Company Report

October 8, 2012

EZCORP Inc.
CFO Departure, Control Shareholder Bonus
Our Call While outside the items likely to drive fundamentals, the loss of a CFO and the control shareholder bumping his management fee $1.2 million to $7.2 million per year cannot be viewed favorably. Our analytics suggest the lowered guidance and EPS misses reported in the first three quarters of FY12 are less function of weak growth in the U.S. and more a function of corporate overhead growth tied in part to the company's acquistion efforts. 8K In an 8K released on Thursday, EZPW announced the renewed terms of its consulting agreement with Madison Park (owned by its control shareholder), the departure of its CFO, Stephen Stamp, and the appointment of Mark Kuchenrither as CFO. Mr. Kuchenrither was promoted to Executive VP in May 2012 and Mr. Stamp reported to Mr. Kuchenrither. Consulting Arrangement Once a year, Madison Park renews its consulting arrangement with EZPW. Madison Park is owned by the holder of the company's B shares, which are voting. The public A shares are non-voting. Under the new agreement, Madison Park's annual consulting fee will be increased from the $6.0 million paid during fiscal '12 to $7.2 million. Our understanding is that the management of EZPW presented a variety of alternative arrangements that were hoped to be more shareholder friendly, but these agreements were rejected. CFO No specifics were given regarding the departure of Mr. Stamps, but based on changes made during the course of the year, we believe the company has been looking for more of an operationally oriented CFO. FY12 Even in the June quarter, the company has been able to realize segment level EBITDA growth of 21%, but the combination of 23% growth in corporate overhead and higher interest and depreciation/amortization cost tied in part to acquisitions pushed EPS growth down to 6.4%.

Neutral
EZPW Price: Close $21.91 Price Target $24.00
Mortgage Finance & Specialty Finance
Henry J. Coffey, Jr., CFA (615) 760-1472
hcoffey@sterneagee.com

Jason Weaver, CFA (615) 760-1475

jweaver@sterneagee.com

Calvin Hotrum (615) 760-1476

chotrum@sterneagee.com

Company Data
Rating Price: Close Price Target 52-Week Range Market Capitalization (M) Shares Outstanding (M) Avg. Daily Vol. (000) Dividend Yield Assets (M) Book Value Price/Book Neutral $21.91 $24.00 $21.39 - $33.38 $1,095.2 48.2 379.0 0.0% $756.5 $13.23 166%

Price Performance FYE Sep

EPS ($) Q1 (Dec) Q2 (Mar) Q3 (Jun) Q4 (Sept) FY EPS P/E

2012E (Curr)
0.78A 0.73A 0.56A 0.68 2.75 8.0x

2013E (Curr)
0.78 0.76 0.69 0.77 3.00 7.3x

2014E (Curr)
3.30 6.6x

80 70 60 50 40 30 20 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 EZCORP Inc. Russell 2000 Total Return Index (RSII)

Source: FactSet

Important Disclosures regarding Price Target Risks, Valuation Methodology, Regulation Analyst Certification, Investment Banking, Ratings Definitions, and potential conflicts of interest begin on Page I of the Appendix Section. 800 Shades Creek ParkwaySuite 700Birmingham, AL 35209205-949-3500
Sterne, Agee & Leach Inc. is Member NYSE, FINRA, SIPC

October 8, 2012
The June quarter was the first quarter in which the company felt the bite of falling jewelry scrapping volumes and scrapping margins, but the company reported EPS below consensus estimates and the rate suggested by the companys previous guidance of 20%. Most of the lower results have been, in our view, primarily self imposed and tied in our view to higher growth in segment level administrative cost and higher growth in corporate cost. The higher corporate costs are tied heavily, in our view, to spending on closed and cancelled acquisitions as well as the additional cost tied to its payment to Madison in FY12.

Exhibit--Line of Business Contribution

June Q '12 (3Q12) EZPW Revenues: Merchandise sales Jewelry scrapping sales Pawn service charges Consumer loan fees Other revenues Total revenues COGS Disp Merc. Consumer loan bad debt Net revenues Store Level Oper Cost Store Level Cont Adm. Cost (regional) Equity in Net Income of uncons. Segment Oper EBITDA Corp OH Operatiing EBITDA EPS -1Q12 A EPS -2Q12 A EPS -3Q12 A EPS -4Q12 E FY12E
Source: Company Reports and SA Research $ in millions

U.S. & Canada $65.8 $37.5 $50.0 $39.2 $0.6 $193.1 ($62.9) ($9.4) $120.8 ($66.0) $54.8 ($6.0) $48.9

Y/Y Chng 13% -19% 14% 1% 15% 3%

Latin America $10.2 $4.5 $6.2 $10.4 $0.6 $31.8 ($9.5) ($0.6) $21.6 ($8.8) $12.9 ($4.3) $8.5

Y/Y Chng 59% 6% 37% nmf nmf 109%

Other Int. $3.9 0.16 $4.0 $0.0 ($1.3) $2.8 ($0.9) $1.8 ($0.2) $4.2 $5.9 Cons. $76.0 $42.0 $56.2 $53.5 $1.4 $229.0 ($72.5) ($11.3) $145.3 ($75.7) $69.6 ($12.2) $4.2 $61.6 ($10.5) $51.1 $0.78 $0.73 $0.56 $0.68 $2.75

Y/Y Chng 18% -17% 16% 38% 139% 13%

5% 8% 2% 39% -1%

173% 63% 409% 328% 464%

18%

21% 23% 11% 13.0% 15.7% 6.4% -4.7% 7.3%

During the first six months (December and March quarters) of FY12, net revenues and store level contribution in its U.S. and Canada stores were up 13% and 22%. This group reported a considerable reduction in gross revenues due primarily to falling scrapping volumes and negative year-over-year growth because of higher segment level administrative cost. Consolidated segment EBITDA increased at a respectable level, but due to higher corporate overhead, higher interest cost and higher depreciation/amortization cost, all tied primarily to acquisition-related activity, EPS increased only 6% and we are estimating negative year-overyear EPS growth in the pending September quarter.

Page 2

October 8, 2012

APPENDIX SECTION
Company Description:
EZCORP, Inc. is an Austin, Texas-based branch-based lender that offers pawn and short-term payday loans (PDL, called signature loans by the company) to consumers through a network of 332 pawn stores and 477 PDL stores in 18 states and Mexico.

IMPORTANT DISCLOSURES: Regulation Analyst Certification:

I, Henry J. Coffey, Jr., Jason Weaver and Calvin Hotrum, hereby certify the views expressed in this research report accurately reflect my personal views about the subject security(ies) or issuer(s). I further certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by me in this report.

Research Disclosures:
Sterne, Agee & Leach, Inc. makes a market in the following subject company EZCORP Inc.. Sterne, Agee & Leach, Inc.'s research analysts receive compensation that is based upon various factors, including Sterne, Agee & Leach, Inc.'s total revenues, a portion of which is generated by investment banking activities. Sterne Agee & Leach, Inc. expects to receive or intends to seek compensation for investment banking services from the subject company and/or companies in the next three months.

Price Target Risks & Related Risk Factors:

Investment risks associated with the achievement of the price target include, but are not limited to, a company's failure to achieve Sterne, Agee & Leach, Inc., earnings and revenue estimates; unforeseen macroeconomic and/or industry events that adversely affect demand for a company's products or services; product obsolescence; changes in investor sentiment regarding the specific company or industry; intense and rapidly changing competitive pressures; the continuing development of industry standards; the company's ability to recruit and retain competent personnel; and adverse market conditions. For a complete discussion of the risk factors that could affect the market price of a company's shares, refer to the most recent Form 10-Q or 10-K that a company has filed with the Securities Exchange Commission.

Company Specific Risks:

Risk to Price Target and Rating: These lenders face two primary risks to ratings and/or price targets: loan quality and regulatory risk. Adverse trends in the economy could impact their customers' ability or willingness to pay off their loans. Rising fuel and food cost and adverse trends in employment are all bad for these companies' borrowers. Regulatory risk is an additional issue. Sometimes proposed changes or acquisitions represent simply "headline" risk; other times issues raised or regulatory changes being considered represent changes of substance. Changes in the price of gold can impact pawn lenders, and for companies with operations outside of the U.S., trends in currency rates are worth noting.

Valuation Methodology:
Methodology for assigning ratings and target prices includes qualitative and quantitative factors including an assessment of industry size, structure, business trends and overall attractiveness; management effectiveness; competition; visibility; financial condition; and expected total return, among other factors. These factors are subject to change depending on overall economic conditions or industry or company-specific occurrences. Sterne, Agee & Leach, Inc., analysts base valuations on a combination of forward looking earnings multiples, price-to-revenue multiples, and enterprise-value-to-revenue ratios. Sterne, Agee & Leach, Inc., believes this accurately reflects the strong absolute value of earnings, the strong earnings growth rate, the inherent profitability, and adjusted balance sheet factors. Additional company-specific valuation methodology is available through Sterne, Agee & Leach, Inc.

Company Specific Valuation:

When valuing these stocks we focus more on enterprise value (EV=value of debt + plus value of equity less unencumbered cash) and EBITDA. When investor optimism concerning trends in regulation and consumer loan quality is high, P/E ratios and a PEG model tend to better capture the upside of these stocks. When establishing multiples we consider expected growth rates, peer valuation, capital structure, trends in loan quality, and past performance. We also look at the valuation accorded various lines of businesses or product lines.

Definition of Investment Ratings:

BUY: We expect this stock to outperform the industry over the next 12 months. NEUTRAL: We expect this stock to perform in line with the industry over the next 12 months.

Appendix Section, Page I

October 8, 2012 UNDERPERFORM: We expect this stock to underperform the industry over the next 12 months. RESTRICTED: Restricted list requirements preclude comment.

Ratings Distribution:
Rating Category Buy Neutral Underperform Count 226 223 22 Percent 47.98% 47.35% 4.67% Count 16 11 0 IB Serv./ Past 12Mos. Percent 7.08% 4.93% 0.00%

ADDITIONAL INFORMATION AVAILABLE UPON REQUEST: Contact Robert Hoehn at 1-212-338-4731. Other Disclosures: Opinions expressed are our present opinions only. This material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Sterne, Agee & Leach, Inc., its affiliates, or one or more of its officers, employees, or consultants may, at times, have long or short or options positions in the securities mentioned herein and may act as principal or agent to buy or sell such securities. Copyright 2012 Sterne, Agee & Leach, Inc. All Rights Reserved.

To receive price charts or other disclosures on the companies mentioned in this report, please visit our website at https:// sterneagee.bluematrix.com/sellside/Disclosures.action or contact Sterne, Agee & Leach, Inc. toll-free at (800) 240-1438 or (205) 949-3689.

Appendix Section, Page II

Founded in 1901, Sterne Agee has been providing investors like you with high-quality investment opportunities for over a century. During the early years, our founders prominently established themselves in the financial securities industry in the southeastern United States. Today, we have expanded to serve all regions of the country. Sterne, Agee is headquartered in Birmingham, Alabama with offices in 22 states. Sterne Agee is one of the largest independent firms in the country. Sterne, Agee & Leach, Inc. is a division of Sterne Agee Group, Inc., which also includes The Trust Company of Sterne, Agee & Leach, Inc.; Sterne Agee Asset Management, Inc.; Sterne Agee Clearing, Inc.; and Sterne Agee Financial Services, Inc.www.sterneagee.com

EQUITY CAPITAL MARKETS

Ryan Medo Managing Dir., Eq. Cap. Mkts. (205) 949-3623

William Jump Jon Schenk

INSTITUTIONAL SALES Director of Institutional Sales Assoc. Director of Inst. Sales

Robert Hoehn

(404) 814-3960 (212) 763-8221

JT Cacciabaudo

INSTITUTIONAL TRADING Head of Trading

(212) 763-8288

EQUITY RESEARCH
Director of Research (212) 338-4731

CONSUMER Apparel Retailing & Toys

Margaret Whitfield Tom Nikic, CFA Arvind Bhatia, CFA Brett Strauser SVP, Sr. Analyst Analyst Mng. Dir. VP, Analyst Mng. Dir. Analyst Mng. Dir. (973) 519-1019 (212) 338-4784 (214) 702-4001 (214) 702-4009 (212) 763-8226 (212) 338-4721 (949) 721-6651

FINANCIAL SERVICES (CONT.) Property/Casualty Insurance

Dan Farrell Nitin Chhabra, FCAS Mng. Dir. Analyst (212) 338-4782 (212) 338-4779

Interactive Entertainment / Internet

INDUSTRIALS Aerospace & Defense

Peter Arment Josh W. Sullivan Mng. Dir. Sr. Analyst (646) 376-5336 (646) 376-5337

Footwear & Apparel

Sam Poser Ben Shamsian

Auto, Auto Parts and Auto Retailers

Michael P. Ward, CFA Mng. Dir. (646) 376-5375

Leisure & Entertainment

David Bain

Coal, Metals & Mining, Engineering & Construction

Michael S. Dudas, CFA Satyadeep Jain, CFA Patrick Uotila, CPA Mng. Dir. Analyst Analyst (646) 376-5329 (646) 376-5357 (646) 376-5358

Restaurants
Lynne Collier Mng. Dir. (214) 702-4045

ENERGY Exploration & Production

Tim Rezvan, CFA Sr. Analyst (212) 338-4736

Construction Materials & Diversified Industrials

Todd Vencil, CFA Kevin Bennett, CFA SVP, Sr. Analyst VP, Analyst (804) 282-7385 (804) 282-4506

Oilfield Services & Equipment

Stephen D. Gengaro Grant Fox Mng. Dir. Analyst (646) 376-5331 (212) 338-4723

HEALTHCARE

Pharmaceutical Services
Greg T. Bolan Himanshu Rastogi, PhD, CFA Mng. Dir. VP, Analyst (615) 760-1469 (615) 760-1478

FINANCIAL SERVICES Asset Management

Jason Weyeneth, CFA Charles Warren, CFA SVP, Sr. Analyst VP, Analyst (212) 763-8293 (646) 376-5309

TECHNOLOGY Data Networking and Storage

Alex Kurtz Amelia Harris Mng. Dir Analyst (415) 402-6015 (415) 402-6018

Banks & Thrifts

Matthew Kelley Matthew Breese Brett Rabatin, CFA Kenneth James Peyton Green Zachary Wollam Todd L. Hagerman Robert Greene Mng. Dir. Analyst Mng. Dir. VP, Sr. Analyst Mng. Dir. VP, Analyst Mng. Dir. VP, Analyst (207) 699-5800 (207) 699-5800 (615) 760-1466 (615) 760-1474 (877) 492-2663 (615) 760-1468 (212) 338-4744 (212) 763-8296

Financial Technology
Greg Smith Jennifer Dugan Mng. Dir Analyst (818) 615-2029 (415) 402-6051

Hardware, Mobile Devices, IT Supply Chain

Shaw Wu SVP, Sr. Analyst (415) 362-7431

LED Supply Chain

Andrew Huang John Shen Mng. Dir. Analyst (415) 362-6143 (415) 402-6052

Life Insurance
John M. Nadel Alex Levine Mng. Dir. Analyst (212) 338-4717 (212) 338-4748

Semiconductors
Vijay Rakesh Mng. Dir. (312) 525-8431

Mortgage Finance & Specialty Finance

Henry J. Coffey, Jr., CFA Jason Weaver, CFA Calvin Hotrum Mng. Dir. VP, Sr. Analyst Analyst (615) 760-1472 (615) 760-1475 (615) 760-1476

TRANSPORTATION, SERVICES & EQUIPMENT

Jeffrey A. Kauffman Sal Vitale Ryan Mueller Mng. Dir. VP, Sr. Analyst Analyst (212) 338-4765 (212) 338-4766 (212) 338-4732

Email Address for Sterne Agee Employees: first initial + last name@sterneagee.com (e.g., jsmith@sterneagee.com)