PR - FirstCity Financial Extends Stock Repurchase Plan

Waco, Texas-based FirstCity Financial Corporation (Nasdaq: FCFC) announced yesteray it is extending its stock repurchase plan to August 31, 2008. The plan approved by the Board of Directors allows FirstCity to purchase up to one million shares of FirstCity’s common stock. The timing, price and volume of repurchases will be based on market conditions and other factors.

The stock repurchases may be made from time to time on the open market or in privately negotiated transactions. The stock repurchase program does not require the company to repurchase any specific number of shares, and the company may terminate the repurchase program at any time.

FirstCity has purchased 532,700 shares under the plan for an aggregate purchase price of $5,569,021.80 during the period from August 14, 2006 to August 31, 2007. FirstCity currently has approximately 10,786,837 shares of common stock outstanding. The closing sale price of its common stock on November 28, 2007, as reported on the NASDAQ Stock Market, was $8.11 per share.

James T. Sartain, President and CEO, said, "We believe that our common shares are undervalued at current prices, and that, at the present stock price, the repurchase program represents a good alternative to achieve our strategy of building long term shareholder value. Our available resources will allow the company to repurchase these shares, while at the same time preserve adequate liquidity to continue growing our earning asset base."