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Medallion Financial Announces Agreement for Purchase of $31.1 Million Taxicab Medallion and Commercial Loan Portfolio

2008-07-17 09:28:00

NEW YORK–(EMWNews)–Medallion Financial Corp. (NASDAQ:TAXI), a specialty finance company

with a leading position servicing the taxicab industry and other niche

markets, announced that its wholly owned subsidiary, Medallion Bank, has

agreed to purchase substantially all of Elk Associates Funding

Corporations taxicab medallion loans for

approximately $29.1 million. Another subsidiary of Medallion Financial,

Freshstart Venture Capital Corp., will purchase certain other small

business loans at the closing for approximately $2.0 million. The

transaction is subject to customary closing conditions, and is subject

to certain terms and conditions, including approval by the shareholders

of Ameritrans Capital Corporation, the parent company of Elk. The

transaction is expected to close no later than October 15, 2008.

Andrew Murstein, President of Medallion Financial stated, We

are very pleased to have this opportunity to purchase a strong portfolio

of medallion loans which helps us further solidify our position as the

medallion lending market leader. Taxicab medallions have proven to be a

remarkable asset class to lend against. Medallion values have long

thrived in a market similar to the one we are currently in and prices

have recently hit all time highs of more than $635,000 per medallion in

New York City. We have acquired more than six medallion lenders or

portfolios since our initial public offering. We are happy to have added

loans of this outstanding credit quality through the years, and look

forward to adding to a portfolio with an outstanding track record for

safety and profitability.

John Taggart, President of Medallion Bank stated, We

are very pleased with this transaction and it has been a pleasure to

work with an organization like Ameritrans. We believe that following the

closing, we will be well positioned to capitalize on the new borrower

base we will be acquiring in connection with this purchase. This

acquisition will be immediately accretive to our earnings.

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

2007 Annual Report on Form 10-K.

Medallion Financial Corp.
Andrew Murstein, President

D. Hall, CFO
Zlokower Company

Harry Zlokower/David Closs

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