San Antonio Business Journal                                               
June 5, 1992

SECTION: Vol 6; No 20; Sec 1; pg 1

LENGTH: 1325 words

HEADLINE: Express Cash Building Pawnshop Empire

BYLINE: Sanford

DATELINE: San Antonio; TX; US

 BODY:    Texas could be witnessing the birth of the "new pawnshop," 
according to some industry experts.

   There are currently four publicly traded pawnshop chains based in 
Texas and one in Colorado, operating a total of close to 300 stores. 
These companies are creating chains of pawnshops closer in appearance to 
Stop-N-Go stores than stereotypical run-down, burglar-barred pawnshops.

   San Antonio-based Express Cash International Inc. is among those five 
firms, and it has maintained a steady, rapid growth since its initial 
public offering in 1990.

   Company President Charles Barrett Jr. says the 18-shop firm expects to 
have more than 30 stores in operation by Jan. 31, 1994, the end of its 
fiscal year.

   According to Barrett, the company may start opening stores outside of 
Texas next year. The firm currently operates shops in San Antonio, 
Houston, Seguin and Laredo. Express Cash opened its first Laredo store 
this week and expects to open two more Texas stores by Jan. 31, 1993.

   After obtaining $ 4 million in private financing in December 1991, 
Express Cash began purchasing stores from existing pawn companies, 
boosting its total number of pawnshops from nine to 18.

   So far, the company has demonstrated financial stability, reporting 
net income of $ 54,352, or 4 cents per share, on revenues of $ 7.1 
million for the fiscal year ended Jan. 31, 1992. That compares with a net 
income of $ 60,492, or 8 cents per share, on revenues of $ 5.7 million 
for the previous fiscal year.

   Express Cash trades on the NASDAQ market under the symbol "XPRS" and 
is listed on the Boston and Pacific Stock Exchanges under the symbol 
"XPC."

   Pawnshop chains such as Express Cash are emerging to serve the 
financial needs of people who frequently are overlooked by financial 
institutions, say industry observers.

   Pawnshops lend money on pledged tangible property and sell those items 
which are forfeited when a borrower cannot pay back the loan. The shop 
charges a

                                                                       
PAGE    9                    San Antonio Business Journal, June 5, 1992                   


rate on each loan ranging from a little more than 10 percent to almost 
250 percent per annum.

   "Pawnshops are serving a broader spectrum of society," says John Boyd, 
executive vice president of the Texas Pawnbrokers Association. "People 
have this misconception only lower-class people use pawnshops. Right now, 
it's not the case.

   "The lower-class people and the middle-class people go there for loans 
because it seems like there's no other place for the average working 
person to go."

   Indeed, the number of pawnshops in Texas has more than tripled over 
the last 20 years, according to data from the Texas Pawnbrokers 
Association.

   According to Dennis Van Zelfden, an analyst with Rauscher Pierce 
Refsnes Inc. in Dallas, all five of the nation's publicly traded pawnshop 
companies are getting in on the ground floor of what promises to be an 
ongoing consolidation of the industry.

   Chain pawnshop firms, especially publicly traded ones, are currently 
expanding because their financing and professional management give them 
the advantage over the mom-and-pop stores that comprise the majority of 
the industry.

   And financial analysts say there is room for growth, since the 
pawnshop industry is extremely fragmented.

   According to Van Zelfden, less than 4 percent of the nation's 
estimated 10,000 pawnshops are controlled by major chains. Even Texas, 
where four of the five public pawn firms are based, has only 20 percent 
of its pawnshops owned by public companies.

   Barrett says that pawn chains have the same attraction to consumers as 
other types of chain stores do.

   "It's the same as the chain restaurant concept: you know what to 
expect when you deal with the company wherever you deal with the 
company," he adds.

   Barrett maintains that the Express Pawn stores, like the stores of 
other publicly traded pawnshop chains, create a better public image for 
the pawn industry by turning some negative public perceptions on their 
ear.

   The company's Express Pawn stores are well-lit and feature prominent 
colorful signage; they look more like convenience stores than traditional 
pawnshops. Instead of burglar bars, the stores feature roll-down steel 
shutters, not visible during daylight hours, on their windows. Barrett 
says, to his knowledge, Express Cash is the only pawnshop chain to use 
security shutters and provide uniforms for its employees.

   "I like the way their stores are run," says John Payne, chairman of 
Arlington, Texas-based First Cash Inc. "I've been in them, and the 
appearance of the stores and the service there are a credit to the 
industry."



                                                                       
PAGE   10                    San Antonio Business Journal, June 5, 1992                   


   According to Barrett, Express Pawn also attempts to appeal to female 
customers by employing women at each of its shops, featuring well-lit 
parking and an appealing color scheme.

   Van Zelfden says the improved image of publicly traded pawnshops pays 
off in terms of revenues.

   "The overall game plan is to make the customer feel better," says Van 
Zelfden. "I think modern retail techniques are making pawnshops more 
appealing to the general population, especially to people who might have 
been reluctant to buy something there or get a loan there at one time."

   Barrett says Express Cash is also mulling the opening of a 
25,000-square-foot "superstore" pawnshop which could be departmentalized 
like a retail store and staffed by specialized salespeople. Barrett says 
the firm has no immediate plans to do so, but maintains the superstore 
idea is under consideration.

    Stanley Rosenberg,  chairman of Express Cash, and Barrett began the 
firm with other local investors in 1988 by purchasing two local 
pawnshops. The company, then called Express Cash of America Inc., opened 
five additional locations in San Antonio during the following year.

   The corporation made a $ 6.9 million stock offering during the fall of 
1990, and prior to the offering reincorporated under the name Express 
Cash International.

   Rosenberg is also a founder and serves of counsel with the local law 
firm Oppenheimer, Rosenberg & Kelleher.

   Prior to the Express Cash's public offering, Barrett and Rosenberg 
were involved in the bankrupt River City Fair Inc., a San Antonio 
restaurant and entertainment complex. The company, co-owned and 
co-founded by Rosenberg, filed Chapter 11 reorganization in 1990. Barrett 
was secretary of the company.

   "After the demise of the real estate market, I was looking for a 
business without real estate dependency," Barrett says.

   While the company is currently well-positioned, it still has its work 
cut out for it, according to Van Zelfden.

   Express Cash's late entrance into the market compared to Cash America 
means Cash America has a head start in number of stores. Cash America, 
the pioneer public pawn chain, operates 186 stores in the United States 
and United Kingdom.

   EZCORP Inc., which operates 82 shops, and 23-store First Cash Inc. 
also have a lead on Express Cash in the number of stores each operates.

   Van Zelfden says the biggest challenge facing Express Cash is growing 
quickly enough to keep up with the rest of the publicly traded chains 
while not overextending itself.

   "Express Cash just got a later start," Van Zelfden says. "The biggest 
challenge for them is going to be keeping up while managing their 
growth."



                                                                       
PAGE   11                    San Antonio Business Journal, June 5, 1992                   


   Despite the chains' attempt to make the industry more presentable, 
pawnshops do retain a negative image in some circles. Some community 
activists have criticized the pawn industry, alleging it exploits poor 
people by charging exorbitant interest on loans.

   Another frequently raised complaint is that pawnshops can become 
mediums for stolen merchandise.

   "It's tough to bring those people over," says First Cash's Payne. "A 
lot of the people who don't like pawnshops have been raised with that 
attitude."

   Barrett, however, contends that Express Cash has a positive impact on 
the city as an employer and generator of economic growth.

   "We feel we've created some economic movement," Barrett says. "We now 
have 120 employees, compared to six in 1988. We've contributed some 
positive growth."

 CORRECTION: In the June 5 edition of the Business Journal a cutline 
underneath the picture incorrectly identifies the title of Charles 
Barrett. Barrett is the president of Express Cash International Inc. 
Also, the 1990 net income per share figure was stated incorrectly. The 
company reported a net loss of $ 1.88 per share in 1990.

GRAPHIC: Photo

SUBJECT: Retailing industry; Competition; Expansion; Southwest

GEOGRAPHIC: Southwest Region; San Antonio; TX; US

COMPANY: Express Cash International; DUNS: 19-628-0408; SIC: 5999; 
TICKER: XPRS Express Pawn Shop; SIC: 5932

CO:  EXPRESS PAWN SHOP; 

LOAD-DATE-MDC: July 7, 1992

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