Western Capital Announces Opening of Five Additional Cricket Stores, Posts Record 1st Quarter, Momentum Builds

- Aggressive store growth plan in the wireless reseller segment drives significant long-term upside, while payday advance locations provide strong cash flow,




OMAHA, Neb., July 1  /PRNewswire-FirstCall/ -- Western Capital Resources, Inc. ("Western Capital" or "WCRS") today announced the opening of an additional five prepaid wireless Cricket (Leap Wireless, Inc.; Nasdaq: LEAP) stores.  The additional stores increase the Company's wireless store count to 35, up significantly from two roughly one year ago.

Western Capital also reported strong financial performance resulting in a record first quarter.  Quarterly revenue was $4.8 million, a 70% increase from first quarter 2008 revenues of $2.8 million, primarily driven by growth in the wireless segment.  Income from operations rose to $378,305 from a loss of ($122,871) during the prior year's same period.  Net income improved to $228,305 from a loss of ($95,429), with net loss per share (after preferred stock dividends) improving to ($0.04) from ($0.08).

During the first quarter of 2009, ended March 31, Western Capital added 19 storefronts, bringing total storefronts to 85.  Growth was primarily driven by adding locations to the Company's base of wireless stores, leading to a mix of 55 payday advance locations and 30 wireless locations in 13 states by quarter-end.  The Company expects strong continued growth in its wireless resale store base and sees strong demand in the consumer market for the Cricket wireless product, which will be the major growth engine for the future.  Just last week, the Company opened five additional wireless locations in Maryland.

Western Capital's goal for the remainder of 2009 is to expand to 50 wireless stores by year-end, 100 wireless stores by year-end 2010, and 200 locations within three years.  Additional expansion in 2009 will come from opening new stores in existing markets, such as Phoenix, Salt Lake, St. Louis and Kansas City.  Western Capital similarly intends to add 50 new Cricket locations in both existing and new markets in 2010 bringing total locations to 155 (55 Payday Advance locations and 100 Cricket resale locations within 18 months).  The Cricket wireless business has grown significantly from 2 stores one year ago to 11 stores in four states (Texas, Nebraska, Kansas, Missouri) at year-end 2008 and to 35 stores in six states (Texas, Nebraska, Kansas, Missouri, Indiana, Maryland) today.

"Our payday business segment has been strong because our alternative financial products provide a valuable solution for retail customers that need cash to solve their short-term needs in the challenging economic environment.  Additionally, our prepaid wireless consumer products provide a means for credit challenged customers to obtain wireless services with attractive dialing plans from a leading network operator in their local markets," said John Quandahl, CEO of Western Capital.  "We expect continued strength throughout the remainder of 2009 due to consumer demand for both products and our aggressive expansion plans.  In fact, strong trends and momentum experienced in 1Q09 have continued through June."

About Western Capital Resources, Inc.  Western Capital Resources, Inc. ("Western Capital Resources," or "WCRS"), provides short-term consumer loans, commonly referred to as cash advance or "payday" loans, through its wholly owned operating subsidiary Wyoming Financial Lenders, Inc.  As of June 30, 2009, WCRS operated 55 payday lending stores, with locations in Colorado, Iowa, Kansas, Montana, Nebraska, North Dakota, South Dakota, Utah, Wisconsin and Wyoming, and 35 Cricket (Leap Wireless) resale stores in Kansas, Nebraska, Missouri, Texas, Indiana and Baltimore.  WCRS also provides ancillary consumer financial products and services that are complementary to the payday lending business, such as check-cashing services, money transfers and money orders.  Customers typically come to Western Capital's stores for financial reasons and to procure financial services (i.e., obtain a loan).  In addition, WCRS sells Cricket cellular phones and accessories and guaranteed phone services. 

DATASOURCE: Western Capital Resources, Inc.



CONTACT:  John Quandahl, CEO of Western Capital Resources, Inc.,

[phone]

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