WOBURN, Mass.--(BUSINESS WIRE)--Aug. 8, 2005--MicroFinancial Incorporated (NYSE-MFI) a financial intermediary specializing in vendor based leasing and finance programs for transactions in the $500 to $15,000 range, today announced that it has signed a new 5-year lease for its office facility located at 10M Commerce Way, Woburn, MA. The lease was executed with Cummings Properties, LLC.

The new lease, which is effective as of January 1, 2006, reduces the space from approximately 45,000 to 24,500 square feet. In addition, the cost on a per square foot basis was reduced approximately 25% from $13.00 to $9.70. The reduction in both cost and space will result in rent expense savings for the Company of approximately $347,000.00 on an annual basis.

Richard Latour, President and Chief Executive Officer said, "I am pleased that we were able to negotiate a new lease contract on our facility on such favorable terms and conditions. In addition to the financial benefits, by maintaining the same office location, we are able to retain our current key employees."