Asset Acceptance Capital (AACC) 8-K Asset Acceptance Capital Corp. Announces Third Quarter 2008 Results

Exhibit 99.1

	28405 Van Dyke Avenue
	Warren, Michigan 48093
	www.AssetAcceptance.com

Contact:

Jeff Lambert, Jeff Tryka

Lambert, Edwards & Associates

616-233-0500 / aacc@lambert-edwards.com

Asset Acceptance Capital Corp. Announces Third Quarter 2008 Results

Reports Cash Collections of $90.8 Million, Operating Expenses Decline to 55.2% of Cash

Collections and Purchasing of $36.0 Million

Warren, Mich., November 4, 2008 – Asset Acceptance Capital Corp. (NASDAQ: AACC), a leading purchaser and collector of charged-off consumer debt, today announced third quarter 2008 results, highlighted by higher net income and Adjusted EBITDA.

Asset Acceptance reported cash collections of $90.8 million in the third quarter ended September 30, 2008, versus cash collections of $90.7 million in the year-ago period. For the nine-month period ended September 30, 2008, the Company reported cash collections of $286.2 million, an increase of 1.5 percent compared to the same nine-month period in 2007.

Total revenues increased 11.0 percent to $58.4 million in the third quarter 2008, compared to total revenues of $52.6 million in the third quarter of 2007. Purchased receivable revenues were $58.1 million for the current quarter, an increase of $6.1 million, or 11.7 percent, from $52.0 million in the 2007 third quarter. During the third quarter of 2008, the Company’s amortization rate, or cash collections applied to principal, decreased to 36.0% from 42.7% in the third quarter of 2007. The Company reported a third quarter 2008 net impairment charge of $3.1 million, versus a net impairment charge of $13.8 million in the prior year quarter. Net impairments for the first nine months of 2008 totaled $8.4 million versus $23.5 million for the first nine months of 2007.

Net income for the current quarter was $3.0 million, or $0.10 per fully diluted share, compared to a net loss of $1.7 million, or $0.05 per fully diluted share, in the third quarter of 2007. Earnings Before Interest, Taxes, Depreciation and Amortization, including purchased receivable amortization (“Adjusted EBITDA”), increased to $41.9 million in the third quarter of 2008, up 5.0 percent compared to the year-ago period. For the nine-month period ended September 30, 2008, Adjusted EBITDA grew to $140.8 million, an increase of 7.2 percent when compared to the same nine-month period in 2007. Please refer to the table on page 5, which reconciles net income according to Generally Accepted Accounting Principles (“GAAP”) to Adjusted EBITDA.

Rion Needs, Senior Vice President and COO, commented: “We are pleased to continue the trend of lower operating expenses in comparison to the prior year not only as a percentage of cash collections but also in absolute dollars. Notably, this came despite an increasingly difficult collections environment. Operating expenses as a percent of cash collections declined more than 200 basis points to 55.2 percent in the third quarter versus 57.4 percent in the third quarter of last year. The most significant improvement in our operating expense structure occurred from the initiative implemented in the first quarter to better match our legal collections and expenses. At the same time, our account representative productivity declined for the quarter by approximately 12 percent which we

Asset Acceptance Third Quarter 2008 Results

Page 2 of 10 ~

believe was primarily the result of a more challenging collections environment. We will continuously refine and improve our collection tools and remain committed to providing all of our associates with better training and development initiatives that will enable us to maximize our collections in any environment.”

During the third quarter of 2008, the Company invested $36.0 million to purchase charged-off consumer debt portfolios with a face value of $725.8 million, for a blended rate of 4.96 percent of face value. This compares to the prior-year third quarter, when the Company invested $35.1 million to purchase consumer debt portfolios with a face value of $1.9 billion, representing a blended rate of 1.89 percent of face value. All purchase data is adjusted for buybacks.

“Our dollars invested in purchasing consumer debt portfolios returned to more normalized levels during the quarter,” said Brad Bradley, Chairman, President and CEO of Asset Acceptance Capital Corp. “The economy has continued to deteriorate and credit card charge-off and unemployment rates have increased. The financial markets are in turmoil, and economic conditions may very well get worse before they get better. As a result, we were selective in our approach to purchasing during the quarter as we expect there will be additional supply and better pricing in the next 12 to 18 months.”

The Company provided the following details regarding purchased receivable revenues:

	Three months ended September 30, 2008
Year of Purchase	Collections		Revenue			Amortization Rate	Monthly Yield(1)		Net Impairments			Zero Basis Collections
2002 and prior	$	11,088,771	$	10,470,757		N/M%	N/M	%	$	—		$	10,139,534
2003		8,756,051		8,133,560		7.1	34.78			(293,200	)		5,392,539
2004		7,477,697		5,214,842		30.3	6.90			1,121,000			857,394
2005		8,067,921		2,718,048		66.3	2.54			1,757,000			12,306
2006		17,983,016		13,561,339		24.6	6.01			12,000			1,909,125
2007		21,783,298		10,476,335		51.9	2.93			488,000			43,414
2008		15,618,774		7,540,551		51.7	2.74			—			—
Totals	$	90,775,528	$	58,115,432		36.0	5.45		$	3,084,800		$	18,354,312
	Three months ended September 30, 2007
Year of Purchase	Collections		Revenue			Amortization Rate	Monthly Yield(1)		Net Impairments			Zero Basis Collections
2001 and prior	$	8,393,785	$	8,394,658		N/M%	N/M	%	$	—		$	8,393,785
2002		9,216,465		7,307,752		20.7	56.31			(46,600	)		5,979,626
2003		13,745,208		9,309,806		32.3	18.08			159,300			3,703,211
2004		11,542,711		6,251,686		45.8	5.48			2,599,000			701,046
2005		11,977,322		(1,942,723	)	116.2	(1.07	)		11,124,000			25,775
2006		25,166,089		17,032,010		32.3	5.22			5,300			2,489,766
2007		10,706,862		5,681,345		46.9	2.30			—			—
Totals	$	90,748,442	$	52,034,534		42.7	5.57		$	13,841,000		$	21,293,209

2

Asset Acceptance Third Quarter 2008 Results

Page 3 of 10 ~

	Nine months ended September 30, 2008
Year of Purchase	Collections		Revenue		Amortization Rate	Monthly Yield(1)		Net Impairments			Zero Basis Collections
2002 and prior	$	38,448,367	$	36,759,752	N/M%	N/M	%	$	(550,000	)	$	34,828,065
2003		31,199,446		27,553,337	11.7	33.70			(1,311,400	)		17,491,792
2004		25,992,434		18,034,090	30.6	7.16			2,808,664			2,651,637
2005		28,762,384		11,025,465	61.7	2.90			4,362,986			56,605
2006		64,213,311		40,767,563	36.5	5.42			2,460,000			5,766,090
2007		73,446,469		32,799,249	55.3	2.73			668,000			78,674
2008		24,170,141		11,107,343	54.0	2.69			—			27,779
Totals	$	286,232,552	$	178,046,799	37.8	5.76		$	8,438,250		$	60,900,642
	Nine months ended September 30, 2007
Year of Purchase	Collections		Revenue		Amortization Rate	Monthly Yield(1)		Net Impairments			Zero Basis Collections
2001 and prior	$	29,075,495	$	29,086,944	N/M%	N/M	%	$	—		$	28,909,608
2002		31,648,465		22,868,712	27.7	35.62			162,500			15,835,814
2003		46,176,202		31,082,260	32.7	15.54			1,783,600			9,739,777
2004		38,397,854		22,901,860	40.4	5.90			7,074,800			2,320,943
2005		40,451,980		17,445,342	56.9	2.79			13,803,000			56,005
2006		77,889,306		51,034,709	34.5	4.79			633,300			4,733,507
2007		18,394,511		9,911,639	46.1	2.33			—			—
Totals	$	282,033,813	$	184,331,466	34.6	6.66		$	23,457,200		$	61,595,654

(1) The monthly yield is a weighted-average yield determined by dividing purchased receivable revenues recognized in the period by the average of the beginning monthly carrying values of the purchased receivables for the period presented.

Mark Redman, Senior Vice President-Finance and CFO of Asset Acceptance Capital Corp., said: “Fortunately, we refinanced our debt in June 2007 just ahead of the start of the events that have led to the extraordinarily difficult credit markets that we are currently experiencing. Our $100 million revolving credit line matures in June 2012 and the $150 million term loan matures in June 2013. During 2008, our strong cash flow has been the primary source of funds to acquire portfolios of charged-off consumer debt. We have invested $123.2 million in purchased receivables during the first nine months of 2008 and during that time the outstanding debt on our credit facilities has been reduced by approximately $2.1 million.”

3

Asset Acceptance Third Quarter 2008 Results

Page 4 of 10 ~

Third Quarter 2008: Key Financial Highlights

• Cash collections were $90.8 million in the third quarter 2008, versus $90.7 million in the prior year third quarter.

• Total revenues increased 11.0 percent to $58.4 million in the third quarter 2008, versus $52.6 million in the prior year third quarter.

• Net income increased to $3.0 million, or $0.10 per fully diluted share, in the third quarter 2008, versus a net loss of $1.7 million, or $0.05 per fully diluted share, in the prior year third quarter.

• Total operating expenses were $50.1 million, or 55.2 percent of cash collections in the third quarter 2008, an improvement over operating expenses of 57.4 percent of cash collections during the same period last year.

• Traditional call center collections declined 6.4 percent to $38.4 million or 42.3 percent of total cash collections.

• Legal collections increased 3.9 percent to $38.1 million or 41.9 percent of total cash collections.

• Other collections, consisting primarily of agency forwarding, bankruptcy and probate collections, accounted for $14.3 million or the remaining 15.8 percent of total cash collections.

• Quarterly account representative productivity on a full-time equivalent basis was $39,866 in the third quarter 2008, a decline of 12.5 percent from the same period in 2007.

4

Asset Acceptance Third Quarter 2008 Results

Page 5 of 10 ~

Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (Unaudited)

The Company provided the following table which reconciles GAAP net income (loss), as reported, to Adjusted EBITDA. The Company indicated that the measure “Adjusted EBITDA” is the basis for its management bonus program and a similar computation is used in its credit agreement’s financial covenants. The Company believes that Adjusted EBITDA, which is generally cash collections less operating expenses (other than non-cash operating expenses, such as depreciation and amortization) represents the Company’s cash generation which can be used to purchase receivables, pay down debt, pay income taxes, return to shareholders and for other uses. Adjusted EBITDA, which is a non-GAAP financial measure, should not be considered an alternative to, or more meaningful than, net income (loss) prepared on a GAAP basis. Additionally, Adjusted EBITDA as computed by the Company may not be comparable to similar metrics used by others in the industry.

	Three months ended September 30,						Nine months ended September 30,
	2008			2007			2008			2007
Net income (loss)	$	3,039,979		$	(1,675,499	)	$	11,941,961		$	16,454,919
Add: interest income and expense (net), income taxes, depreciation and amortization		6,227,984			3,191,215			20,348,675			17,455,317
Add (subtract): (gain) loss on disposal of assets		2,280			(259,852	)		(153,277	)		(258,553	)
Add: impairment of intangible assets		—			—			445,651			—
Add (subtract): other (income) expense		1,711			(29,240	)		(14,622	)		(51,705	)
Subtotal		9,271,954			1,226,624			32,568,388			33,599,978
Change to balance of purchased receivables		32,791,472			38,738,129			108,633,398			98,411,508
Non-cash revenue		(131,376	)		(24,221	)		(447,645	)		(709,161	)
Adjusted EBITDA	$	41,932,050		$	39,940,532		$	140,754,141		$	131,302,325
Cash collections	$	90,775,528		$	90,748,442		$	286,232,552		$	282,033,813
Other revenues, net		238,331			290,257			976,153			1,165,226
Operating expenses		(50,084,817	)		(52,174,978	)		(149,862,480	)		(155,143,090	)
Depreciation and amortization		1,000,728			1,073,957			2,950,502			3,242,223
Impairment of intangible assets		—			—			445,651			—
Loss on disposal of equipment		2,280			2,854			11,763			4,153
Adjusted EBITDA	$	41,932,050		$	39,940,532		$	140,754,141		$	131,302,325

5

Asset Acceptance Third Quarter 2008 Results

Page 6 of 10 ~

Third Quarter 2008 Earnings Conference Call

Asset Acceptance Capital Corp. will host a conference call at 10 a.m. Eastern today to discuss these results and current business trends. To listen to a live Web cast of the call, please go to the investor section of the Company’s web site atwww.AssetAcceptance.com. A replay of the Web cast will be available until November 4, 2009.

About Asset Acceptance Capital Corp.

For more than 45 years, Asset Acceptance has provided credit originators, such as credit card issuers, consumer finance companies, retail merchants, utilities and others an efficient alternative in recovering defaulted consumer debt. For more information, please visit www.AssetAcceptance.com.

Asset Acceptance Capital Corp. Safe Harbor Statement

This press release contains certain statements, including the Company’s plans and expectations regarding its operating strategies, charged-off receivables and costs, which are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s views, expectations and beliefs at the time such statements were made with respect to such matters, as well as the Company’s future plans, objectives, events, portfolio purchases and pricing, collections and financial results such as revenues, expenses, income, earnings per share, capital expenditures, operating margins, financial position, expected results of operations and other financial items. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Risk Factors”) that make the timing, extent, likelihood and degree of occurrence of these matters difficult to predict. Words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “should,” “could,” “will,” variations of such words and similar expressions are intended to identify forward-looking statements. There are a number of factors, many of which are beyond the Company’s control, which could cause actual results and outcomes to differ materially from those described in the forward-looking statements. Risk Factors include, among others: ability to purchase charged-off consumer receivables at appropriate prices, ability to continue to acquire charged-off receivables in sufficient amounts to operate efficiently and profitably, ability to recover sufficient amounts on our charged-off receivable portfolios, employee turnover, ability to compete in the marketplace and acquiring charged-off receivables in industries with which the Company has little or no experience. These Risk Factors also include, among others, the Risk Factors discussed under “Item 1A Risk Factors” in the Company’s most recently filed Annual Report on Form 10-K and in other SEC filings, in each case under a section titled “Risk Factors” or similar headings and those discussions regarding Risk Factors as well as the discussion of forward-looking statements in such sections are incorporated herein by reference. Other Risk Factors exist, and new Risk Factors emerge from time to time that may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Furthermore, the Company expressly disclaims any obligation to update, amend or clarify forward-looking statements.

6

Asset Acceptance Third Quarter 2008 Results

Page 7 of 10 ~

Supplemental Financial Data

(Unaudited Dollars in Millions, except collections per account representative)	Q3 ‘08			Q2 ‘08			Q1 ‘08			Q4 ‘07			Q3 ‘07
Total revenues	$	58.4		$	56.5		$	64.4		$	62.2		$	52.6
Cash collections	$	90.8		$	95.2		$	100.3		$	89.1		$	90.7
Operating expenses to cash collections		55.2	%		52.2	%		50.0	%		58.8	%		57.4	%
Traditional call center collections (Note 1)	$	38.4		$	42.2		$	47.5		$	38.6		$	41.0
Legal collections	$	38.1		$	39.9		$	38.2		$	37.6		$	36.6
Other collections (Note 1)	$	14.3		$	13.1		$	14.6		$	12.9		$	13.1
Amortization rate		36.0	%		41.0	%		36.4	%		31.2	%		42.7	%
Collections on fully amortized portfolios	$	18.4		$	20.3		$	22.2		$	20.4		$	21.3
Core amortization rate (Note 2)		45.1	%		52.1	%		46.8	%		40.5	%		55.7	%
Investment in purchased receivables (Note 3)	$	36.0		$	65.1		$	22.1		$	60.8		$	35.1
Face value of purchased receivables (Note 3)	$	725.8		$	1,925.1		$	544.8		$	1,481.5		$	1,850.7
Average cost of purchased receivables (Note 3)		4.96	%		3.38	%		4.06	%		4.11	%		1.89	%
Number of purchased receivable portfolios		42			52			47			46			42
Collections per account representative FTE (Note 1)	$	39,866		$	45,538		$	53,908		$	44,235		$	45,549
Average account representative FTE’s (Note 1)		966			939			901			889			916

Note 1: Amounts reclassified for purposes of comparability to current periods.

Note 2: Core amortization rate is amortization divided by collections on non-fully amortized portfolios.

Note 3: All purchase data is adjusted for buybacks.

7

Asset Acceptance Third Quarter 2008 Results

Page 8 of 10 ~

Asset Acceptance Capital Corp.

Consolidated Statements of Operations

(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2008			2007			2008			2007
Revenues
Purchased receivable revenues, net	$	58,115,432		$	52,034,534		$	178,046,799		$	184,331,466
Gain on sale of purchased receivables		—			262,706			165,040			262,706
Other revenues, net		238,331			290,257			976,153			1,165,226
Total revenues		58,353,763			52,587,497			179,187,992			185,759,398
Expenses
Salaries and benefits		20,913,727			20,046,294			63,580,622			63,447,328
Collections expense		23,661,598			26,229,213			68,892,170			73,008,203
Occupancy		1,976,845			2,380,040			5,833,162			7,027,068
Administrative		2,529,639			2,355,442			8,148,610			7,849,901
Restructuring charges		—			87,178			—			564,214
Depreciation and amortization		1,000,728			1,073,957			2,950,502			3,242,223
Impairment of intangible assets		—			—			445,651			—
Loss on disposal of equipment		2,280			2,854			11,763			4,153
Total operating expenses		50,084,817			52,174,978			149,862,480			155,143,090
Income from operations		8,268,946			412,519			29,325,512			30,616,308
Other income (expense)
Interest income		1,766			193,832			31,795			415,956
Interest expense		(3,300,691	)		(3,357,264	)		(9,895,351	)		(4,759,644	)
Other		(1,711	)		29,240			14,622			51,705
Income (loss) before income taxes		4,968,310			(2,721,673	)		19,476,578			26,324,325
Income taxes (benefits)		1,928,331			(1,046,174	)		7,534,617			9,869,406
Net income (loss)	$	3,039,979		$	(1,675,499	)	$	11,941,961		$	16,454,919
Weighted-average number of shares:
Basic		30,570,423			30,568,041			30,561,653			33,173,613
Diluted		30,614,701			30,568,041			30,595,802			33,222,500
Earnings per common share outstanding:
Basic	$	0.10		$	(0.05	)	$	0.39		$	0.50
Diluted	$	0.10		$	(0.05	)	$	0.39		$	0.50
Dividends per common share	$	—		$	2.45		$	—		$	2.45

8

Asset Acceptance Third Quarter 2008 Results

Page 9 of 10 ~

Asset Acceptance Capital Corp.

Consolidated Statements of Financial Position

(Unaudited)

	September 30, 2008			December 31, 2007
ASSETS
Cash	$	8,771,227		$	10,474,479
Purchased receivables, net		358,557,240			346,198,900
Income taxes receivable		1,309,308			3,424,788
Property and equipment, net		13,342,208			11,006,658
Goodwill and other intangible assets		16,828,330			17,464,688
Other assets		7,245,578			6,083,211
Total assets	$	406,053,891		$	394,652,724
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts payable	$	3,998,017		$	3,377,068
Accrued liabilities		17,156,287			17,423,378
Notes payable		189,125,000			191,250,000
Deferred tax liability, net		60,526,015			60,164,784
Capital lease obligations		2,256			18,242
Total liabilities	$	270,807,575		$	272,233,472
Stockholders’ equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding		—			—
Common stock, $0.01 par value, 100,000,000 shares authorized; issued shares — 33,119,597 at September 30, 2008 and December 31, 2007, respectively		331,196			331,196
Additional paid in capital		146,620,181			145,610,742
Retained earnings		31,407,079			19,465,118
Accumulated other comprehensive loss, net of tax		(2,136,211	)		(2,012,127	)
Common stock in treasury; at cost, 2,576,670 and 2,551,556 shares at September 30, 2008 and December 31, 2007, respectively		(40,975,929	)		(40,975,677	)
Total stockholders’ equity		135,246,316			122,419,252
Total liabilities and stockholders’ equity	$	406,053,891		$	394,652,724

9

Asset Acceptance Third Quarter 2008 Results

Page 10 of 10 ~

Asset Acceptance Capital Corp.

Consolidated Statements of Cash Flows

(Unaudited)

	Nine months ended September 30,
	2008			2007
Cash flows from operating activities
Net income	$	11,941,961		$	16,454,919
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,950,502			3,242,223
Deferred income taxes		428,242			(1,544,037	)
Share-based compensation expense		1,009,187			1,203,717
Net impairment of purchased receivables		8,438,250			23,457,200
Non-cash revenue		(447,645	)		(709,161	)
Loss on disposal of equipment		11,763			4,153
Gain on sale of purchased receivables		(165,040	)		(262,706	)
Impairment of intangible assets		445,651			—
Changes in assets and liabilities:
Increase in accounts payable and accrued liabilities		162,763			3,679,496
Increase in other assets		(501,792	)		(2,701,457	)
Decrease (increase) in income taxes receivable		2,115,480			(272,826	)
Net cash provided by operating activities		26,389,322			42,551,521
Cash flows from investing activities
Investment in purchased receivables, net of buy backs		(120,546,458	)		(108,329,242	)
Principal collected on purchased receivables		100,195,148			74,954,308
Proceeds from the sale of purchased receivables		167,405			262,706
Purchase of property and equipment		(5,109,623	)		(2,052,351	)
Proceeds from the sale of property and equipment		2,515			274,397
Net cash used in investing activities		(25,291,013	)		(34,890,182	)
Cash flows from financing activities
Borrowings under notes payable		91,500,000			216,000,000
Repayment of notes payable		(93,625,000	)		(70,375,000	)
Payment of credit facilities charges		(660,575	)		—
Repayment of capital lease obligations		(15,986	)		(49,602	)
Repurchase of common stock		—			(78,717,201	)
Cash dividends paid		—			(74,891,700	)
Net cash used in financing activities		(2,801,561	)		(8,033,503	)
Net decrease in cash		(1,703,252	)		(372,164	)
Cash at beginning of period		10,474,479			11,307,451
Cash at end of period	$	8,771,227		$	10,935,287
Supplemental disclosure of cash flow information
Cash paid for interest	$	9,873,833		$	3,500,176
Cash paid for income taxes		5,020,725			11,705,290
Non-cash investing and financing activities:
Change in fair value of swap liability		191,095			801,193
Change in unrealized loss on cash flow hedge		(124,084	)		(501,547	)

10