Text localization in natural scene images is an important prerequisite for many content-based image analysis tasks. This paper proposes a novel text localization algorithm. Firstly, a fast pruning algorithm is designed to extract Maximally Stable Extremal Regions (MSER) as basic character candidates. Secondly, these candidates are filtered by using the properties of fitting ellipse and the distribution properties of characters to exclude most non-characters. Finally, a new extremal regions projection merging algorithm is designed to group character candidates into words. Experimental results show that the proposed method has an advantage in speed and achieve relatively high precision and recall rates than the latest published algorithms.