FONT>

<P align="left">
<B><FONT size="2">Risks Related To This Offering and Our Capital
Structure</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Our directors, executive officers, and
    principal stockholders have significant voting power and may
    take actions that may not be in the best interests of our other
    stockholders.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">After this offering, assuming that all of the
shares covered by this prospectus are sold, our officers,
directors, and principal stockholders holding more than five
percent of our common stock together will control approximately
42% of our outstanding common stock. As a result, these
stockholders, if they act together, will be able to effectively
control the management and affairs of our company and all
matters requiring stockholder approval, including the election
of directors and approval of significant corporate transactions.
This concentration of ownership may have the effect of delaying
or preventing a change in control or a merger, consolidation, or
other business combination at a premium price if these
stockholders oppose it, and generally may not be in the best
interest of our other stockholders.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">A sale of a substantial number of shares of
    our common stock may cause the price of our common stock to
    decline.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If our stockholders sell substantial amounts of
our common stock in the public market after this offering,
including shares issued upon the exercise of outstanding
options, the market price of our common stock could fall. These
sales also might make it more difficult for us to sell equity or
equity-related securities in the future at a time and price that
we deem reasonable or appropriate.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Your ownership interest in Encore will be
    diluted upon issuance of shares we have reserved for future
    issuance.</FONT></I></B></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;30, 2004, 22,118,604&nbsp;shares
of our common stock were outstanding, and 2,549,191 additional
shares of our common stock were reserved for issuance as follows:
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">2,132,359&nbsp;shares of our common stock
    issuable upon exercise of options with a weighted average
    exercise price of $6.40&nbsp;per share as of October&nbsp;31,
    2004; and
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">up to 416,832 additional shares of our common
    stock reserved for future issuance under our equity
    participation plan.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The issuance of these additional shares will
reduce your percentage ownership in Encore.
</FONT>

<P align="center"><FONT size="2">10
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">We can issue preferred stock without your
    approval, which could adversely affect your
    rights.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our certificate of incorporation authorizes us to
issue shares of &#147;blank check&#148; preferred stock, the
designation, number, voting powers, preferences, and rights of
which may be fixed or altered from time to time by our board of
directors. Accordingly, the board of directors has the
authority, without stockholder approval, to issue preferred
stock with rights that could adversely affect the voting power
or other rights of the common stock holders or the market value
of the common stock.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Anti-takeover provisions in our charter
    documents and state law may inhibit beneficial changes of
    control.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our certificate of incorporation and by-laws and
Delaware law contain provisions which could make it more
difficult for a third party to acquire us, even if such a change
in control would be beneficial to our stockholders. For example:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our board of directors has the power to issue
    shares of preferred stock and set the related terms without
    stockholder approval;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we are restricted in our ability to enter into
    business combinations with &#147;interested stockholders;&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">our stockholders may hold a special meeting only
    if our board of directors calls the meeting or if a majority of
    the votes entitled to be cast at a special meeting make a
    written demand for the meeting;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">we require advanced notice for nominating
    candidates and for stockholder proposals.
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left">
<A name='105'></A>
</DIV>

<!-- link1 "FORWARD-LOOKING STATEMENTS" -->

<P align="center">
<B><FONT size="2">FORWARD-LOOKING STATEMENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus and each prospectus supplement
include and incorporate forward-looking statements within the
meaning of Section&nbsp;27A of the Securities Act of 1933 and
Section&nbsp;21E of the Securities Exchange Act of 1934. All
statements, other than statements of historical facts, included
or incorporated into this prospectus or any prospectus
supplement regarding our strategy, future operations, financial
position, future revenues, projected costs, prospects, plans and
objectives are forward-looking statements. The words
&#147;anticipates,&#148; &#147;believes,&#148;
&#147;estimates,&#148; &#147;expects,&#148; &#147;intends,&#148;
&#147;may,&#148; &#147;plans,&#148; &#147;projects,&#148;
&#147;will,&#148; &#147;would,&#148; and similar expressions are
intended to identify forward-looking statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Actual results or events could differ materially
from the plans, intentions and expectations disclosed in the
forward-looking statements we make. We have included in this
prospectus and will include in each prospectus supplement
important factors that we believe could cause actual results or
events to differ materially from the forward-looking statements
that we make. See &#147;Risk Factors.&#148; We are not obligated
to publicly update or revise any forward looking statements,
whether as a result of new information, future events, or for
any other reason.
</FONT>

<DIV align="left">
<A name='106'></A>
</DIV>

<!-- link1 "USE OF PROCEEDS" -->

<P align="center">
<B><FONT size="2">USE OF PROCEEDS</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will not receive any of the proceeds from the
sale of shares of our common stock hereunder by the selling
stockholders. We will receive payments for option exercises by
one selling stockholder, estimated at approximately $50,000,
assuming that such selling stockholder exercises all options
held by him with respect to shares covered by this prospectus.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">11
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='107'></A>
</DIV>

<!-- link1 "SELLING STOCKHOLDERS" -->

<P align="center">
<B><FONT size="2">SELLING STOCKHOLDERS</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth certain
information regarding the beneficial ownership of common stock
by the selling stockholders. Except as indicated in the
footnotes to this table and subject to community property laws
where applicable, the persons named in the table have sole
voting and investment power with respect to all shares of our
common stock shown as beneficially owned by them. Beneficial
ownership and percentage ownership are determined in accordance
with the rules of the SEC. The table below includes the number
of shares underlying options which are exercisable within
60&nbsp;days from November&nbsp;30, 2004. Calculations of
beneficial ownership are based on 22,118,604&nbsp;shares of our
common stock outstanding on November&nbsp;30, 2004.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Selling stockholders, including their
transferees, pledgees or donees or their respective successors,
may from time to time offer and sell under this prospectus any
or all of the common stock covered by this prospectus. When we
refer to the &#147;selling stockholders&#148; in this
prospectus, we mean those persons listed in the table below, as
well as their transferees, pledges or donees or their respective
successors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The selling stockholders listed in the table
below may have sold or transferred, in transactions exempt from
the registration requirements of the Securities Act, some or all
of their common stock since the date as of which the information
in the table is presented. Information about the selling
stockholders may change over time. Any changed information will
be set forth in an amendment to the registration statement or
supplement to this prospectus, as required by law.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The number of shares of common stock that may be
actually sold by each selling stockholder will be determined by
such selling stockholder. Because each selling stockholder may
sell all, some or none of the shares of common stock which each
holds, no estimate can be given as to the number of shares of
common stock that will be held by the selling stockholders upon
termination of this offering. The information set forth in the
following table regarding the beneficial ownership after resale
of shares is based on the assumption that each selling
stockholder will sell all of the shares of common stock owned by
that selling stockholder and covered by this prospectus.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="21%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percent</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percent</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned Before</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Included in This</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned After This</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned Before</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned After</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Beneficial Owner</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">This Offering(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offering</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offering(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">This Offering</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">This Offering</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated Press International Holdings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Limited(2)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,920,705</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,200,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,720,705</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22.3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16.8</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">54-58 Park Street,<BR>
    Sydney<BR>
    NSW 2000, Australia
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Nelson Peltz(3)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,082,163</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,187,064</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,895,099</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18.5</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">c/o Triarc Companies,&nbsp;Inc.<BR>
    280 Park Avenue<BR>
    New&nbsp;York, NY 10017
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Peter W. May(4)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,977,453</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">895,928</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,081,525</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.5</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.4</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">c/o Triarc Companies,&nbsp;Inc.<BR>
    280 Park Avenue<BR>
    New&nbsp;York, NY 10017
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Triarc Companies,&nbsp;Inc.(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,002,865</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">604,790</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,398,075</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">280 Park Avenue<BR>
    New&nbsp;York, NY 10017
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Madison West Associates Corp.(6)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,901,590</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">604,790</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,296,800</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.6</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.9</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">c/o Triarc Companies,&nbsp;Inc.<BR>
    280 Park Avenue<BR>
    New&nbsp;York, NY 10017
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">12
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="21%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percent</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percent</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of Common Stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned Before</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Included in This</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned After This</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned Before</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned After</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Beneficial Owner</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">This Offering(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offering</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Offering(1)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">This Offering</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">This Offering</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Neale M. Albert(7)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,540,898</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">873,412</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">667,486</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">c/o Paul, Weiss, Rifkind, Wharton&nbsp;&#38;
    Garrison<BR>
    1285 Avenue of the Americas<BR>
    New&nbsp;York, NY 10019
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Robert M. Whyte(8)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,100,897</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">200,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">900,897</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">c/o Audant Investments Pty Limited<BR>
    Level&nbsp;4 Quay West<BR>
    111 Harrington Street<BR>
    Sydney<BR>
    NSW 2000, Australia
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Eric D. Kogan(9)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">226,744</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">98,987</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">127,757</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">c/o Clarion Capital Partners, LLC<BR>
    110 East 59th Street<BR>
    New&nbsp;York, NY 10022
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Edward P. Garden(10)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57,385</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57,385</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">c/o Triarc Companies,&nbsp;Inc.<BR>
    280 Park Avenue<BR>
    New&nbsp;York, NY 10017
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Barry R. Barkley(11)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">153,829</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103,829</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">c/o Encore Capital Group,&nbsp;Inc.<BR>
    8875 Aero Drive, Suite&nbsp;200<BR>
    San&nbsp;Diego, CA 92123
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">*</FONT></TD>
    <TD align="left">
    <FONT size="2">indicates ownership of less than 1%.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The numbers and percentages shown include the
    shares of common stock actually beneficially owned as of
    November&nbsp;30, 2004, and the shares of common stock that the
    person or group had the right to acquire within 60&nbsp;days of
    such date. In calculating the percentage of ownership, all
    shares of common stock that the identified person or group had
    the right to acquire within 60&nbsp;days of November&nbsp;30,
    2004, upon the exercise of options are deemed to be outstanding
    for the purpose of computing the percentage of the shares of
    common stock owned by such person or group, but are not deemed
    to be outstanding for the purpose of computing the percentage of
    the shares of common stock owned by any other person.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">According to Amendment No.&nbsp;8 to
    Schedule&nbsp;13D filed on October&nbsp;22, 2003 by Consolidated
    Press International Holdings Limited (&#147;CPIHL&#148;) and C.
    P. International Investments Limited (&#147;CPII&#148;) to
    further supplement and amend the Schedule&nbsp;13D originally
    filed by CPIHL and CPII on February&nbsp;22, 2000, as
    supplemented and amended by Amendment No.&nbsp;1 dated
    March&nbsp;22, 2001, by Amendment No.&nbsp;2 dated
    August&nbsp;28, 2001, by Amendment No.&nbsp;3 dated
    February&nbsp;27, 2002, by Amendment No.&nbsp;4 dated
    April&nbsp;18, 2002, by Amendment No.&nbsp;5 dated
    August&nbsp;26, 2003, by Amendment No.&nbsp;6 dated
    August&nbsp;29, 2003, and by Amendment No.&nbsp;7 to
    Schedule&nbsp;13D filed on September&nbsp;29, 2003, each of CPII
    and CPIHL may be deemed the beneficial owners of these shares.
    The shares reported include 4,920,705&nbsp;shares directly owned
    by CPII. CPII has sole voting and dispositive power with respect
    to these shares. Of the shares included in this offering,
    1,200,000 are being offered by CPII.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Based upon information provided on behalf of
    Madison West Associates Corp. (&#147;Madison West&#148;), Triarc
    Companies,&nbsp;Inc. (&#147;Triarc&#148;), Nelson Peltz, Peter
    W. May and Neale M. Albert (the &#147;Madison West Ownership
    Information&#148;), Mr.&nbsp;Peltz is a co-trustee of the Nelson
    Peltz Children&#146;s Trust (the &#147;NP Trust&#148;) and a
    general partner of the Peltz Family Limited Partnership (the
    &#147;Peltz LP&#148;) and in such
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<P align="center"><FONT size="2">13
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="3%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">capacity shares voting and dispositive power over
    the 581,310&nbsp;shares of common stock directly owned by the NP
    Trust and the 1,497,988&nbsp;shares directly owned by the Peltz
    LP. According to the Madison West Ownership Information,
    Mr.&nbsp;Peltz may be deemed the beneficial owner of
    approximately 45.6% of the voting power of the outstanding
    capital stock of Triarc, and as such, Mr.&nbsp;Peltz may be
    deemed to share voting and dispositive power with Triarc and
    Mr.&nbsp;May over the 2,002,865&nbsp;shares of common stock
    beneficially owned by Triarc (see note (5)&nbsp;below). As a
    result, pursuant to Rule&nbsp;13d-3 of the Securities Exchange
    Act of 1934 (&#147;Rule&nbsp;13d-3&#148;), Mr.&nbsp;Peltz may be
    deemed the beneficial owner of (i)&nbsp;the 581,310&nbsp;shares
    of common stock directly owned by the NP Trust, (ii)&nbsp;the
    1,497,988&nbsp;shares of common stock directly owned by the
    Peltz LP; and (iii)&nbsp;the 2,002,865&nbsp;shares of common
    stock beneficially owned by Triarc, which would, in the
    aggregate, constitute approximately 18.5% of the outstanding
    shares of our common stock. Mr.&nbsp;Peltz disclaims beneficial
    ownership of such shares. Of the shares included in this
    offering, 582,274&nbsp;shares are being offered by the
    NP&nbsp;Trust, and 604,790&nbsp;shares are being offered by
    Madison West. Mr.&nbsp;Peltz is Chairman, Chief Executive
    Officer, and a director of Triarc. Mr.&nbsp;Peltz has served as
    a director of Encore since January 2003 and previously served as
    a director of Encore from February 1998 until October 2001.
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">According to the Madison West Ownership
    Information, Mr.&nbsp;May is a co-trustee of each of the
    Jonathan P. May 1998 Trust (the &#147;JM Trust&#148;) and the
    Leslie A. May 1998 Trust (the &#147;LM Trust&#148;), and in such
    capacity Mr.&nbsp;May shares voting and dispositive power with
    Neale M. Albert over the 479,794&nbsp;shares of common stock
    directly owned by the JM Trust and the 479,794&nbsp;shares of
    common stock directly owned by the LM Trust (see note
    (7)&nbsp;below). Mr.&nbsp;May also beneficially owns
    15,000&nbsp;shares of common stock that he acquired through a
    brokerage transaction and has sole voting and dispositive power
    over such shares. According to the Madison West Ownership
    Information, Mr.&nbsp;May may be deemed the beneficial owner of
    approximately 45.6% of the voting power of the outstanding
    capital stock of Triarc, and as such, Mr.&nbsp;May may be deemed
    to share with Triarc and Mr.&nbsp;Peltz voting and dispositive
    power over the 2,002,865&nbsp;shares of common stock
    beneficially owned by Triarc (see note (5)&nbsp;below). As a
    result, pursuant to Rule&nbsp;13d-3, Mr.&nbsp;May may be deemed
    the beneficial owner of (i)&nbsp;the 479,794&nbsp;shares of
    common stock directly owned by the JM Trust, (ii)&nbsp;the
    479,794&nbsp;shares of common stock directly owned by the LM
    Trust, (iii)&nbsp;the 2,002,865&nbsp;shares of common stock
    beneficially owned by Triarc, and (iv)&nbsp;the
    15,000&nbsp;shares of common stock owned directly by
    Mr.&nbsp;May, which, in the aggregate, constitute approximately
    13.5% of the outstanding shares of our common stock.
    Mr.&nbsp;May disclaims beneficial ownership of all such shares
    other than the 15,000&nbsp;shares of common stock that he owns
    directly. Of the shares included in this offering,
    145,569&nbsp;shares are being offered by the JM Trust,
    145,569&nbsp;shares are being offered by the LM Trust and
    604,790&nbsp;shares are being offered by Madison West.
    Mr.&nbsp;May is President, Chief Operating Officer, and a
    director of Triarc. Mr.&nbsp;May has served as a director of
    Encore since February 1998.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">According to the Madison West Ownership
    Information, Triarc may be deemed the beneficial owner of
    2,002,865&nbsp;shares of common stock, including
    (i)&nbsp;1,901,590&nbsp;shares of common stock directly owned by
    Madison West; and (ii)&nbsp;101,275&nbsp;shares of common stock
    directly owned by Triarc. The aggregate holdings of Triarc
    constitute approximately 9.1% of the outstanding shares of our
    common stock. Triarc shares with Madison West, Mr.&nbsp;Peltz
    and Mr.&nbsp;May voting and dispositive power over the
    1,901,590&nbsp;shares of common stock beneficially owned by
    Madison West and shares with Mr.&nbsp;Peltz and Mr.&nbsp;May
    voting and dispositive power over the 101,275&nbsp;shares of
    common stock directly owned by Triarc. Of the shares included in
    this offering, 604,790&nbsp;shares are being offered by Madison
    West.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">According to the Madison West Ownership
    Information, Madison West may be deemed the beneficial owner of
    1,901,590&nbsp;shares of common stock, which constitute
    approximately 8.6% of the outstanding shares of our common
    stock. Madison West shares with Triarc, Mr.&nbsp;Peltz and
    Mr.&nbsp;May voting and dispositive power over the
    1,901,590&nbsp;shares of common stock beneficially owned by
    Madison West. Of the shares included in this offering,
    604,790&nbsp;shares are being offered by Madison West.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">According to the Madison West Ownership
    Information, Mr.&nbsp;Albert is a co-trustee of each of the NP
    Trust, the JM Trust and the LM Trust (see note (4)&nbsp;above),
    and in such capacity Mr.&nbsp;Albert shares with Mr.&nbsp;Peltz
    voting and dispositive power over the 581,310&nbsp;shares of
    common stock directly owned by the NP Trust, and shares with
    Mr.&nbsp;May voting and dispositive power over the
    479,794&nbsp;shares of common
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<P align="center"><FONT size="2">14
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="4%"></TD>
    <TD width="95%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">stock directly owned by the JM Trust and the
    479,794&nbsp;shares of common stock directly owned by the LM
    Trust. As a result, pursuant to Rule&nbsp;13d-3, Mr.&nbsp;Albert
    may be deemed the beneficial owner of 1,540,898&nbsp;shares,
    which constitute approximately 7.0% of the outstanding shares of
    our common stock. Mr.&nbsp;Albert disclaims beneficial ownership
    of such shares. Of the shares included in this offering,
    582,274&nbsp;shares are being offered by the NP Trust,
    145,569&nbsp;shares are being offered by the JM Trust and
    145,569&nbsp;shares are being offered by the LM Trust.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(8)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">According to Amendment No.&nbsp;3 to
    Schedule&nbsp;13D filed on September&nbsp;29, 2003 by Robert
    Michael Whyte to further supplement and amend the
    Schedule&nbsp;13D originally filed on March&nbsp;4, 2002 by
    Mr.&nbsp;Whyte, as supplemented and amended by Amendment
    No.&nbsp;1 dated April&nbsp;18, 2002 and by Amendment No.&nbsp;2
    dated August&nbsp;29, 2003 and updated to reflect a sale
    reported on Form&nbsp;4 filed by Mr.&nbsp;Whyte on
    October&nbsp;21, 2003, Mr.&nbsp;Whyte is the beneficial owner of
    1,100,897&nbsp;shares of common stock, or approximately 5.0% of
    the outstanding shares of our common stock. Of the shares
    included in this offering, 200,000&nbsp;shares are being offered
    by Mr.&nbsp;Whyte. Mr.&nbsp;Whyte has served as a director of
    Encore since February 1998.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(9)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Consists of 210,077&nbsp;shares held directly and
    16,667&nbsp;shares issuable upon exercise of vested stock
    options. Mr.&nbsp;Kogan has served as Chairman of the Board of
    Directors of Encore since February 1998. From April 1993 until
    April 2002, Mr.&nbsp;Kogan was an officer of Triarc.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD><FONT size="2">(10)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Garden is an Executive Vice President of
    Triarc and is the son-in-law of Mr.&nbsp;Peltz.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

<TR valign="top">
    <TD><FONT size="2">(11)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Consists of 37,162&nbsp;shares held by
    Mr.&nbsp;Barkley as trustee of a trust for his benefit and
    116,667&nbsp;shares issuable upon vested stock options.
    Mr.&nbsp;Barkley joined Encore in May 2000 and serves as
    Executive Vice President and Chief Financial Officer.
    </FONT></TD>
</TR>

<TR><TD><FONT size="1">

</FONT></TD></TR>

</TABLE>

<P align="center"><FONT size="2">15
</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left">
<A name='108'></A>
</DIV>

<!-- link1 "RELATED PARTY TRANSACTIONS" -->

<P align="center">
<B><FONT size="2">RELATED PARTY TRANSACTIONS</FONT></B>

<P align="left">
<B><FONT size="2">Guarantees of Line of Credit</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Until October&nbsp;14, 2003, we maintained a
facility with Bank of America, NA, formerly NationsBank, NA, for
a revolving line of credit of up to $5.0&nbsp;million. Among
others, some of the selling stockholders and their affiliates
had guaranteed this facility, including Messrs.&nbsp;Garden,
May, Peltz and Kogan, Triarc and Consolidated Press Holdings
Limited. In connection with such guarantee, an aggregate fee of
$75,000&nbsp;per quarter was paid to the guarantors during the
second and third quarters of 2003. The line of credit was
terminated on October&nbsp;14, 2003.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<B><FONT size="2">Guarantees of Senior Notes</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On January&nbsp;12, 2000, we issued
$10&nbsp;million in principal amount of 12%
Series&nbsp;No.&nbsp;1 Senior Notes to an institutional
investor. The Senior Notes were our unsecured obligations but
were guaranteed by Triarc, one of the selling stockholders. As
of November&nbsp;30, 2004, Triarc beneficially owned
approximately 9.1% of the outstanding shares of our common
stock. In connection with the issuance of the Senior Notes, we
issued warrants to Triarc to acquire up to 100,000&nbsp;shares
of our common stock of at an exercise price of $0.01&nbsp;per
share. The warrants contained anti-dilution provisions. In
addition, we paid a fee to Triarc in the amount of
$0.2&nbsp;million in consideration of Triarc&#146;s guarantee of
this indebtedness. We engaged an independent valuation firm to
determine the allocation of the $10&nbsp;million principal
amount between the Senior Notes and the warrants. Based upon the
valuation, the warrants were valued at approximately
$3.05&nbsp;per share. This valuation of $3.05&nbsp;per share
results in the warrants being included as a component of
stockholders&#146; equity in the amount of $1.6&nbsp;million
with the same amount recorded as a debt discount to the
$10&nbsp;million note payable. The Senior Notes bore interest at
8%&nbsp;per annum until January&nbsp;15, 2007, when the entire
unpaid amount is due. The Senior Notes required semi-annual
interest payments on January&nbsp;15 and July&nbsp;15. Since
February 2002, we made the interest payments in cash. On
October&nbsp;1, 2003, the Senior Notes were repaid in full, at
par, in accordance with their terms, with the proceeds of a
secondary public offering of our common stock. None of the
warrants we issued in connection with the issuance of the Senior
Notes remain outstanding.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<B><FONT size="2">Preferred Stock</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On February&nbsp;22, 2002, certain existing
stockholders and their affiliates made an additional
$5.0&nbsp;million investment in us, including, among others,
Messrs.&nbsp;Kogan and Whyte, entities affiliated with
Messrs.&nbsp;Peltz and May, and entities affiliated with Triarc
Companies,&nbsp;Inc. and Consolidated Press International
Holdings Limited. Immediately prior to such investment, all of
the investors participating in the transaction on a collective
basis beneficially owned in excess of 50% of our common stock.
In a related transaction, our Senior Notes lender forgave
$5.3&nbsp;million of outstanding debt. The terms of the
investment were negotiated by a committee of the board of
directors composed of an independent director, with the
assistance of independent advisors.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These investors purchased 1,000,000&nbsp;shares
of our Series&nbsp;A Convertible Preferred Stock at a price of
$5.00&nbsp;per share. Each share of Series&nbsp;A Convertible
Preferred Stock is convertible at the option of the holder at
any time into ten shares of common stock at a conversion price
of $0.50&nbsp;per share of common stock, subject to customary
anti-dilution adjustments. The last reported sale price of our
common stock prior to such investment was $0.35&nbsp;per share.
The Series&nbsp;A Convertible Preferred Stock had a cumulative
dividend, payable semi-annually. Until February&nbsp;15, 2004,
dividends were payable in cash and/or additional Series&nbsp;A
Convertible Preferred Stock, at our option, at the rate of
10.0%&nbsp;per annum. Thereafter, dividends would have been
payable only in cash, at a rate of 10.0%&nbsp;per annum. Since
issuance, all dividends with respect to our Series&nbsp;A
Convertible Preferred Stock have been paid in cash. The dividend
rate would have increased to 15.0%&nbsp;per annum in the event
of a qualified public offering, a change of control (each as
defined) or the sale of all or substantially all of our assets.
In the event dividends were not declared or paid, the dividends
would have accumulated on a compounded basis. The Series&nbsp;A
Convertible Preferred Stock had a liquidation preference equal
to the sum of the stated value of the Series&nbsp;A Convertible
Preferred Stock ($5.0&nbsp;million in the aggregate) plus all
accrued and unpaid dividends thereon and also a participation
payment equal to shares of
</FONT>

<P align="center"><FONT size="2">16
</FONT>

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<DIV align="left">
<FONT size="2">common stock at the conversion price and/or such
other consideration that would be payable to holders of the
Series&nbsp;A Convertible Preferred Stock if their shares had
been converted into shares of our common stock immediately prior
to such liquidation or sale event.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to an agreement between us and the
holders of the Series&nbsp;A Preferred Stock, all of the
preferred shares were converted into 10,000,000&nbsp;shares of
our common stock simultaneously with the closing of the public
offering of our common stock on October&nbsp;1, 2003. The
holders of the Series&nbsp;A Preferred Stock were paid accrued
dividends to the conversion date in accordance with the terms of
the Series&nbsp;A Preferred Stock, but did not pay or receive
any other consideration in connection with the conversion.
</FONT>

<P align="left">
<B><FONT size="2">Temporary Line of Credit</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Effective October&nbsp;31, 2000, we executed an
agreement with CTW Funding, LLC, for a $2.0&nbsp;million
stand-by working capital line of credit secured by substantially
all of our assets and those of our subsidiaries. The members of
CTW Funding, LLC included, among others, Messrs.&nbsp;Garden,
Kogan and Whyte, entities affiliated with Messrs.&nbsp;Peltz and
May, and entities and individuals affiliated with Triarc
Companies,&nbsp;Inc. and Consolidated Press International
Holdings Limited. In connection with this agreement, the lenders
received warrants to acquire 250,000&nbsp;shares of our common
stock at $0.01&nbsp;per share. As of December&nbsp;31, 2001,
when our stand-by line expired, no indebtedness existed. The
fair value of the warrants, $0.1&nbsp;million, was accounted for
by recording deferred loan costs with an offset to additional
paid-in capital as a component of stockholders&#146; equity. All
250,000 warrants were exercised on April&nbsp;16, 2002.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<B><FONT size="2">Public Offerings</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In October 2003 we completed an underwritten
public offering in which we sold 3,000,000&nbsp;shares of our
common stock and certain selling stockholders sold
2,750,000&nbsp;shares of common stock (including the
underwriters&#146; over-allotment option). Pursuant to
registration rights granted to such parties, we bore certain
customary costs related to the offering on behalf of the selling
stockholders. Among the selling stockholders were
Messrs.&nbsp;Barkley, Garden, Kogan and Whyte, entities
affiliated with Messrs.&nbsp;May and Peltz, C. P. International
Investments Limited, Madison West Associates Corp., an affiliate
of Triarc and of Messrs.&nbsp;May and Peltz, certain current
officers and employees of the Company, certain current and
former officers and employees of Triarc; and Peter Nigel Stewart
Frazer, the father-in-law of Robert M. Whyte. Total offering
expenses paid on behalf of Encore and the selling stockholders
were approximately $0.9&nbsp;million.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The shares included in this offering are being
sold by selling stockholders. Pursuant to registration rights
granted to such parties, we are bearing certain customary costs
related to the offering on behalf of the selling stockholders,
estimated to be approximately $0.5&nbsp;million.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">17
</FONT>

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<DIV align="left">
<A name='109'></A>
</DIV>

<!-- link1 "DESCRIPTION OF COMMON STOCK" -->

<P align="center">
<B><FONT size="2">DESCRIPTION OF COMMON STOCK</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following summary does not purport to be
complete. You should read the applicable provisions of the
Delaware General Corporation Law, our certificate of
incorporation and by-laws.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are authorized to issue up to
50,000,000&nbsp;shares of common stock, par value $0.01&nbsp;per
share. At November&nbsp;30, 2004, we had 22,118,604&nbsp;shares
of our common stock outstanding. Holders of common stock are
entitled to one vote per share on all matters submitted to a
vote of stockholders generally. Stockholders have no right to
cumulate their votes in the election of directors. Our
certificate of incorporation gives holders of common stock no
preemptive or other subscription or conversion rights, and there
are no redemption provisions with respect to the shares. Each
share of common stock is entitled to one vote on all matters
submitted to a vote of stockholders. The issued and outstanding
shares of common stock are fully paid and nonassessable.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left">
<A name='110'></A>
</DIV>

<!-- link1 "PLAN OF DISTRIBUTION" -->

<P align="center">
<B><FONT size="2">PLAN OF DISTRIBUTION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The shares covered by this prospectus may be
offered and sold from time to time by the selling stockholders
and their successors, including their transferees, pledges or
donees or their respective successors. The selling stockholders
will act independently of us in making decisions with respect to
the timing, manner and size of each sale. These sales may be
made on one or more exchanges, on the Nasdaq National Market, or
in the over-the-counter market or otherwise, at prices and under
terms then prevailing or at prices related to the then current
market price or in negotiated transactions. The selling
stockholders may sell their shares by one or more of, or a
combination of, the following methods:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">to or through underwriters or dealers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">directly to one or more purchasers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">through agents;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">block trade(s) in which a broker-dealer attempts
    to sell the shares as agent but may resell a portion of the
    block as principal to facilitate the transaction;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">purchase(s) by a broker-dealer as principal and
    resale(s) by the broker-dealer for its account under this
    prospectus;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a distribution in accordance with the rules of
    any national securities exchange or quotation service on which
    the shares may be listed or quoted at the time of sale
    (including The Nasdaq National Market System);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">ordinary brokerage transactions and transactions
    in which a broker solicits purchasers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">privately negotiated transactions between the
    selling stockholders and purchasers, without a broker dealer;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">&#147;at the market&#148; to or through market
    makers or into an existing market for the shares;&nbsp;or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">through a combination of any of such methods of
    sale.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If agents or underwriters are used in the sale,
the applicable prospectus supplement with respect to the offered
shares of common stock will describe the terms of the offering,
including:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the name or names of any agents or underwriters;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the purchase price of such shares and any
    proceeds to us from the exercise of options with respect to
    shares included in such sale;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any underwriting discounts and other items
    constituting underwriters&#146; or agents&#146; compensation;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any initial public offering price;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">18
</FONT>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any discounts or concessions allowed or reallowed
    or paid to dealers;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any securities exchanges on which such shares may
    be listed.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Only agents or underwriters named in the
prospectus supplement are deemed to be agents or underwriters in
connection with the shares of common stock offered thereby. If
underwriters are used in the sale, the shares will be acquired
by the underwriters for their own account and may be resold from
time to time in one or more transactions, either:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">at a fixed public offering price or prices;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">at market prices prevailing at the time of sale;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">at varying prices determined at the time of
    sale;&nbsp;or
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">at negotiated prices.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The obligations of the underwriters to purchase
the shares of common stock will be subject to various conditions
precedent, and the underwriters will be obligated to purchase
all of the shares offered by the applicable prospectus
supplement if any of such shares are purchased. Any initial
public offering price and any discounts or concessions allowed
or reallowed or paid to dealers may be changed from time to time.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The selling stockholders may also sell shares of
common stock directly or through agents designated from time to
time. Any agent involved in the offering and sale of the offered
shares of common stock will be named in the applicable
prospectus supplement. Any commissions payable by the selling
stockholders to such agent will be set forth in the applicable
prospectus supplement. Unless otherwise indicated in such
prospectus supplement, any such agent is acting on a best
efforts basis for the period of its appointment.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If so indicated in a prospectus supplement, the
selling stockholders will authorize agents, underwriters or
dealers to solicit offers by certain institutional investors to
purchase shares of common stock providing for payment and
delivery on a future date specified in such prospectus
supplement. There may be limitations on the number of shares
that may be purchased by any such institutional investor or on
the number of shares that may be sold pursuant to such
arrangements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Institutional investors to which such offers may
be made, when authorized, include, commercial and savings banks,
insurance companies, pension funds, investment companies,
educational and charitable institutions and other institutions
we may approve. The obligations of any such purchasers under
this delayed delivery and payment arrangement will only be
subject to the following two conditions:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">at the time of delivery the purchase of the
    shares of common stock by an institution will not be prohibited
    under the laws of any jurisdiction in the United States to which
    such institution is subject;&nbsp;and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">if the shares of common stock are being sold to
    underwriters, the selling stockholders will have sold to such
    underwriters the total number of shares less the number of
    shares covered by such arrangements.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Underwriters will not have any responsibility in
respect of the validity of such arrangements or the performance
of the selling stockholders or such institutional investors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Shares of our common stock may be offered or sold
in connection with the settlement of forward purchase contracts
the selling stockholders enter into from time to time with a
financial institution. The financial institution may be deemed
to be an underwriter or may be deemed to be a selling
stockholder. If any such sales are conducted, whether the third
party is deemed to be an underwriter or a selling stockholder,
the prospectus supplement related to such sales will set forth,
as required, the following information:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the identity of the underwriter or selling
    stockholder;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the number of shares being sold;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the aggregate number of shares held by the
    financial institution before and after the proposed
    sale;&nbsp;and
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">19
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any material arrangements between us or the
    selling stockholder and the financial institution within the
    past three years.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The selling stockholders have acknowledged that
they understand their obligations to comply with the provisions
of the Exchange Act and the rules thereunder relating to stock
manipulation, particularly Regulation&nbsp;M.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, any securities covered by this
prospectus which qualify for sale pursuant to Rule&nbsp;144 of
the Securities Act may be sold under Rule&nbsp;144 rather than
pursuant to this prospectus.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will keep the registration statement, of which
this prospectus is a part, effective until the earlier of
(i)&nbsp;six months following the effective date of the
registration statement of which this prospectus is a part, or
(ii)&nbsp;such time as all of the shares of common stock
registered pursuant to the registration statement, of which this
prospectus is a part, have been sold hereunder or pursuant to
Rule&nbsp;144 under the Securities Act. No sales may be made
pursuant to this prospectus after such period unless we amend
the registration statement, of which this prospectus is a part,
or supplement this prospectus, as required by law, to indicate
that we have agreed to extend such period of effectiveness.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have agreed, among other things, to bear all
fees and expenses, other than selling expenses, discounts,
concessions and commissions, in connection with the registration
and sale of the shares of common stock under this prospectus.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with an offering, the underwriters
may purchase and sell shares of common stock in the open market.
These transactions may include short sales, stabilizing
transactions and purchases to cover positions created by short
sales. Short sales involve the sale by underwriters of a greater
number of shares than they are required to purchase in an
offering. Stabilizing transactions consist of certain bids or
purchases made for the purpose of preventing or retarding a
decline in the market price of the securities while an offering
is in progress.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The underwriters also may impose a penalty bid.
This occurs when a particular underwriter repays to the
underwriters a portion of the underwriting discount received by
it because the underwriters have repurchased shares of common
stock sold by or for the account of the underwriter in
stabilizing or short-covering transactions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These activities by the underwriters may
stabilize, maintain or otherwise affect the market price of the
shares of common stock. As a result, the price of the common
stock may be higher than the price that otherwise might exist in
the open market. If these activities are commenced, they may be
discontinued by the underwriters at any time. These transactions
may be effected on an exchange or automated quotation system, if
the securities are listed on that exchange or admitted for
trading on that automated quotation system, or in the
over-the-counter market or otherwise.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Agents and underwriters may be entitled under
agreements entered into with the selling stockholders to
indemnification against certain civil liabilities, including
liabilities under the Securities Act of 1933, or to contribution
with respect to payments which the agents or underwriters may be
required to make in respect thereof. Agents and underwriters may
be customers of, may engage in transactions with, or perform
services for, the selling stockholders in the ordinary course of
business.
</FONT>

<DIV align="left">
<A name='111'></A>
</DIV>

<!-- link1 "LEGAL MATTERS" -->

<P align="center">
<B><FONT size="2">LEGAL MATTERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The validity of the shares of common stock
offered by this prospectus will be passed upon by
Snell&nbsp;&#38; Wilmer, L.L.P., Phoenix, Arizona.
</FONT>

<DIV align="left">
<A name='112'></A>
</DIV>

<!-- link1 "EXPERTS" -->

<P align="center">
<B><FONT size="2">EXPERTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consolidated financial statements appearing
in the Annual Report on Form&nbsp;10-K for the year ended
December&nbsp;31, 2003 incorporated by reference in this
Prospectus and in the Registration Statement have been audited
by BDO Seidman, LLP, independent registered public accounting
firm, to the extent and for the
</FONT>

<P align="center"><FONT size="2">20
</FONT>

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<DIV align="left">
<FONT size="2">periods set forth in their report incorporated by
reference in this Prospectus and in the Registration Statement,
and are included in reliance upon such report given upon the
authority of said firm as experts in auditing and accounting.
</FONT>
</DIV>

<DIV align="left">
<A name='113'></A>
</DIV>

<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->

<P align="center">
<B><FONT size="2">WHERE YOU CAN FIND MORE INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We file annual, quarterly and current reports,
proxy statements, and other information with the SEC. You may
read and copy any document we file at the SEC&#146;s public
reference rooms in Washington,&nbsp;D.C. and New&nbsp;York,
New&nbsp;York. Please call the SEC at 1-800-SEC-0330 for further
information on the public reference rooms. Our SEC filings are
also available to the public from the SEC&#146;s web site at
http://www.sec.gov.
</FONT>

<DIV align="left">
<A name='114'></A>
</DIV>

<!-- link1 "INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE" -->

<P align="center">
<B><FONT size="2">INCORPORATION OF CERTAIN DOCUMENTS BY
REFERENCE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The SEC allows us to incorporate by reference the
information that we file with the SEC, which means that we can
disclose important information to you by referring you to those
documents. The information that we incorporate by reference is
considered to be a part of this prospectus.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Information that we file later with the SEC will
automatically update and supersede this information. This means
that you must look at all of the SEC filings that we incorporate
by reference to determine if any of the statements in this
prospectus or in any documents previously incorporated by
reference have been modified or superseded. We incorporate by
reference into this prospectus the following documents:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&nbsp;1.&nbsp;Our Annual Report on Form&nbsp;10-K
for the fiscal year ended December&nbsp;31, 2003 (File
No.&nbsp;000-26489);
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&nbsp;2.&nbsp;Our Quarterly Report on
Form&nbsp;10-Q for the three months ended March&nbsp;31, 2004
(File No.&nbsp;000-26489);
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&nbsp;3.&nbsp;Our Quarterly Report on
Form&nbsp;10-Q for the three and six months ended June&nbsp;30,
2004 (File No.&nbsp;000-26489);
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&nbsp;4.&nbsp;Our Quarterly Report on
Form&nbsp;10-Q for the three and nine months ended
September&nbsp;30, 2004 (File No.&nbsp;000-26489);
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&nbsp;5.&nbsp;Our Proxy Statement filed with the
SEC on April&nbsp;1, 2004 (File No.&nbsp;000-26489);
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&nbsp;6.&nbsp;Our Current Report on Form&nbsp;8-K
filed with the SEC on May&nbsp;5, 2004 (File No.&nbsp;000-26489);
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&nbsp;7.&nbsp;Our Current Report on Form&nbsp;8-K
filed with the SEC on July&nbsp;2, 2004 (File
No.&nbsp;000-26489);
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&nbsp;8.&nbsp;Information filed pursuant to
Item&nbsp;1.01 of our Current Report on Form&nbsp;8-K filed with
the SEC on September&nbsp;16, 2004 (File No.&nbsp;000-26489);
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&nbsp;9.&nbsp;Information filed pursuant to
Item&nbsp;5.02 of our Current Report on Form&nbsp;8-K filed with
the SEC on October&nbsp;28, 2004 (File No.&nbsp;000-26489);
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">10.&nbsp;Our Current Report on Form 8-K filed
with the SEC on December&nbsp;3, 2004 (File No. 000-26489);
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">11.&nbsp;The description of our common stock
contained in our Registration Statement on Form&nbsp;S-1, filed
on September&nbsp;2, 2003 (File No.&nbsp;333-108423); and
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">12.&nbsp;All documents filed by us under
Sections&nbsp;13(a), 13(c), 14 or 15(d) of the Securities
Exchange Act of 1934 after the date of the initial registration
statement and before effectiveness of this registration
statement, and after the date of this prospectus and until the
selling stockholders have sold all of the common stock covered
by this prospectus or the date that this registration statement
is withdrawn; provided, however, that we are not incorporating
any information furnished under either Item&nbsp;9 or
Item&nbsp;12 (or Item&nbsp;2.02 or Section&nbsp;7) of any
current report on Form&nbsp;8-K.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">21
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You may request a copy of these documents, which
will be provided to you at no cost, by writing or telephoning us
at the following address or telephone number:
</FONT>

<P align="center">
<FONT size="2">Encore Capital Group,&nbsp;Inc.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<FONT size="2">8875 Aero Drive, Suite 200
</FONT>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<FONT size="2">San&nbsp;Diego, California 92123
</FONT>
</DIV>

<DIV align="center">
<FONT size="2">Attn: Investor Relations
</FONT>
</DIV>

<DIV align="center">
<FONT size="2">(877)&nbsp;445-4581 ext. 5184
</FONT>
</DIV>

<P align="center"><FONT size="2">22
</FONT>

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<P align="center">
<B><FONT size="2">PART&nbsp;II</FONT></B>

<P align="center">
<B><FONT size="2">INFORMATION NOT REQUIRED IN
PROSPECTUS</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;14.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Other Expenses of Issuance and
    Distribution</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth the expenses to be
borne by us in connection with the offering being registered
hereby:
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="82%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Securities and Exchange Commission filing fee
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,239.45</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Nasdaq National Market fee
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">n/a</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Printing expenses*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,000.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Legal fees and expenses*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">300,000.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounting fees and expenses*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140,000.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Miscellaneous*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,760.55</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">520,000.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Estimated
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;15.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Indemnification of Directors and
    Officers</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Certificate of Incorporation provides that
our directors shall not be personally liable to us or our
stockholders for monetary damages for breach of fiduciary duty
as a director, except for liability for: (i)&nbsp;any breach of
the director&#146;s duty of loyalty to us or our stockholders;
(ii)&nbsp;acts or omissions not in good faith or which involve
intentional misconduct or a knowing violation of law;
(iii)&nbsp;liability for payments of dividends or stock
purchases or redemptions in violation of Section&nbsp;174 of the
Delaware General Corporation Law; or (iv)&nbsp;any transaction
from which the director derived an improper personal benefit. In
addition, our Certificate of Incorporation provides that we
will, to the fullest extent authorized by the Delaware General
Corporation Law, as the same exists or may hereafter be amended
(but, in the case of any such amendment, only to the extent that
such amendment permits the corporation to provide broader
indemnification rights than such law permitted the corporation
to provide prior to such amendment), indemnify and hold harmless
any person who was or is a party, or is threatened to be made a
party to or is otherwise involved in any threatened, pending or
completed action, suit or proceeding, whether civil, criminal,
administrative or investigative by reason of the fact that such
person is or was our director or officer, or is or was serving
at our request as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other
enterprise, including service with respect to an employee
benefit plan (hereinafter an &#147;Indemnitee&#148;) against
expenses, liabilities and losses (including attorneys&#146;
fees, judgments, fines, excise taxes or penalties paid in
connection with the Employee Retirement Income Security Act of
1974, as amended, and amounts paid in settlement) reasonably
incurred or suffered by such Indemnitee in connection therewith;
provided, however, that except as otherwise provided with
respect to proceedings to enforce rights to indemnification, we
shall indemnify any such Indemnitee in connection with a
proceeding (or part thereof) initiated by such Indemnitee only
if such proceeding or part thereof was authorized by our board
of directors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The right to indemnification set forth above
includes the right for us to pay the expenses (including
attorneys&#146; fees) incurred in defending any such proceeding
in advance of its final disposition; provided, however, that, if
the Delaware General Corporation Law requires, an advancement of
expenses incurred by an Indemnitee in his capacity as a director
or officer (and not in any other capacity in which service was
or is rendered by such Indemnitee, including, without
limitation, service to an employee benefit plan) shall be made
only upon delivery to us of an undertaking, by or on behalf of
such Indemnitee, to repay all amounts so advanced if it shall
ultimately be determined by final judicial decision from which
there is not further right to appeal that such Indemnitee is not
entitled to be indemnified for such expenses under this section
or otherwise. The rights to indemnification and to the
advancement of expenses conferred herewith are contract rights
and continue as to an Indemnitee who has ceased to be a
director, officer, employee or agent and inures to the benefit
of the Indemnitee&#146;s heirs, executors and administrators.
</FONT>

<P align="center"><FONT size="2">23
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Delaware General Corporation Law provides
that indemnification is permissible only when the director,
officer, employee, or agent acted in good faith and in a manner
reasonably believed to be in or not opposed to the best
interests of the corporation, and, with respect to any criminal
action or proceeding, had no reasonable cause to believe the
conduct was unlawful. The Delaware General Corporation Law also
precludes indemnification in respect of any claim, issue, or
matter as to which an officer, director, employee, or agent
shall have been adjudged to be liable to the corporation unless
and only to the extent that the Court of Chancery or the court
in which such action or suit was brought shall determine that,
despite such adjudication of liability but in view of all the
circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such expenses which the Court of
Chancery or such other court shall deem proper.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">See Item&nbsp;17 for information regarding our
undertaking to submit to adjudication the issue of
indemnification for violation of the securities laws.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;16.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Exhibits and Financial Statement
    Schedules</FONT></I></B></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="85%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restated Certificate of Incorporation
    (incorporated by reference to Exhibit&nbsp;2 to Amendment
    No.&nbsp;2 to the Company&#146;s Registration Statement on
    Form&nbsp;S-1 filed on June&nbsp;14, 1999)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Amendment to the Certificate of
    Incorporation of the Company (incorporated by reference to
    Exhibit&nbsp;3.1 to the Company&#146;s Current Report on
    Form&nbsp;8-K filed on April&nbsp;4, 2002)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">By-laws, as amended (incorporated by reference to
    Exhibit&nbsp;3.1 to the Company&#146;s Current Report on
    Form&nbsp;8-K filed on August&nbsp;13, 2003)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Opinion of Snell&nbsp;&#38; Wilmer L.L.P.*
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Snell&nbsp;&#38; Wilmer L.L.P.
    (included in Exhibit&nbsp;5.1)*
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Independent Registered Public
    Accounting Firm, BDO Seidman, LLP
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">24</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Powers of Attorney (set forth on signature page
    to this registration statement, as filed on May&nbsp;17, 2004)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Previously filed.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">Item&nbsp;17.</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Undertakings</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The undersigned Registrant hereby undertakes:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(1)&nbsp;To file, during any period in which
offers or sales are being made, a post-effective amendment to
this registration statement:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(i)&nbsp;&nbsp;to include any prospectus required
    by Section&nbsp;10(a)(3) Securities Act;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(ii)&nbsp;&nbsp;to reflect in the prospectus any
    facts or events arising after the effective date of the
    registration statement (or the most recent post-effective
    amendment thereof) which, individually or in the aggregate,
    represent a fundamental change in the information set forth in
    the registration statement. Notwithstanding the foregoing, any
    increase or decrease in volume of securities offered (if the
    total dollar value of securities offered would not exceed that
    which was registered) and any deviation from the low or high end
    of the estimated maximum offering range may be reflected in the
    form of prospectus filed with the SEC pursuant to
    Rule&nbsp;424(b) if, in the aggregate, the changes in volume and
    price represent no more than a 20% change in the maximum
    aggregate offering price set forth in the &#147;Calculation of
    Registration Fee&#148; table in the effective registration
    statement;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(iii)&nbsp;to include any material information
    with respect to the plan of distribution not previously
    disclosed in the registration statement or any material change
    to such information in the registration statement;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">24
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(2)&nbsp;That, for the purpose of determining any
liability under the Securities Act, each such post-effective
amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of
such securities at that time shall be deemed to be the initial
bona fide offering thereof;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(3)&nbsp;To remove from registration by means of
a post-effective amendment any of the securities being
registered which remain unsold at the termination of this
offering;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(4)&nbsp;That, for purposes of determining any
liability under the Securities Act of 1933, the information
omitted from the form of prospectus filed as part of this
registration statement in reliance upon Rule&nbsp;430A and
contained in a form of prospectus filed by the registrant
pursuant to Rule&nbsp;424(b)(1) or (4) or 497(h) under the
Securities Act shall be deemed to be part of this registration
statement as of the time it was declared effective; and
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(5)&nbsp;That, for the purpose of determining any
liability under the Securities Act of 1933, each post-effective
amendment that contains a form of prospectus shall be deemed to
be a new registration statement relating to the securities
offered therein, and the offering of such securities at that
time shall be deemed to be the initial <I>bona fide</I> offering
thereof.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The undersigned registrant further undertakes
that, for purposes of determining any liability under the
Securities Act of 1933, each filing of the registrant&#146;s
annual report pursuant to section&nbsp;13(a) or
section&nbsp;15(d) of the Securities Exchange Act of 1934 that
is incorporated by reference in the registration statement shall
be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide
offering thereof.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to
directors, officers, and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the
registrant has been advised that in the opinion of the SEC such
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of
appropriate jurisdiction the question of whether such
indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
</FONT>

<P align="center"><FONT size="2">25
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">SIGNATURES</FONT></B>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the requirements of the Securities Act of
1933, the registrant certifies that it has reasonable grounds to
believe that it meets all of the requirements for filing on
Form&nbsp;S-3 and has duly caused this Registration Statement to
be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of San&nbsp;Diego, State of California,
on this 13th day of December 2004.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">ENCORE CAPITAL GROUP,&nbsp;INC.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">By:&nbsp;</FONT></TD>
    <TD align="center">
    <FONT size="2">/s/ CARL C. GREGORY, III
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <HR size="1" align="left" noshade></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Carl
    C. Gregory,&nbsp;III
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="40%"></TD>
    <TD width="8%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">Title:&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Vice Chairman and Chief Executive Officer
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the requirements of the Securities Act of
1933, this Registration Statement has been signed by the
following persons in the capacities and on the dates indicated.
</FONT>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="38%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="13%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Name and Signature</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Title</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Date</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ CARL C. GREGORY, III<BR>
    <HR size="1" noshade>Carl C. Gregory,&nbsp;III
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Vice Chairman, Chief Executive Officer (Principal
    Executive Officer) and Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">December&nbsp;13, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Barry R. Barkley
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Executive Vice President, Chief Financial Officer
    (Principal Financial and Accounting Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">December&nbsp;13, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Eric D. Kogan
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chairman of the Board of Directors
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">December&nbsp;13, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Raymond Fleming
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">December&nbsp;13, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Neville J. Katz
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">December&nbsp;13, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Alexander Lemond
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">December&nbsp;13, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Richard A. Mandell
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">December&nbsp;13, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Peter W. May
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">December&nbsp;13, 2004
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">26
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="38%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="13%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Name and Signature</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Title</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Date</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Nelson Peltz
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">December&nbsp;13, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">*<BR>
    <HR size="1" noshade>Robert M. Whyte
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">December&nbsp;13, 2004
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <FONT size="2">*By:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">/s/ CARL C. GREGORY, III<BR>
    <HR size="1" noshade>Carl C. Gregory, III<BR>
     <I>Attorney-in-Fact</I>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<P align="center"><FONT size="2">27
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">EXHIBIT INDEX</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="85%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Exhibit</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Restated Certificate of Incorporation
    (incorporated by reference to Exhibit&nbsp;2 to Amendment
    No.&nbsp;2 to the Company&#146;s Registration Statement on
    Form&nbsp;S-1 filed on June&nbsp;14, 1999)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Certificate of Amendment to the Certificate of
    Incorporation of the Company (incorporated by reference to
    Exhibit&nbsp;3.1 to the Company&#146;s Current Report on
    Form&nbsp;8-K filed on April&nbsp;4, 2002)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">By-laws, as amended (incorporated by reference to
    Exhibit&nbsp;3.1 to the Company&#146;s Current Report on
    Form&nbsp;8-K filed on August&nbsp;13, 2003)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Opinion of Snell&nbsp;&#38; Wilmer L.L.P.*
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Snell&nbsp;&#38; Wilmer L.L.P.
    (included in Exhibit&nbsp;5.1)*
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">23.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Consent of Independent Registered Public
    Accounting Firm, BDO Seidman, LLP
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">24</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Powers of Attorney (set forth on signature page
    to this registration statement, as filed on May&nbsp;17, 2004)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Previously filed.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">28
</FONT>
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<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>2
<FILENAME>p69520a3exv23w2.htm
<DESCRIPTION>EX-23.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv23w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">Exhibit&nbsp;23.2


<P align="center" style="font-size: 10pt">Consent of Independent Registered Public Accounting Firm



<P align="left" style="font-size: 10pt">Encore Capital Group, Inc.<BR>
San Diego, California


<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby consent to the incorporation by reference in the Prospectus
constituting a part of this Pre-Effective Amendment No.&nbsp;3 to the Registration Statement filed under Form S-3 of our
report dated February&nbsp;6, 2004, relating to the consolidated financial
statements of Encore Capital Group, Inc. appearing in the Company&#146;s Annual
Report on Form 10-K for the year ended December&nbsp;31, 2003.
<DIV align="left"><FONT size="1">

</FONT></DIV>


<P align="left" style="font-size: 10pt">We also consent to the reference to us under the caption &#147;Experts&#148; in the
Prospectus.


<P align="left" style="font-size: 10pt">/s/ BDO Seidman, LLP<BR>
Costa Mesa, California


<DIV align="left"><FONT size="1">

</FONT></DIV>
<P align="left" style="font-size: 10pt">December 13, 2004
<DIV align="left"><FONT size="1">

</FONT></DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


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