Medallion Announces First Entry Into International Markets; Acquires Largest Taxi Top Provider in Japan

    NEW YORK, Feb. 8 Medallion Financial Corp. ,
the leading finance company servicing the taxi industry and the largest taxi
top advertising company in the world, announced today that it has signed an
agreement to acquire Taxi Media Network ("TMN"), the largest taxi advertising
company in Japan.  TMN currently holds the rights to provide advertising on
more than 7,000 taxis throughout Japan.  On closing, the transaction will
increase Medallion's taxi advertising inventory from 10,000 taxis to
17,000, an increase of 70%.
    According to Medallion's President Andrew Murstein, "We could not be more
pleased with this acquisition opportunity, the first of what we hope will be
several deals outside the U.S.  We are acquiring the premier taxi advertising
company in Japan," he said.
    TMN currently provides taxi top ads and also wraps taxis with advertising
on the doors, windows and interior ads across several major cities in Japan.
Their current markets include Osaka, Yokohama, Sapporo and several others.
Some of their more recent advertisers have been Gateway, Volkswagen, Universal
and Deutsche Telecom.  "TMN's business is very similar economically and
structurally to our business in the U.S.," Mr. Murstein said.
    "What is of extreme interest to us is the size and potential of the Tokyo
market.  Currently, there are no taxi tops installed in Tokyo, and while there
are 12,000 taxis in New York, there are more than 50,000 taxis in Tokyo," Mr.
Murstein said.  "Tokyo is in many ways similar to New York as there is a large
population, a very condensed area, and taxis are an essential part of
transportation, making taxi top advertising very desirable.  This could be an
excellent opportunity for Medallion."
    Medallion will own 92% of the new entity, which will be re-named Medallion
Media Japan.  The purchase price will be a combination of cash and stock with
an additional earn out payment made during a three-year period.  TMN generated
revenues of over $4,000,000 in 1999.  Medallion Media's revenues have grown
from $1.7 million in 1996, to $3.1 million in 1997, to $7.5 million in 1998 to
$9.9 million in 1999.
    "We are very excited about becoming part of Medallion," said Mr. Yasuhiro
Tanaka, President of TMN.  "Like Medallion, we have been the leader in our
industry and have built a great business over the last seven years.  With
Medallion's financial backing, we are now in a position to potentially more
than triple our business in Japan in the immediate future," Mr. Tanaka
declared.
    The transaction, which is subject to customary closing conditions and a
due diligence review by Medallion, is expected to close within 90 days.
    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 commercial loans financing small businesses in other targeted
industries, and operates one of the largest taxicab rooftop advertising
businesses in the nation.  Medallion currently manages a loan portfolio in
excess of $700 million.  The Company and its subsidiaries have lent over
$1 billion to the taxicab and commercial equipment industries.  As a regulated
investment company (RIC), Medallion complies with the requirement to
distribute at least 90% of its income to shareholders, and as a consequence,
pays no corporate income tax on the amount of income distributed.

    Please note that this press release contains forward-looking statements,
which involve risks and uncertainties.  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 "Investment Considerations," in
Medallion's 1999 Annual Report on Form 1OK.