Commentary & Analysis

Alan Barron, Chief Executive Officer and Chief Operating Officer, commented on the first quarter highlights, “We are pleased with our operating results for the first quarter. First Cash achieved a 20% increase in earnings per share while continuing to significantly build market share through new store openings. Even with the rapid growth, the Company continues to generate industry-leading performance metrics. Our operating margin, which is pre-tax income as a percentage of revenues, exceeded 20% for the first time in Company history. In addition, we have continued to strengthen the balance sheet, as evidenced by increases of $19 million in cash and $23 million in stockholders’ equity over the past 12 months.”

The Company’s most significant growth engine continues to be its pawn operations. Pawn receivables in the Company’s 96 domestic pawn stores, all of which are mature stores, grew 5% year-over-year. In addition, First Cash now has 109 pawn stores in Mexico, of which 102 have been opened in the past 36 months. Pawn receivables in Mexico now comprise 34% of the Company’s total pawn receivables and generated 32% of the Company’s total pawn service charges during the first quarter. At March 31, 2005, the Company’s pawn receivables totaled $22.4 million, which represents 66% of combined pawn and payday advance receivables.

Commenting on several key aspects of the Company’s expansion program, Mr. Barron noted that, “First Cash is unique in the specialty consumer finance industry based on its ability to grow two major product lines, pawns and payday advances, through new store openings. We also have geographic diversity in our growth platform, with opportunities spanning multiple markets in the U.S. and Mexico. First Cash has consistently managed its growth, as evidenced by our ability to achieve store opening targets, self-fund our store-opening costs, and improve our operating leverage.”

The liquidity and financial position of the Company reached record levels during the first quarter of 2005. Mr. Barron stated that, “The operating cash flows and balance sheet of First Cash have never been more impressive. We are debt free and have accumulated approximately $27 million in excess cash reserves as of March 31, 2005.” Even with the significant funding required by the store expansion program and same-store loan growth, First Cash expects to generate additional free cash flows during 2005. The excess cash reserves will be utilized in a manner that will maximize shareholder value.

In summarizing the Company’s expectations for the balance of 2005 and beyond, Mr. Barron said, “First Cash remains enthusiastic about its long-term growth prospects. We have a well-established track record for meeting our growth targets, outperforming our competitors and seizing market opportunities. In addition, the Company’s strong financial position provides it with tremendous flexibility in order to adapt to changes in competition and the regulatory environment. We remain as focused as ever to providing long- term value for our shareholders.”

About First Cash

First Cash Financial Services, Inc. is engaged in the operation of pawn and payday advance stores which lend money on the collateral of pledged personal property, retail previously-owned merchandise acquired through loan forfeitures, and provide short-term advances, also known as payday loans. The Company currently owns and operates over 297 pawn and payday advance stores in eleven states and Mexico. First Cash Financial Services is also an equal partner in Cash & Go, Ltd., a joint venture, which owns and operates 40 check-cashing and payday advance kiosks located inside convenience stores. First Cash’s common stock is traded on the Nasdaq Stock Market under the ticker symbol “FCFS” and it is a component Company in the Russell 2000 Index.