American Business Financial Services, Inc. Closes $380 Million Public Senior/Subordinated Securitization; Securitization is Company's Largest Ever.

Business Editors

American Business Financial Services, Inc. (NASDAQ:ABFI), a diversified financial services company operating nationwide, today announced that it has closed its largest securitization ever, a $380 million public senior/subordinated mortgage loan securitization through lead manager Credit Suisse First Boston. Bear Stearns & Co. Inc. was co-manager of the deal. This was ABFI's first public senior/subordinated securitization.

The securities offered are not guaranteed by any surety or certificate insurance policies, as all previous publicly traded ABFI securitizations have been. Credit enhancement is provided through the senior/subordinated structure of the securitization. Anthony J. Santilli, Chairman and Chief Executive Officer of ABFI said, "We believe that the new structure of this securitization allows us to appeal to a broader range of investors and allows for the diversification of structures." Approximately 87 percent of the securities issued in this securitization are rated AAA/Aaa by Standard & Poor's and Moody's. In addition, ABFI received its largest amount of up front cash ever in connection with a securitization, $395.3 million, or 4.0% over par. ABFI has now completed 24 securitizations over the past seven years, which has resulted in the securitization of approximately $4.4 billion in securitized mortgage loans.

Santilli said, "As we move forward toward our goal of achieving positive cash flow from operations, efficient execution of our securitizations is critical. The execution on this deal was excellent, due in large part to the fine work of Credit Suisse First Boston, our internal team, and the co-manager of the deal."

"We are very pleased with the terms and structure of this securitization, as well as the group of investors Credit Suisse First Boston was able to attract to this offering," Santilli continued. "There are more than 20 investors in this securitization, including domestic and foreign banks, insurance companies, money managers and investment advisors. When you look at the companies that invested in this securitization, it makes us very proud of what we've been able to accomplish."

American Business Financial Services, Inc. is a diversified financial services company operating throughout 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, and a retail branch network of offices.

For further information, contact Jeffrey M. Ruben, Executive Vice President, 610-617-5562, or Keith Bratz, VP--Corporate Communications, 610-617-7475.

Certain statements contained in this press release, which are not historical fact, may be deemed to be forward-looking statements under federal securities laws. There are many important factors that could cause American Business Financial Services, Inc. and its subsidiaries' actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, including interest rate risk, future residential real estate values, regulatory changes (legislative or otherwise) affecting the real estate market and mortgage lending activities, competition, demand for American Business Financial Services, Inc. and its subsidiaries' services, availability of funding, loan payment rates, delinquency and default rates, changes in factors influencing the loan securitization market and other risks identified in American Business Financial Services, Inc.'s Securities and Exchange Commission filings.