Financial Federal Corporation Declares Three for Two Stock Dividend

Business Wire, July 8, 1997

NEW YORK--(BUSINESS WIRE)--July 8, 1997--Financial Federal Corporation ("FIF" - ASE) announced today that its Board of Directors has declared a dividend payable in shares of the Company's common stock. A dividend of one share of common stock will be paid on July 30, 1997 for each two shares of common stock held by stockholders of record at the close of business on the American Stock Exchange on July 18, 1997. No fractional shares will be issued; on the dividend payment date, a cash payment will be made to those shareholders who would otherwise receive fractional shares, in an amount equal to the closing price of the common stock on the American Stock Exchange on July 18, 1997 times the fractional share amount. At July 8, 1997, the Company had 9,842,482 shares of common stock outstanding which is equivalent to 14,763,723 shares after giving effect to the stock dividend.

The "cut-off" date until which the transfer agent for the stock will accept instructions from brokers as to their requirements for full shares or cash with respect to stock registered in their names, as nominees, and as to which they must make exact allocations among their clients is July 24, 1997.

Michael C. Palitz, Chief Financial Officer, commented: "We believe the stock dividend will be of benefit to current and prospective holders of the Company's common stock as a result of increased trading liquidity afforded by the significant increase in the number of outstanding shares."

Financial Federal Corporation is an independent financial services company specializing in installment sales financing, capital loans and finance leases of income-producing and labor-saving equipment on a nationwide basis, and purchasing portfolios of finance and lease receivables from financial institutions and others. The Company provides financing primarily to middle market customers engaged in road, municipal and infrastructure construction, transportation, manufacturing, waste services, machine tool, equipment rental and numerous other industries. In addition to its office in New York City, the Company has five full-service offices located in Houston, TX; Westmont, IL; Teaneck, NJ; Charlotte, NC; and Mesa, AZ, and 18 marketing offices in various locations throughout the country.

CONTACT: Jeanne McDonald, Vice President

(212) 888-3344