Exhibit 99



FOR IMMEDIATE RELEASE                            Contact:
                                                               Richard F. Latour
                                                               President and CEO
                                                              Tel:  781-994-4800

             MicroFinancial Incorporated Announces Legal Settlements

         Woburn, MA - May 29, 2003 - MicroFinancial  Incorporated (NYSE- MFI), a
leader in  Microticket  leasing and finance,  announced  today the settlement of
several pending investigations concerning its wholly owned subsidiary, Leasecomm
Corporation  ("Leasecomm").  This  settlement  also  concludes an action pending
against Leasecomm in Ventura County, California.

         The  settlement  is by consent  judgments  which  resolve  all  matters
alleged by the government  agencies in their court filings without any admission
of  liability  or of  wrongful  conduct  by  Leasecomm  or  MicroFinancial.  The
government complaints allege a number of violations of law, which MicroFinancial
and Leasecomm deny.

         Under  the  terms  of  the  settlement,  Leasecomm  has  agreed  to the
following:

         (1) Not to collect upon certain  court  judgments  where the  financing
included virtual  terminals or the predominant  purpose of the financing was for
business   opportunities.   MicroFinancial   estimates   that  court   judgments
aggregating  approximately  $23 to $24 million will be  affected.  This will not
have a  material  impact  because  the  Company  has  either  written  off these
judgments or fully reserved against their collection.

         (2)  Not  to  finance  any  product  in  conjunction  with  a  business
opportunity  solicitation,  and not to finance the virtual  terminal product for
four (4) years.

         (3)  Include  in its  lease  forms,  and in its  lease  processing  and
collection  activities,  certain  provisions  and  practices,  including  filing
collection  actions in the customer's home forum.  (Existing  actions pending in
Massachusetts  may be transferred or dismissed and then re-filed in the lessee's
home forum.)

         Neither  MicroFinancial  nor Leasecomm are required to pay any fines or
penalties;  however,  the Company  has agreed to pay $1 million in twelve  equal
monthly installments, as recovery in the investigations.

         In addition  Leasecomm has agreed to take steps to monitor its vendors,
and to file periodic reports concerning its vendors for two years.

         MicroFinancial's  President and CEO,  Richard Latour,  stated:  "We are
pleased to have  resolved this costly and time  consuming  matter which has been
ongoing  for  well  over a  year.  Many of the  issues  raised  were  not due to
Leasecomm's  activities,  but were  attributable  to the acts and  statements of
independent vendors and dealers.  For the record,  while we never sold equipment
directly,  we felt it was in our best interest to settle because it was the only
cost-effective  solution  that  enables the Company to move forward and focus on
business."


About MicroFinancial

         MicroFinancial,  Inc.  (NYSE:MFI"),  headquartered in Woburn,  MA, is a
financial intermediary specializing in leasing and financing for products in the
$500 to $10,000 range. The company has been in operation since 1986.



Statements  in this release that are not  historical  facts 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,"  and similar  expressions  are  intended to
identify  forward-looking  statements.  The  Company  cautions  that a number of
important  factors could cause actual  results to differ  materially  from those
expressed in any forward-looking statements made by or on behalf of the Company.
Readers should not place undue  reliance on  forward-looking  statements,  which
reflect the management's view only as of the date hereof. The Company undertakes
no obligation  to publicly  revise these  forward-looking  statements to reflect
subsequent  events or  circumstances.  The Company cannot assure that it will be
able to anticipate or respond timely to changes,  which could  adversely  affect
its operating  results in one or more fiscal quarters.  Results of operations in
any past period should not be considered indicative of results to be expected in
future periods.  Fluctuations in operating results may result in fluctuations in
the price of the Company's common stock. For a more complete  description of the
prominent risks and  uncertainties  inherent in the description of the Company's
business,  see the risks  factors  described in the  documents the Company files
from time to time with the Securities and Exchange Commission.