Meta Financial Group, Inc.(R) Restates Fiscal Year 2008 and First and Second Quarter...

Meta Financial Group, Inc.(R) Restates Fiscal Year 2008 and First and Second
Quarter 2009 Financial Statements Due to Change in Tax Assumption

STORM LAKE, Iowa, June 26 /PRNewswire-FirstCall/ -- Meta Financial Group,
Inc. (Nasdaq: CASH) (the "Company") reported today that the Audit Committee of
its Board of Directors has approved the restatement of its financial
statements for the fiscal year ended September 30, 2008, and the fiscal
quarters ended December 31, 2008 and March 31, 2009. The restatements, which
result in an earnings decrease for fiscal year 2008 and a corresponding change
to shareholders' equity at September 30, 2008 and the first and second
quarters of fiscal year 2009, are the result of an error in estimating income
tax expense associated with the Company's March 28, 2008 sale of its
subsidiary, MetaBank West Central. As a result, fiscal year 2008 net income
decreased by $1,074,000, or $0.41 per diluted share, from net income of
$51,000, or $0.03 per diluted share, to a net loss of $1,023,000, or $0.38 per
diluted share. Shareholders' equity at September 30, 2008, December 31, 2008,
and March 31, 2009 decreased by the same amount.

The table below provides details of the restatement for fiscal year 2008 and
by quarter in fiscal year 2009.

As Previously Reported Restated Change
Diluted Diluted Diluted
$000s EPS $000s EPS $000s EPS
Net Income
For the fiscal
year ended
September 30,
2008 $51 $0.03 ($1,023) ($0.38) ($1,074) ($0.41)

Shareholders' Equity
At September 30,
2008 $46,807 n/a $45,733 n/a ($1,074) n/a
At December 31,
2008 $47,990 n/a $46,916 n/a ($1,074) n/a
At March 31, 2009 $48,153 n/a $47,079 n/a ($1,074) n/a

Recently, in the course of preparations for filing its 2008 federal income tax
return, the Company was notified that an error in income tax expense was
reported on the Company's financial statements in connection with the
Company's March 28, 2008 sale of its subsidiary, MetaBank West Central. The
Company relies upon an outsourced third party public accounting firm to
prepare its tax returns and to render tax accounting advice in connection with
the preparation of the Company's financial statements; such firm is
unaffiliated with the Company's current independent auditing firm. The third
party tax advisor informed the Company's management that the tax advisor's
earlier assumption relative to the cost basis and tax treatment of the
subsidiary sale was incorrect resulting in a greater reported gain on sale of
the subsidiary for tax purposes. As a result of the error, the Company's
accrued income tax expense was understated as originally reported and will
increase by $1,074,000 when corrected.

The Company's management promptly determined and informed the Audit Committee
and Board of Directors that the Company's financial statements for the fiscal
year ended September 30, 2008, and the fiscal quarters ended December 31, 2008
and March 31, 2009 should no longer be relied upon and should be corrected for
errors resulting from the tax miscalculation. On June 22, 2009, the Audit
Committee of the Board of Directors concluded, based on management's
recommendation, that as a result of these errors, the Company will restate its
financial statements for these periods. Management and the Audit Committee
have discussed the matter with KPMG, LLP, the Company's independent registered
public accounting firm. The restatement will be reflected in the Company's
amended annual report on Form 10-K for the fiscal year ended September 30,
2008, and on amended quarterly reports on Form 10-Q for the periods ended
December 31, 2008 and March 31, 2009, which the Company will promptly file.
The Company said that the tax misstatement was limited to the sale transaction
in March 2008 and does not affect fiscal 2009 earnings or ongoing core
business.

This press release and other important information about the Company are
available at http://www.metacash.com.

Corporate Profile: Meta Financial Group, Inc.(R) (doing business as Meta
Financial Group) is the holding company for MetaBankTM and Meta Trust
Company(R). MetaBank is a federally-chartered savings bank with four market
areas: Northwest Iowa Market, Brookings Market, Central Iowa Market, Sioux
Empire Market; and the Meta Payment Systems(R) prepaid card division.
Thirteen retail banking offices and one administrative office support
customers throughout northwest and central Iowa, and in Brookings and Sioux
Falls, South Dakota.

The Company, and its wholly-owned subsidiaries, MetaBankTM and Meta Trust(R),
may from time to time make written or oral "forward-looking statements,"
including statements contained in its filings with the Securities and Exchange
Commission, in its reports to shareholders, and in other communications by the
Company, which are made in good faith by the Company pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include statements with respect to the
Company's beliefs, expectations, estimates, and intentions that are subject to
significant risks and uncertainties, and are subject to change based on
various factors, some of which are beyond the Company's control. Such
statements address the following subjects: future operating results; customer
retention; loan and other product demand; important components of the
Company's balance sheet and income statements; growth and expansion; new
products and services, such as those offered by MPS or MetaBank; credit
quality and adequacy of reserves; technology; and our employees. The
following factors, among others, could cause the Company's financial
performance to differ materially from the expectations, estimates, and
intentions expressed in such forward-looking statements: the strength of the
United States economy in general and the strength of the local economies in
which the Company conducts operations; the effects of, and changes in, trade,
monetary, and fiscal policies and laws, including interest rate policies of
the Federal Reserve Board; inflation, interest rate, market, and monetary
fluctuations; the timely development of and acceptance of new products and
services offered by the Company as well as risks (including litigation)
attendant thereto and the perceived overall value of these products and
services by users; the risks of dealing with or utilizing third-party vendors;
the impact of changes in financial services' laws and regulations;
technological changes, including but not limited to the protection of
electronic files or databases; acquisitions; risk in general, including but
not limited to those risks involving the MPS division; the growth of the
Company's business as well as expenses related thereto; changes in consumer
spending and saving habits; and the success of the Company at managing and
collecting assets of borrowers in default.

The foregoing list of factors is not exclusive. Additional discussions of
factors affecting the Company's business and prospects are contained in the
Company's periodic filings with the SEC. The Company expressly disclaims any
intent or obligation to update any forward-looking statement, whether written
or oral, that may be made from time to time by or on behalf of the Company or
its subsidiaries.

SOURCE Meta Financial Group, Inc.

Lisa Binder, Investor Relations of Meta Financial Group, Inc.,
+1-712-749-7535