Medallion Announces Approval of New Neon Taxi Top Sign
22 October 1998
Medallion Announces Approval of New Neon Taxi Top Sign
360 Taxis Already Signed Up for Holiday Advertising Campaign
Also Announces Strong Demand for Chicago and Boston Medallion Auctions
NEW YORK, Oct. 22 -- Medallion Financial Corp.
announced today that its subsidiary Medallion Media, the largest provider of
taxitop advertising in the United States, has received approval from the City
of New York to install neon taxi top signs, the first time in the history of
the New York taxi industry that a neon sign will be used. The Company
announced that it has already entered into a contract for the new neon top
with a national retail chain to kick off a new holiday advertising campaign in
the next 45 days on 360 taxis.
Andrew Murstein, President of Medallion, stated, "The new top combines the
great mass coverage of taxi top advertising with the neon excitement of Times
Square. We expect this combination to be a winner." The new tops can be
custom made and sold to advertisers with their name or logo displayed in neon
on the outside of the sign. Medallion's current top uses fluorescent lights
with the illumination coming from behind the advertising copy.
Mike Leible, National Sales Director for Medallion Media, stated, "We are
very happy to receive approval and to start offering this dynamic sign to all
our advertisers. Neon advertising is perfect for such advertisers as Broadway
shows, casinos, fashion accounts, as well as many other industries that are
selling products in New York. In addition to New York City, we also hope to
be able shortly to offer these signs in Long Island, Boston, Philadelphia, New
Orleans, San Diego, as well as other markets."
Medallion Media has also started signing up cabs to carry advertising in
Hartford, Connecticut, Newport, Rhode Island, and Atlanta, Georgia. The
Company currently has over 5,000 taxis topped throughout the United States.
Separately, Medallion also announced that Chicago and Boston are currently
conducting auctions to sell taxi medallions in their respective cities. The
City of Chicago has announced that it will sell 150 medallions to the highest
bidders, for which it has received interest from over 450 applicants. The
minimum bid will be $50,000 per medallion. Currently there are approximately
5,800 medallions in the city of Chicago.
The City of Boston also announced that it would sell between
75-100 medallions. The minimum auction price will be in excess of $110,000.
So far, the City has received indications of interest for over 2,000
medallions. There are currently 1,560 medallions in the city of Boston.
In 1996 the City of New York announced an auction for 400 taxi medallions.
That auction was also oversubscribed and broke records for the then-highest
price ever paid for a taxi medallion with the top bidders paying more than
$280,000 per medallion.
"The strong interest shown in both the Chicago and Boston auctions
reinforce what we have believed for a long time. Taxi medallions have been,
and can continue to be, one of the best long-term investments available
anywhere," stated Mr. Murstein. "Every time there is an auction, price levels
are reinforced, and also we're given an opportunity to finance the purchase
price for the winning bidders. We thus hope to increase our loan portfolio
and our profits through the huge success of these auctions."
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 business in other targeted
industries, and operates the largest rooftop advertising business in the
nation. Medallion currently manages a loan portfolio in excess of
$400 million. The Company and its subsidiaries have lent over $775 million 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 actors discussed under the heading "Investment Considerations," in
Medallion's 1997 Annual Report on Form 10K.
To receive Medallion Financial Corp.'s latest news and other corporate
developments via fax at no cost, please call 1-800-PRO-INFO. Use the
company's ticker, TAXI.