Clearwater, Florida, - September 9, 2009: Nicholas Financial, Inc. (Nasdaq, NICK) today announced that its Board of Directors has declared a 10% stock dividend on the Company’s outstanding shares of common stock payable in the form of 1 share for every 10 shares of common stock owned by a shareholder on December 7, 2009, to shareholders of record as of the close of business on November 20, 2009. The Company presently has approximately 10,500,000 shares of common stock outstanding. As a result of the stock dividend, the Company will have approximately 11,550,000 shares of common stock outstanding.

Shareholders will not be required to take any action in order to receive the stock dividend. After the payment date, shareholders book entry accounts will be credited with the additional shares representing the stock dividend. Where shares are held in a brokerage account in the name of the broker, the additional shares will be distributed to the broker on the shareholders behalf. The stock dividend will be administered by Computershare, the company’s transfer agent.

Commenting on the Company’s stock dividend, Peter L. Vosotas, Chairman and CEO noted, “Our capital position and continued confidence in our growth and earnings capability played a large part in our decision to implement a stock dividend, which we believe will enhance our market liquidity. Given the challenging and uncertain economic climate, paying a stock dividend is a way of delivering value to our shareholders.”

Nicholas Financial, Inc. is one of the largest publicly traded specialty consumer finance companies based in the Southeast. The Company presently operates out of 49 branch locations in both the Southeastern and the Midwestern States. For an index of Nicholas Financial, Inc.’s news releases or to obtain a specific release, visit our web site www.nicholasfinancial.com

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