SquareTwo Financial Reports Solid First Quarter 2013 Financial Results

DENVER, May 9, 2013 - SquareTwo Financial Corporation, a leader in the $100 billion asset recovery and management industry, today reported consolidated financial results for the quarter ended March 31, 2013.

“We are pleased to report that SquareTwo Financial generated solid financial results in the first quarter of 2013.  They were in-line with what we expected to achieve in this environment,” said president and CEO, Paul A. Larkins. "We credit the company's positive performance to our intense focus on compliance, our unique and flexible business model, and our continued concentration on providing a superior customer experience.”

For the quarter ended March 31, 2013:

• Cash proceeds on purchased debt were $146.9 million, a 4.2% decrease from the $153.4 million in the first quarter of 2012. 
• Investment in purchased debt was $62.3 million, to purchase $794.0 million in face value of debt, compared to $72.5 million to purchase $905.3 million in face value of debt in the first quarter of 2012.  The total investment in purchased debt was a $10.2 million decrease from the first quarter of 2012. 
• Revenue recognized on purchased debt, net was $89.1 million, an increase of $11.3 million from the $77.9 million recognized in the first quarter of 2012. 
• Costs to collect purchased debt including court costs were $59.5 million, or 41.8% of collections for the quarter. This was an increase of 290 basis points from the first quarter of 2012. Costs to collect excluding court costs were $48.8 million, or 34.3% of collections, which represented an increase of 99 basis points from the first quarter of 2012.
• EBITDA was $17.7 million, compared to $13.0 million in the first quarter of 2012. 
• Net income was $3.3 million, compared to a net loss of $2.1 million in the first quarter of 2012. 
• Adjusted EBITDA, defined as net income before interest, taxes, depreciation and amortization, valuation allowances and amortization of purchased debt, and certain adjustments, was $78.8 million, a 14.1% decrease from the $91.7 million in the first quarter of 2012.

The following table summarizes our results of operations for the quarter ended March 31, 2013:

The following table represents cash generated by operating activities, less operating and other cash expenses, resulting in Adjusted EBITDA:

The following table reconciles Net Income to Adjusted EBITDA:

The following table reconciles net cash provided by operating activities to Adjusted EBITDA:

Additional Financial Information:

• In the quarter ended March 31, 2013, the Company reversed net non-cash valuation allowances of $1.4 million on its purchased debt assets. Comparatively, the Company recorded non-cash valuation allowance charges of $2.6 million in the quarter ended March 31, 2012.

SquareTwo Financial Improves Financial Operating Structure

FOR IMMEDIATE RELEASE

SquareTwo Financial Improves Financial Operating Structure 

New loan terms expected to save company more than $2 million annually

DENVER — May 1, 2013 — SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, today announced the company has improved its capital structure with a two-year extension and lower interest rate on its revolving credit facility.

SquareTwo Financial secured nearly $500 million in financing in 2010 through the sale of Senior Secured Second Lien Notes and the revolving credit facility. The revolving credit facility has been extended by two years and will now mature in April of 2016. In addition, the interest rate has been reduced by one percent for all applicable margins and one half percent on the floors, which is expected to save the company more than $2 million per year.

“Since the time of our recapitalization three years ago, we have solidified our position as a leader in the asset recovery and management industry,” said Paul A. Larkins, SquareTwo Financial’s president and CEO. “Today SquareTwo Financial is a highly competitive, creative, firm that is operating efficiently, and delivering strong bottom line results. This tangible success is helping us further reduce the cost of doing business.”

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the banking, credit card, and health care industries trust SquareTwo Financial to manage their debt portfolios. The company and its national network of legal partners extend the Fair Square Promise to customers so they know they will be treated with dignity and fairness. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACTS:

Rick Roth

Chief Marketing Officer                                                                                                Cori Keeton Pope

SquareTwo Financial                                                                                      Keeton Public Relations

303.713.2231                                                                                                  303-282-4981

rroth@squaretwofinancial.com                                                                                                                              cori@keetonpr.com

SquareTwo Financial Announces New Partner in Washington, D.C., Area and Search for New Partners in Cincinnati and St. Louis

FOR IMMEDIATE RELEASE

SQUARETWO FINANCIAL ANNOUNCES NEW PARTNER IN WASHINGTON, D.C., AREA AND SEARCH FOR NEW PARTNERS IN CINCINNATI AND ST. LOUIS

DENVER, Colo. – March 25, 2013 – SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, today announced that Sterling Atlantic Law Group in Reston, Va., (operating in Maryland, Virginia, and Washington, D.C.) has been added to its Partner Network. The company also announced it is searching for additional partners in Cincinnati, St. Louis, and across the nation.

Sterling Atlantic Law Group is managed by a team of seasoned professionals from a wide variety of backgrounds. SquareTwo Financial provided Sterling Atlantic Law Group with extensive support, including office setup, talent acquisition, staffing, vendor setup and integration, and training to create a systemic and best-in-class program.

“We welcome Sterling Atlantic Law Group to our industry leading Partner Network and believe their addition to our organization underscores our commitment to excellence,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “Sterling Atlantic’s owners and management team understand how to build a high-performing office that operates at the highest standards of leadership and professionalism. We look forward to working with them as our organization breaks away from the competition to become a leader in customer experience in a rapidly changing debt management and recovery industry.”

The Sterling Atlantic Law Group leadership team includes Joseph W. Bagan and Duane Weiss, who head operational affairs, Jason R. Hoover, who is general manager, and Scott B. Wheat, who is supervising attorney. Bagan and Weiss both bring more than 20 years of executive management experience to Sterling Atlantic Law Group. Bagan has launched and managed several companies, including founding Sharklet Technologies and RevGen Partners, and has led operations for Clear Channel Outdoor Americas, Adelphia Communications Corp. and AT&T Broadband. Weiss is an accomplished business professional, former president of the northwest division for Clear Channel Outdoor, and has held executive leadership positions at Sterling Development and Nabisco/Kraft Foods Group.

“After we became aware of SquareTwo Financial’s operational excellence and stellar reputation, we jumped at the opportunity to join the Partner Network,” Bagan said. “The company’s support has enabled us to ramp up quickly so we can pursue our operational and performance targets.”

“Sterling Atlantic Law Group intends to make a big impact as a SquareTwo Financial Partner,” said Weiss. “We’ve assembled an impressive management team, led by Jason Hoover, who has extensive management experience in the debt recovery industry. We look forward to bolstering the organization’s success in this transformative time in the industry.”

Hoover has more than a decade of experience in debt recovery, including serving as general manager for National Credit Services Inc. and vice president of operations for Sentry Credit Inc. Wheat has practiced law for more than a decade, including as litigations attorney/collections manager for Margolis, Pritzker, Epstein & Blatt, P.A.

SquareTwo Financial franchises, referred to as “Partners,” are independently owned law firms that work with consumers to remedy their outstanding debts. Franchise Partners license SquareTwo Financial’s proprietary technology and perform asset recovery work exclusively on the company’s behalf, with support from state-of-the-art technology and analytics, high-quality portfolios and drastically reduced overhead. Partner leadership typically consists of a senior business executive, an operational general manager, and a licensed managing attorney, who together oversee the implementation of SquareTwo’s business strategy, operations, and legal activities within the Partner offices.

Individuals interested in SquareTwo Financial’s Partner franchise initiatives, including opportunities in Cincinnati and St. Louis, should contact Bethany Parker at bparker@squaretwofinancial.com or 303-713-2036.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the banking, credit card, and health care industries trust SquareTwo Financial to manage their debt portfolios. The company and its national network of legal partners extend the Fair Square Promise to customers so they know they will be treated with dignity and fairness. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACT:

Rick Roth

Chief Marketing Officer

SquareTwo Financial

303-713-2231

rroth@squaretwofinancial.com  

Bethany Parker

Senior Vice President, Franchise Development

SquareTwo Financial

303-713-2036

bparker@squaretwofinancial.com

Cori Keeton Pope

Keeton Public Relations

303-282-4981

cori@keetonpr.com

SquareTwo Financial Reports Strong Fourth Quarter and Full Year 2012 Results

DENVER, March 1, 2013 - SquareTwo Financial Corporation, a leader in the $100 billion asset recovery and management industry, today reported consolidated financial results for the quarter and full year ended December 31, 2012.

“SquareTwo Financial produced a solid fourth quarter, however, we are especially pleased to report that 2012 was the company's strongest 12-month period in its history,” said president and CEO, Paul A. Larkins. "We attribute our continued success to our sustained focus on enhancing our operations and technology, our ongoing commitment to our customers, and the strategic investments we've made over the last several years to prepare for the current regulatory environment.”

For the year ended December 31, 2012:

• Cash proceeds on purchased debt were a record $608.0 million, a 29.2% increase over the $470.7 million in 2011.
• Investment in purchased debt was $272.8 million, to purchase $3.8 billion in face value of debt, compared to $267.7 million to purchase $3.9 billion in face value of debt in 2011. The total investment in purchased debt was a 1.9% increase from the prior year.
• Revenue recognized on purchased debt, net was $353.4 million, an increase of $126.3 million or 55.6% from the $227.1 million recognized in 2011.
• Costs to collect purchased debt including court costs were $235.9 million, or 40.8% of collections for the year. This was an increase of 61 basis points from 2011. Costs to collect excluding court costs were $197.0 million, or 34.1% of collections, which represented an increase of 34 basis points from 2011.
• EBITDA was $83.3 million for the year ended December 31, 2012, compared to $14.4 million in 2011.
• Net income was $22.6 million, compared to a net loss of $41.1 million in 2011.
• Adjusted EBITDA, defined as net income before interest, taxes, depreciation and amortization, valuation allowances and amortization of purchased debt, and certain adjustments, was $348.3 million, a 31.1% increase over the $265.7 million in 2011.

For the quarter ended December 31, 2012:

• Cash proceeds on purchased debt were $140.4 million, a 15.3% increase over the $121.7 million in the fourth quarter of 2011. 
• Investment in purchased debt was $57.2 million, to purchase $0.6 billion in face value of debt, compared to $65.1 million to purchase $0.9 billion in face value of debt in the fourth quarter of 2011.  The total investment in purchased debt was a $7.9 million decrease from the fourth quarter of 2011.  
• Revenue recognized on purchased debt, net was $94.6 million, an increase of $38.9 million from the $55.7 million recognized in the fourth quarter of 2011. 
• Costs to collect purchased debt including court costs were $56.5 million, or 42.1% of collections for the quarter. This was an increase of 195 basis points from the fourth quarter of 2011. Costs to collect excluding court costs were $45.0 million, or 33.5% of collections, which represented an increase of 51 basis points from the fourth quarter of 2011.
• EBITDA was $27.9 million, compared to negative $1.9 million in the fourth quarter of 2011. 
• Net income was $12.7 million, compared to a net loss of $16.2 million in the fourth quarter of 2011. 
• Adjusted EBITDA, defined as net income before interest, taxes, depreciation and amortization, valuation allowances and amortization of purchased debt, and certain adjustments, was $76.7 million, a 15.1% increase over the $66.6 million in the fourth quarter of 2011. 

The following table summarizes our results of operations for the full year and quarter ended December 31, 2012:

Additional Financial Information:

• In the year ended December 31, 2012, the Company reversed net non-cash valuation allowances of $7.7 million on its purchased debt assets. Comparatively, the Company recorded non-cash valuation allowance charges of $25.8 million in the year ended December 31, 2011.

• In the quarter ended December 31, 2012, the Company reversed net non-cash valuation allowances of $6.9 million on its purchased debt assets. Comparatively, the Company recorded non-cash valuation allowance charges of $5.6 million in the quarter ended December 31, 2011. 

Conference Call

The Company will hold a conference call today at 8:30 AM Mountain time/ 10:30 AM Eastern time to discuss our fourth quarter and full year 2012 results.  Please download our Year End 2012 Financial Results Presentation which is located under the “About Us” header within the “Investor Relations” section of our website, www.squaretwofinancial.com.

Members of the public are invited to listen to the event.  To access the live telephone conference line, please dial 877-522-6079 for domestic access, and 706-643-6127 for international access.  Please reference confirmation ID #98172975 for the call. 

For those who cannot listen to the live broadcast, a replay will be available shortly thereafter within the Investor Relations section of the Company's website.

Non-GAAP Financial Measures

Adjusted EBITDA, as presented in this report, is a supplemental measure of our performance that is not required by, or presented in accordance with, accounting principles generally accepted in the U.S. (“GAAP”). This is not a measurement of our financial performance under GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with GAAP, or as alternatives to cash flows from operating activities or a measure of our liquidity.

Adjusted EBITDA is calculated as net income before interest, taxes, depreciation and amortization (including amortization of the carrying value on our purchased debt), as adjusted by several items discussed more fully in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K as of December 31, 2012.   Adjusted EBITDA generally represents cash proceeds on our owned charged-off receivables plus the contribution of our other business activities less operating expenses (other than non-cash expenses, such as depreciation and amortization) as adjusted. Adjusted EBITDA, which is a non-GAAP financial measure, should not be considered an alternative to, or more meaningful than, net income prepared on a GAAP basis.

We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance. We believe Adjusted EBITDA is representative of our cash flow generation that can be used to purchase charged-off receivables, pay down or service debt, pay income taxes, and for other uses. We believe that Adjusted EBITDA is frequently used by investors and other interested parties in the evaluation of companies in our industry. In addition, the instruments governing our indebtedness use Adjusted EBITDA to measure our compliance with certain covenants and, in certain circumstances, our ability to make certain borrowings. Our board of directors and management use Adjusted EBITDA to measure our performance, and our current management incentive compensation plans are based largely on Adjusted EBITDA. Adjusted EBITDA, as computed by us, may not be comparable to similar metrics used by other companies in our industry.

The SEC has adopted rules to regulate the use in filings with the SEC and public disclosures and press releases of non-GAAP financial measures, such as Adjusted EBITDA, that are derived on the basis of methodologies other than in accordance with GAAP. The non-GAAP financial measures presented in this report may not comply with these rules. The reader is cautioned not to place undue reliance on Adjusted EBITDA and ERP.

The information in this subsection is a summary and should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and footnotes in our 10-K as of December 31, 2012.

About SquareTwo Financial

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the banking, credit card, and health care industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners assists consumers and businesses in fulfilling their financial promises, helping individuals improve their credit profiles and become valuable participants in the economy.  Since 1994, SquareTwo Financial has helped nearly 2 million consumers and businesses make progress on their financial obligations.  SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

Media Contacts:

Rick Roth
Chief Marketing Officer SquareTwo Financial
303.713.2231
rroth@squaretwofinancial.com

Cori Keeton Pope
Keeton Public Relations
303-282-4981
cori@keetonpr.com

SquareTwo Financial Notice of Fourth Quarter and Full Year 2012 Financial Results Investor Call

FOR IMMEDIATE RELEASE

DENVER, Colo. – February 25, 2013 - SquareTwo Financial will host a conference call on Friday, March 1, 2013 at 10:30 a.m. Eastern Time to discuss the financial results for the fourth quarter and full year ended December 31, 2012.  The telephone number for domestic participants is (877)-522-6079.  The telephone number for international participants is (706)-643-6127.   Please dial in five to ten minutes prior to the start of the call.  The confirmation number for domestic and international participants is 98172975.

Our fourth quarter and full year results and Financial Results Presentation will be released on March 1 at approximately 7:00 a.m. Eastern Time, under the header of About Us on the Investor Relations section of our Company website, www.squaretwofinancial.com.  Please download our fourth quarter and full year 2012 Financial Results Presentation from our website that will be used during the conference call.  A replay of the conference call will also be available shortly after the call on the Company's website.

Please direct all inquiries to the Company's Investor Relations department by sending an email to ir@squaretwofinancial.com or calling our investor relations hotline at 303-713-2266.

About SquareTwo Financial

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the banking, credit card, and health care industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners assists consumers and businesses in fulfilling their financial promises, helping individuals improve their credit profiles and become valuable participants in the economy. Since 1994, SquareTwo Financial has helped nearly 2 million consumers and businesses make progress on their financial obligations. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

###

SquareTwo Financial Caps Off Strong 2012 With Highlights of Strong Financials, Successful Employee and Partner Training, and Dedication to Customers

FOR IMMEDIATE RELEASE

2012 highlights include stellar financial results, CIO magazine recognition for technology accomplishments, new training for employees and partners, and thousands of people assisted in fulfilling debt obligations  

DENVER — Dec. 20, 2012 — SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, today announced highlights from its strong 2012 performance, noting significant accomplishments on behalf of clients, employees, partners and thousands of people it helped to fulfill financial promises so they could participate again in the economy. The achievements were shared earlier this month at the company’s annual gathering of employees.  

“We are particularly proud of our financial performance and organizational accomplishments in 2012 because they were achieved despite the economic headwinds of high unemployment, a sluggish housing market and lackluster consumer confidence,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “While we have yet to report year-end and Q4 numbers, we want to highlight our excellent financial performance for the first nine months of the year, as well as the strengthening of our already powerful and flexible business model through the implementation of proprietary technology tools, investment in employee training and development, a deepened commitment to fair treatment of customers, and thoughtful initiatives to address the new regulatory environment.”

Specifically, SquareTwo Financial is highlighting these accomplishments (year-to-date as of the end of the third quarter):

• Revenue up more than 50%.
• Adjusted EBITDA up 37%.
• Consolidated proceeds grew by 34% to $467.6 million.
• More than 180,000 Americans per quarter helped to make progress on financial promises.
• More than 143,000 individuals assisted to completely fulfill contractual obligations.
• More than 1,400 hours of training logged by employees and Partners through SquareTwo University and the Inspirational Leadership Series.
• Recognition as a CIO 100 company by CIO Magazine for a successful system consolidation and strategic excellence in IT.
• Nine attorneys from the SquareTwo Financial Partner Network and SquareTwo Financial General Counsel Thomas Good sworn in as members of the Superior Court Bar.
• Chief compliance officer named among other efforts to set a high industry standard for regulatory and compliance programs in debt recovery and management.
• Recognition as one of the fastest-growing companies in Canada by PROFIT Magazine for SquareTwo Financial Canada’s five-year revenue growth of more than 1,200%.

Larkins also acknowledged the hard work of the employees of SquareTwo Financial and its Partner Network.

“Their dedication is indicative of our desire and ability to help consumers and small businesses,” Larkins said. “By fulfilling their obligations, these individuals are now that much closer to being back on their feet, with a fresh opportunity to establish a solid credit profile over time, rebuild their financial lives, and positively participate in the economy.”

SquareTwo Financial looks forward to continuing its trend of record-breaking performance in 2013, Larkins said.

"We remain focused on executing successful operational initiatives,” he said, “and nurturing a strong company culture that rewards ethics, excellence, and consistent effort to improve.”

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the banking, credit card, and health care industries trust SquareTwo Financial to manage their debt portfolios. The company and its national network of legal partners are dedicated to treating consumers with dignity and fairness. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACTS:

Rick Roth

Chief Marketing Officer

SquareTwo Financial

303.713.2231

rroth@squaretwofinancial.com  

Cori Keeton Pope

Keeton Public Relations

303-282-4981

cori@keetonr.com

SquareTwo Financial Notice of Third Quarter 2012 Financial Results Investor Call

FOR IMMEDIATE RELEASE

DENVER, Colo. – November 6, 2012 - SquareTwo Financial will host a conference call on Tuesday, November 13, 2012 at 10:30 a.m. Eastern Time to discuss the financial results for the third quarter ended September 30, 2012.  The telephone number for domestic participants is (877)-522-6079.  The telephone number for international participants is (706)-643-9734.  Please dial in five to ten minutes prior to the start of the call.  The confirmation number for domestic and international participants is 40026717.

Our third quarter results and Financial Results Presentation will be released on November 13 at approximately 7:00 a.m. Eastern Time, under the header of About Us on the Investor Relations section of our company website, www.squaretwofinancial.com.  Please download our third quarter 2012 Financial Results Presentation from our website that will be used during the conference call.  A replay of the conference call will also be available shortly after the call on the company's website.

Please direct all inquiries to the company's Investor Relations department by sending an email to ir@squaretwofinancial.com or calling our investor relations hotline at 303-713-2266.

About SquareTwo Financial

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the banking, credit card, and health care industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners assists consumers and businesses in fulfilling their financial promises, helping individuals improve their credit profiles and become valuable participants in the economy.  Since 1994, SquareTwo Financial has helped nearly 2 million consumers and businesses make progress on their financial obligations.  SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SqaureTwo Financial's Commercial Team Relocates to Overland Park, Kansas

SQUARETWO FINANCIAL’S COMMERCIAL TEAM MOVES INTO NEW OFFICE IN OVERLAND PARK, KANSAS

New, state of the art facility will better meet the needs

of the company’s growing commercial business

DENVER, Colo. – September 21, 2012 –SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, today announced that the company’s commercial team has relocated to a new, state-of-the-art facility in Overland Park, Kansas.  

The new space includes increased on-premise video monitoring, added physical security for the company’s payments office and increased data security that is better aligned with today’s bank and government requirements. It also includes added amenities for employees that support the company’s corporate objective of ensuring a productive and rewarding corporate culture. The new space is located in Overland Park’s Corporate Woods office park. SquareTwo Financial is headquartered in Denver, Colorado.

 “Our commercial division has grown significantly as more and more financial institutions come to realize the benefits of selling distressed assets rather than liquidating them through their own efforts,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “We are pleased to be moving into a new office to accommodate this growth and are excited to have a greater presence in the Kansas City area.”

SquareTwo Financial Commercial buys distressed commercial financial assets including small business term loans, small business equipment leases, small business lines of credit and business credit cards. SquareTwo Financial offers financial institutions immediate recovery income on charged off assets, thereby saving those firms the time and expense required to manage distressed assets and providing a certain and predictable liquidation of non-performing assets.

“The growth of SquareTwo Financial Commercial is due in large part to the hard work and dedication of our Kansas City associates, and we are excited to be moving into an enhanced space that is better equipped to meet the needs of this growing team,” said Mark Erickson, senior vice president of SquareTwo Financial Commercial.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

CONTACTS:

Rick Roth

Chief Marketing Officer

SquareTwo Financial

303.713.2231

rroth@squaretwofinancial.com  

Cori Keeton Pope

Keeton Public Relations

303-282-4981

cori@keetonpr.com

SquareTwo Financial Reports Strong Second Quarter 2012 Results

DENVER, August 9, 2012 - SquareTwo Financial Corporation, a leader in the $100 billion asset recovery and management industry, today reported consolidated financial results for the quarter ended June 30, 2012.

"The second quarter of 2012 represented another quarter of solid financial performance. Strategic purchases combined with operational excellence provided the foundation for a 43% increase in Adjusted EBITDA versus the same period last year. The leverage of our platform was clearly evident,” said President and CEO, Paul A. Larkins. "The hard work of our employees and the law firms that represent our Partners Network are indicative of our desire and ability to help consumers and small businesses repair their credit. This “win-win” approach is evident in our resulting performance."

For the quarter ended June 30, 2012:

• Cash proceeds on purchased debt were $161.7 million, a 37% increase over the $118.1 million in the second quarter of 2011. 
• Investment in purchased debt was $87.1 million, to purchase $1.3 billion in face value of debt, compared to $75.1 million to purchase $1.1 billion in face value of debt in the second quarter of 2011.  The total investment in purchased debt was a 16% increase from the second quarter of 2011. 
• Revenue recognized on purchased debt, net was $84.2 million, an increase of $25.5 million from the $58.6 million recognized in the second quarter of 2011. 
• Total purchased debt operating expenses were $61.8 million, a 31% increase over the $47.0 million in the second quarter of 2011.  Total purchased debt operating expenses per dollar of total purchased debt collections in the second quarter of 2012 decreased 166 basis points from the second quarter of 2011. 
• EBITDA was $15.2 million, compared to $3.9 million in the second quarter of 2011. 
• Net income was $0.1 million, compared to net loss of $10.4 million in the second quarter of 2011. 
• Adjusted EBITDA, defined as net income before interest, taxes, depreciation and amortization, valuation allowances and amortization of purchased debt, and certain adjustments, was $93.4 million, a 43% increase over the $65.5 million in the second quarter of 2011. 

The following table summarizes our results of operations for the quarter ended June 30, 2012:

• In the quarter ended June 30, 2012 the Company recorded zero non-cash valuation allowance charges on its purchased debt assets, compared to $6.7 million in the quarter ended June 30, 2011. 

Conference Call

The Company will hold a conference call today at 8:30 AM Mountain time/ 10:30 AM Eastern time to discuss our second quarter 2012 results.  Please download our Q2 2012 Financial Results Presentation which is located under the “About Us” header within the “Investor Relations” section of our website, www.squaretwofinancial.com.

Members of the public are invited to listen to the event.  To access the live telephone conference line, please dial 877-522-6079 for domestic access, and 706-643-9734 for international access.  Please reference confirmation code #13572130 for the call. 

For those who cannot listen to the live broadcast, a replay will be available shortly thereafter within the Investor Relations section of the Company's website.

Non-GAAP Financial Measures

Adjusted EBITDA, as presented in this report, is a supplemental measure of our performance that is not required by, or presented in accordance with, accounting principles generally accepted in the U.S. (“GAAP”). This is not a measurement of our financial performance under GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with GAAP, or as alternatives to cash flows from operating activities or a measure of our liquidity.

Adjusted EBITDA is calculated as net income before interest, taxes, depreciation and amortization (including amortization of the carrying value on our purchased debt), as adjusted by several items discussed more fully in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q as of June 30, 2012.   Adjusted EBITDA generally represents cash proceeds on our owned charged-off receivables plus the contribution of our other business activities less operating expenses (other than non-cash expenses, such as depreciation and amortization) as adjusted. Adjusted EBITDA, which is a non-GAAP financial measure, should not be considered an alternative to, or more meaningful than, net income prepared on a GAAP basis.

We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance. We believe Adjusted EBITDA is representative of our cash flow generation that can be used to purchase charged-off receivables, pay down or service debt, pay income taxes, and for other uses. We believe that Adjusted EBITDA is frequently used by investors and other interested parties in the evaluation of companies in our industry. In addition, the instruments governing our indebtedness use Adjusted EBITDA to measure our compliance with certain covenants and, in certain circumstances, our ability to make certain borrowings. Our board of directors and management use Adjusted EBITDA to measure our performance, and our current management incentive compensation plans are based largely on Adjusted EBITDA. Adjusted EBITDA, as computed by us, may not be comparable to similar metrics used by other companies in our industry.

The SEC has adopted rules to regulate the use in filings with the SEC and public disclosures and press releases of non-GAAP financial measures, such as Adjusted EBITDA, that are derived on the basis of methodologies other than in accordance with GAAP. The non-GAAP financial measures presented in this report may not comply with these rules. The reader is cautioned not to place undue reliance on Adjusted EBITDA and ERP.

The information in this subsection is a summary and should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and footnotes in our 10-Q as of June 30, 2012.

SquareTwo Financial Donates $10,000 to Colorado Red Cross Wildfire Relief Efforts

SquareTwo Financial and the company’s insurance broker match donations in program spearheaded by employees

DENVER, Colo. – <DATE>, 2012 –SquareTwoFinancial, a leader in the $100 billion asset recovery and management industry, today announced a $10,000 donation to the Colorado Red Cross in a fundraising effort to aid wildfire victims spearheaded by the company’s employees.

SquareTwo Financial employees teamed up to start an online donation campaign with all donations going to the Colorado Red Cross wildfire relief effort. As the initiative gained momentum, both SquareTwo Financial and IMA, the company’s insurance broker, agreed to match employee donations up to $10,000.

In addition to spearheading the donation effort, company employees also created a poignant video about the importance of lending a helping hand to fellow Coloradoans impacted by the recent wildfires. The video is gaining viral attention and has spurred other Denver-area companies to establish similar donation programs.

“We go out of our way to hire only A-players, and its initiatives like this that reinforce why that’s such an important priority for our company,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “Yes, these employees are good at their jobs; but more importantly, they’re good neighbors, good friends and good people. I’m proud to make this donation to the Colorado Red Cross on behalf of our employees and hope we can help make a small dent in the wildfire recovery efforts.”

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

CONTACTS:

Rick Roth

Chief Marketing Officer

SquareTwo Financial

303.713.2231

rroth@squaretwofinancial.com  

Cori Keeton Pope

Keeton Public Relations

303-282-4981

cori@keetonpr.com

SquareTwo Financial Names Judy Messenbrink as Chief Compliance Officer

With new CCO position, the company demonstrates high industry standard for regulatory and compliance programs in debt recovery and management

DENVER, Colo. – June 25, 2012 – SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, today announced Judy Messenbrink as its chief compliance officer. In this newly created role for the company, Messenbrink will manage and enhance existing regulatory compliance programs and continue to ensure that appropriate policies and procedures are developed, communicated and followed by the company, its subsidiaries and its Partners.

“Judy brings to this important position 28 years of experience and a wealth of legal knowledge in regulatory compliance in the financial services industry,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “We look forward to working with Judy to deepen our commitment to a robust program of compliance and ethical business conduct while demonstrating the highest standards of preparedness and responsiveness in a dynamic regulatory environment.”

Prior to joining SquareTwo Financial, Messenbrink was general counsel and compliance officer at Bellco Credit Union, regulatory counsel and commercial compliance officer at First Data Corp., regulatory counsel at Alexander Law Firm, and partner at Murphy, Young & Messenbrink.

“SquareTwo Financial knows a company is only as strong as the investment it makes in compliance and ethical business practices,” Messenbrink says. “I look forward to working with such a pioneering entity to continue raising the bar for regulatory adherence in the debt management and recovery industry.”

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACTS:

Rick Roth

Chief Marketing Officer

SquareTwo Financial

303.713.2231

rroth@squaretwofinancial.com  

Cori Keeton Pope

Keeton Public Relations

303-282-4981

cori@keetonpr.com

SquareTwo Financial Announces Launch of New Florida Partner, Federated Law Group

DENVER, Colo. – May 29, 2012 –SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, today announced the launch of a new Partner in Florida called Federated Law Group, located in Palm Beach County.

Federated Law Group opened its doors May 14 as part of the national SquareTwo Partner Network and is the third Partner for SquareTwo Financial in Florida. The office is managed by a team of seasoned professionals from a wide variety of backgrounds including underwriting, banking, processing, and volume litigation. SquareTwo Financial provided Federated Law Group extensive support, including office setup, space location, talent acquisition, staffing, vendor setup and integration, and training to create a systemic and best-in-class program.

“We are welcoming Federated Law Group as our newest partner after an extensive nationwide search designed to find a highly skilled and entrepreneurial leadership team,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “We are confident we have found all of the qualities inherent in a top-flight Partner in the Federated Law Group, and we look forward to working with this talented team to achieve peak performance and profitability.”

SquareTwo Financial franchises, referred to as “Partners,” are independently owned and operated law firms that work with consumers to remedy their outstanding debts. Franchise Partners have exclusive rights to license SquareTwo Financial’s proprietary technology and perform asset recovery work on the company’s behalf, with support from state-of-the-art technology and analytics, high-quality portfolios and drastically reduced overhead. Partner franchise leadership typically consists of a senior business executive, an operational general manager, and a licensed managing attorney, who together oversee business strategy, operations, and legal activities for the Partner organization.

“When we became fully aware of the potential for success offered by the SquareTwo Financial Partner Network, we seized the opportunity to get involved,” said Nick Rojo, who heads the team’s operational affairs. “The support provided by the company is enabling us to launch our office with ease, and we anticipate a strong relationship going forward that will spur us to reach -- and hopefully exceed -- our performance targets.”

“Federated Law Group is looking forward to making an impact as a SquareTwo Financial Partner and creating jobs that will benefit the Florida economy,” said Aaron Cushman, general manager. “We are confident we’ve assembled a talented and experienced team that will set a high bar for the asset recovery industry.”

SquareTwo Financial is actively seeking additional Partners throughout North America, especially in the Cincinnati and Washington, D.C. areas. Ideal candidates are highly entrepreneurial, experienced in negotiations and civil procedures, and able to show a track record of long-term success and innovation.

For more information, email bparker@squaretwofinancial.com or call 303-713-2036.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partner Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACTS:

Rick Roth

Chief Marketing Officer

SquareTwo Financial

303.713.2231

rroth@squaretwofinancial.com  

Cori Keeton Pope

Keeton Public Relations

303-282-4981

cori@keetonpr.com

SquareTwo Financial Notice of First Quarter 2012 Financial Results Investor Call

FOR IMMEDIATE RELEASE

DENVER, Colo. – May 3, 2012 – SquareTwo Financial will host a conference call on Thursday, May 10, 2012 at 10:30 a.m. Eastern Time to discuss the financial results for the first quarter ended March 31, 2012. The telephone number for domestic participants is (877)-522-6079.  The telephone number for international participants is (706)-643-9734. Please dial in five to ten minutes prior to the start of the call. The confirmation number for domestic and international participants is 72999404.

The first quarter results and Financial Results Presentation will be released on May 10 at 7:00 a.m. Eastern Time, under the header of About Us on the Investor Relations section of the company’s website, www.squaretwofinancial.com.  Please download the copy of the first quarter 2012 Financial Results Presentation from the website that will be used during the conference call.  A replay of the conference call will also be available shortly after the call on the company's website.

Please direct all inquiries to the company's investor relations department by sending an email to ir@squaretwofinancial.com or calling our investor relations hotline at 303-713-2266.

About SquareTwo Financial

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colorado.

###

SquareTwo Financial Names Bethany Parker Senior Vice President, Franchise Development

FOR IMMEDIATE RELEASE

DENVER, Colo. – March 26, 2012 – SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, today announced the promotion of Bethany Parker to senior vice president of franchise development.

SquareTwo Financial’s franchise network is comprised of law firms from across the country that liquidate the distressed assets purchased by the company. In her role, Parker will be responsible for the oversight, leadership and execution of all franchise development initiatives and will continue to serve as a member of SquareTwo Financial’s senior leadership team.

“The success of our company depends on the success of our Partners Network, and growing that network with the most qualified law firms from across the country is one of our most important strategic initiatives,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “Bethany has been instrumental in launching and expanding our network within the major markets segment of our business, and she is the ideal professional to lead our franchise development initiatives nationwide. I look forward to working with her in this new role.”

Parker began her career at SquareTwo Financial in an entry-level position in the accounting and finance department in 2001 and was quickly promoted to a manager. Over the past 11 years with the company she has held various roles of increasing responsibility, most recently as senior vice president of major markets. She attended the University of Colorado at Denver and the University of New Hampshire Whittemore School of Business and Economics.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACT:

Rick Roth
Chief Marketing Officer
SquareTwo Financial
303.713.2231
rroth@squaretwofinancial.com

Cori Keeton Pope
Keeton Public Relations
303-282-4981
cori@keetonpr.com

###

SquareTwo Financial Increases Database Transaction Speed Four-Fold, Improves Scalability to Meet Exponential Company Growth

SquareTwo Financial considers technology a company cornerstone, which is a key differentiator from competitors in the industry, and a driver of its business success.  To maintain our current success while growing at a rapid pace, we aggressively invest in powerful, scalable, and secure technology.

Click the link below to learn more about our successful partnership with Oracle.  In just 44 days, our two companies successfully implemented Oracle Exadata and Oracle Exalogic technology resulting in dramatic performance improvements across SquareTwo's internal systems.

SquareTwo Financial Increases Database Transaction Speed Four-Fold, Improves Scalability to Meet Exponential Company Growth

SquareTwo Financial Notice of Fourth Quarter and Full Year 2011 Financial Results Investor Call

DENVER, Colo. – February 15, 2012 – SquareTwo Financial will host a conference call on Friday, February 24, 2012 at 8:30am Mountain Time to discuss the financial results for the fourth quarter and full year ended December 31, 2011.  The telephone number for domestic participants is (877)-522-6079.  The telephone number for international participants is (706)-643-9734.  Please dial in five to ten minutes prior to the start of the call.  The confirmation number for domestic and international participants is 47150777.

Our year end results and Financial Results Presentation will be released two hours prior to the start of the call, at 6:30am Mountain Time, under the header of About Us on the Investor Relations section of our Company website, www.squaretwofinancial.com.  Please download the copy of our year end 2011 Financial Results Presentation from our website that will be used during the conference call.  A replay of the conference call will also be available shortly after the call on the Company's website.

Please direct all inquiries to the Company's Investor Relations department by sending an email to ir@squaretwofinancial.com or calling our investor relations hotline at 303-713-2266.

About SquareTwo Financial

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colorado.

###

Industry-Leading Chief Executive Magazine Publishes Leadership Article by Paul A. Larkins

FOR IMMEDIATE RELEASE

DENVER, Colo. – January 17, 2012 – SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, today announced that industry-leading Chief Executive magazine has published an article about leadership and technology written by Paul A. Larkins, the company’s president and chief executive officer.

The article, “Seven Strategies for Driving Technological Advances,” provides insight into the role the CEO should have when it comes to making decisions about the company’s technology investments. According to Larkins, it’s imperative that the CEO have a strong understanding of the industry’s best technological practices and work closely with the chief information officer to make technology decisions.

Earlier this year, Larkins played an instrumental role in SquareTwo Financial’s decision to make a substantial investment in a new technology platform to improve the core system that runs the company’s business.

“We were considering two solutions, one a less expensive in-house option, or the more expensive, cutting edge option that had yet to be deployed in the commercial marketplace,” said Larkins. “We went with the new platform and our aggressive approach is paying off. Regardless of a company’s focus, a relentless commitment to technology is vital in today’s business climate.”

Chief Executive magazine focuses on the unique leadership concerns of CEOs and provides ideas, strategies, and tactics business leaders can use to create more effective organizations. The magazine is read by some of the most influential CEOs in the world and is published by The Chief Executive Group, LP.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACT:

Rick Roth
Chief Marketing Officer
SquareTwo Financial
303.713.2231
rroth@squaretwofinancial.com

Cori Keeton Pope
Keeton Public Relations
303-282-4981
cori@keetonpr.com

###

SquareTwo Financial Reports Continued Growth and Strong Third Quarter Results

DENVER, November 10, 2011 - SquareTwo Financial Corporation, a leader in the $100 billion asset recovery and management industry, today reported consolidated financial results for the third quarter ended September 30, 2011.

“While we have produced increasingly strong results for the last five quarters, we are particularly pleased with our record-breaking financial performance in the third quarter of this year,” said president and CEO, Paul A. Larkins.  “In addition to financial growth, we also made great strides in advancing our operations and technological infrastructure, and expanded our Partners Network by adding a new franchise location in Seattle, Washington.”

For the third quarter of 2011:

• Cash proceeds on purchased debt were $122.5 million, a 49% increase over the $82.0 million in the same period of the prior year.
• Investment in purchased debt was $64.0 million, to purchase $0.9 billion in face value of debt, compared to $41.0 million, to purchase $1.2 billion in face value of debt in the same period of the prior year. The total investment in purchased debt was a 56.0% increase from the same period of the preceding year.
• Revenue recognized on purchased debt, net was $58.1 million, an increase of $19.5 million from the $38.6 million in the same period of the prior year.
• Total purchased debt operating expenses were $45.0 million, a 48.4% increase over the $30.3 million in the same period of the prior year. Total purchased debt operating expenses per dollar of total purchased debt collections decreased to 39.1%, compared to 40.9% in the same period of the prior year.
• EBITDA was $3.7 million in the third quarter of 2011, compared to $0.2 million in the same period of the prior year.
• Net loss was $9.4 million, compared to net loss of $12.9 million in the same period of the prior year.
• Adjusted EBITDA, defined as net income before interest, taxes, depreciation and amortization, valuation allowances and amortization of purchased debt, and certain adjustments, was $70.1 million, a 57.9% increase over the $44.4 million in the same period of the prior year.

_________________________________________

1. Cash proceeds applied to the carrying value of purchased debt rather than recorded as revenue.
2. Non-cash amortization of a step-up in the carrying value of certain purchased debt assets related to purchase accounting adjustments resulting from the 2005 acquisition of us by CA Holding.
3. Represents changes in non-cash valuation allowances on purchased debt.
4. Represents the non-cash expense related to option grants of CA Holding's equity granted to our employees and franchisees.
5. Consistent with the covenant calculations within our revolving credit facility, other includes franchise note reserves, lease breakup costs, certain consulting fees, management fees paid to KRG Capital Management L.P., certain transaction expenses, executive recruitment, and severance expense.

1. Other collections includes Canadian collections, medical collections, and court cost recoveries.
2. Includes royalties on purchased debt, revenues on contingent debt, and other revenue.
3. Represents certain other items consistent with our covenant calculation.
4. Consistent with the covenant calculations within our revolving credit facility, adjustments include the non-cash expense related to option grants of Parent’s equity granted to our employees and franchisees, franchise note reserves, lease breakup costs, certain consulting fees, management fees paid to KRG Capital Management L.P., certain transaction expenses, executive recruitment, and severance expense.

Additional Financial Information:

• In the third quarter of 2011, the Company recorded non-cash purchased debt allowance charges of $7.6 million, compared to $4.5 million in the same period of the prior year.

__________________________________________________

Conference Call

The Company will hold a conference call today at 8:30 AM Mountain time/ 10:30 AM Eastern time to discuss our third quarter 2011 results.  Please download our Q3 2011 Financial Results Presentation which is located under the “About Us” header within the “Investor Relations” section of our website, www.squaretwofinancial.com.

Members of the public are invited to listen to the event.  To access the live telephone conference line, please dial 877-522-6079 for domestic access, and 706-643-9734 for international access.  Please reference confirmation code #21853580 for the call.

For those who cannot listen to the live broadcast, a replay will be available shortly thereafter within the Investor Relations section of the Company's website.

Non-GAAP Financial Measures

Adjusted EBITDA, as presented in this report, is a supplemental measure of our performance that is not required by, or presented in accordance with, accounting principles generally accepted in the U.S. (“GAAP”). This is not a measurement of our financial performance under GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with GAAP, or as alternatives to cash flows from operating activities or a measure of our liquidity.

Adjusted EBITDA is calculated as net income before interest, taxes, depreciation and amortization (including amortization of the carrying value on our purchased debt), as adjusted by several items discussed more fully in ““Management's Discussion and Analysis of Financial Condition and Results of Operations” in our quarterly report on form 10-Q as of September 30, 2011.   Adjusted EBITDA generally represents cash proceeds on our owned charged-off receivables plus the contribution of our other business activities less operating expenses (other than non-cash expenses, such as depreciation and amortization) as adjusted. Adjusted EBITDA, which is a non-GAAP financial measure, should not be considered an alternative to, or more meaningful than, net income prepared on a GAAP basis.

We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance. We believe Adjusted EBITDA is representative of our cash flow generation that can be used to purchase charged-off receivables, pay down or service debt, pay income taxes, and for other uses. We believe that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. In addition, the instruments governing our indebtedness use Adjusted EBITDA to measure our compliance with certain covenants and, in certain circumstances, our ability to make certain borrowings. Our board of directors and management use Adjusted EBITDA to measure our performance, and our current management incentive compensation plans are based largely on Adjusted EBITDA. Adjusted EBITDA, as computed by us, may not be comparable to similar metrics used by other companies in our industry.

The SEC has adopted rules to regulate the use in filings with the SEC and public disclosures and press releases of non-GAAP financial measures, such as Adjusted EBITDA, that are derived on the basis of methodologies other than in accordance with GAAP. The non-GAAP financial measures presented in this report may not comply with these rules. The reader is cautioned not to place undue reliance on Adjusted EBITDA and ERP.

The information in this subsection is a summary and should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and footnotes in our 10-Q as of September 30, 2011.

About SquareTwo Financial

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

Media Contacts:

Rick Roth
Chief Marketing Office
SquareTwo Financial
303.713.2231
rroth@squaretwofinancial.com

Cori Keeton Pope
Keeton Public Relations
303-282-4981
cori@keetonpr.com

SquareTwo Financial, Through its Unique Business Model, Maintains A+ Rating with the Better Business Bureau

FOR IMMEDIATE RELEASE

SQUARETWO FINANCIAL, THROUGH ITS UNIQUE BUSINESS MODEL, MAINTAINS A+ RATING WITH
BETTER BUSINESS BUREAU

DENVER, Colo. – Oct. 10, 2011 – SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, today announced it has maintained an A+ rating with the Better Business Bureau (BBB), a national organization that rates businesses on a scale of A+ to F based on 16 factors designed to create an ethical marketplace where buyers and sellers can trust each other.

As of September 2011, SquareTwo Financial had maintained an A+ rating with the Denver Better Business Bureau. As an accredited BBB business since 2006, SquareTwo Financial has demonstrated a commitment to making a good faith effort to resolve any consumer complaints.

“One of the key drivers of SquareTwo Financial’s A+ rating with the Better Business Bureau is our Partners Network, a unique business model that puts our network of legal partners at the center of our asset management and recovery business,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “Because of their legal status, our Partners must meet higher standards and work under stricter guidelines than are typical for our industry. This creates for our organization an environment of high ethical standards and a low rate of complaints as we work with individuals and entities to remedy their debt obligations.”

BBB-accredited businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public. The Denver BBB lists 44 closed complaints for the last three years for SquareTwo Financial, including 40 collection/billing issues and four problems with a product or service.

Factors that raised SquareTwo Financial’s BBB rating included: length of time in operation, complaint volume filed with BBB for business of its size, response to 44 complaints, resolution of complaints, and sufficient background information on file.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACTS:

Rick Roth
Chief Marketing Office
SquareTwo Financial
303.713.2231
rroth@squaretwofinancial.com

Cori Keeton Pope
Keeton Public Relations
303-282-4981
cori@keetonpr.com

SquareTwo Financial Q2 2011 Earnings Release

SquareTwo Financial Reports Continued Growth and Strong Second Quarter Results

DENVER, August 11, 2011 - SquareTwo Financial Corporation, a leader in the $100 billion asset recovery and management industry, today reported consolidated financial results for the second quarter ended June 30, 2011.

"We continued a trend of significant growth in the second quarter, including improvements in our adjusted EBITDA and cash proceeds on purchased debt. We also expanded our investments in purchased debt," said Paul A. Larkins, president and CEO of SquareTwo Financial. "We believe these results are indicative of our sustained focus on executing a strong strategic plan that has helped us achieve steady progress across the organization, especially performance by our franchise Partners."

For the second quarter of 2011:

• Cash proceeds on purchased debt were $118.1 million, a 55% increase over the $76.1 million in the same period of the prior year.

• Investment in purchased debt was $75.1 million, to purchase $1.1 billion in face value of debt, compared to $35.3 million, to purchase $1.1 billion in face value of debt in the same period of the prior year. The total investment in Purchased Debt was a 112.9% increase from the same period of the preceding year.

• Revenue recognized on purchased debt, net was $58.6 million, an increase of $65.3 million from the negative $6.6 million in the same period of the prior year.

• Total purchased debt operating expenses were $45.5 million, a 71.4% increase over the $26.5 million in the same period of the prior year. Total purchased debt operating expenses per dollar of total purchased debt collections increased to 40.3%, compared to 38.1% in the same period of the prior year.

• EBITDA was $3.9 million in the second quarter of 2011, compared to negative $43.6 million in the same period of the prior year.

• Net loss was $10.4 million, compared to net loss of $47.2 million in the same period of the prior year.

• Adjusted EBITDA, defined as net income before interest, taxes, depreciation and amortization, valuation allowances and amortization of purchased debt, and certain adjustments, was $65.5 million, a 58.3% increase over the $41.4 million in the same period of the prior year.

Additional Financial Information:

• In the second quarter of 2011, the Company recorded non-cash purchased debt allowance charges of $6.7 million, compared to $49.7 million in the same period of the prior year.

Conference Call

The Company will hold a conference call today at 8:30 AM Mountain time/ 10:30 AM Eastern time to discuss our second quarter 2011 results.  Please download our Q2 2011 Financial Results Presentation which is located under the “About Us” header within the “Investor Relations” section of our website, http://www.squaretwofinancial.com.

Members of the public are invited to listen to the event.  To access the live telephone conference line, please dial 877-522-6079 for domestic access, and 706-643-9734 for international access.  Please reference confirmation code #80059888 for the call.

For those who cannot listen to the live broadcast, a replay will be available shortly thereafter within the Investor Relations section of the Company’s website.

Non-GAAP Financial Measures

Adjusted EBITDA, as presented in this report, is a supplemental measure of our performance that is not required by, or presented in accordance with, accounting principles generally accepted in the U.S. (“GAAP”). This is not a measurement of our financial performance under GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with GAAP, or as alternatives to cash flows from operating activities or a measure of our liquidity.

Adjusted EBITDA is calculated as net income before interest, taxes, depreciation and amortization (including amortization of the carrying value on our purchased debt), as adjusted by several items discussed more fully in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our quarterly report on form 10-Q as of June 30, 2011.   Adjusted EBITDA generally represents cash proceeds on our owned charged-off receivables plus the contribution of our other business activities less operating expenses (other than non-cash expenses, such as depreciation and amortization) as adjusted. Adjusted EBITDA, which is a non-GAAP financial measure, should not be considered an alternative to, or more meaningful than, net income prepared on a GAAP basis.

We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance. We believe Adjusted EBITDA is representative of our cash flow generation that can be used to purchase charged-off receivables, pay down or service debt, pay income taxes, and for other uses. We believe that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. In addition, the instruments governing our indebtedness use Adjusted EBITDA to measure our compliance with certain covenants and, in certain circumstances, our ability to make certain borrowings. Our board of directors and management use Adjusted EBITDA to measure our performance, and our current management incentive compensation plans are based largely on Adjusted EBITDA. Adjusted EBITDA, as computed by us, may not be comparable to similar metrics used by other companies in our industry.

The SEC has adopted rules to regulate the use in filings with the SEC and public disclosures and press releases of non-GAAP financial measures, such as Adjusted EBITDA, that are derived on the basis of methodologies other than in accordance with GAAP. The non-GAAP financial measures presented in this report may not comply with these rules. The reader is cautioned not to place undue reliance on Adjusted EBITDA and ERP.

The information in this subsection is a summary and should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and footnotes in our 10-Q as of June 30, 2011.

About SquareTwo Financial

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

Media Contacts:

Rick Roth
Chief Marketing Officer
SquareTwo Financial
303.713.2231
rroth@squaretwofinancial.com

Cori Keeton Pope
Keeton Public Relations
303-282-4981
cori@keetonpr.com

SquareTwo Financial Goes Live with Oracle Engineered Systems – Oracle Exalogic Elastic Cloud and Oracle Exadata Database Machine

FOR IMMEDIATE RELEASE

SquareTwo Financial Goes Live with Oracle Engineered Systems – Oracle Exalogic Elastic Cloud and Oracle Exadata Database Machine

New Systems Help Increase Performance, Availability and Productivity of SquareTwo Financial’s Sophisticated Technology Infrastructure

REDWOOD SHORES, Calif. and DENVER, Colo. – July 26, 2011 – SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, today announced the company has deployed Oracle Exalogic Elastic Cloud and Oracle Exadata Database Machine to run its custom built, mission critical debt management software, ‘eAGLE’.

eAGLE is a sophisticated, proprietary system that helps make SquareTwo Financial a leader at analyzing, distributing and managing the data required to successfully purchase and liquidate debt. eAGLE went into production on the Oracle Exalogic Elastic Cloud and Oracle Exadata engineered systems just 44 days after the end of the proof of concept. Based on the initial proof of concept testing of Oracle Exalogic Elastic Cloud and Oracle Exadata Database Machine, the engineered systems are faster, more stable and extremely scalable, with a 9x improvement in response time and a 5x increase in concurrent users compared to the previous production environment.

“We are creating a new debt recovery infrastructure with Oracle Exalogic Elastic Cloud and Oracle Exadata Database Machine that will help us gain greater business agility, enhance forecasting, reduce the down time of our debt collection process, improve recovery rates and reduce costs,” said Bill Weeks, chief information officer at SquareTwo Financial. “The Oracle solution will also simplify our IT environment and improve overall performance and availability of our systems. In addition, we expect to reduce our operating costs by 60% and bring new products to market more quickly.”

eAGLE currently supports over 1,000 concurrent users processing over 400,000 transactions per day. eAGLE also uses Oracle Application Development Framework 11g and Oracle SOA Suite and has 600 BPEL processes in production.

SquareTwo Financial chose Oracle Exalogic Elastic Cloud and Oracle Exadata engineered systems to reduce the complexity of its IT infrastructure, improve system availability and performance, increase productivity of its collection platform and rapidly bring to market new capabilities and revenue impacting services. As pre-configured, pre-tested and tightly integrated engineered systems, Oracle Exalogic Elastic Cloud and Oracle Exadata Database Machine will help improve system reliability and response times and provide a better end-user experience for SquareTwo Financial customers.

“SquareTwo Financial is the perfect example of a financial services company that has mastered the use of technology to deliver better business solutions, gain a competitive edge, and improve operational efficiencies,” said Thomas Kurian, executive vice president, Product Development at Oracle. “We’re pleased that the SquareTwo Financial team has selected an Oracle solution to further increase the performance of the company’s sophisticated technology infrastructure.”

Deploying Oracle engineered systems instead of custom-configured hardware and software products helps enable faster time-to-market, reduces risk and accelerates revenue potential for SquareTwo Financial. Standardizing on Oracle technologies will also help SquareTwo Financial reduce maintenance and change costs with centralized monitoring and management and a single patch bundle. SquareTwo Financial expects to gain additional revenue from both performance increases and new application deployment. In addition, the company is predicting operational cost savings.

Designed for large-scale, mission-critical deployments, Oracle Exalogic Elastic Cloud is a highly integrated hardware and software system combining cutting-edge processors and memory, an InfiniBand I/O backplane and integrated ZFS storage, with the market-leading Oracle WebLogic Server and other enterprise Java Oracle middleware products and is optimized for Oracle Applications. It runs a choice of Oracle Solaris or Oracle Linux operating system software.

An ideal machine for OLTP, data warehousing and consolidated workloads, Oracle Exadata Database Machine is a complete package of servers, storage, networking and software that is highly scalable, secure and redundant.

About Oracle

Oracle (NASDAQ: ORCL) is the world's most complete, open, and integrated business software and hardware systems company.  For more information about Oracle, please visit our Web site at http://www.oracle.com.

About SquareTwo Financial

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

Trademarks

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

Contact Info

Jacki DeCoster
Oracle
+1.650.633.7788
jacki.decoster@oracle.com

Rick Roth
Chief Marketing Officer
SquareTwo Financial
+1.303.713.2231

rroth@squaretwofinancial.com

Eloy Ontiveros
Oracle
+1.650.607.6458
eloy.ontiveros@oracle.com

Cori Keeton Pope
Keeton Public Relations for
SquareTwo Financial
+1.303.282.4981
cori@keetonpr.com

SquareTwo Financial Chairman Scott Lowery Named to DU's Daniels College of Business Executive Advisory Board

DENVER, Colo. – May 16, 2011 – SquareTwo Financial, a leader in the $100 billion asset recovery and management industry, today announced the appointment of Scott Lowery, the company’s founder and chairman, to the Executive Advisory Board for the University of Denver’s Daniels College of Business. Lowery holds a juris doctorate from the University of Denver College of Law, now the Sturm College of Law, and a bachelor of science in business administration from the University of Denver’s Daniels College of Business.

“At Daniels, we believe the best education is one that incorporates high level exchanges among business executives, students, faculty and staff,” said Daniels Dean Christine Riordan. “Scott will play an integral role in helping us educate the next generation of business leaders and we welcome him to our Executive Advisory Board.”

The Executive Advisory Board counsels Daniels administration on a wide range of strategic issues central to the college’s goal of preparing students for the modern global economy. The board is comprised of leaders from the business, not-for-profit and government sectors in order to represent a broad and diverse set of local, national and international interests. Executive Advisory Board members are appointed by the dean and serve three-year terms.

“My education at the University of Denver provided me with a strong foundation upon which to build an entrepreneurial career in the legal and asset recovery and management industries,” Lowery said. “The Daniels College of Business is a globally recognized leader in business education, and I am honored to serve with this remarkable group of leaders to provide ongoing guidance to the college.”

Lowery has more than 20 years of experience building successful entrepreneurial companies, including an asset recovery and management business and multiple subsidiaries that are strategically aligned with SquareTwo Financial’s core business of making charged-off assets whole. At SquareTwo Financial, he has served as chairman, CEO and president. Prior to founding SquareTwo Financial, Lowery was a practicing attorney in Denver.

Lowery is a member of the board of directors of The Denver Hospice, Colorado UpLift, and K-Life, and also is a member of the ACE Scholarships board of trustees. He serves on the University of Denver’s campaign steering committee and served on the dean’s search committee for the Daniels College of Business.

About the Daniels College of Business:

As the eighth-oldest collegiate school of business in the country, Daniels has built a curriculum that focuses on important issues such as ethical business practice, globalization, entrepreneurship, and values-based leadership. In March 2011, the Daniels College of Business was ranked No. 64 and the top undergraduate Colorado business school in the 2010 BusinessWeek undergraduate programs ranking, advancing 10 points from its 2010 ranking of No. 74. In October 2010, the Daniels College of Business Executive MBA program was ranked No. 95 in the world by the Financial Times – the sole Colorado school to be ranked. In Bloomberg BusinessWeek’s annual ranking of the Best Undergraduate Business Programs by Specialty in May 2010, Daniels was ranked the third-best in the U.S. in ethics; No. 27 in accounting; No. 31 in marketing; No. 40 in sustainability; and No. 50 in financial management. In April 2010, U.S. News’ part time M.B.A. ranking placed the University of Denver’s Daniels College of Business program in the top 70 in the U.S. In November 2009, BusinessWeek ranked the Daniels’ Professional MBA program for working professionals 53rd in the country, the only Colorado business school in the rankings. In October 2009, Daniels was named No. 20 in the world for teaching of business ethics by the Aspen Institute. For more information, visit: daniels.du.edu.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $100 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACT:

Rick Roth
Chief Marketing Officer
SquareTwo Financial
303.713.2231
rroth@squaretwofinancial.com

Cori Keeton Pope
Keeton Public Relations
303-282-4981
cori@keetonpr.com

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SquareTwo Financial Q1 2011 Notice of Call

May 9, 2011

Notice of Q1 2011 Financial Results Investor Call

SquareTwo Financial will host a conference call on Thursday, May 12th, 2011 at 8:30am Mountain Time to discuss the financial results for the quarter ended March 31st, 2011. The telephone number for domestic participants is (877)-522-6079. The telephone number for international participants is (706)-643-9734. Please dial in five to ten minutes prior to the start of the call. The confirmation number for domestic and international participants is 60839707.

Our first quarter results and Q1 2011 Financial Results Presentation will be released two hours prior to the start of the call, at 6:30am Mountain Time, under the header of About Us on the Investor Relations section of our Company website, www.squaretwofinancial.com. Please download the copy of our Q1 2011 Financial Results Presentation from our website that will be used during the conference call. A replay of the conference call will also be available shortly after the call on the Company's website.

Please direct all inquiries to the Company’s Investor Relations department by sending an email to ir@squaretwofinancial.com.

SquareTwo Financial's William A. Weeks Named One of Denver Business Journal's "Forty Under 40"

Thomas R. Sandler Joins SquareTwo Financial's Board of Directors

Former Thule, Samsonite and KPMG executive to provide guidance to debt-buying company

DENVER, Colo. – Jan. 31, 2011 – SquareTwo Financial, a leader in the $40 billion asset recovery and management industry, today announced that Thomas R. Sandler, former CEO of Thule Organization Solutions Inc. (formerly Case Logic Inc.), has joined the SquareTwo Financial board of directors.

Sandler served as CEO of Thule Organization Solutions, a $160 million consumer product provider with worldwide distribution in the U.S., Canada, Europe, Latin America and Asia, from 2004 to 2009. In this role, he led the company’s financial and sales turnaround and had full responsibility for bottom-line metrics, including long-range financial planning, strategic planning, global product management, global operations and global financial process. Prior to that, he was president, Americas, for Samsonite Corp., from 1998-2004 and worldwide CFO and treasurer from 1995-1998. He held various positions during a 22-year career at KPMG in both the consulting and audit departments.

“Tom is a strategic leader with 37 years of experience in finance, marketing, sales, company turnarounds and global operations,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “He served as CEO, president and CFO overseeing highly complex business situations, and we are pleased to add someone with such an accomplished career as the ninth director on our board.”

“SquareTwo Financial stands apart for its leadership in debt purchasing and asset management and is poised for further growth and advancement in this unique industry,” said Sandler. “I look forward to working with Paul, his team and the other board members to shape the future direction of this innovative company.”

Sandler earned a bachelor’s degree in accounting from Ithaca College and a master’s degree in accounting from State University of New York/Binghamton. He was treasurer and past president of the Travel Goods Association, a director for Bayaud Enterprises, past president of the Colorado Golf Association and a former rules official for the U.S. Golf Association.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $40 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACT:

Rick Roth
Chief Marketing Officer
SquareTwo Financial
303.713.2231
rroth@squaretwofinancial.com

Cori Keeton Pope
Keeton Public Relations
303-282-4981
cori@keetonpr.com

Thomas Bunn Joins SquareTwo Financial's Board of Directors

Former KeyCorp executive to help oversee debt purchasing company

DENVER, Colo. – December 14, 2010 – SquareTwo Financial, a leader in the $40 billion asset recovery and management industry, today announced that Thomas W. Bunn, former vice chairman at KeyCorp, has joined the SquareTwo Financial board of directors.

Bunn served as vice chairman at KeyCorp and president of Key National Banking from 2005 until 2008. In this role he was responsible for multiple lines of business, including corporate and investment banking; real estate banking; equipment finance; global treasury management; bank capital markets; and Victory Capital Management. Bunn joined KeyCorp in 2002 as president of Key Corporate and Investment Banking. During his tenure at Key, Bunn served as a member of the management committee and executive council, as well as a director of both KeyBank, N.A., and Victory Capital Management. Prior to joining Key, Bunn was the managing director and head of global debt capital markets at Bank of America, where he served for 24 years.

“Tom has extensive experience in the financial services industry and is universally respected by banking and finance professionals,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “He is our eighth board member, and we are fortunate to add yet another highly accomplished strategically-minded professional to our board.”

“SquareTwo Financial is uniquely positioned for growth and excellence in the debt purchasing and asset management industry,” said Bunn. “Paul Larkins has put together a solid executive leadership team, as well as an impressive core of directors, and I’m excited to be elected to help guide this innovative, growing company.”

Bunn earned his bachelor’s of science degree in business administration from Wake Forest University and his MBA in finance from the University of North Carolina at Chapel Hill. He is a member of the Wake Forest University board of trustees and the Babcock School of Business board of visitors. He also serves on the board of Southern Weaving Company and is on the board of advisors for Sound Harbor Partners.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $40 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACT:

Rick Roth
Chief Marketing Officer
SquareTwo Financial
303.713.2231
rroth@squaretwofinancial.com

Cori Keeton Pope
Keeton Public Relations
303-282-4981
cori@keetonpr.com

SquareTwo Financial Successfully Completes SAS 70 Audit

FOR IMMEDIATE RELEASE

Financial Service Organization Demonstrates Highest Standard in Data Security

DENVER, Colo. – November 2, 2010 – SquareTwo Financial, a leader in the $40 billion asset recovery and management industry, today announced that the company has successfully completed a Statement on Auditing Standards, No. 70 (SAS 70) type 1 audit of its eAGLE collection platform. SAS 70 is a widely recognized auditing standard, developed by the American Institute of Certified Public Accountants (AICPA), which allows a service organization to provide independent third party verification that the company has adequate internal controls and safeguards for hosting or processing its customers’ critical data.

“Because SquareTwo Financial is not a publically traded company at this time, we are not required to be SAS 70 compliant. In fact, because of the significant resources needed and the intense nature of the audit process, it’s uncommon for privately held companies to conduct SAS 70 audits,” said Heath Sampson, chief financial officer of SquareTwo Financial. “However, we decided to complete a SAS 70 audit to assure our customers that we adhere to the highest data security standards. Successfully passing the SAS 70 audit is aligned with our goal to be the leader in the asset recovery industry.”

SAS 70 is widely accepted as a distinction of service quality within the business community. Successful completion demonstrates that a service organization has passed an extensive audit of their control objectives and processes, including information technology activities. Passing a SAS 70 audit provides credible proof to current and potential customers that adequate internal controls are in place to ensure that their critical data is secure. Because of the high value placed on the audit, to pass the SAS 70 is a significant distinguishing factor for a service organization.

“Today’s economy and recent regulatory changes require our customers to know that their data is in the most secure environment possible at all times,” said Bill Weeks, chief information officer of SquareTwo Financial. “We became SAS 70 compliant to build trust with our customers. We want them to be absolutely confident in doing business with SquareTwo Financial.”

About SquareTwo Financial:

SquareTwo Financial is a leader in the $40 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo.Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACTS:

Rick Roth
Chief Marketing Officer
SquareTwo Financial
303.713.2231
rroth@squaretwofinancial.com

Cori Keeton Pope
Keeton PR
720-290-3252
cori@keetonpr.com

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SquareTwo Financial Names Chris Reigrut Chief Technology Officer

FOR IMMEDIATE RELEASE

DENVER, Colo. – October 5, 2010 – SquareTwo Financial, a leader in the $40 billion asset recovery and management industry, today announces Chris Reigrut as its vice president and chief technology officer.  In this role, Reigrut will oversee the development and delivery of IT products and services within the company.

“Chris has driven large-scale technology initiatives and is a valuable addition to our IT team,” said Bill Weeks, chief information officer at SquareTwo Financial.  “Chris comes to us with the depth, expertise, and experience needed to guide our IT operations to the next level.  He is a perfect fit for the company’s growth objectives.”

Prior to joining SquareTwo Financial, Reigrut was a consultant with Teravation, designing and building software to help countries control the spread of malaria and dengue fever in Africa.  Before Teravation, Reigrut was chief application architect at Key Equipment Finance, where he led his team in implementing the company's first global originations platform built around consistent, common business processes.  Prior to Key, Reigrut was the vice president and chief technology officer for Enterworks Philippines, and also held consulting positions with Anderson Consulting and Deloitte.

“I look forward to being a part of a company that truly understands the importance and value of technology,” said Reigrut.  “SquareTwo Financial’s significant investment in technology, paired with its focused, strategic approach to the development and implementation of that technology, is what keeps the company a leader in its industry.  I look forward to working at such a fast-paced, forward-thinking organization.”

Reigrut has a bachelor of science degree in both computer science and electrical engineering from Washington University in St. Louis, Missouri.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $40 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACTS:

Rick Roth

Chief Marketing Officer

SquareTwo Financial

303.713.2231

rroth@squaretwofinancial.com

Cori Keeton Pope

Keeton PR

303-282-4981

cori@keetonpr.com

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SquareTwo Financial One of the Most Successful Players in the $40 Billion Asset Recovery Industry.

Customers Cite Performance and Simplified Management as Key Factors in Selecting Hitachi over

Competitive Offerings SANTA CLARA, Calif. — September 8, 2010 — Hitachi Data Systems Corporation, a wholly owned subsidiary of Hitachi, Ltd. (NYSE: HIT), today announced enterprise customers across all industries are selecting the Hitachi Network Attached Storage (NAS) Platform over competitive solutions to help them access and protect unstructured data, such as email and video critical to their businesses, while reducing IT costs. With the Hitachi NAS platform as the file sharing, file server consolidation and data protection choice for enterprises, customers such as Pixorial and SquareTwo Financial benefit from robust consolidation and intelligent file tiering capabilities to minimize complexity in the data center. These consolidation and data protection capabilities are highly in demand and have driven approximately 200 percent growth in fiscal year 2009 for the Hitachi file and content portfolio compared to fiscal year 2008.

The increase of unstructured data, especially in industries such as healthcare, life sciences, entertainment and Internet services, is putting a strain on IT organizations who already have limited budgets and resources, to better and more quickly serve the needs of the business. At the same time, IT organizations are struggling to consolidate file servers with legacy NAS systems that do not have the scalability and performance capabilities needed to keep up with the demands of users. However, with the Hitachi NAS Platform, which is managing more than 40 petabytes of data with customers today, these enterprises can benefit from enhanced performance, scalability and simplified management to handle the most demanding data center application environments – all while lowering IT costs.

Pixorial: Exponential Growth Demands Optimal Performance with High Density Storage
A state-of-the-art, online video sharing platform, Pixorial allows consumers and organizations to easily send, upload, edit, organize and share videos. Pixorial also archives digital masters and estimates each customer video to be about seven gigabytes in size. With the volume and type of file sharing and management needed to support Pixorial’s growing business, the company implemented the Hitachi NAS Platform to manage its massive data growth and to provide high performance file sharing and tiering capabilities, decreasing overall costs per gigabyte and per square foot stored, while ensuring no service interruptions to maximize the customer experience.

“Our business model is based on cost per gigabyte per user by account subscriptions. This model helps us manage every opportunity as cost-effectively as possible while providing an easy to use video platform,” said Joshua Terry, vice president of systems engineering, Pixorial. “The Hitachi NAS Platform allowed us to build a storage infrastructure with the maximum amount of flexibility, density and capacity possible, while accommodating the high performance needs of our network.”

SquareTwo Financial: Scalable, Intelligent Storage Keeps Data Growth in Check
SquareTwo Financial’s unique business model, experienced leadership team and innovative use of technology make the company one of the most successful players in the US$40 billion asset recovery management industry. SquareTwo Financial creates an effective way for companies and consumers to swiftly resolve their fiscal commitments through the buying and selling of debt. The company gathers, assimilates and analyzes client information, managing and storing millions of case files, each one containing hundreds of records. Essential to its business, SquareTwo Financial must have instant access to all client data, prevent disk failure, data corruption and loss as well as keep client data available and secure until each case is closed or the debt is sold to comply with federal and state regulations.

To better manage its explosive year-over-year data growth, SquareTwo Financial implemented the Hitachi NAS Platform for centralized single-pane management of both block and file data. With a unified view of the data through a single interface that includes proactive performance monitoring and in-system and remote replication as well as dynamic provisioning capabilities, the Hitachi NAS Platform allows for the provisioning of new storage equipment in less than an hour.

“In addition to exceptional reliability, scalability and performance, we were looking for a NAS solution that could replicate between our data centers,” said Ken Vandenbark, vice president of IT operations and engineering, SquareTwo Financial. “We can now complete faster and easier backup and recovery and are able to keep our data current to within four hours of transactions, which allows for peace of mind from a compliance and litigation perspective.”

Web Resources

• HDS Blogs: http://blogs.hds.com/miki
• Pixorial: www.hds.com/assets/pdf/success-story-pixorial.pdf
• Hitachi NAS Platform: www.hds.com/products/storage-systems/network-attached-storage/hitachi-high-performance-nas-platform.html
• Follow us on Twitter: http://twitter.com/HDScorp

About Hitachi Data Systems
Hitachi Data Systems provides best-in-class information technologies, services and solutions that deliver compelling customer ROI, unmatched return on assets (ROA) and demonstrable business impact. With a vision that IT must be virtualized, automated, cloud-ready and sustainable, Hitachi Data Systems offers solutions that improve IT costs and agility. With more than 4,200 employees worldwide, Hitachi Data Systems does business in more than 100 countries and regions. Hitachi Data Systems products, services and solutions are trusted by the world’s leading enterprises, including more than 70 percent of the Fortune 100 and more than 80 percent of the Fortune Global 100. Hitachi Data Systems believes that data drives our world – and information is the new currency. To learn more, visit: http://www.hds.com.

About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen (US$96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

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© Hitachi Data Systems Corporation 2010, Hitachi is a registered trademark of Hitachi, Ltd. and/or its affiliates in the United States and other countries. Hitachi Data Systems is a registered trademark and service mark of Hitachi, Ltd. in the United States and other countries.

SquareTwo Financial Raises Nearly $500 Million in Financing

FOR IMMEDIATE RELEASE

SQUARETWO FINANCIAL RAISES NEARLY $500 MILLION IN FINANCING

Company completes bond offering and secures new revolving credit facility

DENVER, Colo. – June 21, 2010 – SquareTwo Financial, a leader in the $40 billion asset recovery and management industry, today announces that the company has successfully completed a $475 million financing package. The money was raised from the sale of Senior Secured Second Lien notes and a new revolving credit facility.

In conjunction with the bond offering, SquareTwo Financial received a ‘B’ counterparty credit rating from Standard & Poor’s and an equivalent B2 Corporate Family Rating from Moody’s. The company’s unique, franchise-based attorney network was a key factor to its favorable credit rating.

“The fact that we could raise nearly half a billion dollars with terms that support growth in what is still considered a challenging economic environment is a testament to our unique business model and our position in the industry,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “This is a clear vote of confidence in our ability to deliver consistent financial results.”

Proceeds from the bond offering and the new revolving credit facility will enable SquareTwo Financial to roll out a comprehensive, multi-year strategic plan. The company intends to use the additional funds raised to pay off current debt and expand its business.

About SquareTwo Financial

SquareTwo Financial is a leader in the $40 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colorado. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACTS:

Cori Keeton Pope
Keeton PR
720-290-3252
cori@keetonpr.com

Stacey Hartmann
Keeton PR
303-880-8451
Stacey@keetonpr.com

SquareTwo Financial Names William Weeks Senior Vice President, Chief Information Officer

DENVER, Colo. – May 3, 2010 – SquareTwo Financial, a leader in the $40 billion asset recovery and management industry, today announces William A. Weeks (Bill) as senior vice president and chief information officer. In this role, Weeks’ responsibilities include managing the company’s internal and external technical environments and leading SquareTwo Financial’s tech team.

“Bill has led global organizations through major transformational changes and is a great addition to our team,” said Paul A. Larkins, president and CEO of SquareTwo Financial. “I’ve had the opportunity to work closely with Bill in the past and I’m confident that his expertise will advance our leadership efforts in our technology disciplines as we support our growing debt buying and franchise partner organization.”

Prior to joining SquareTwo Financial, Weeks served as chief information officer of Key Equipment Finance since 2005. Prior to Key, he held executive positions in the IT arena with National City Commercial Capital, the Provident Bank, PCFS Mortgage Resources and Makino Incorporated.

“SquareTwo Financial’s investment in technology is one of the key factors differentiating the company from its competitors,” said Weeks. “I’m excited to be part of a fast-growing company that considers technological innovation a cornerstone to its success. From the technology resources developed for the Partners Network to the company’s proprietary analytics modeling, SquareTwo Financial is an undisputed tech leader in the debt buying industry.”

Weeks served in the United States Marine Corps. He has earned his Six Sigma certification and a Certificate in Executive Management from the University of Colorado in Boulder. In addition, he currently serves as the president of the Colorado Chapter of the Society for Information Management and is a member and mentor for the CIO Executive Council.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $40 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACTS:

Cori Keeton Pope
Keeton PR
720-290-3252
cori@keetonpr.com

Stacey Hartmann
Keeton PR
303-880-8451
Stacey@keetonpr.com

SquareTwo Financial Names J.B. Richardson Vice President, Strategic Development

FOR IMMEDIATE RELEASE

DENVER, Colo. – March 29, 2010 – SquareTwo Financial, a leader in the $40 billion asset recovery and management industry, today announces J.B. Richardson Jr. as its vice president of strategic development. In this role, Richardson will lead development initiatives for the SquareTwo Financial Partners Network, a select group of legal and business professionals provided with the technology and tools for driving asset recovery.

“J.B. is the driver behind many of the highly successful initiatives underway for SquareTwo Financial’s Partners Network,” said Paul A. Larkins, the company’s president and CEO. “He now will lead efforts to deepen our partners’ competitive advantages, take ownership of our franchise support tools, and spearhead new business development opportunities nationally.”

Prior to joining SquareTwo Financial, Richardson was an associate with KRG Capital Partners LLC and an investment-banking analyst for the consumer and retail group of Wachovia Capital Markets.

“I relish the opportunity to expand our Partners Network throughout the United States,” Richardson said. “We continue to design and implement new professional tools and powerful products to optimize our partners’ operations and support their growth. I look forward to delivering these and other exciting initiatives for the mutual success of SquareTwo Financial and our innovative network of partners.”

Richardson has a bachelor’s degree in economics and commerce from Hampden-Sydney College.

About SquareTwo Financial:

SquareTwo Financial is a leader in the $40 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colo. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACTS:

Cori Keeton Pope
Keeton PR
720-290-3252
cori@keetonpr.com

Stacey Hartmann
Keeton PR
303-880-8451
Stacey@keetonpr.com

SAS Helps SquareTwo Financial Recover Charged-Off Assets Through Better Data Analysis

CARY, NC (Feb. 23, 2010) – SquareTwo Financial, a leader in the $40 billion asset recovery and management industry, selected SAS, the leader in business analytics software and services, to help make better real-time business decisions. Numerous variables affect the success potential of SquareTwo Financial’s business and a main concern was more effective and efficient data analysis paired with its unique asset recovery model to recover charged-off assets.

“Our rich repository of data and industry-leading analytic modeling is one of our strongest competitive advantages, and we need the ability to run very sophisticated models that are dynamic and scalable,” said L. Heath Sampson, Chief Financial Officer at SquareTwo Financial. “SAS is a leader in providing the solutions that help our talented analysts spend less time coding and more time testing and supporting business decisions.”

SquareTwo Financial plans to run SAS predictive technologies, SAS^® Enterprise Miner^TM and SAS^® Forecast Server, in a powerful grid environment to accelerate charged-off debt from red to black. Since the firm’s financial services business is data-driven, SquareTwo Financial can gain a significant advantage by using powerful analytics to turn internal and external data into accurate business information in real time.

“Although we will save multiple full-time employee hours because we can model better and faster, the real monetary benefit comes because we can make better business decisions on the revenue, which we expect to be in the millions,” said Sampson. “SquareTwo Financial believes all assets deserve a second chance, and with SAS in our arsenal and an innovative approach to recovery, our goal is to bring our customers’ assets back to black.”

SAS Enterprise Miner streamlines the data mining process to create highly accurate predictive and descriptive models based on analysis of vast amounts of data from across the enterprise. SAS Forecast Server generates large quantities of high-quality forecasts quickly and automatically, allowing organizations to plan more effectively for the future.

“With SAS, SquareTwo Financial will be able to discover the diamonds in the data that will help them continue to make the best possible business decisions,” said David M. Wallace, Global Financial Services Marketing Manager at SAS. “SquareTwo Financial’s staff can now accelerate asset recoveries with advanced analytical modeling and forecasting solutions from SAS.”

SquareTwo Financial employs a proven process-oriented approach to asset recovery, and highly sophisticated, technology-driven asset modeling and pricing. This allows the company to provide fast, accurate bids to customers, and a high probability portfolio recovery rate. Partners enjoy a well-structured relationship with the company, which provides the technology and tools to help them thrive.

“SquareTwo Financial provides a service that is more important to banks, health care organizations and corporations now than ever before,” said Wallace. “From its innovative, partner-driven business model, to its industry-leading focus on analytics and data modeling, SquareTwo Financial is a leader in the financial services industry. It is our pleasure to work with clients like SquareTwo Financial who share our commitment to sophisticated data analysis.”

About SquareTwo Financial

SquareTwo Financial is a leader in the $40 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. FORTUNE 500^® companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver. Visit www.squaretwofinancial.com for more information.

About SAS

SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than 45,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world THE POWER TO KNOW^®. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies.  Copyright © 2010 SAS Institute Inc. All rights reserved.

Editorial Contact:

Kris Balic
Kris.Balic@sas.com
919- 531-0624

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SquareTwo Financial Names L. Heath Sampson Chief Financial Officer

DENVER, Colo. – February 8, 2010 - SquareTwo Financial, a leader in the $40 billion asset recovery and management industry, today announces L. Heath Sampson as its chief financial officer. In this role, Sampson will oversee all financial matters of the company, including financial planning and analysis, technical accounting, financial accounting, corporate controller, analytics, internal controls and payment processing.

“Heath comes to SquareTwo Financial with 16 years of senior financial leadership experience and a strategic mindset that will undoubtedly benefit our clients who need their distressed assets made whole,” said Paul A. Larkins, SquareTwo Financial’s president and CEO. “He is a dynamic and progressive executive who brings a laser focus to our industry-leading financial expertise in asset recovery.”

Sampson joined SquareTwo Financial from First Data Corp., where he was CFO of the $2.5 billion Financial Services subsidiary since 2008. He joined First Data in 2002 as vice president of risk, control and audit until 2006, when he was named CFO of First Data’s Integrated Payment Systems division, which was followed by his 2007 appointment as CFO of the company’s Innovative Payments Group. Previously, he was a senior manager in financial audit, business consulting and risk consulting at Arthur Andersen LLP, which he joined in 1994.

“I look forward to providing financial leadership to SquareTwo Financial as it sets an unmatchable pace in acquiring distressed portfolios from financial services companies and assisting businesses and individuals alike in restoring financial health,” Sampson said. “I am excited to be a part of an organization with such a passion for turning red assets back to black, especially at a time when the recovery of our economy is paramount.”

Sampson has a bachelor’s degree in accountancy and an MBA (accounting) from Denver University.

About SquareTwo Financial

SquareTwo Financial is a leader in the $40 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colorado. Visit www.squaretwofinancial.com for more information.

SquareTwo Financial Website: www.squaretwofinancial.com

CONTACT:

Cori Keeton Pope
Keeton PR
720-290-3252
cori@keetonpr.com
###

SquareTwo Financial, Formerly Collect America, Unveils New Name and Look

For Immediate Release

Denver, CO -- December 16, 2009 -- Collect America is pleased to announce its transformation into SquareTwo Financial. The company’s new name, and accompanying cutting-edge look, marks yet another innovative move in the company’s 15 year history as a leader in the asset management and recovery industry.

The new name, SquareTwo Financial, is symbolic of how the company views the value of charged-off assets. SquareTwo helps alleviate its customers of a failing portfolio, and give new life to it by returning those assets back to productive use. Ultimately, it’s about moving away from square one and restarting in a better place, at square two.

“In my 15 years as the head of this company, I can’t recall being so excited about our future,” said Scott Lowery, Chairman and CEO of SquareTwo Financial. “Never before have charged-off assets meant so much to our customers, and our new branding is a statement of how serious we are about continuing to give new life to their assets.”

“It’s a common notion that everything begins at square one. For us, SquareTwo Financial is a literal expression of what a charged-off asset can do, which is to begin again,” said Paul Larkins, President of SquareTwo Financial. “SquareTwo Financial believes all assets deserve a second chance, and with our unmatched analytics and modeling and innovative approach to recovery, we’re fully equipped bring our customers’ assets back to black.”

Since it was founded in 1994, SquareTwo Financial has set itself apart from the competition. The company established the industry’s first Partners Network, primarily made up of lawyers. It employs a proven process-oriented approach to asset recovery, and highly sophisticated, technology-driven asset modeling and pricing. This allows the company to provide fast, accurate bids to customers, and a high probability portfolio recovery rate. Partners enjoy a well-structured relationship with the company, which provides the technology and tools to help them thrive.

As part of the rebranding effort, the company unveiled a new website, www.squaretwofinancial. All of the SquareTwo business lines are now united online, and can be found in the same place. SquareTwo Financial and its subsidiaries maintain the same list of expansive products and services. The company’s contact information and addresses remain the same.

About SquareTwo Financial

SquareTwo Financial is a leader in the $40 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, bank and credit card industries trust SquareTwo to manage their debt portfolios. The company’s national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colorado. Visitwww.squaretwofinancial.com for more information.

Contact:

Rick Roth

Chief Marketing Officer

SquareTwo Financial

303.713.2231

rroth@squaretwofinancial.com