## CORE ASSET PURC HAS ING 

Our Core Asset Purchasing business achieved a record number of customer payments in 2010, reflecting robust pur- chasing activity and record productivity. 

PRA’s Core Asset Purchasing business con- sists of buying and collecting upon portfolios of non-bankrupt, distressed consumer receiv- ables that credit grantors have charged off. Our collection processes fulfill a dual goal of reaching fair payment solutions for our customers and optimizing portfolio value for shareholders. During 2010, PRA signed a record number of core forward flow agree- ments, through which credit grantors sell us similar portfolios on a regular basis. This new business allowed PRA to invest $150 million in core assets during the year, representing 

a 19% increase over our investment in 2009. Our collections activities progressed as well. Our amplified call and letter activity yielded 4.4 million payments from customers—a number that was up 63% from 2009. Fueling this collections success were the skill and dedication of our team, our best-in-class statistical modeling, and our ongoing invest- ments in key technologies and capabilities, such as our internal legal collections opera- tions, that let us capture additional margin and exert greater control over the quality of work done. 

