• Net income of $1.3 million, or $0.05 per share
• New contract purchases of $138 million
• Total managed portfolio increases to $806 million from $782 million in March 2012

IRVINE, Calif., July 18, 2012 (GLOBE NEWSWIRE) -- Consumer Portfolio Services, Inc. (Nasdaq:CPSS) ("CPS" or the "Company") today announced earnings of $1.3 million, or $0.05 per diluted share, for its second quarter ended June 30, 2012. This compares to a net loss of $6.4 million, or $0.35 per diluted share, in the second quarter of 2011. Earnings for the first six months of 2012 were $1.9 million, or $0.08 per diluted share, as compared to a net loss of $10.6 million, or $0.58 per diluted share, for the same period in 2011.

Revenues for the second quarter of 2012 were $44.2 million, an increase of approximately $13.0 million, or 42%, compared to $31.2 million for the second quarter of 2011. Total operating expenses for the second quarter of 2012 were $42.8 million, an increase of $5.2 million, or 14%, compared to $37.6 million for the 2011 period. Pretax income for the second quarter of 2012 was $1.3 million compared to pretax loss of $6.4 million in the second quarter of 2011.

For the six months ended June 30, 2012 total revenues were $88.7 million compared to $63.5 million for the six months ended June 30, 2011, an increase of approximately $25.1 million, or 40%. Total expenses for the six months ended June 30, 2012 were $86.8 million, an increase of $12.6 million, or 17%, compared to $74.2 million for the six months ended June 30, 2011. Pretax income for the six months ended June 30, 2012 was $1.9 million, compared to pretax loss of $10.6 million for the six months ended June 30, 2011.

During the second quarter of 2012, CPS purchased $137.9 million of new contracts compared to $119.9 million during the first quarter of 2012 and $60.8 million during the second quarter of 2011. The Company's managed receivables totaled $806.1 million as of June 30, 2012, an increase from $781.8 million as of March 31, 2012 and $635.0 million as of June 30, 2011, as follows ($ in millions):

Annualized net charge-offs for the second quarter of 2012 were 3.16% of the average owned portfolio as compared to 6.04% for the second quarter of 2011. Delinquencies greater than 30 days (including repossession inventory) were 3.81% of the total owned portfolio as of June 30, 2012, as compared to 5.92% as of June 30, 2011.

During June, CPS closed its second term securitization transaction of 2012 and the fifth transaction in the last 15 months. In the senior subordinate structure, a special purpose subsidiary sold four tranches of asset-back notes totaling $141.5 million. The notes are secured by automobile receivables purchased by CPS and have a weighted average effective coupon of approximately 3.15%. The transaction has initial credit enhancement consisting of a cash deposit equal to 1.00% of the original receivable pool balance. The final enhancement level requires accelerated payment of principal on the notes to reach overcollateralization of 11.00% of the then-outstanding receivable pool balance.

"The second quarter of 2012 marks another milestone in our recovery from the financial crisis," said Charles E. Bradley, Jr., Chairman and Chief Executive Officer. "We are now growing our total managed portfolio sequentially as our new contract purchases are more than offsetting the runoff of the Fireside Bank portfolio and our 2007 and 2008 vintages. As we can see from our financial results, the operating leverage inherent in our business is once again becoming evident. This bodes well for our future profitability.

"Operationally, the second quarter was also solid. New contract purchases increased 15% from the first quarter and yields and credit demographics of the new paper remain attractive. Asset performance metrics continue to be very strong as well with year-over-year net charge-offs and delinquencies continuing to decline. In addition, we achieved another record low funding cost on our June securitization."

Conference Call

CPS announced that it will hold a conference call on Thursday, July 19, 2012, at 1:00 p.m. ET to discuss its quarterly operating results.  Those wishing to participate by telephone may dial-in at 877 312-5502 or 253 237-1131 approximately 10 minutes prior to the scheduled time.

A replay will be available between July 19, 2012 and July 25, 2012, beginning two hours after conclusion of the call, by dialing 855 859-2056 or 404 537-3406 for international participants, with conference identification number 11952079.  A broadcast of the conference call will also be available live and for 30 days after the call via the Company's web site at www.consumerportfolio.com.

About Consumer Portfolio Services, Inc.

Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems, low incomes or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.

Forward-looking statements in this news release include the Company's recorded revenue, expense and provision for credit losses, because these items are dependent on the Company's estimates of future losses. The accuracy of such estimates may be adversely affected by various factors, which include (in addition to risks relating to the economy generally) the following: possible increased delinquencies; repossessions and losses on retail installment contracts; incorrect prepayment speed and/or discount rate assumptions; possible unavailability of qualified personnel, which could adversely affect the Company's ability to service its portfolio; possible increases in the rate of consumer bankruptcy filings, which could adversely affect the Company's rights to collect payments from its portfolio; other changes in government regulations affecting consumer credit; possible declines in the market price for used vehicles, which could adversely affect the Company's realization upon repossessed vehicles; and economic conditions in geographic areas in which the Company's business is concentrated. All of such factors also may affect the Company's future financial results, as to which there can be no assurance. Any implication that the results of the most recently completed quarter are indicative of future results is disclaimed, and the reader should draw no such inference. Factors such as those identified above in relation to provision for credit losses may affect future performance.

CONTACT: Investor Relations Contact



         Robert E. Riedl, Chief Investment Officer

         949 753-6800

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