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IRVINE, Calif. — Although Consumer Portfolio Services saw its third-quarter losses escalate, the company's chairman and chief executive officer emphasized that CPS achieved operational milestones during the period that are likely to bode well for the company's future.

Delving into the portfolio acquisition and new contract purchases during the third
quarter, Charles Bradley Jr. began his reaction to the company's third-quarter
performance by stating: "We are pleased to announce that we achieved important
operational milestones during the third quarter.

"In addition to completing the Fireside portfolio
acquisition, our new contract purchases have increased to the point where we
are now growing the CPS portfolio once again," Bradley insisted. "Both of these
accomplishments will have a positive impact on our profitability in future
quarters.

"On the capital markets side of the business, we completed
our second term securitization of 2011 in September," he went on to say. "This
marks our third transaction in the last year and demonstrates our ability to
access the market on a regular basis once again."

That said, both the pretax and net loss grew year-over-year.

Divulging more about its third-quarter performance, CPS stated that its revenue dropped approximately $3.0 million or 8.1 percent from $36.8
million to $33.8 million.

At the same time, the company's third-quarter operating
expenses dipped $1.4 million or 3.5 percent from $39.2 million to $37.9
million. Nonetheless, CPS sustained a third-quarter loss.

The company's pretax loss for the third quarter was $4.0
million, compared to pretax loss of $2.4 million during the same quarter a year
earlier.

CPS calculated its third-quarter net loss settled at $4.0
million or 20 cents per diluted share, compared to a net loss of $3.4 million or
20 cents per diluted share for the year-ago quarter.

Officials pointed out that the company's net loss for the third quarter
of last year includes a charge to income tax expense of $1.0 million or 6 cents
per diluted share related to an addition to the valuation allowance against the
deferred tax asset.

Looking at its financial tally through nine months, CPS indicated that total revenue is off by approximately $22.6
million or 18.8 percent from the same time period a year ago. Total revenue
stood at $97.4 million, compared to $119.9 million for the nine months ended
Sept. 30, 2010.

Similar to the third quarter, CPS managed to reduce its
total expenses through the first nine months of this year. They are down $21.4
million or 16.0 percent from $133.5 million to $112.1 million.

Still, the company suffered pretax and net losses during the
nine-month period.

This year's pretax loss through nine months came in $14.7
million, compared to pretax loss of $13.5 million in the time period last year.

However, CPS' net loss figure improved year-over-year during
this nine-month span. Net loss for the nine months ended Sept. 30 was $14.7
million or 78 cents per diluted share, compared to a net loss of $18.1 million
or $1.04 per diluted share a year earlier.

Officials explained their net loss for the first nine months
of last year includes a charge to income tax expense of $4.6 million or 26
cents per diluted share related to an addition to the valuation allowance
against the deferred tax asset.

Other Details of Financial Report

Elsewhere in CPS' third-quarter report, the company noted
that it purchased $81.2 million of contracts from dealers in the past quarter
as compared to $60.8 million during the second quarter and $35.3 million during
the third quarter of last year.

The company's managed receivables totaled $827.8 million as
of Sept. 30, a decrease of $15.2 million or 1.8 percent from $843.0 million as
of the same date last year.

However, CPS' managed receivables increased from $635.0
million at the end of June primarily as a result of the acquisition of the $237
million portfolio from Fireside Bank.

Officials pointed out that CPS' annualized net charge-offs for
the first nine months of the year were 6.56 percent of the average owned
portfolio as compared to 9.69 percent in for the same period in 2010.

The company added delinquencies greater than 30 days
(including repossession inventory) were 6.2 percent of the total owned
portfolio at the end of the third quarter, compared to 8.6 percent at the same
juncture a year earlier.