Commentary & Analysis

          Mr. Alan Barron, Chief Executive Officer and Chief Operating Officer, commented on the Company’s second quarter operating results, “We are extremely pleased with our second quarter and year-to-date operating results.  Revenue and earnings growth remain strong across our diversified product lines and in our key geographic markets.  First Cash continues to maintain industry-leading operating margins, and we expect additional margin growth in the future from the ongoing maturity of newer stores.  In addition, we have significantly stepped up the pace of new store openings thus far in 2006, which should drive accelerated revenue growth later in 2006 and for all of 2007.”

          The Company continues to deliver on its successful long-term expansion strategy driven by new store openings in high-potential markets in both the U.S. and Mexico.  A record 23 stores were opened during the second quarter of 2006, which significantly exceeds the Company’s previous record of 20 store openings achieved in the first quarter of 2006.  Mr. Barron noted, “Our new store openings are ahead of schedule, and we are clearly on track to meet or exceed our 2006 store opening target of 60 to 70 new units.”  New store openings in the second quarter included the Company’s payday advance locations in the U.S. as well as pawn store openings in five different states in Mexico.

          Pawn-related revenues from service charges and merchandise sales increased 27% compared to the same quarter of 2005.  The large base of new and maturing stores in Mexico contributed to pawn revenue growth; in addition, the Company benefited directly from increased market prices for gold through increased sales volume and higher margins for both retail jewelry and scrap jewelry sales.  Domestic payday advance revenues continued to grow at a strong rate as well.

          During the quarter, the Company utilized excess cash flows to repurchase approximately $25 million of common stock.  According to Mr. Barron, “These repurchases demonstrate both the strength of the Company’s balance sheet and management’s confidence in the continued growth and success of First Cash.”

          In summary, Mr. Barron said, “Our first-half results were outstanding.  As we look ahead, First Cash is well-positioned in every respect for continued growth in earnings, revenues and new store locations.  We remain confident and excited about First Cash’s ability to innovate, grow and deliver long-term value to our shareholders.”

          Forward-Looking Information

          This release may contain forward-looking statements about the business, financial condition and prospects of First Cash Financial Services, Inc. (“First Cash” or the “Company”).  Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “intends,” “could,” or “anticipates,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy.  Forward- looking statements can also be identified by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results.  Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.  Forward-looking statements in this release include, without limitation, the Company’s expectations of earnings per share, expansion strategy, store openings, loss provisions, future liquidity, option-based compensation expense and cash flows.  These statements are made to provide the public with management’s current assessment of the Company’s business. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, there can be no assurances that such expectations will prove to be accurate.  Security holders are cautioned that such forward-looking statements involve risks and uncertainties.  The forward-looking statements contained in this release speak only as of the date of this statement, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based.  Certain factors may cause results to differ materially from those anticipated by some of the statements made in this release.  Such factors are difficult to predict and many are beyond the control of the Company and may include changes in regional, national or international economic conditions, changes in consumer borrowing and repayment behaviors, changes or increases in competition, the ability to locate, open and integrate new stores, the ability to operate as a credit services organization in Texas, the ability to successfully refer credit services customers to an independent lender who can provide credit to these customers, new legislative initiatives or governmental regulations, or changes to existing laws and regulations, affecting payday advance businesses, credit services organizations and pawn businesses in both the U.S. and Mexico, unforeseen litigation, changes in interest rates, changes in tax rates or policies, changes in gold prices, changes in foreign currency exchange rates, future business decisions, and other uncertainties.  These and other risks and uncertainties are indicated in the Company’s 2005 Annual Report on Form 10-K (see “Item 1A. Risk Factors”) and updated in subsequent quarterly reports on Form 10-Q.