Cash Converters International Limited Announces Termination Of Transaction Implementation Agreement With EZCORP, Inc

Cash Converters International Limited announced that EZCORP has elected to terminate the Transaction Implementation Agreement announced on March 22, 2011. Accordingly, the proposed Scheme pursuant to which EZCORP would make an offer to shareholders to acquire further shares in Cash Converters, and the associated proposal for the parties to enter into certain Joint Ventures, have been cancelled. EZCORP has taken this decision in light of the announcement by the Australian Federal Government on August 24, 2011 that it intends to amend the National Consumer Credit Protection Act and seek to introduce strict caps on fees and charges for micro-lenders. Although the amendments have not yet been passed, as currently proposed those limitations could have a material impact on Cash Converters' consumer loan business in Australia. Accordingly, EZCORP is not willing to proceed with the transaction. EZCORP has indicated that, as the major shareholder in Cash Converters, it remains committed to its investment and to the strategic importance of the global brand that Cash Converters is building. The Board of Cash Converters remains confident of achieving market expectations for the year ending June 30, 2012. The proposed reforms will have no impact on the business and earnings of the company during this financial year as they are intended to be effective from July 1, 2012 at the earliest.