Exhibit 99.1

For Release July 20, 2011				Contact:
4:01 pm				Richard F. Latour President and CEO Tel: 781-994-4800

MICROFINANCIAL INCORPORATED ANNOUNCES
SECOND QUARTER 2011 RESULTS

Burlington, MA – July 20, 2011 — MicroFinancial Incorporated (NASDAQ: MFI), a financial intermediary specializing in vendor-based leasing and finance programs for microticket transactions, today announced financial results for the second quarter and the six months ended June 30, 2011.

Quarterly Highlights:

	•		Net income was $2.3 million or $0.16 per diluted share which represents an increase of 75.4% as compared to the same period last year;
	•		Cash received from customers was $26.7 million or $1.84 per diluted share which represents an increase of 15.6% as compared to the same period last year;
	•		Revenue increased by 6.7% to $13.5 million as compared to the same period last year;
	•		Leverage continues to be conservative at 1.04 times total liabilities to stockholders’ equity;
	•		The Company paid a cash dividend of $0.05 per share; and
	•		Net charge-offs declined by 28.3% to $4.3 million as compared to the same period last year.

Second Quarter Results:

Net income for the quarter ended June 30, 2011 was $2.3 million or $0.16 per diluted share based upon 14,503,702 shares, compared to net income of $1.3 million, or $0.09 per diluted share based upon 14,452,575 shares for the same period last year.

Revenue for the second quarter increased 6.7% to $13.5 million compared to $12.6 million for the same period in 2010, driven by growth in lease revenue and rental income during the quarter. Revenue from leases was $9.1 million, up $0.6 million from the same period last year and rental income was $2.1 million, up $0.2 million as compared to the second quarter in 2010. Other revenue components contributed $2.3 million for the current quarter, up $0.1 million from the same period last year.

Total operating expenses for the current quarter decreased 7.2% to $9.8 million from $10.5 million in the second quarter of 2010. Selling, general and administrative expenses increased $0.4 million to $4.0 million from $3.6 million as compared to the second quarter of last year primarily due to increases in compensation related expenses as a result of an increase in

employee headcount as well as increased rent expense associated with the opening of our California office location. Headcount at June 30, 2011 was 129 as compared to 113 at the same date last year. The second quarter 2011 provision for credit losses decreased to $4.3 million from $5.6 million for the same period in 2010 due to improved delinquency trends and lower charge-off levels. During the second quarter, net charge-offs decreased to $4.3 million from $5.9 million in the same period in 2010. Depreciation and amortization expense increased to $0.8 million for the quarter due to an increase in the number of rental contracts currently being depreciated.

Cash balances at June 30, 2011 were $1.4 million. Cash received from customers in the second quarter increased 15.6% to $26.7 million compared to $23.1 million during the same period in 2010. New lease originations in the quarter decreased by $2.2 million to $18.7 million as compared to the same period last year.

Richard Latour, President and Chief Executive Officer said, “Although we continue to see a sluggish economy in the microticket market, especially with new business creation, we are very pleased with the continued improvement in our financial performance in the second quarter of 2011. We realized solid earnings for the quarter of approximately $2.3 million and recognized our 18^th consecutive quarterly increase in cash received from customers. During the second quarter, the Company significantly improved its service offerings with the opening of our full service west coast operations center in Westlake Village, California. In addition, we realized continued improvement in our portfolio quality through reductions in delinquency levels and net charge-offs.”

Year to Date Results:

For the six months ended June 30, 2011, net income increased by 131.0% to $4.3 million versus net income of $1.9 million for the same period last year. Net income per diluted share year to date was $0.30 based on 14,495,745 shares versus $0.13 based on 14,432,535 shares for the same period in 2010.

Year to date revenue for the six months ended June 30, 2011 increased 7.5% to $26.8 million compared to $24.9 million during the same period in 2010. Revenue from leases was $18.2 million, up $1.6 million from the same period last year and rental income was $4.1 million, up $0.2 million from the prior period. Other revenue components contributed $4.5 million for the year to date, up $0.1 million from the same period last year. New contract originations year to date were $37.1 million versus $39.1 million through the same period last year.

Total operating expenses for the six months ended June 30, 2011 decreased 9.6% to $19.8 million versus $21.9 million for the same period last year. Selling, general and administrative expenses increased by 17.3% or $1.2 million to $8.0 million primarily due to increases in compensation related expenses associated with increased headcount and increases in rent expense associated with the opening of our California office location. The provision for credit losses decreased to $9.0 million for the six months ended June 30, 2011, as compared to $12.5 million for the same period last year. Year to date net charge-offs decreased 28.5% to $9.2

million as compared to $12.9 million for the same period last year. Year to date cash from customers increased by 16.8% or $7.5 million to $52.5 million as compared to $44.9 million for the same period last year.

MICROFINANCIAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)

		June 30,				December 31,
		2011				2010
ASSETS
Cash and cash equivalents		$	434			$	1,528
Restricted cash			979				753
Net investment in leases:
Receivables due in installments			193,345				191,067
Estimated residual value			22,628				21,832
Initial direct costs			1,421				1,490
Less:
Advance lease payments and deposits			(3,603	)			(3,479	)
Unearned income			(58,993	)			(59,245	)
Allowance for credit losses			(12,895	)			(13,132	)
Net investment in leases			141,903				138,533
Investment in rental contracts, net			732				461
Property and equipment, net			2,083				800
Other assets			1,219				1,530
Total assets		$	147,350			$	143,605

LIABILITIES AND STOCKHOLDERS’ EQUITY

		June 30,				December 31,
		2011				2010
Revolving line of credit		$	59,574			$	62,650
Capital lease obligation			6				26
Accounts payable			2,512				2,435
Dividends payable			12				5
Other liabilities			3,085				1,375
Income taxes payable			137				—
Deferred income taxes			9,618				7,627
Total liabilities			74,944				74,118
Stockholders’ equity:
Preferred stock, $.01 par value; 5,000,000 shares authorized; no shares issued at June 30, 2011 and December 31, 2010			—				—
Common stock, $.01 par value; 25,000,000 shares authorized; 14,231,692 and 14,231,933 shares issued at June 30, 2011 and
December 31, 2010, respectively			142				142
Additional paid-in capital			46,515				46,475
Retained earnings			25,749				22,870
Total stockholders’ equity			72,406				69,487
Total liabilities and stockholders’ equity		$	147,350			$	143,605

MICROFINANCIAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2011				2010				2011				2010
Revenues:
Income on financing leases		$	9,136			$	8,509			$	18,237			$	16,631
Rental income			2,073				1,920				4,079				3,878
Income on service contracts			103				132				211				273
Loss and damage waiver fees			1,220				1,119				2,421				2,223
Service fees and other			931				941				1,863				1,934
Total revenues			13,463				12,621				26,811				24,939
Expenses:
Selling, general and administrative			4,037				3,581				7,990				6,811
Provision for credit losses			4,251				5,562				9,003				12,493
Depreciation and amortization			783				474				1,464				902
Interest			680				885				1,343				1,696
Total expenses			9,751				10,502				19,800				21,902
Income before provision for income taxes			3,712				2,119				7,011				3,037
Provision for income taxes			1,429				818				2,699				1,171
Net income		$	2,283			$	1,301			$	4,312			$	1,866
Net income per common share:
Basic		$	0.16			$	0.09			$	0.30			$	0.13
Diluted		$	0.16			$	0.09			$	0.30			$	0.13
Weighted-average shares:
Basic			14,231,692				14,230,670				14,239,180				14,220,529
Diluted			14,503,702				14,452,575				14,495,745				14,432,535

About the Company

MicroFinancial Inc. (NASDAQ: MFI), is a financial intermediary specializing in microticket leasing and financing. MicroFinancial has been operating since 1986, and is headquartered in Burlington, Massachusetts.

Statements in this release that are not historical facts, including statements about future dividends or growth plans, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition, words such as “believes,” “anticipates,” “expects,” “views,” “will” and similar expressions are intended to identify forward-looking statements. We caution that a number of important factors could cause our actual results to differ materially from those expressed in any forward-looking statements made by us or on our behalf. Readers should not place undue reliance on forward-looking statements, which reflect our views only as of the date hereof. We undertake no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. We cannot assure that we will be able to anticipate or respond timely to changes which could adversely affect our operating results. Results of operations in any past period should not be considered indicative of results to be expected in future periods. Fluctuations in operating results or other factors may result in fluctuations in the price of our common stock. For a more complete description of the prominent risks and uncertainties inherent in our business, see the risk factors described in documents that we file from time to time with the Securities and Exchange Commission.