The Cash Store Financial Services Announces Substantial Issuer Bid

    EDMONTON, Nov. 5 /CNW/ - The Cash Store Financial Services Inc. ("Cash
Store Financial") (TSX: CSF) announced a substantial issuer bid (the "Offer")
today pursuant to which it will offer to purchase for cancellation up to $9
million of its outstanding common shares ("Common Shares") from shareholders.
The Offer will proceed by way of a "Dutch Auction" and the offer price will be
announced prior to mailing of the offer documents.
    The Dutch Auction tender process allows shareholders to individually
select the price, within the specified range, at which they are willing to
sell all or a portion of their Common Shares. When the Offer expires, Cash
Store Financial will select the lowest price allowing it to buy up to $9
million in Common Shares (the "Purchase Price"). All Common Shares tendered at
or below the selected price level will be bought at the Purchase Price,
subject to proration in the event that the aggregate cost to purchase all of
the shares exceeds $9 million.
    The Offer is subject to various conditions typical of transactions of
this nature. It is anticipated that the offer to purchase and issuer bid
circular and other related documents (the "Offer Documents"), containing the
terms of the Offer and the instructions for tendering Common Shares will be
mailed to Shareholders and filed with applicable securities regulators on or
about November 14, 2008. The Offer will remain open for acceptance for at
least 35 days after the date of commencement, unless withdrawn or extended by
the Corporation.
    The directors of Cash Store Financial believe that the purchase of Common
Shares under the Offer represents an effective use of the Cash Store
Financial's financial resources and is in the best interests of its
Shareholders as the recent trading price range of the Common Shares is not
fully reflective of the value of the Cash Store Financial's business and
future prospects. The repurchase of Common Shares is not expected to preclude
Cash Store Financial from pursuing its foreseeable business opportunities or
the future growth of its business.
    The Cash Store Financial has completed the maximum allowable purchases
under its normal course issuer bid ("NCIB") announced June 27, 2007 and
amended on May 14, 2008. As of November 5, 2008, Cash Store Financial had
purchased an aggregate of 1,218,402 Common Shares pursuant to such NCIB.

    About The Cash Store Financial Services Inc.

    Cash Store Financial is the only payday advance broker in Canada publicly
traded on the TSX. Cash Store Financial operates more than 400 branches across
Canada under two banners: The Cash Store and Instaloans.
    The Cash Store and Instaloans act as brokers to facilitate payday advance
services to Income-earning consumers who may not be able to obtain them from
traditional banks.
    Cash Store Financial also provides a private-label debit card, The
Freedom Card, and other ancillary products.
    Cash Store Financial employs more than 1,500 associates and is
headquartered in Edmonton, Alberta.

    This news release contains "forward-looking statements" within the
meaning of applicable Canadian securities legislation, including but not
limited to, statements about the Company's objectives and strategies including
with respect to the substantial issuer bid, financial results, expectations
and outlook, whether for the Company's businesses or the Canadian economy.
Generally, forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not expect",
"is expected", "budget", "scheduled", "planned", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or state that certain actions, events or
results "may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, closing of transactions, performance or achievements of the Company
to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to risks related to
fluctuations in our stock price and capital markets and additional funding
requirements, fluctuating interest rates and general economic conditions,
legislative and regulatory developments, the nature of the Company's customers
and rates of default, competition and loss of a material relationship as well
as those factors discussed in the Company's annual information form dated
August 27, 2008 filed on SEDAR (www.sedar.com). All material assumptions used
in making forward-looking statements are based on management's knowledge of
current business conditions and expectations of future business conditions and
trends, including management's knowledge of the current market within which
the Company operates and other factors affecting the Company's products and
the Canadian economy. Although the Company believes the assumptions used to
make such statements are reasonable at this time and has attempted to identify
in its continuous disclosure documents important factors that could cause
actual results to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as
anticipated, estimated or intended. Certain material factors or assumptions
are applied by the Company in making forward-looking statements, including
without limitation, factors and assumptions regarding acceptance of its
current stock price, products in the marketplace, consumer purchasing trends,
existing relationships as well as its operating cost structure and current
legislation and orders regulating its business. There can be no assurance that
such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. The Company does not undertake to update any forward-looking
statements that are contained herein, except in accordance with applicable
securities laws. Further information on the Company is available at
www.sedar.com.

For further information: Gordon J. Reykdal, Chairman and Chief Executive
Officer, Cash Store Financial, (780) 408-5118 or Nancy Bland, Chief Financial
Officer, Cash Store Financial, (780) 732-5683 or Michael J.L. Thompson, Senior
Vice President and Corporate Secretary, Cash Store Financial, (780) 408-5595