Medallion Announces New Credit Facility

Facility Increased to $300,000,000 and Extended for Two Years

NEW YORK, Sept. 16 -- Medallion Financial Corp. , a specialty commercial finance company with a leading position servicing the taxicab industry and small business commercial lending, and owner of the largest taxicab rooftop advertising company in the world, announced today that it has signed a new credit facility agreement with Merrill Lynch which replaces the prior one-year facility which came due on September 12, 2003. The facility covers taxicab medallion lending in New York City as well as other cities throughout the United States.

Andrew Murstein, President of Medallion Financial stated, "We could not be more pleased with this new transaction. Every aspect of the facility has been improved including the fees, pricing, commitment amount, and term of the facility. This is a reflection of many positive factors, including how well the facility has performed to date, and the improved financial health and prospects of Medallion Financial."

Mr. Murstein continued, "From day one, this has been an excellent partnership with Merrill Lynch and their Global Asset Based Finance Group. They have been great to work with and we look forward to a long term relationship."

Larry Hall, Medallion's Chief Financial Officer, stated, "Since we established the original facility in September 2002, we have grown our taxicab medallion portfolio by more than 25%, and Medallion prices have gone up more than 15% in the same period. This new credit facility insures us the funding necessary to effectively grow the portfolio over the years ahead. In addition, with this renewal we are strategically positioning ourselves for a potential surge in financing business, should New York City auction up to 900 new taxicab medallions, as is currently anticipated to occur in early 2004."

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 the largest taxicab rooftop advertising business in the world. The Company and its subsidiaries have lent over $1 billion to the taxicab and commercial equipment industries.

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 "Investment Considerations," in Medallion's 2002 Annual Report on Form 10-K.