MicroFinancial Incorporated (Nasdaq:MFI) announced today that the Board of Directors of MicroFinancial Incorporated declared a cash dividend of $0.05 per common share payable on August 15, 2008, to holders of record of MFI common stock at the close of business on August 5, 2008. This dividend represents the same amount per common share as the last dividend paid by MFI, in May 2008.

Future dividend payments will be subject to an ongoing evaluation and approval by the Board of Directors on a quarterly basis. The decision as to the amount and timing of future dividends paid by MFI, if any, will be made by its Board of Directors in light of MFI’s financial condition, capital requirements and growth plans, as well as its external financing arrangements and other factors the Board of Directors may deem relevant, and there can be no assurance as to the amount and timing of payment of future dividends.

About MicroFinancial

MicroFinancial Inc. (Nasdaq:MFI), headquartered in Woburn, MA, is a financial intermediary specializing in leasing and financing for products in the $400 to $15,000 range. The company has been in operation since 1986.

Statements in this release that are not historical facts, including statements about future dividends and growth plans, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition, words such as "believes," "anticipates," "expects," "views," and similar expressions are intended to identify forward-looking statements. The Company cautions that a number of important factors could cause actual results to differ materially from those expressed in any forward-looking statements made by or on behalf of the Company. Readers should not place undue reliance on forward-looking statements, which reflect the management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure that it will be able to anticipate or respond timely to changes which could adversely affect its operating results in one or more fiscal quarters. Results of operations in any past period should not be considered indicative of results to be expected in future periods. Fluctuations in operating results may result in fluctuations in the price of the Company's common stock. For a more complete description of the prominent risks and uncertainties inherent in the Company's business, see the risk factors described in documents the Company files from time to time with the Securities and Exchange Commission.

MicroFinancial Incorporated
Richard F. Latour, 781-994-4800
President and CEO