American Business Financial Services, Inc. Appoints Financial Services Executives Warren E. Palitz and Jeffrey S. Steinberg, CPA, To Board of Directors.

Business Editors

BALA CYNWYD, Pa.--(BUSINESS WIRE)--Feb. 13, 2003

At its February meeting, the Board of Directors of American Business Financial Services, Inc. (NASDAQ:ABFI) voted to increase the size of its Board to eight, and approved the appointments of Warren E. Palitz and Jeffrey S. Steinberg, CPA, to serve as the additional members of the Board, effective immediately.

Warren Palitz currently is affiliated with Greentree Brokerage Services, Inc., a registered broker/dealer, and serves on the advisory board of Rittenhouse Trust Company. During his career, Palitz has distinguished himself as a valued counsel to both established and growth companies, through his ability to evaluate businesses, investment potential and global economic opportunity. Prior to his association with Rittenhouse Trust Company, Palitz directed the investment banking activities at Kane & Company. Palitz also has more than 20 years of global financial experience as an advisor and liaison for Central American governments seeking public and private investments. For the past five years, he has also been a general partner in Osborne I & II, L.P. Palitz is also a director of BFS Entertainment & Multimedia of Toronto, Canada. In the community, Palitz is a director of the Patron's Foundation, a charitable organization that provides financial and mentoring support to the underprivileged. He is also a member of the Board of Advisors of the Operation Good Neighbor Foundation, and served as chair of the committee to honor The Union League of Philadelphia's 140th anniversary. A graduate of George Washington University, Palitz is a resident of Haddonfield, New Jersey.

Jeffrey Steinberg, a certified public accountant, is engaged as an independent financial advisor to a variety of companies. He is currently directing the financial turnaround of a six-office network of dermatology clinics. Prior to this, Steinberg was Chief Financial Officer and Treasurer of Northwestern Human Services (NHS) of Philadelphia, a major health care provider, and participated in its financial turnaround. During his two plus years as the CFO, NHS was able to convert negative operations to positive cash flow from operations. At NHS, he was also elected a Board member, and served as Chair of the Finance Committee. In addition, Steinberg was previously a senior partner with A.G. Epstein & Co., and an audit partner with Grant Thornton, LLP, where he assisted clients in managing their entities. A graduate of Penn State University, Steinberg has been a CPA since 1972. He is a member of the American Institute of Certified Public Accountants, the Pennsylvania Institute of Certified Public Accountants, and a former board member of the Colitis and Ileitis Foundation.

"We at American Business Financial Services are extremely proud to have added these two fine individuals to our Board," said ABFI Chairman and Chief Executive Officer Anthony J. Santilli. "Warren Palitz and Jeffrey Steinberg each will bring their unique abilities to the Board, for the betterment of our Company. I believe the wide range of their experiences in the financial services industry will help guide us, as we move this Company forward. I look forward to working together with them and the rest of the Board."

American Business Financial Services, Inc. is a financial services company operating predominantly in the eastern and central portions of the United States. The Company originates business purpose loans and first and second mortgage loans through a combination of channels, including a national processing center located at its centralized operating office in Bala Cynwyd, Pennsylvania, a regional processing center in Roseland, New Jersey, and several retail branch offices.

For further information, contact Keith Bratz, VP--Corporate Communications, 610/617-7475.