Exhibit 99.1

The
CreditStore


CONTACT: MICHAEL PHILIPPE
         CHIEF FINANCIAL OFFICER
         (605) 339-7520

FOR IMMEDIATE RELEASE
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                 THE CREDIT STORE, INC. UPDATES LIQUIDITY STATUS

SIOUX FALLS - AUGUST 2, 2002 - The Credit Store Inc. (AMEX- CDS) today provided
an update to its previous statements regarding its liquidity status.

         As disclosed in the Company's press release dated July 8, 2002, the
Company was engaged in discussions aimed at obtaining additional financing
and/or accommodations from its existing creditors so as to improve its liquidity
position. To date, the Company has not arranged any new sources of financing or
made any other arrangements to enhance its liquidity. The Company was unable to
extend the maturity of its credit facility with Coast Business Credit and is now
in default under the credit facility. Coast has advised the Company that its
parent, Southern Pacific Bank, has been under contract to sell a portfolio of
loans, including the Company's credit facility. The Company continues to engage
in discussions with its various institutional creditors, including Coast and the
potential purchaser of its portfolio of loans, as well as possible new sources
of funding looking toward extensions of maturity dates or refinancing of its
existing indebtedness. There can be no assurance these discussions will be
successful. The Company has also been withholding payments to many of its
unsecured creditors.

         The Company continues to review the alternatives available to it,
including the possibility of asset sales and reorganization under the federal
bankruptcy act. The Company has retained Marotta Gund Budd & Dzera, LLC as
restructuring advisors to assist the Company in exploring its options. J.
Richard Budd, III, a director of the Company, is a principal of Marotta Gund
Budd & Dzera, LLC.

FORWARD LOOKING STATEMENTS
         This press release contains certain forward-looking statements on which
readers should not place undue reliance on forward-looking statements. Factors
that may cause our actual results to differ from those projected include: our
ability to achieve positive cash flow from operation, our ability to obtain
additional capital to finance our operations, our ability to sell or securitize
our performing credit card receivables and general economic conditions. These
and other risk factors are more fully discussed in the Company's Annual Report
on Form 10-K for the year ended June 30, 2001. We caution you that the list of
factors above is not exhaustive and that those or other factors, many of which
are outside of our control, could have a material adverse effect on us and our
results of operations. All forward-looking statements attributable to persons
acting on our behalf are expressly qualified in their entirety by the cautionary
statements set forth herein and in our Annual Report on Form 10-K. We assume no
obligation to publicly release the results of any revision or updates to these
forward-looking statements to reflect future events or unanticipated
occurrences.