Exhibit 99.1

Advanta Reports Earnings for 2007

Substantial Reserves Added in the Fourth Quarter

SPRING HOUSE, Pa.--(BUSINESS WIRE)--Advanta Corp. (NASDAQ: ADVNB; ADVNA) today reported full year 2007 net income from continuing operations of $71 million or $1.61 per diluted share for Class A and Class B shares combined, including an after-tax charge of $0.17 per share relating to contingency reserves associated with Visa’s litigation with third parties. Fourth quarter earnings of $0.17 per share include an $0.11 per share after-tax charge also associated with Visa litigation matters.

In addition, the fourth quarter earnings incorporate $0.39 per share of after-tax balance sheet charges and reserve build resulting primarily from recent credit trends, and a $0.05 per share after-tax gain on the sale of a portion of the Company’s MasterCard shares.

During the year, the Company acquired approximately 335,000 new customers. Managed receivables grew approximately 22% to $6.3 billion in 2007. Owned receivables were $1.0 billion at year end, approximately 9% lower than December 31, 2006. Transaction volume of $14.4 billion for 2007 increased 17% from the prior year. For the full year, the managed net credit loss rate was 3.71% and the owned net credit loss rate was 3.39%. These net credit loss rates compare to the 2006 rates of 3.41% and 3.19%, respectively.

“Our decision to focus exclusively on the small business market almost 7 years ago has enabled us to build a profitable, sustainable business over the long haul. Although we’re disappointed with the impact of the current economy on our recent results, we believe the small business market will continue to provide opportunities for us going forward,” said Dennis Alter, Chairman and CEO.

Conference Call Details

Advanta management will hold a conference call with analysts and institutional investors today, January 30, at 9:00 a.m. Eastern Time, to review the fourth quarter and full year results for 2007. The call can be accessed by dialing 877-879-6209 and referring to confirmation code 5054657. The call will also be webcast simultaneously via a Vcall link on the Company’s website, www.advanta.com, or at www.investorcalendar.com. Those interested in listening to the webcast should go to the website at least 10 minutes before the call to register and download any necessary software. Replays of the call will be available beginning at noon today on the Internet at www.advanta.com or www.investorcalendar.com or by dialing 888-203-1112 and referring to pass code 5054657. The conference call may include a discussion of non-GAAP financial measures, which are reconciled to the most directly comparable GAAP financial measures in the Company’s press releases or the statistical supplements available at www.advanta.com in the “Corporate Info” section.

About Advanta

Advanta is one of the nation’s largest credit card issuers (through Advanta Bank Corp.) in the small business market today. Advanta’s exclusive focus on this market, as well as its size, experience and commitment to developing meaningful product offerings and a high level of service tailored to the needs of small businesses, differentiate the company from other issuers. Founded in 1951, Advanta has long been an innovator in developing and introducing many of the marketing techniques that are common in the financial services industry today. Learn more about Advanta at www.advanta.com.

This Press Release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ from those projected. Risks that may affect the Company’s future performance are detailed in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.

In addition to the GAAP results provided throughout this document, the Company has provided managed receivable data and other non−GAAP financial measurements. Management believes that the non-GAAP financial measures used to manage the business may provide users additional useful information. The tables attached to this press release include a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures and a description of why the non-GAAP financial measures are useful to investors.

 
ADVANTA
SEGMENT INCOME STATEMENT - QUARTER
(in thousands)
     
Three Months Ended
December 31, 2007
 
Advanta
Business
Cards Other (A) Total
Interest income $ 38,945 $ 10,829 $ 49,774
Interest expense 14,983   12,547   27,530  
Net interest income 23,962 (1,718 ) 22,244
Provision for credit losses 21,587   (35 ) 21,552  
Net interest income after provision for credit losses 2,375 (1,683 ) 692
Noninterest revenues:
Interchange income 69,346 0 69,346
Securitization income 10,375 0 10,375
Servicing revenues 25,258 0 25,258
Business credit card rewards (22,495 ) 0 (22,495 )
Other revenues, net 8,149   1,768   9,917  
Total noninterest revenues 90,633 1,768 92,401
Operating expenses 73,140   7,924   81,064  
Income (loss) before income taxes 19,868 (7,839 ) 12,029
Income tax expense (benefit) 7,669   (3,026 ) 4,643  
Net income (loss) $ 12,199   $ (4,813 ) $ 7,386  
 
 
Three Months Ended
December 31, 2006
 
Advanta
Business
Cards Other (A) Total
Interest income $ 37,839 $ 7,209 $ 45,048
Interest expense 14,066   8,161   22,227  
Net interest income 23,773 (952 ) 22,821
Provision for credit losses 9,969   0   9,969  
Net interest income after provision for credit losses 13,804 (952 ) 12,852
Noninterest revenues:
Interchange income 54,925 0 54,925
Securitization income 25,442 0 25,442
Servicing revenues 17,938 0 17,938
Business credit card rewards (20,011 ) 0 (20,011 )
Other revenues, net 5,356   1,560   6,916  
Total noninterest revenues 83,650 1,560 85,210
Operating expenses 68,361   144   68,505  
Income before income taxes 29,093 464 29,557
Income tax expense 11,201   178   11,379  
Net income $ 17,892   $ 286   $ 18,178  

 

(A)  

Other includes venture capital operations as well as investment and other activities not attributable to the Advanta Business Cards segment. In addition, operating expenses in the three months ended December 31, 2007 include $7.8 million of charges associated with a contingent obligation to indemnify Visa Inc. for certain litigation matters.

 
ADVANTA
YEAR-TO-DATE SEGMENT INCOME STATEMENT
(in thousands)
     
Twelve Months Ended
December 31, 2007
 
Advanta
Business
Cards Other (A) Total
Interest income $ 157,255 $ 38,392 $ 195,647
Interest expense 54,922   44,409   99,331  
Net interest income 102,333 (6,017 ) 96,316
Provision for credit losses 58,200   (35 ) 58,165  
Net interest income after provision for credit losses 44,133 (5,982 ) 38,151
Noninterest revenues:
Interchange income 249,481 0 249,481
Securitization income 79,040 0 79,040
Servicing revenues 92,393 0 92,393
Business credit card rewards (86,705 ) 0 (86,705 )
Other revenues, net 24,582   7,706   32,288  
Total noninterest revenues 358,791 7,706 366,497
Operating expenses 276,439   12,529   288,968  
Income (loss) before income taxes 126,485 (10,805 ) 115,680
Income tax expense (benefit) 48,823   (4,171 ) 44,652  
Income (loss) from continuing operations 77,662 (6,634 ) 71,028

Gain on discontinuance of mortgage and leasing businesses, net of tax

0   1,022   1,022  
Net income (loss) $ 77,662   $ (5,612 ) $ 72,050  
 
 
Twelve Months Ended
December 31, 2006
 
Advanta
Business
Cards Other (A) Total
Interest income $ 143,738 $ 26,017 $ 169,755
Interest expense 46,233   29,077   75,310  
Net interest income 97,505 (3,060 ) 94,445
Provision for credit losses 38,650   (50 ) 38,600  
Net interest income after provision for credit losses 58,855 (3,010 ) 55,845
Noninterest revenues:
Interchange income 203,370 0 203,370
Securitization income 114,938 0 114,938
Servicing revenues 63,726 0 63,726
Business credit card rewards (68,062 ) 0 (68,062 )
Other revenues, net 18,952   5,031   23,983  
Total noninterest revenues 332,924 5,031 337,955
Operating expenses 256,192   620   256,812  
Income before income taxes 135,587 1,401 136,988
Income tax expense 52,201   539   52,740  
Income from continuing operations 83,386 862 84,248

Gain on discontinuance of mortgage and leasing businesses, net of tax

0   738   738  
Net income $ 83,386   $ 1,600   $ 84,986  

 

(A)  

Other includes venture capital operations as well as investment and other activities not attributable to the Advanta Business Cards segment. In addition, operating expenses in the twelve months ended December 31, 2007 include $12.0 million of charges associated with a contingent obligation to indemnify Visa Inc. for certain litigation matters.

 
ADVANTA
EARNINGS AND COMMON STOCK DATA
(in thousands, except per share data)
           
Three Months Ended Percent Change From Twelve Months Ended
Dec. 31, Sept. 30, Dec. 31, Prior Prior Dec. 31, Dec. 31, Percent
      2007   2007   2006   Quarter   Year     2007 2006   Change

Basic income from continuing operations per common share:

Class A $ 0.15 $ 0.44 $ 0.42 (65.9 ) % (64.3 ) % $ 1.61 $ 2.01 (19.9 ) %
Class B 0.20 0.49 0.46 (59.2 ) (56.5 ) 1.78 2.12 (16.0 )
Combined (A) 0.18 0.47 0.45 (61.7 ) (60.0 ) 1.73 2.08 (16.8 )

Diluted income from continuing operations per common share:

 

 
Class A $ 0.15 $ 0.43 $ 0.40 (65.1 ) % (62.5 ) % $ 1.55 $ 1.88 (17.6 ) %
Class B 0.18 0.45 0.42 (60.0 ) (57.1 ) 1.64 1.92 (14.6 )
Combined (A) 0.17 0.44 0.41 (61.4 ) (58.5 ) 1.61 1.91 (15.7 )
Basic net income per common share:
Class A $ 0.15 $ 0.44 $ 0.42 (65.9 ) % (64.3 ) % $ 1.64 $ 2.02 (18.8 ) %
Class B 0.20 0.49 0.46 (59.2 ) (56.5 ) 1.81 2.14 (15.4 )
Combined (A) 0.18 0.47 0.45 (61.7 ) (60.0 ) 1.75 2.10 (16.7 )
Diluted net income per common share:
Class A $ 0.15 $ 0.43 $ 0.40 (65.1 ) % (62.5 ) % $ 1.57 $ 1.90 (17.4 ) %
Class B 0.18 0.45 0.42 (60.0 ) (57.1 ) 1.66 1.94 (14.4 )
Combined (A) 0.17 0.44 0.41 (61.4 ) (58.5 ) 1.63 1.92 (15.1 )
 
Return on average common equity (annualized) 4.98 % 13.09 % 13.03 % (62.0 ) % (61.8 ) % 12.24

%

 

15.80 % (22.5 ) %
 
 
Weighted average common shares used to compute:
Basic earnings per common share
Class A 13,356 13,343 13,306 0.1 % 0.4 % 13,337 13,287 0.4 %
Class B 27,149 27,800 27,472 (2.3 ) (1.2 ) 27,679 27,096 2.2
Total 40,505 41,143 40,778 (1.6 ) (0.7 ) 41,016 40,383 1.6
Diluted earnings per common share
Class A 13,356 13,343 13,306 0.1 % 0.4 % 13,337 13,287 0.4 %
Class B 29,396 30,762 30,938 (4.4 ) (5.0 ) 30,664 30,795 (0.4 )
Total 42,752 44,105 44,244 (3.1 ) (3.4 ) 44,001 44,082 (0.2 )
 
Ending shares outstanding:
Class A 14,410 14,410 14,410 0.0 % 0.0 %
Class B 28,055 28,296 28,702 (0.9 ) (2.3 )
Total 42,465 42,706 43,112 (0.6 ) (1.5 )
 
Stock price:
Class A
High $ 26.45 $ 30.65 $ 28.42 (13.7 ) % (6.9 ) % $ 31.47 $ 28.42 10.7 %
Low 6.93 20.46 22.35 (66.1 ) (69.0 ) 6.93 19.21 (63.9 )
Closing 7.30 24.31 26.54 (70.0 ) (72.5 ) 7.30 26.54 (72.5 )
Class B
High $ 29.95 $ 33.74 $ 31.14 (11.2 ) % (3.8 ) % $ 34.51 $ 31.14 10.8 %
Low 7.84 23.32 24.34 (66.4 ) (67.8 ) 7.84 20.56 (61.9 )
Closing 8.07 27.42 29.09 (70.6 ) (72.3 ) 8.07 29.09 (72.3 )
 
Cash dividends declared:
Class A $ 0.1771 $ 0.1771 $ 0.1417 0.0 % 25.0 % $ 0.6730 $ 0.5006 34.4 %
Class B 0.2125 0.2125 0.1700 0.0 25.0 0.8075 0.6007 34.4
 
Book value per combined common share $ 14.40 $ 14.37 $ 13.77 0.2 % 4.6 %

All share and per share amounts have been adjusted to reflect the three-for-two stock split effective June 15, 2007.

(A)

 

Combined represents income available to common stockholders divided by the combined total of Class A and Class B weighted average common shares outstanding.

ADVANTA
ADVANTA BUSINESS CARDS STATISTICS
($ in thousands)
 
  Three Months Ended   Percent Change From   Twelve Months Ended
Dec. 31,   Sept. 30,   Dec. 31, Prior   Prior Dec. 31,   Dec. 31,   Percent
    2007   2007   2006   Quarter   Year   2007   2006   Change
New account originations 61,234 74,195 116,157 (17.5 ) % (47.3 ) % 335,147 370,564 (9.6 ) %
Average number of active accounts (A) 952,557 930,102 786,224 2.4 21.2 905,497 713,302 26.9
Ending number of accounts 1,316,523 1,294,273 1,126,083 1.7 16.9
Customer transaction volume $ 3,755,320 $ 3,606,907 $ 3,482,032 4.1 7.8 $ 14,444,072 $ 12,342,149 17.0

Securitization volume increase excluding replenishment sales

$ 330,000 $ 115,000 $ 620,000 187.0 (46.8 ) $ 1,218,453 $ 1,185,000 2.8
Average receivables:
Owned $ 1,164,704 $ 1,215,485 $ 1,193,101 (4.2 ) (2.4 ) $ 1,227,967 $ 1,059,566 15.9
Securitized   5,148,195   4,889,381   3,773,549 5.3 36.4   4,696,289   3,337,888 40.7
Managed (B) 6,312,899 6,104,866 4,966,650 3.4 27.1 5,924,256 4,397,454 34.7

Ending receivables:

Owned $ 1,031,607 $ 1,233,233 $ 1,133,132 (16.3 ) (9.0 )
Securitized   5,315,421   4,980,737   4,073,128 6.7 30.5
Managed (B) 6,347,028 6,213,970 5,206,260 2.1 21.9
Operating expense ratio (C) 4.63 % 4.46 % 5.51 % 3.8 (16.0 ) 4.67 % 5.83 % (19.9 )
 

CREDIT QUALITY - OWNED

Receivables 30 days or more delinquent $ 42,424 $ 35,276 $ 26,053
Receivables 90 days or more delinquent 19,204 15,693 12,632
As a percentage of receivables:
Receivables 30 days or more delinquent 4.11 % 2.86 % 2.30 % 43.7 % 78.7 %
Receivables 90 days or more delinquent 1.86 1.27 1.11 46.5 67.6
Net principal charge-offs:
Amount $ 11,542 $ 10,708 $ 9,169 $ 41,589 $ 33,775

As a percentage of average receivables (annualized)

3.96 % 3.52 % 3.07 % 12.5 29.0 3.39 % 3.19 % 6.3 %
 

CREDIT QUALITY - SECURITIZED

Receivables 30 days or more delinquent $ 229,808 $ 160,375 $ 108,159
Receivables 90 days or more delinquent 105,577 71,951 52,279
As a percentage of receivables:
Receivables 30 days or more delinquent 4.32 % 3.22 % 2.66 % 34.2 % 62.4 %
Receivables 90 days or more delinquent 1.99 1.44 1.28 38.2 55.5
Net principal charge-offs:
Amount $ 53,572 $ 48,404 $ 33,100 $ 178,173 $ 116,227

As a percentage of average receivables (annualized)

4.16 % 3.96 % 3.51 % 5.1 18.5 3.79 % 3.48 % 8.9 %
 

CREDIT QUALITY - MANAGED (B)

Receivables 30 days or more delinquent $ 272,232 $ 195,651 $ 134,212
Receivables 90 days or more delinquent 124,781 87,644 64,911
As a percentage of receivables:
Receivables 30 days or more delinquent 4.29 % 3.15 % 2.58 % 36.2 % 66.3 %
Receivables 90 days or more delinquent 1.97 1.41 1.25 39.7 57.6
Net principal charge-offs:
Amount $ 65,114 $ 59,112 $ 42,269 $ 219,762 $ 150,002

As a percentage of average receivables (annualized)

4.13 % 3.87 % 3.40 % 6.7 21.5 3.71 % 3.41 % 8.8 %

(A)   Active accounts are defined as accounts with a balance at month-end. Active account statistics do not include charged-off accounts. The statistics reported above are the average number of active accounts for the periods presented.
(B) Managed statistics are non-GAAP financial measures and represent the sum of owned (GAAP) business credit card statistics and securitized business credit card statistics. We believe that performance on a managed basis provides useful supplemental information to investors because we retain interests in the securitized receivables and, therefore, we have a financial interest in and exposure to the performance of the securitized receivables.
(C) Operating expense ratio is annualized and calculated as a percentage of average owned and securitized receivables.

CONTACT:
Advanta Corp.
Amy B. Holderer
Vice President, Investor Relations
215-444-5335
aholderer@advanta.com
or
David M. Goodman
Director, Communications
215-444-5073
dgoodman@advanta.com


The following information was filed by Advanta Corp on Wednesday, January 30, 2008 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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