Item 2.02 Results of Operations and Financial Condition

January 29, 2009 - Clearwater, Florida - Nicholas Financial, Inc. (NASDAQ: NICK) announced that for the three months ended December 31, 2008, net earnings, excluding non-cash unrealized mark-to-market loss of interest rate swaps, decreased 43% to $1,267,000 compared to $2,236,000 for the three months ended December 31, 2007. Per share diluted net earnings, excluding non-cash unrealized mark-to-market loss of interest rate swaps, decreased 45% to $0.12 for the three months ended December 31, 2008 as compared to $0.22 for the three months ended December 31, 2007. See reconciliations of the Non-GAAP measures on page 3 of Exhibit 99.1. Revenue increased 5% to $13,254,000 for the three months ended December 31, 2008 as compared to $12,614,000 for the three months ended December 31, 2007.

Item 9.01 Financial Statements and Exhibits

Exhibit # Description 99.1 Press release dated January 29, 2009.

---