Clearwater, Florida, - October 28, 2003 - Clearwater, Florida: Nicholas Financial, Inc. (Nasdaq, NICK), today announced record revenues, net income and earnings per share for the second quarter ended September 30, 2003. The Company reported that revenues increased 10% to $6,145,000 for the second quarter ended September 30, 2003 as compared to $5,585,000 for the period ended September 30, 2002. Net income for the quarter increased 18% to $1,249,000 from $1,056,000. Earnings per share for the quarter increased 15% to $0.23 per share from $0.20 per share last year. The Company has now reported same quarter record increases in revenues and earnings in 52 out of the past 53 quarters.

For the six months ended September 30, 2003, revenues increased 12% to $12,205,000, compared to $10,901,000 for the six months ended September 30, 2002. Net income for the six-month period increased 17% to $2,415,000 from $2,069,000. Earnings per share increased 15% to $0.45 per share, compared to $0.39 per share for the six-month period ended September 30, 2002.

The Company opened its 1st branch in Detroit, Michigan during the second quarter and currently operates a total of 28 branches in Florida, Georgia, Ohio, North Carolina, South Carolina and Michigan. In addition, the Company is currently establishing a presence in the Virginia Beach, Virginia market and intends to expand its branch network into Virginia during the next year.

 During the past quarter the Company announced a semi annual cash dividend of 5 cents per share.

Founded in 1985, with current assets of $98,502,000 as of September 30, 2003, Nicholas Financial is one of the largest publicly traded specialty consumer finance companies based in the Southeast. The company has approximately 5,100,000 shares of common stock outstanding and has reported record revenues and earnings for the past 13 years. For an index of Nicholas Financial Inc.’s news releases or to obtain a specific release, please visit our web site at www.nicholasfinancial.com.