Class Action Suit Against Leasecomm/Microfinancial

NEW YORK--(--Lasky & Rifkind, Ltd., a law firm with offices in New York and Chicago, announces that a lawsuit has been filed in the United States District Court for the District of Massachusetts, on behalf of persons who purchased or otherwise acquired publicly traded securities of MicroFinancial Inc. ("MicroFinancial" or the "Company") (NYSE:MFI) between February 5, 1999 and October 30, 2002, inclusive, (the "Class Period"). The lawsuit was filed against MicroFinancial and Peter R. Bleyleben, Richard F. Latour and James R. Jackson Jr.

If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at investorrelations@laskyrifkind.com and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than December 15, 2003 to serve as a lead plaintiff for the Class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. However, if you choose to remain an absent class member, unless and until a class is certified, you are not represented by counsel.

The complaint alleges that MicroFinancial materially overstated its revenues and earnings by improperly recognizing tens of millions of dollars of financing income, fees and other revenues arising from delinquent and defaulted commercial leasing, rental and finance contracts that defendants knew, or recklessly disregarded, were uncollectable because the contracts were unenforceable in their terms.

On October 11, 2002, defendants stunned the market by announcing that MicroFinancial was ceasing to make new lease originations as a part of a new business strategy to leverage the Company's technology and loan servicing platform. Market reaction to the Company's announcement was swift and severe, losing 37% of its value to close at $2.14 per share on October 11, 2002.

If you bought MicroFinancial securities between February 5, 1999 and October 30, 2002, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (800) 495-1868 to speak with an advisor.

FORMAL ANNOUNCEMENT:

CONTACT:The Law Firm of Lasky & Rifkind, Ltd. Leigh Lasky, Esq., 800-495-1868

Shareholder Class Action Filed Against MicroFinancial, Inc. By the Law Firm of Schiffrin & Barroway, LLP

BALA CYNWYD, Pa., -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:

Notice is hereby given that a class action lawsuit was filed on September 26, 2003 in the United States District Court for the District of Massachusetts on behalf of all purchasers of the common stock of MicroFinancial, Inc. ("MicroFinancial" or the "Company") (NYSE:MFI) from February 5, 1999 through October 30, 2002, inclusive (the "Class Period"). Notice was published in "Investor Business Daily" on October 15, 2003, and a corrective notice was subsequently published in "Investor Business Daily" on October 16, 2003. As such, if you are a member of the class described above, you may, not later than December 15, 2003, move the Court to serve as lead plaintiff of the class, if you so choose.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.

The complaint charges MicroFinancial, Peter R. Bleyleben, Richard F. Latour, and James R. Jackson Jr. with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between February 5, 1999 and October 30, 2002, thereby artificially inflating the price of MicroFinancial's common stock. More specifically, the Complaint alleges that the defendants represented that the Company's business and operations were being conducted in a profitable and lawful manner. In offering documents issued in connection with its 1999 initial public offering and in the Company's periodic filings with the SEC, the Company described itself as a "specialized" commercial finance enterprise that leases and rents "low-priced" equipment and provides other financial services. Throughout the Class Period, the Company issued highly positive earnings reports, as well as forecasts for the Company's continued growth and profitability.

Unknown to the investing public, however, the Company materially overstated its revenues and earnings by improperly recognizing tens of millions of dollars of financing income, fees and other revenues arising from delinquent and defaulted commercial leasing, rental and finance contracts that defendants knew, or recklessly disregarded, were uncollectible because the contracts were unenforceable by their terms. Additionally, defendants materially understated MicroFinancial's credit losses on tens of thousands of delinquent customer accounts and certain third-party "dealer receivables" which defendants never intended to collect but, in many instances, offset against the Company's funding of new contracts. As a result, defendants materially misrepresented the Company's current and future revenues and profits and issued financial statements that violated generally accepted accounting principles ("GAAP") and SEC reporting requirements throughout the Class Period.

On August 14, 2002, MicroFinancial disclosed in its Form 10-Q for the quarter ended June 30, 2002, that the Company was the target of a combined federal and state inquiry into the Company's leasing and credit collection practices, among other things. Then just two months later on October 11, 2002, defendants stunned the market by announcing that MicroFinancial was ceasing to make any new lease originations as part of a "new business strategy to leverage the Company's technology and loan servicing platform."

Market reaction to the Company's "new business strategy" announcement was swift and severe. The Company's common stock lost 37% of its value to close at $2.14 per share on October 11, 2002. The Company's stock price has never recovered, and its common shares have continued to trade at or below that level to the current date, representing more than an 85% loss in value from MicroFinancial's IPO price of $15.00 per share.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/currentcases.cfm.

If you are a member of the class described above, you may, not later than December 15, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.

CONTACT: Schiffrin & Barroway, LLP

Marc A. Topaz, Esq.

Stuart L. Berman, Esq.

Three Bala Plaza East, Suite 400, Bala Cynwyd, PA 19004

1-888-299-7706 (toll-free) or 1-610-667-7706

Or by e-mail at info@sbclasslaw.com

SOURCE Schiffrin & Barroway, LLP

CO: Schiffrin & Barroway, LLP; MicroFinancial, Inc.