• New York City taxi medallion prices reach $763,000, a record high
• Senior management to complete purchases of TAXI shares within the next 20 days
• $0.19 per share dividend declared

Medallion Financial Corp. (NASDAQ:TAXI), a specialty finance company with a leading position servicing the taxicab industry and other niche markets, announced that net increase in net assets resulting from operations, was $1,889,000 or $0.11 per diluted common share in the 2009 first quarter, down from $3,921,000 or $0.22 per diluted common share in the 2008 first quarter. Net investment income after income taxes was $1,909,000, or $0.11 per share in the quarter, down from $3,397,000 or $0.19 per share in the year ago period. Net investment income after income taxes on a combined basis with Medallion Bank was $5,761,000, or $0.33 per share, up from $5,035,000, or $0.28 per share in the respective period.

Medallion’s on balance sheet taxicab medallion loan portfolio was $400,000,000 at the end of the 2009 first quarter, down from $476,000,000 at the end of the 2008 first quarter. The decrease resulted from our ability to participate these high-quality loans to other financial institutions which desire safe and profitable loan growth, and which enables Medallion to earn a servicing fee for managing the loans. Our on balance sheet commercial loan portfolio was $91,000,000, down from $93,000,000, a year ago.

Medallion’s managed taxicab medallion loan portfolio, which includes Medallion Bank, our unconsolidated wholly-owned portfolio investment, and loans serviced for or by third parties, was $585,000,000, down from $587,000,000, a year ago. Our managed commercial loan portfolio was $166,000,000, down from $167,000,000, a year ago.

In addition, Medallion Bank’s consumer loan portfolio increased to $193,000,000, up from $150,000,000, a year ago. Total assets under management increased to $1,069,000,000, up from $1,024,000,000, a year ago.

Andrew Murstein, President of Medallion stated, “We are very pleased with our continuing trends of increased spreads. During this quarter, New York City and Chicago medallion prices also continued to rise. The industry has never been stronger.”

Larry Hall, CFO, stated, “The weighted average interest rate on our managed loan portfolio at the end of the 2009 first quarter was 9.42%, compared to 9.28% a year ago, very solid performance given the current declining interest rate environment.

“Medallion Bank, which has a low cost of funds, continues to fund much of our growth. Our weighted average cost of borrowed funds dropped to 4.16% in the quarter, down from 5.54% a year ago, and was 4.06% on a managed basis, combined with Medallion Bank, compared to 5.36% a year ago. As a result, our net interest margin, was 4.30%, down from 4.48% in the 2008 quarter which included 0.84% more of interest recoveries and other items than the 2009 quarter,” Mr. Hall said.

“We had zero interest recoveries in this quarter compared to $1,262,000 last year which is one of the primary reasons why last year’s earnings were higher. Interest recoveries are not predictable and thus can fluctuate from time to time,” Mr. Hall said.

“In addition, Medallion Bank’s current average cost of funds on their CD’s at the end of the month was 3.69%. However, new CD’s issued during the month averaged 0.93%. Thus, as the CD’s continue to expire and are replaced, spreads should increase,” Mr. Hall added.

“Our loan quality, which is one of the hallmarks of Medallion, remains strong. While delinquencies increased during the quarter, they are still quite low and well within our historical ranges. On a managed basis, including Medallion Bank, delinquent medallion loans 90 days or more past due remained at 0.3%, the same as last year. Delinquent consumer loans were 0.6%, up from 0.5% from one year ago. Delinquent commercial loans were 9.2%, up from 0.4%, one year ago. On a combined basis, the delinquency totals were 2.2%, up from 0.4%, one year ago.”

The Company also previously announced that senior management, including the Company’s Chairman and CEO, President, Chief Operating Officer, and Chief Financial Officer, will purchase common stock of Medallion Financial through either the exercise of stock options or open market purchases in amounts equal to 20% of their annual incentive compensation. Such purchases commenced in March 2009, and will be completed by June 2009.

The Company also announced that its Board of Directors declared a dividend of $0.19 per share on its common stock for the 2009 first quarter. The dividend is payable on June 9, 2009 to shareholders of record on May 22, 2009.

Since the Company’s initial public offering in 1996, the Company has paid out over $135,000,000 in dividends, or $8.72 per share.

Medallion Financial Corp. is a specialty finance company with a leading position in the origination and servicing of loans financing the purchase of taxicab medallions and related assets. The Company also originates and services other commercial loans in targeted niche industries and its wholly owned portfolio company Medallion Bank also originates and services consumer loans. The Company and its subsidiaries have lent over $3 billion.

Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales, net investment income, earnings, and growth. Medallion's actual results may differ significantly from the results discussed in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, those factors discussed under the heading "Risk Factors," in Medallion's 2008 Annual Report on Form 10-K.

Medallion Financial Corp.
Andrew Murstein, President
Larry D. Hall, CFO
212-328-2100
or
Zlokower Company Public Relations
Harry Zlokower or David Closs, 212-447-9292