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ACE CASH EXPRESS REPORTS FISCAL 2004 FIRST QUARTER
NET INCOME INCREASES 25 PERCENT
Increases Fiscal Year EPS Guidance

DALLAS (October 23, 2003)—ACE Cash Express, Inc. (NASDAQ:AACE) announced diluted earnings per share of $0.28 for its fiscal 2004 first quarter ended September 30, 2003, a 20 percent increase over its diluted earnings per share of $0.24 in the prior year period. Net income of $3.0 million in the first quarter of fiscal 2004 increased 25 percent from the $2.4 million of net income in the first quarter of fiscal 2003.

During the first quarter of fiscal 2004, ACE’s total revenue decreased by 0.6 percent to $55.7 million from $56.1 million in the first quarter of fiscal 2003. This decline is primarily due to elimination of short-term loan products in Georgia, North Carolina, and Alabama locations and the transition to a materially different short-term loan product in Florida. Excluding revenue related to the loan products in these four states, ACE’s revenue increased by 6.5 percent, to $55.1 million in the first quarter of fiscal 2004 from $51.8 million in the first quarter of fiscal 2003.

“We had a strong quarter and are pleased to see the increase in our same store check-cashing fees, which were up 8.4 percent over same store check-cashing fees in fiscal 2003. Although fewer stores offered loan-related products during the first quarter of fiscal 2004 compared to the same period last year, in the stores which continued to offer comparable loan products, loan fees increased 6.1 percent,” said Donald H. Neustadt, chief executive officer of ACE.

“Our performance in the first quarter was excellent,” stated Jay B. Shipowitz, president of ACE, “Our bill-payment revenue has grown at double-digit rates over the past five consecutive quarters and we believe there are significant additional growth opportunities with this service. Overall, we believe

the first quarter success is a result of our ongoing efforts to use our technology to provide enhanced customer service.”

Among the Company’s accomplishments during the first quarter of fiscal 2004 were:

•

The total ACE store network, including franchised stores, had a record 9.3 million customer visits and processed approximately $2.4 billion in transactions.

•

Same store check-cashing fees in company-owned stores increased 8.4 percent over the prior year period.

•

ACE company-owned stores cashed 3.3 million checks, resulting in check-cashing fees of $27.7 million, a 5.7 percent increase in the check-cashing fees of $26.2 million in the first quarter of fiscal 2003.

•

Bill-payment revenue increased 25 percent, to $3.8 million from $3.1 million in the first quarter of fiscal 2003.

•

During the first quarter of fiscal 2004, ACE processed 464,000 loan transactions.

•

ACE reduced the average amount borrowed on its revolving credit agreement in the first quarter of fiscal 2004 to $79 million from the $93 million borrowed in the first quarter of fiscal 2003.

During the first quarter of fiscal 2004, the Company opened four newly constructed stores, acquired one franchised store and closed five company-owned stores. The Company also opened seven franchised stores in the first quarter of fiscal 2004. During the quarter, ACE secured commitments to open 30 more franchised stores. In total, ACE franchisees have committed to opening 100 more franchises over the next five years. Mr. Shipowitz added, “We remain dedicated to opening 40 new company-owned stores and 30 new franchised stores in fiscal 2004. We have ten company-owned stores under construction and an additional 25 leases for company-owned stores being negotiated.”

The statements preceded by bullet points below are the Company’s outlook or forecast for the Company’s business for the second quarter ending December 31, 2003 and the fiscal year ending June 30, 2004. These statements are made only as of October 23, 2003 and indicate only the expectations of the Company’s management as of that date. These statements supersede any and all previous statements made by the Company regarding the matters addressed. These statements are “forward-looking statements,” cannot be guaranteed and may prove to be wrong.

•

The Company expects total revenue for fiscal 2004 to range between $235 million and $240 million.

•

The Company is increasing its fiscal 2004 diluted earnings per share guidance and expects fully diluted earnings per share to range between $1.41 and $1.45 for fiscal 2004.

•

Based on the Company’s annual forecast, historical operating trends and historical second quarter performance, the Company expects diluted earnings per share to range between $0.24 to $0.26 for its second fiscal quarter ending December 31, 2003.

This outlook is based upon various assumptions, which include, but are not limited to, the following: (1) the opening of 40 newly-constructed stores in fiscal 2004, the closure of 15 to 20 stores during the normal course of business in fiscal 2004, but no other increase or decrease in the number of the Company’s owned stores (whether by acquisition or otherwise) and the opening of 30 franchised stores in fiscal 2004; (2) no material change in the products or services offered at the Company’s locations as of September 30, 2003 or in the terms or procedures for offering such products and services; and (3) no material adverse results from any litigation or regulatory proceedings against the Company, either currently existing or that may arise in the future.

This release contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are generally identified by the use of words such as “expect,” “anticipate,” “estimate,” “believe,” “intend,” “plan,” “target,” “goal,” “should,” “would,” and terms with similar meanings.

Although ACE believes that the current views and expectations reflected in these forward-looking statements are reasonable, those views and expectations, and the related statements, are based on the assumptions of ACE’s management and are inherently subject to risks, uncertainties, and other factors, many of which are not under ACE’s control and may not even be predictable. Any inaccuracy in the assumptions, as well as those risks, uncertainties, and other factors, could cause the actual results to differ materially from those projected in the forward-looking statements.

Those risks, uncertainties, and factors include, but are not limited to, matters described in ACE’s reports filed with the Securities and Exchange Commission, such as:

•

Competition within the check-cashing industry as well as from banks, saving and loans, short-term consumer lenders, and other similar financial services entities and from other retail businesses that offer products and services offered by ACE;

•

Maintenance of relationships with providers of financing for ACE and with key providers of products and services either offered by ACE to its customers or used by ACE in its business;

•

Changes in laws, regulations or accounting standards and decisions or actions taken by courts, regulators and governmental authorities;

•

Availability of financing, suitable locations, acquisition opportunities and experienced management to implement ACE’s growth strategy;

•

Lawsuits and regulatory proceedings and their respective results, including settlements.

ACE does not assume, but expressly disclaims, any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in ACE’s views or expectations, or otherwise. ACE makes no prediction or statement about the performance of ACE’s Common Stock.

ACE Cash Express, Inc. is headquartered in Irving, Texas and is the largest owner, operator and franchiser of check-cashing stores in the United States. Founded in 1968, the Company had a total network of 1,174 stores, consisting of 968 company-owned stores and 206 franchised stores in 36 states and the District of Columbia as of September 30, 2003. ACE also operates self-service machines, which provide check-cashing or other financial services without the need for a service associate, at 20 company-owned store locations, 22 third-party bill-payment locations, and, during the tax season, ACE plans to place approximately 220 machines at H&R Block retail offices. ACE offers a broad range of check-cashing and other consumer financial services. ACE is one of the largest providers of MoneyGram wire transfer transactions, and it offers money orders, bill payment services, and prepaid local and long distance telecommunication services. Small, short-term consumer loans are also available to customers at various ACE company-owned stores. The Company’s website is found at www.acecashexpress.com.

ACE CASH EXPRESS, INC. AND SUBSIDIARIES
INTERIM UNAUDITED
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)


			Three Months Ended
			September 30,

			2003		2002

Revenues			$	55,701	$	56,061
Store expenses:
	Salaries and benefits			14,255		14,440
	Occupancy			7,249		7,278
	Provision for loan losses and doubtful accounts			6,351		6,454
	Depreciation			1,737		1,755
	Other			8,777		8,456

		Total store expenses		38,369		38,383

Store gross margin				17,332		17,678
Region expenses				4,477		4,139
Headquarters expenses				4,313		4,011
Franchise expenses				263		262
Other depreciation and amortization				1,017		1,489
Interest expense				2,235		3,640
Other expenses, net				16		127

Income before income taxes				5,011		4,010
Income taxes				2,004		1,604

Net income			$	3,007	$	2,406

Basic earnings per share			$	.29	$	.24
Weighted average number of common shares outstanding – basic				10,296		10,181
Diluted earnings per share			$	.28	$	.24
Weighted average number of common and dilutive shares outstanding – diluted				10,589		10,184

ACE CASH EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)


				September 30,			June 30,
				2003			2003

				(unaudited)
ASSETS
Current Assets
			Cash and cash equivalents	$	93,226		$	108,110
			Accounts receivable, net		5,628			9,429
			Loans receivable, net		14,203			13,000
			Prepaid expenses, inventories, and other current assets		10,788			10,742

Total Current Assets					123,845			141,281

Noncurrent Assets
			Property and equipment, net		30,982			32,352
			Covenants not to compete, net		1,066			1,151
			Goodwill, net		75,641			75,586
			Other assets		8,032			8,398

Total Assets				$	239,566		$	258,768

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
			Revolving advances	$	69,000		$	83,900
			Accounts payable, accrued liabilities, and other current liabilities		35,955			40,756
			Money orders payable		5,550			6,884
			Term advances		3,833			3,833
			Notes payable		719			778

Total Current Liabilities					115,057			136,151

Noncurrent Liabilities
			Term advances		33,478			34,436
			Notes payable		113			110
			Other liabilities		8,485			9,087

Total Liabilities					157,133			179,784

Commitments and Contingencies					—			—
Shareholders’ Equity Preferred stock, $1 par value, 1,000,000 shares authorized, none Issued and outstanding					—			—
Common stock, $.01 par value, 20,000,000 shares authorized, 10,556,379 and 10,395,113 shares issued and 10,344,979 and 10,183,713 shares outstanding, respectively					103			102
		Additional paid-in capital			25,962			24,385
		Retained earnings			61,251			58,244
		Accumulated comprehensive loss			(773	)		(1,017	)
	Treasury stock, at cost, 211,400 shares				(2,707	)		(2,707	)
	Unearned compensation — restricted stock				(1,403	)		(23	)

Total Shareholders’ Equity					82,433			78,984

Total Liabilities and Shareholders’ Equity				$	239,566		$	258,768

ACE CASH EXPRESS, INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL DATA
(unaudited)


				Three Months Ended						Year Ended
				September 30,						June 30,

				2003			2002			2003			2002			2001

Supplemental Statistical Data:
Company-owned stores in operation:
	Beginning of period				968			1,003			1,003			988			915
	Acquired				1			1			2			8			133
	Opened				4			1			14			39			49
	Sold				—			—			(23	)		—			(4	)
	Closed (1)				(5	)		(3	)		(28	)		(32	)		(105	)

	End of period				968			1,002			968			1,003			988

Franchised stores in operation:
	Beginning of period				200			184			184			175			157
			Opened		7			5			26			22			30
			Acquired by ACE		(1	)		(1	)		(2	)		(8	)		(4	)
			Closed/Sold		—			—			(8	)		(5	)		(8	)

	End of period				206			188			200			184			175

Total store network					1,174			1,190			1,168			1,187			1,163

Percentage increase (decrease) in comparable store revenues from prior period (2):
		Total revenues			(0.2	%)		8.4	%		1.5	%		15.6	%		23.3	%
		Excluding loan fees and interest			6.5	%		9.2	%		4.9	%		7.3	%		0.3	%
Capital expenditures (in thousands)				$	795		$	793		$	4,771		$	7,127		$	12,655
Cost of net assets acquired (in thousands)				$	60		$	47		$	673		$	1,177		$	35,841
Operating Data (Check Cashing and Money Orders):
Face amount of checks cashed (in millions)				$	1,156		$	1,106		$	5,040		$	4,843		$	4,498
Face amount of money orders sold (in millions)				$	369		$	408		$	1,600		$	1,711		$	1,709
Face amount of average check				$	354		$	349		$	383		$	378		$	358
Average fee per check				$	8.47		$	8.26		$	9.65		$	9.36		$	8.38
Fees as a percentage of average check					2.39	%		2.37	%		2.52	%		2.48	%		2.34	%
Number of checks cashed (in thousands)					3,266			3,170			13,148			12,821			12,580
Number of money orders sold (in thousands)					2,302			2,657			10,256			11,562			12,787
Collections Data (Check Cashing):
Face amount of returned checks (in thousands)				$	5,353		$	5,544		$	24,087		$	23,637		$	26,536
Collections (in thousands)					3,356			3,985			16,935			16,090			17,717

Net write-offs (in thousands)				$	1,997		$	1,559		$	7,152		$	7,547		$	8,819

Collections as a percentage of returned checks					62.7	%		71.9	%		70.3	%		68.1	%		66.8	%
Net write-offs as a percentage of revenues					3.7	%		2.8	%		3.1	%		3.3	%		4.5	%
Net write-offs as a percentage of the face amount of checks cashed					0.17	%		0.14	%		0.14	%		0.16	%		0.20	%

(1)

Includes the 85 stores closed in the fourth quarter of fiscal 2001 resulting from a plan established and executed by management during the third quarter of fiscal 2001.

(2)

Calculated based on the changes in revenues of all stores open for both of the full year and three month periods compared.

ACE CASH EXPRESS, INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL DATA, continued
(unaudited)


		Three Months Ended						Year Ended
		September 30,						June 30,

		2003			2002			2003			2002			2001

Small Consumer Loans Excluding Loans Processed for Republic Bank:
Operating Data:
Volume (in thousands)		$	86,412		$	142,377		$	420,129		$	502,013		$	396,783
Average advance		$	265		$	267		$	268		$	269		$	269
Average finance charge		$	38.99		$	45.21		$	42.71		$	45.61		$	42.30
Number of loan transactions – new loans and refinances (in thousands)			327			534			1,587			1,866			1,477
Matured loan volume (in thousands)		$	84,244		$	134,509		$	432,900		$	489,887		$	370,559
Balance Sheet Data (in thousands):
Gross loans receivable		$	24,090		$	37,531		$	21,734		$	29,569		$	27,768
	Less: Allowance for losses on loans receivable		9,887			13,826			8,734			12,213			13,382

Loans receivable, net of allowance		$	14,203		$	23,705		$	13,000		$	17,356		$	14,386

Allowance for losses on loans receivable:
	Beginning of period	$	8,734		$	12,213		$	12,213		$	13,382		$	—
	Provision for loan losses		4,540			6,344			19,361			21,924			26,429
	Charge-offs		(3,459	)		(4,989	)		(23,729	)		(24,519	)		(13,510	)
	Recoveries		72			258			889			1,426			463

	End of period	$	9,887		$	13,826		$	8,734		$	12,213		$	13,382

Provision for loan losses as a percent of matured loan volume			5.4	%		4.7	%		4.5	%		4.5	%		7.1	%
Net loan charge-offs as a percent of volume (1)			3.9	%		3.3	%		5.4	%		4.6	%		3.3	%
Allowance as a percent of gross loans receivable			41.0	%		36.8	%		40.2	%		41.3	%		48.2	%

ACE CASH EXPRESS, INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL DATA, continued


		Three Months Ended					Year Ended
		September 30,					June 30,

		2003			2002		2003			2002		2001

Operating Data for Loans Processed for Republic Bank (1):
Volume — new loans and refinances (in thousands)		$	40,499		$	—	$	63,897		$	—	$	—
Average advance		$	295		$	—	$	302		$	—	$	—
Number of loan transactions – new loans and refinances (in thousands)			137			—		211			—		—
Matured loan volume (in thousands)		$	39,960		$		$	56,040		$	—	$	—
	Provision for loan losses payable to Republic Bank (in thousands)	$	1,946		$	—	$	2,932		$	—	$	—
Provision for loan losses payable to Republic Bank as a percent of matured loan volume			4.9	%		—		5.2	%		—		—


	Three Months Ended				Year Ended
	September 30,				June 30,

	2003		2002		2003		2002		2001

Revenues (in thousands):
Check cashing fees	$	27,661	$	26,181	$	125,703	$	118,907	$	105,479
Loan fees and interest (1)		18,455		20,677		70,806		74,197		54,771
Bill payment services		3,839		3,061		13,507		10,156		10,376
Money transfer services		2,756		2,726		10,898		10,998		10,270
Money order fees		1,593		1,772		6,960		7,554		7,245
Franchise revenues		597		544		2,346		2,199		2,257
Other fees		800		1,100		4,069		5,255		6,377

Total revenue	$	55,701	$	56,061	$	234,289	$	229,266	$	196,775


	Three Months Ended						Year Ended
	September 30,						June 30,

	2003			2002			2003			2002			2001

Percentage of Revenues:
Check cashing fees		49.7	%		46.7	%		53.7	%		51.9	%		53.6	%
Loan fees and interest		33.1			36.9			30.2			32.4			27.8
Bill payment services		6.9			5.4			5.8			4.4			5.3
Money transfer services		4.9			4.8			4.6			4.8			5.2
Money order fees		2.9			3.2			3.0			3.3			3.7
Franchise revenues		1.1			1.0			1.0			0.9			1.2
Other fees		1.4			2.0			1.7			2.3			3.2

Total revenue		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

An investor conference call will be held today, October 23, 2003 at 5 p.m. EDT, regarding the release of ACE Cash Express, Inc.’s fiscal 2004 first quarter earnings. The Company invites you to participate in the conference call by dialing (800) 442-9701. The confirmation code to access the call is 3266303. Donald H. Neustadt, chief executive officer; Jay B. Shipowitz, president and chief operating officer; and William S. McCalmont, executive vice president and chief financial officer, will present the first quarter review.

For your convenience, the conference call will be replayed in its entirety beginning at approximately 7 p.m. EDT on October 23rd through 7 p.m. EDT on October 30th. If you wish to listen to a replay of this conference call, dial (800) 642-1687, provide your name and use confirmation number 3266303.

If you have questions regarding this conference call, please contact Darla Ashby at (972) 550-5037.


Contacts:
William S. McCalmont 972/753-2314 Executive Vice President & CFO wmccalmont@acecashexpress.com		Darla Ashby 972/550-5037 Director, Public Affairs dashby@acecashexpress.com



(1)		Loan fees and interest excluding loans made in Georgia, North Carolina, Alabama and Florida were $17.9 million in the first quarter of fiscal 2004 compared to $16.4 million in the first quarter of fiscal 2003.