Exhibit 99.1

FOR IMMEDIATE RELEASE

MEDALLION FINANCIAL CORP. REPORTS

2010 SECOND QUARTER RESULTS

NEW YORK, N.Y. – August 4, 2010 — 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 $ 3,035,000 or $0.17 per diluted common share in the 2010 second quarter, up from $2,003,000 or $0.11 per diluted common share in the 2009 second quarter, an increase of 52%. Net investment income after income taxes was $2,940,000, or $0.17 per share in the 2010 second quarter, up from $2,116,000, or $0.12 per share in the 2009 second quarter, an increase of 39%. Net investment income after income taxes on a combined basis with Medallion Bank was $7,531,000, or $0.43 per share in the 2010 second quarter, up from $5,828,000, or $0.33 per share in the year ago quarter, an increase of 29%.

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Medallion Financial Corp. Announces 2010 Second Quarter Results – p. 2

Medallion’s on balance sheet taxicab medallion loan portfolio was $333,318,000, down from $375,894,000 at the end of the 2009 second quarter. The decrease resulted primarily from placing more medallion loans into Medallion Bank, an unconsolidated wholly-owned portfolio investment, whose results are not consolidated with these numbers, but whose growth is noted below, and also from our continuing ability to participate these high-quality loans to financial institutions which desire safe and profitable loan growth. In addition, Medallion earns fee income for originating and managing these loans. Our on balance sheet commercial loan portfolio was $71,669,000, down from $82,889,000 a year ago.

Medallion’s managed taxicab medallion loan portfolio, which includes Medallion Bank, and loans serviced for or by third parties, was $615,635,000 at quarter end, up from $581,920,000 a year ago. This was an all time high for the Company and reflects the Company’s continuing focus of growing the medallion business. Our managed commercial loan portfolio was $127,788,000, down from $157,840,000 a year ago, and Medallion Bank’s consumer loan portfolio was $186,557,000, down from $191,729,000. Total assets under management increased to $1,057,983,000, up from $1,052,165,000, a year ago.

Andrew Murstein, President of Medallion stated, “We are very pleased with our continuing trends of increased growth, spreads, and profits. During this quarter, New York City medallion prices remained strong. The industry remains recession-resistant. Taxi medallion prices in New York reached over $800,000 in July, which is an all time high. Very few assets have appreciated over the last few years, other than taxi medallions, and they are, and continue to be, a great investment. Medallion loans are our largest and fastest growing lending line today, and we can think of no better foundation to have in our investment portfolio.”

Larry Hall, CFO, stated, “The weighted average interest rate on our managed loan portfolio at the end of the 2010 second quarter was 9.14%, down from 9.57% a year ago. Those are very solid yields given the declining interest rate environment.

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Medallion Financial Corp. Announces 2010 Second Quarter Results – p. 3

“Medallion continues to benefit from a low cost of funds. Our weighted average cost of borrowed funds was 4.15% in the quarter, compared to 3.86% a year ago, and was 2.97% on a managed basis, combined with Medallion Bank, compared to 3.62% a year ago. Our net interest margin was 4.81%, up from 4.56% in the 2009 quarter. Furthermore, the net interest margin on a combined basis, including Medallion Bank, was the highest in our company history, 6.88%, up from 6.30% last year,” Mr. Hall said.

“In addition, Medallion Bank’s current weighted average cost of funds at quarter end was 1.42%. However, new CD’s issued during June 2010 had an average coupon rate of 0.88%. Thus, as the older CD’s continue to mature and are replaced, spreads should increase, as long as rates remain at these low levels,” Mr. Hall added.

“Our loan quality, which continues to remain one of the hallmarks of Medallion, remains very strong. On a managed basis, including Medallion Bank, delinquent medallion loans 90 days or more past due were 0.1%, down from 0.3% one year ago. Delinquent consumer loans were 0.7%, unchanged from a year ago. Delinquent commercial loans were 7.4%, down from 9.4%, a year ago. On a combined basis for all loan types, the 90 day delinquency percentages were 1.5%, down from 2.2%, a year ago.”

“Lastly we believe that with a tangible book value of $9.16 per share, and a stock price of approximately $7 per share, which is below book value, our stock represents an attractive opportunity, especially with a dividend yield of over 8% on today’s stock price. To that end, we repurchased shares in the quarter and will continue to repurchase shares pursuant to our stock repurchase program when favorable opportunities present themselves.”

The Company also announced that its Board of Directors declared a dividend of $0.15 per share on its common stock for the 2010 second quarter. The dividend is payable on September 3, 2010 to shareholders of record on August 20, 2010. Since the Company’s initial public offering in 1996, the Company has paid out over $149,496,000 in dividends, or $9.55 per share.

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Medallion Financial Corp. Announces 2010 Second Quarter Results – p. 4

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 2009 Annual Report on Form 10-K.

MEDALLION FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

MEDALLION FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS