American Business Financial Services Opens Its Heart To the Community on Valentine's Day IPO Anniversary.

Business Editors

BALA CYNWYD, Pa.--(BUSINESS WIRE)--Feb. 14, 2002

American Business Financial Services, Inc. (NASDAQ:ABFI), a diversified financial services company operating nationwide, today celebrates the 5th anniversary of its public offering on NASDAQ, by announcing a program that will donate $5 for every loan originated during the next year to Consumer Credit Counseling Service of Delaware Valley, Inc.

The Company's lending subsidiaries expect to originate as many as 15,000 loans during the next 12 months and ABFI has pledged a minimum of $50,000, and as much as $100,000, through the program on behalf of its employees, customers, and investors. The funds will be used for credit counseling and education initiatives.

"Day in and day out ABFI brings value to homeowners and small businesses by giving them the opportunity to succeed," said Anthony J. Santilli, Chairman and Chief Executive Officer of ABFI. "In our business, we often see worthy families and individuals whose credit is hurt by a layoff, an illness, or other circumstances beyond their control. Many times we help them bring their credit back to where it should be. On this special day--Valentine's Day and the 5th anniversary of our initial listing on NASDAQ--we want others in the community to share our heartfelt commitment to making their dreams come true. This contribution will help do just that."

Consumer Credit Counseling Service of Delaware Valley, Inc., based in Center City Philadelphia, is a non-profit organization that provides budget and credit counseling, debt management programs and credit education to consumers overburdened with unsecured debt.

"This generous pledge by American Business Financial Services comes at a very critical juncture as the months immediately following the holidays are traditionally very difficult for many consumers struggling to recover from the previous season of gift giving," said Patricia Hasson, President of Consumer Credit Counseling Service of Delaware Valley. "This year, coupled with a weak economy, it is an especially challenging period. These funds will enable us to help consumers manage through this time and lay the foundation for a healthier financial future."

American Business Financial Services, Inc. is a diversified financial services company operating throughout the United States.

The Company's lending subsidiaries originate 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 Keith Bratz, VP--Corporate Communications, 610-617-7475, or Maureen Keown, Marketing Director, Consumer Credit Counseling Service of Delaware Valley, Inc., 215-563-5665, ext. 3338.

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.