Leasing News

“Peter Mellon, formerly with Westover Financial, has joined Paccom Leasing Corporation, Portland, Oregon, as Vice-President-Northwest Region, including Alaska and Hawaii.”

Western Association of Equipment Leasing Newsline, August 1987

-------------------------------------------------------------------------------------------

Classified Ads----Heaven or Hell?

One day while walking down the street, a highly

successful Equipment Leasing Human Resources Manager was tragically hit by a bus and died. Her soul arrived in heaven where she was met at the Pearly Gates by Saint Peter himself.

"Welcome to Heaven," said Saint Peter. "But, before you get settled in, it

seems we have a problem. You see, strangely enough, we've never had an Equipment Leasing Human Resources Manager make it this far, and we're not really sure what to do with you."

"No problem, just let me in," said the woman.

"Well, I'd like to, but I have higher orders. What we're going to do is let

you spend a day in Hell and day in Heaven and then you can choose where you

want to spend Eternity."

"Actually, I think I've made up my mind (of course SHE did!!) -- I prefer

to stay in Heaven," said the woman.

"Sorry, but we have policies and procedures to follow..." said Saint Peter.

And with that, he put her on the elevator and it went down to Hell.

The doors opened and she found herself stepping out on a beautiful golf

course. In the distance was a beautiful country club, and standing in front

of her were all her friends and fellow executives that she had worked with

over the years. They were well dressed in evening gowns and they were all

cheering for her. They ran up and kissed her on both cheeks and talked

about old times. They played a fantastic round of golf, and at night, they

went to dinner at the country club where she enjoyed a wonderful steak and

lobster dinner. She even met the Devil, who was actually a really great guy

(really cute!) and she had a wonderful time dancing and telling jokes. She

was having such a good time that before she realized, it was time to leave.

Everybody shook her hand and waved good-bye as she got on the elevator.

The elevator went up and opened up at the Pearly Gates where she found

Saint Peter waiting for her. "Now it's time to spend a day in Heaven," he

said. So, she spent the next 24 hours lounging around on clouds, playing

the harp and singing. She had a great time and before she knew it, her 24

hours were over and Saint Peter came to get her.

"So, you've spent a day in Hell and a day in Heaven. Now you must choose

your eternity."

The woman paused for a second and replied, "Well, I never thought I'd say

this; Heaven was really great, but I think I had a better time in Hell."

So, Saint Peter escorted her to the elevator and again she went back down

to Hell. When the doors of the elevator opened, she found herself standing

in a desolate wasteland covered with garbage and filth. She saw that her

friends were dressed in rags and were picking up garbage and putting it in

sacks.

The Devil came to her and put his arms around her. "I don't understand,"

stammered the woman, "Yesterday I was here and there was a golf course; a

country club, and we ate steak and lobster, danced and had a great time.

Now there’s a wasteland of garbage and all my friends look so miserable!"

The Devil looked at her and smiled. "Yesterday, we were recruiting you, but

today, you're an employee..."

( anonymous)

--------------------------------------------------------------------------------------

Greenspan ---Surprise! Surprise! Surprise!

Federal Reserve Chairman Alan Greenspan told Senate Banking Committee yesterday he differs sharply with President Bush and his economic advisers, specifically stating it would be "premature" to cut taxes. In his prepared address before the semiannual Monetary Policy Report to the Congress, he did not think it was necessary to stimulate the lagging U.S. economy because the major factor hurting growth is the uncertainty posed by a possible war with Iraq.

He had a few other things to say about budget deficits and other problems,

and basically appeared he would rather not be making statements opposing

the presidents views. He would rather be in Peoria.

Here is the full, official text from the Federal Reserve:

http://www.federalreserve.gov/BoardDocs/HH/2003/february/testimony.htm

If you haven’t read the full account in your local newspapers, go here for

the Washington Post:

http://www.washingtonpost.com/wp-dyn/articles/A59515-2003Feb11.html

-------------------------------------------------------------------------------------------

Easy money? Funding Tree apparently takes root in Nevada

http://www.utdallas.edu/police/wavs/nobadges.wav

--by Rene Tankersley, feature editor

Land Line Magazine, the official publication of the Owner-Operator Independent Drivers Association

(She has won awards for her coverage of the Funding Tree

since December, 2001.)

“The report of my death has been greatly exaggerated.” Mark Twain said it in 1896, but it could be said today about The Funding Tree, a finance and leasing company.

Although the company’s former president, Kendra Bernal, was arrested last year in California, the company appears to have resurfaced in Nevada under the name Legacy Leasing. (Side note, her attorney told Leasing News

she has skipped, owing him $10,000 in fees for his representation. editor)

OOIDA member Larry Hargrove of Las Vegas, NV, says he paid $4,000 in advance payments and document fees to Legacy Leasing in November. As of today, Hargrove says he still has no truck and no sign of his $4,000.

Another trucker, Kenneth Farrington III, says he gave Legacy Leasing $3,200 on Dec. 18, 2002, with promises of a truck by the New Year. Farrington and his dealer, Bob Gordon, even showed up at Legacy’s office in Laughlin, NV, in early February to get their money. They said they were told that they could be helped only by a man named Jack Thompson, and that he was out of the office.

Land Line first became aware of The Funding Tree in January 2002 after two OOIDA members read Land Line’s report in December 2001 about advance-fee finance companies.

The two called in complaints about The Funding Tree, Integrity Group and Integrity Funding, which Land Line later learned were all names used by Bernal’s business.

Kit Menkin, editor and publisher of Leasing News, an electronic daily newspaper for the equipment leasing industry, has written about The Funding Tree for some time. He said the company was the subject of a cease and refrain order issued by the California Department of Corporations in January 2002.

The order warned Bernal and her companies to stop engaging in the business of finance lending or brokering without a license, saying doing so would be a violation of the California Finance Lenders Law.

Bernal was arrested May 31 in Riverside County, CA, and charged with six felony counts related to the financing of commercial vehicles and other equipment, according to the Riverside District Attorney’s Office.

Following Bernal’s arrest, The Funding Tree’s vice president, Bruce Peterik, took over as president.

Peterik is now listed as the contact for Legacy Leasing in the Laughlin Chamber of Commerce Membership Directory.

However, the Nevada Secretary of State’s Office says its records show The Funding Tree registered at the same address in Laughlin as Legacy Leasing, with Peterik listed as the contact.

Farrington and his wife, Patricia, say a person identifying himself as Jack Thompson told them he was the owner of Legacy Leasing.

In addition, a message at the Funding Tree’s former California phone number directs callers to an office in Laughlin, NV, and a woman at the Legacy Leasing office says the company was formerly called The Funding Tree. Peterik was not available for comment. A receptionist at the company said Jack Thompson was also unavailable.

Marcie Whitehead, who identifies herself as a former employee of Legacy Leasing, said the name Jack Thompson was an alias used by Peterik.

Neil Rombardo, deputy attorney general for Nevada, told Land Line the AG’s office would investigate the company. The Attorney General’s Fraud Unit Hotline can be reached at 1-800-266-8688.

--- for the latest about The Fund Tree, go here:

http://www.leasingnews.org/Conscious-Top%20Stories/fundingTree_stories.htm

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Equipment Leasing Industry Quarterly Report Shows New Business Volume Grew 1.4 Percent

Slow Economy Revealed in Data, Losses Remain Stable

http://two.leasingnews.org/temporary/4Q02Graphs.htm

Arlington, Virginia - - The Equipment Leasing Association's (ELA) 4Q 2002 Performance Indicators Report (PIR) shows that new business volume grew 1.4 percent when compared to 4Q 2001. Total net portfolio numbers declined 1.6 percent, showing signs that the economy continues to slow. The PIR study is conducted quarterly by ELA, which provides a variety of data, including customized market analyses, to ELA members and organizations involved in the $204 billion equipment leasing industry. The survey is conducted among approximately 20 major leasing companies on a quarterly basis, affording trend analysis across all major performance areas.

Other 4Q PIR Findings:

a.. The total number of employees declined 0.77 percent reinforcing a delicate employment market.

b.. Credit approval ratios increased 1.2 percent compared with the 4Q 2001.

c.. Average losses remained stable when compared to the previous year.

d.. Lease payments within 30 days (on-time) are up 60 basis points compared to 4Q 2001.

"The metrics show a lot of mixed signals in the fourth quarter report," said Ralph Petta, Vice President of Industry Services for ELA. "It will be interesting to see what 2003 has in store for the leasing industry as one would require a crystal ball to predict future conditions."

The PIR tracks the performance of prominent leasing organizations in six key areas. Because the same companies were tracked and used in the analysis, the PIR provides fairly reliable trend analysis. Each illustration reflects the data provided by those companies responding to that particular question. Typically, not every company polled responds to every question.

. To access this and other industry information, visit the www.ELAOnline.com or call ELA at (703) 516-8380.

A full report is available to members. Here again are the graphs to this

story ( but not the full report as we were unable to obtain permission

to show them to you—for members only.)

http://two.leasingnews.org/temporary/4Q02Graphs.htm

Financial decision makers needing more information on leasing should visit www.LeaseAssistant.org, which provides information on how to choose a leasing company, the top 10 questions to ask before signing a lease, a glossary of terms, and more.

###

About ELA

Organized in 1961, the Equipment Leasing Association (ELA) is a non-profit association representing companies involved in the dynamic equipment leasing and finance industry. ELA's mission is to promote the leasing industry as a major source of funds for capital investment in the United States and abroad. Headquartered in Arlington, Va., ELA has more than 800 member companies and a staff of 27 professionals. Equipment leasing is estimated to be a $204 billion industry in 2002. Visit ELA online at http://www.elaonline.com.

Participants in the 4th quarter 2002 Performance Indicators Report

ADP Credit Corporation

Amsouth Leasing Corporation

Caterpillar Financial Services Corporation

Computer Sales International, Inc.

Dana Credit Corporation

De Lage Landen Financial Services

GreatAmerica Leasing

Farm Credit Leasing Services Corporation

Fleet Capital Leasing

John Deere Credit Corporation

Hitachi Credit America Corporation

Key Equipment Finance

LaSalle National Leasing Corporation

U.S. Bancorp Leasing & Financial

Verizon Credit, Inc.

Wells Fargo Equipment Finance

------------------------------------------------------------------------------

Alexa Ranks Leasing Association Web Sites

02/11/03 01/08/03 WEBSITE NAME

57,762 59,689 www.aba.com American Bankers Association

61,776 78,388 www.leasingnews.org Leasing News

73,495 72,640 www.monitordaily.com Monitor Daily

93,624 104,374 www.elaonline.com Equipment Leasing Association

125,104 132,950 www.nacha.org The Electronic Payments Association

254,127 307,547 www.leasingtoday.com Leasing Today

311,876 334,195 www.uael.org United Association of Equipment Leasing

322,352 326,065 www.executivecaliber.ws Exec. Caliber-Jeffrey Taylor

341,056 383,001 www.naelb.org Nat’l Assoc. of Equip. Leasing Brokers

341,070 315,834 www.cfa.com Commercial Finance Association

344,979 n/a www.lessors.com The Lessors Network

358,127 304,657 www.us-banker.com U.S. Banker

605,575 548,271 www.leasefoundation.org Equip Leasing & Fin Foundation

679,639 751,146 www.pblaw.com/newsletters/bln/ Biz Leasing News

706,894 838,591 www.ibaa.org Independent Comm. Bankers of America

831,875 778,573 www.eael.org Eastern Assoc. of Equipment Leasing

928,023 695,290 www.clpfoundation.org CLP Foundation

1,290,921 1,256,726 www.nvla.org National Vehicle Leasing Association

1,315,615 3,743,401 www.aglf.org Assoc. of Gov. Leasing and Financing

1,839,282 1,781,592 www.iicl.org Institute of International Container Lessors

2,649,974 NO DATA www.nationalfunding.org The National Funding Assoc.

3,503,351 3,324,980 www.mael.org Mid-America Assoc. of Equipment Lessors

3,827,903 3,687,589 www.leaselawyer.com Lease Lawyer

NO DATA NO DATA www.efj.com Equipment Financial Journal

NO DATA NO DATA www.1stBusinessDay.com BizWiz Daily

Note: The Equipment Financial Journal had pages “under construction”

when the test was run and is also new to our list.

1^stBusinessDay.com is less than a month old and will not have history

for perhaps several months as it gets into the system.

These comparison are compiled by Leasing News using Alexa and should be viewed as a "sampling," rather than actual count from the website itself.

The Alexa tool bar works on most browsers. They are partnered with Google. You may download their free tool bar.

To learn more about how the rankings work: http://pages.alexa.com/prod_serv/quicktour_new.html

---------------------------------------------------------------------------------------

Lessors Network

2003 Lease Syndication Showcase Sold Out

Matching Buyers With Sellers In The

Commercial & Municipal Syndication Markets

March 10 | The Ritz-Carlton, Buckhead | Atlanta, GA

Waiting list begun, in case of cancellations:

http://www.lessors.com/Events-2003/Syndication/syndication-wait.html

----------------------------------------------------------------------------------

http://www.utdallas.edu/police/wavs/DragnetSetting.WAV

Southern Pacific will reopen under a new owner. Bad telecom loans may have

played a role.

By Martin Romjue

The Daily Breeze

One day after state regulators closed the failed Southern Pacific Bank of

Torrance, federal officials assured depositors that the bank will reopen

Monday morning under a new owner with full access to accounts insured by the

Federal Deposit Insurance Corp.

Southern Pacific Bank customers will become depositors of Plano, Texas-based

Beal Bank, which bought Southern Pacific under FDIC supervision.

Southern Pacific Bank, which had assets of $1 billion, is the first failure

nationwide of an FDIC-insured institution this year, and the first in

California since Monument National Bank of Ridgecrest was closed in June

2000.

The bank has branches at 23530 Hawthorne Blvd. and 3701 Skypark Drive, both

in Torrance, and one in Irvine.

Most customers will not notice any changes to their accounts or the

branches, said Alana Golden Nabong, spokeswoman for the California

Department of Financial Institutions, which closed the branches Friday and

named the FDIC as receiver.

The exact number of customers was unavailable Saturday, but Southern Pacific

Bank holds 17,200 accounts, said David Barr, a spokesman for the FDIC. Of

those, 938 accounts exceed the $100,000 FDIC insured limit and are

considered at risk.

Beal Bank has assumed about $834 million of insured deposits of the failed

bank. At the time of closure, Southern Pacific had about $30.7 million in

deposits in the at-risk accounts.

"Those customers become creditors to receivership," Barr said. "It is like a

Chapter 7 liquidation. They become top-tier creditors."

As the FDIC sells Southern Pacific assets, that money flows down to the

receivership and is disbursed to creditors, he said.

"Chances are they won't receive 100 cents on the dollar," Barr said.

"Historically, over the past 10 years, uninsured depositors have recovered

on average of 73 cents on the dollar."

Barr said it is too soon to calculate how much Southern Pacific's at-risk

depositors will receive.

"Those tend to be more commercial deposits, but there could be some large

individual depositors," said Barr, who added that the FDIC cannot disclose

the names of depositors because of financial privacy laws.

"We have to work with these customers to finalize their claims," Barr said.

Some customers who have more than $100,000 in assets may be able to get them

to fall under insurance protection, he said. The FDIC will try to determine

what assets in excess of $100,000 could qualify for insurance protection.

"There are ways to have more than $100,000 insured in one institution," he

said.

The FDIC estimates Southern Pacific losses will be $134.5 million, meaning

that even when all assets are sold, the FDIC won't recoup $134.5 million, or

13.5 percent, of total bank assets.

Southern Pacific Bank was a subsidiary of Imperial Credit Industries Inc. of

Torrance, a diversified financial services holding company that did most of

its business through Southern Pacific Bank. The banking firm offered

financial services to small- and middle-market companies, such as commercial

loan and lease products for borrowers, and certificates of deposit, money

market, passbook and IRA accounts to its depositors. As of Sept. 30,

Imperial Credit had $2.1 billion in assets.

Southern Pacific Bank offered loans through several core lending divisions,

including Coast Business Credit, specializing in asset-based commercial

lending; Imperial Warehouse Finance, offering residential mortgage

repurchase facilities; the Lewis Horwitz Organization, the premier lender to

independent film and television production companies; the Income Property

Lending Division, lending to multifamily and commercial property owners; and

Southern Pacific BanCapital, offering equipment leasing to middle-market

businesses.

Imperial Credit Industries Inc. executives could not be reached for comment

Saturday. The office phone for Brad Plantiko, executive vice president and

chief financial officer of ICII, was being answered by an FDIC official.

FDIC officials were working on the transition to Beal Bank ownership

Saturday inside the ICII/Southern Pacific Bank office buildings on Skypark

Drive.

Few details on why Southern Pacific Bank failed were immediately available

Saturday but one key reason was its extensive loans to telecommunications

companies that went bankrupt because of the economic downturn and burst of

the technology investment bubble, Nabong said.

The Department of Financial Institutions determined that Pacific Southern

was operating in "an unsafe manner," and the Commissioner of Financial

Institutions gave it a deadline to raise enough capital, Nabong said. They

were unable to come up with any plan for additional capital, she said.

The Department of Financial Institutions regulates the safety and soundness

of California's state chartered financial institutions by encouraging the

use of sound banking and business practices and by examining the finances of

licensees.

Barr said the closing of Southern Pacific was not a surprise, since the FDIC

had been working with them. The owners had the opportunity to recapitalize

the bank, but were unable to do so, he said.

In such cases, the FDIC puts a troubled bank out to competitive bid, looking

for a potential buyer, Barr said. By Friday, the FDIC had lined up Beal

Bank, which is a state chartered savings bank in Texas.

With offices in Dallas, Houston and San Antonio, Beal Bank is one of Texas'

largest privately owned financial institutions with more than $5.5 billion

in assets and more than $942.5 million in equity capital. It operates as a

wholesale bank, serving mostly secondary markets where loans and debt

securities are bought and sold.

Beal Bank's tier-one capital, or net worth, is about 16 percent of assets,

or about three times the FDIC standard of 5 percent for a well-capitalized

bank.

The bank will pay the FDIC a premium of $500,000 to assume the insured

deposits and buy about $201.5 million of the failed bank's assets. The rest

of the assets will be sold and distributed to creditors, Barr said.

Beal Bank is still evaluating the "situation with the FDIC," and will open

the branches under its name Monday, said Jim Chambless, documentation and

communications manager with Beal. Customers will receive a letter explaining

the purchase in the coming week, he said.

The sale gives Beal a foothold in the California financial market and

enables it to widen its depositor base while funding asset purchases and

loans that match the core of its business activities, the company said in a

statement.

Barr said it is too early to determine if any criminal activity or financial

mismanagement was involved in the failure. Any such activity would be

referred to the Department of Justice.

However, most bank closures result from bad business decisions, he said.

Find out more

Customers with more than $100,000 on deposit at the failed Southern Pacific

Bank should contact the FDIC toll free at 866-308-4470. The toll-free number

will be available from 8 a.m. to 8 p.m. today. On weekdays, customers can

reach the FDIC from 8 a.m. to 6 p.m.

( sent to us by the writer of the article.editor )

------------------------------------------------------------------------

Steve Geller Gets Ken Wheeler to Join UAEL/ELA

When Leasing News originally printed this story it appeared Ken

Wheeler and Equipment Financing Group were not members

of the Equipment Leasing Association and the United

Association of Equipment Leasing as his literature

and faxes stated that they were members.

Mr. Geller was not the only one who sent us copies

of the fax and the mailing.

We received this story on January 29th, attempted to get comments

from Mr. Ken Wheeler, and ran the story in our early morning

January 31st edition.

Ken and Sean Wheeler Misrepresentation

“I received today, totally unsolicited, a fifteen page fax from Equipment

Financing group, Fresno, CA, representing themselves as a funding

source. I am sure I was one of many send out unsolicited. Any

information I receive where I can not tell who the contacts are or other

significant information about, does not pass my "smell" test. The cover

page includes the ELA and UAEL logos. I check both member lists an this

company is not listed. I checked out their website and find that the

contact is Ken Wheeler, enough said.

“I would hate to see people get hurt by these guys who misrepresent

themselves as ELA and UAEL members. I think ELA, in particular, should

know about their use of the ELA logo since they have the legal resources

to stop its use.”

Steven B. Geller, CLP

Leasing Solutions LLC

20 Dike Drive

Wesley Hills, New York 10952

845-362-6106

fax 845-354-2803

cell 914-552-0842

www.leasingsolutionsllc.com

Leasing News also could not find the company in the “on line” directory

of ELA and UAE.

Leasing News has printed stories about Mr. Ken Wheeler and the National

Association of Equipment Brokers.

(see: http://two.leasingnews.org/archives/June2002/6-18-2002.htm

"Kenneth Wheeler Takes On NAELB Legal Counsel Joe Bonanno")

We then ran a story on February 4^th. It confirmed that we had gone “on line”

at the request of Mr. Ken Wheeler and confirmed his company was a member of ELA. Yesterday we received confirmation of his membership in UAEL from the CEO, Joe Woodley:

"On January 30, 2003 Equipment Financing Group, Inc enrolled on-line via the UAEL website as a new member. Address given is 2037 W. Bullard Ave. #514 Fresno, Ca. 93711. Phone:

559-438-5146. Web Site: www. efginc.net. In business since 1992. No. of Employees: 32. Dues category: $595.00 ( under $20 million a year. editor). Contact: Christopher Jones. Ken Wheeler has called me in this regard and I confirmed the receipt of the enrollment. We have not updated the database nor have we printed a 2003 Directory yet. We have a cutoff date at the end of March but since reenrollment has been far better than usual we will update the database very soon. Contact me directly with any other concerns. Thank you."

Joe

---

So we can assume Steve Geller should get some kind of credit for bringing a new

member to both ELA and UAEL. Equipment Financing Group belongs to both organizations today. Welcome aboard.

------------------------------------------------------------------------------

##### #####################################

Z Resource Group and Diversity Capital LLC

Announce Strategic Alliance

Boston, MA - Z Resource Group announces the signing of a strategic three-year alliance agreement with Diversity Capital, a New Jersey based investment-banking firm. The goal of the alliance it to provide the marketplace with a truly integrated solution that provides client companies with both creative debt and lending solutions provided by Diversity Capital coupled with the value added recruiting and growth consulting component provided by Z Resource Group.

Diversity Capital's Managing Director David D'Antonio related, " Growth and profitability for today's leasing industry participants is dependant on three key elements: Strategy, funding and talent. Human Resources will be a critical factor for lessors as the economy improves during the balance of 2003 and into 2004. We believe this alliance with Z Resource Group provides our clients with the best value added solution for attracting top talent."

Larry Hartmann, Managing Director of Z Resource Group stated, "Funding is also a key consideration to any growth strategy. Having top talent without the right balance sheet solution is not enough. Our alliance with Diversity will allow us to better serve our client organizations with additional value added solutions that are quite relevant in today's marketplace.

About Z Resource Group

Z Resource Group is a fast growing, nationwide specialty Executive Search, Staffing and Consulting Firm. The company is entering its fifth year of successfully providing value added services to several key markets, including financial services, technology, and healthcare. Headquartered in the Boston area, the company maintains branch offices in the New York/New Jersey area, Philadelphia, PA and Nashville, TN. For more information, contact Larry Hartmann @ lhartmann@zrgroup.com or on the web at www.zrgroup.com

About Diversity Capital LLC

Diversity Capital LLC is a financial advisory firm that provides liquidity, M&A consulting and debt placement to a variety of specialty finance industries, including commercial lending, leasing, tax lien, settlement and other financial services industries. Diversity has extensive experience in setting up service retained purchase facilities (UNL), commercial paper facilities and other financing structures. Diversity Capital LLC, located in the Philadelphia, PA region, has been providing these services since 1999 and has originated over $500 million in facilities for its clients. For additional information contact David D'Antonio at ddantonio@divcapital.com or on the web at www.divcapital.com

Larry Hartmann

Managing Director

Z Resource Group

201-560-9900

www.zrgroup.com

############### ###################################

ELECTRO SCIENTIFIC INDUSTRIES TAPS KEY EQUIPMENT FINANCE

FOR GLOBAL LEASING

SUPERIOR, Colo., USA Key Equipment Finance, one of the nation¹s largest bank-affiliated equipment financing companies and an

affiliate of KeyCorp (NYSE: KEY), today announced that it has been selected

by Electro Scientific Industries, Inc. (NASDAQ: ESIO) to provide financing

options to its end-user customers worldwide.

The relationship with Key Equipment Finance will allow Electro Scientific

Industries (ESI), a supplier of high-value, high technology manufacturing

equipment, to leverage the Key Equipment Finance field organization in North

America, Europe and Asia Pacific to provide a complete financing package to

end-user customers. The benefits of a co-branded leasing program for ESI

end-user customers include one-stop-shopping and financing, tax benefits and

equipment upgrade flexibility.

ESI customers will receive fast, accurate information about their financing

options, even pre-qualifying for a lease on the spot in certain

circumstances. In addition to enhancing customer options, ESI¹s decision to

offer lease financing may potentially provide benefits including increased

sales and better control of equipment in the aftermarket.

"We are committed to providing the best solutions for our customers, and the

right financing package is an important component of that," said Lisa Holtz,

treasurer of ESI. "Key Equipment Finance will be a strong financial ally

that enables us to return quick financing decisions to our customers as well

as accelerate our cash flow cycle.

"ESI is committed to the service it provides customers and recognizes the

importance of financing as part of that service," said Karen Larson,

president and chief operating officer of Key Equipment Finance¹s global

vendor services unit. "We expect ESI will experience increased customer

satisfaction as a result of implementing a formal, unified global financing

program with their clients¹ budgets in mind."

About ESI

ESI, headquartered in Portland, Oregon, supplies high-value, high technology

manufacturing equipment to the global electronics market. Using its

expertise in laser/material interaction, small parts handling, machine

vision and real-time control systems, the company enables the production of

leading-edge products for customers in the semiconductor, passive component

and electronic interconnect markets. More information on ESI can be

obtained on their web site, esi.com.

About Key Equipment Finance

Key Equipment Finance is an affiliate of KeyCorp (NYSE: KEY) and provides

business-to-business equipment financing solutions to businesses of many

types and sizes. They focus on four distinct markets:

- businesses of all sizes in the U.S. and Canada (from small business to

large corporate);

- equipment manufacturers, distributors and value-added resellers worldwide;

- federal, provincial, state and local governments as well as other public

sector organizations; and

- lease advisory services for manufacturers¹ captive leasing and finance

companies.

Headquartered outside Boulder, Colorado, Key Equipment Finance oversees an

$8 billion equipment portfolio with annual originations of approximately $3

billion. The company has major management and operations bases in Toronto,

Ontario; Albany, New York; London, England; and Sydney, Australia. The

company, which operates in 25 countries and employs more than 600 people

worldwide, has been in the equipment financing business for nearly 30 years.

Additional information regarding Key Equipment Finance, its products and

services can be obtained online at KEFonline.com.

Cleveland-based KeyCorp (NYSE: KEY) is one of the nation's largest

bank-based financial services companies, with assets of approximately $85

billion. Key companies provide investment management, retail and commercial

banking, retirement, consumer finance, and investment banking products and

services to individuals and companies throughout the United States and, for

certain businesses, internationally. The company's businesses deliver their

products and services through KeyCenters and offices; a network of nearly

2,200 ATMs; telephone banking centers (1.800.KEY2YOU); and a Web

site, Key.com(R), that provides account access and financial products 24

hours a day.

Forward Looking Statements

Statements in this press release may include forward looking statements that

involve a number of risks and uncertainties that could cause actual results

to materially differ, either better or worse, from those discussed,

including volatility in the electronic equipment market and competitive

pressures on sales terms for customers. Such risks and uncertainties are

numerous and are identified in more detail in ESI's Annual Report on Form

10-K and interim reports on Form 10-Q.

# # #

CONTACT: Cori Keeton

Barnhart/CMI

(303) 626-7248

corik@barnhartcmi.com

########## ##################################

-------------------------------------------------------------------------------------------------

NAELB Annual Meeting

HOTEL R E G I S T R A T I O N D E A D L I N E

February 21—the following Friday.

The event is being held:

March 20-23, 2003

Hyatt Regency Oakbrook

Chicago, Illinois

If you haven't made your hotel reservations, now is the time. Call the general Hyatt reservations at 800-233-1234 and make your reservations for the Hyatt Regency Oakbrook. Book your reservation on-line, or just take a look at the hotel and amenities by clicking on http://oakbrook.hyatt.com/property/index.jhtml. We have a special rate of $124 for any NAELB meeting participant. When you call, mention NAELB. This special rate cannot be guaranteed after February 21, 2003.

Airlines:

Book your flight today and save. The best airline rates are the ones that are booked early. Visit your preferred airline of

choice and book your flight to Chicago O'Hare International Airport (11 miles from hotel) or Chicago Midway (15 miles from

hotel).

Networking:

Members tell us that one of the best opportunities to network and meet others in the brokerage community is at the NAELB

Annual Conference. Don't wait any longer, register today and save $$! After February 21, registration fees increase!

For more information on this meeting and to register click the following link: www.naelb.org/events.shtml

http://www.naelb.org:80/events.shtml

Gerry Egan

President

NAELB

President

TecSource, Inc.

5621 Departure Drive, Suite 113

Raleigh, NC 27616

Phone: 919-790-1266

Fax: 919-790-2262

E-Mail: mailto:GerryEgan@ForEquipmentLeasing.com

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Allied Capital Provides Growth Financing for Leading Modular Facilities Company

WASHINGTON--Allied Capital (NYSE:ALD) today announced that it has provided $30 million in growth financing to Resun Leasing, Inc., a leading provider of modular space solutions. The financing was structured as senior secured debt.

Resun Leasing, in business since 1986, owns and manages a fleet of over 21,000 building units used by public school systems, the federal government, and commercial properties for additional classrooms, training facilities, expanded office space, and temporary sales centers. In 2002, the company was the exclusive provider of modular buildings for the Winter Olympic Games in Salt Lake City.

Resun operates branches across the United States, enabling the company to respond efficiently to the needs of a geographically diverse customer base.

"Resun Leasing is well-positioned for the future growth of the modular space industry," said Bill Walton, Allied Capital Chairman and CEO. "As businesses, schools, and government agencies continue to outsource facility requirements, the need for flexible and cost-effective solutions, like those provided by Resun, will significantly increase."

About Allied Capital

Allied Capital is the nation's largest business development company and provides long-term debt and equity investment capital primarily to support the expansion of private companies in a variety of industries. The company also participates in the real estate capital markets as an investor in non-investment grade commercial mortgage-backed securities.

The company is headquartered in Washington, DC. For more information, please visit the web site at www.alliedcapital.com, call Allied Capital Investor Relations toll-free at 888/818-5298, or e-mail us at ir@alliedcapital.com.

About Resun Leasing, Inc.

Resun Leasing is a national provider of mobile and modular building space to non-residential customers. In addition to the leasing, delivery, and installation of units, the company sells modular facilities and provides a variety of value-add products and services. Resun Leasing employs a workforce of over 200 and is headquartered in Dulles, VA, with offices around the country.

For more information about the company, please visit www.resunleasing.com.

CONTACT:

Allied Capital

Suzanne Sparrow, 202/973-6383

SOURCE: Allied Capital

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Banknorth Connecticut Poised to Become One of State's Top Five Banks

( leasing subsidiary/division)

GLASTONBURY, Conn.----When Banknorth Connecticut, a division of Banknorth, N.A., completes its anticipated February 14 acquisition of American Savings Bank, the bank will vault from the 14th to the fifth market share position in the state. In Hartford County, Banknorth's market share will improve from seventh to third. Banknorth also will move its headquarters from Glastonbury to New Britain into the 102 West Main Street building that has served as the corporate office for American Savings Bank. Once the acquisition is final, Banknorth Connecticut will have a total of 48 branches and $2.6 billion in deposits.

"We want to be the best bank in Connecticut, and I believe that Banknorth's strong network and our new acquisitions put us in a good position to reach that goal," says John J. Patrick, President and CEO, Banknorth Connecticut. "We're thrilled to have the opportunity to bring our products and services to so many new customers and communities in Connecticut. We started 2002 with six Banknorth branches in Connecticut, so our growth has been nothing short of phenomenal."

Banknorth's new customers will have a wide choice of personal, small business and commercial banking products and services with the convenience of over 350 Banknorth branches and more than 470 Banknorth ATMs across New England and upstate New York. Banknorth Connecticut is also part of the SUM Network of more than 2,800 ATMs.

Banknorth Connecticut has taken great care to alleviate any customer inconvenience as a result of the acquisition and name change. Most American Savings Bank customers may continue to use existing checks since most deposit account numbers will not change. For most customers, auto payments, transfers and withdrawals will continue uninterrupted after the acquisition. Customers will begin to see the Banknorth Connecticut name in branches and on their statements beginning February 14.

"The bank recently appointed two new Regional Vice Presidents who will work closely with the Waterbury and New Britain regions in addition to our current Glastonbury region," Patrick said. "Banknorth's community-based banking philosophy means our new bank branches will continue to have local leadership and decision-making capabilities. And relocating our corporate headquarters to New Britain puts us in the center of our newly expanded service area."

Currently, Banknorth Connecticut, a division of Banknorth, N.A., has $721 million in deposits and 12 branches, and has served local customers and communities for more than 100 years. Following the anticipated February 14 acquisition of American Savings Bank, Banknorth Connecticut will have 48 branches and $2.6 billion in deposits. Banknorth Group, Inc., the third-largest retail and commercial banking company headquartered in New England, will have close to $26 billion in assets following the American Savings Bank acquisition. Other banking divisions operated by Banknorth, N.A. include Banknorth Vermont, Banknorth Massachusetts, Peoples Heritage Bank in Maine, Bank of New Hampshire and Evergreen Bank serving upstate New York. Banknorth's network of subsidiaries and divisions provides products and services throughout New England in areas such as insurance, investment planning, investment management, private banking, mortgage lending, leasing, merchant services and more.

Investment and insurance products are not bank deposits, are not insured by the FDIC or any federal government agency, are not obligations of nor guaranteed by any bank or bank affiliate, and may involve risk, including the possible loss of value or principal amount invested. Securities and investment products are offered through Banknorth Investment Management Group, a division of Banknorth, N.A., or through Banknorth, N.A., in association with its affiliate, Bancnorth Investment Planning Group, Inc. Insurance products are offered through Bancnorth Investment Planning Group, Inc. or the agencies of Banknorth Insurance Group. Securities and some insurance products offered through Banknorth, N.A., or Bancnorth Investment Planning Group, Inc., are provided by PrimeVest Financial Services, Inc., an independent registered broker/dealer. Member SIPC.

Bank deposits FDIC insured. Equal Housing Lender.

CONTACT:

Banknorth Connecticut

John Patrick, 860/652-6561

Banknorth Group, Inc.

Brian Arsenault, 207/761-8517

SOURCE: Banknorth Connecticut

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Fitch Ratings Lowers GATX Financial To 'BB/B'; Rating Outlook To Stable

Fitch Ratings- (This is an amended version of a press release issued yesterday, containing revised information in paragraph seven regarding GATX's announcement that it would exit its Specialty, not Technology, Finance business.

Fitch Ratings lowers GATX Financial Corp.'s (GATX Financial) senior debt and commercial paper ratings to 'BB' and 'B' from 'BBB-' and 'F3', respectively. The Rating Outlook is revised to Stable from Negative. Approximately $2.6 billion of debt securities are covered by Fitch's actions.

GATX Financial is the principal operating subsidiary of GATX Corp. (GATX), a specialized equipment finance and leasing holding company. To eliminate the impact of double leverage, Fitch analyzes GATX Financial at the GATX level.

The rating changes center on GATX's weakening credit profile and the challenging operating environments in the company's core markets. Specifically, nearly all of the company's leverage and capitalization measures weakened in 2002. Much of the downward trend was directly due to GATX's weak operating results in 2002. During 2002, net of a $6.2 million gain from the sale of a segment, the company realized $66 million of one-time and asset impairment charges, which resulted in net income of $0.3 million. Fitch notes that writedowns to goodwill accounted for 66% of the net charge. However, even without these charges, GATX's internal capital formation, after common dividends, would have been negative in 2002.

The negative internal capital formation resulted in leverage, defined as all on-balance sheet debt divided by tangible equity, increasing to 5.79 times (x) at Dec. 31, 2002 from 5.03x at Dec. 31, 2001. Fitch views leverage at Dec. 31, 2002's level as high given the company's business mix, heavily weighted toward operating leases and higher risk secured loans and finance leases. Additionally, GATX's equity base also supported $861 million of investments in off-balance sheet joint ventures and partnerships at Dec. 31, 2002. GATX's proportionate share of assets from these partnerships is believed to exceed $1.5 billion. The joint ventures and partnerships were arranged to principally support GATX's acquisition of commercial aircraft, an asset class that the company has significant experience managing. Fitch also notes that GATX also had $1.37 billion of off-balance sheet debt at Dec. 31, 2002, of which over $1 billion was recourse to the company.

During 2002, GATX issued over $1.5 billion of long-term debt. Of this amount, $425 million was unsecured and issued in public markets. The majority of the remaining debt issued was secured. Secured debt allowed management to fund the company at a lower cost than the terms available in the unsecured market. However in doing so, GATX's asset base was further encumbered to the detriment of the unsecured bondholders. Aside from the availability on the company's $778 million in aggregate bank credit facilities, Fitch believes that GATX will source additional secured funding for the foreseeable future in order to meet its term debt requirements. At Dec. 31, 2001, GATX reported that it had $883 million of secured debt, which was collateralized by $1.01 billion of assets. Fitch believes that the advance rates for secured debt issued in 2002 were similar to those in 2001.

Positively, management reduced the amount of short-term debt in the company's capital structure during the year. Therefore, debt rollover is not a risk at present. Additionally, the company has over $1.1 billion of available liquidity at Dec. 31, 2002, including full availability under its bank revolvers, in order to help meet upcoming debt maturities and committed capital expenditures. Fitch notes that a $350 million bank credit facility expires in 2003 but it is believed the company will seek to extend the majority of this facility. The combination of available liquidity and good cash flow from operations, over $1.3 billion in 2002, is reflected in the Stable Rating Outlook.

In 2001 and 2002, management implemented strategies to improve the company's operating efficiency and reduce its risk profile through workforce and business rationalization programs. On Dec. 17, 2002, GATX announced that it would exit its Venture Finance business either through sale to another party or portfolio liquidation. Concurrently, GATX also announced plans to exit its Specialty Finance business through portfolio liquidation. While business diversity is generally viewed favorably, these businesses were outside GATX's core emphasis and, given the financial challenges facing the company, became expendable.

Management provided earnings guidance for 2003 on its Jan. 31, 2003 year-end conference call. Projected net income of $65 million, subject to market assumptions, would slightly exceed current common stock dividend requirements of approximately $63 million. Continued weak internal capital formation limits management's ability to be opportunistic in the current challenging environment and position the company for growth when the economy rebounds. Therefore, Fitch believes that a revision to the dividend policy is likely both to help build the capital base but also to provide a buffer to unsecured debtholders as additional secured debt is issued.

Based in Chicago, GATX Financial Corp. is a specialized finance and leasing company. The company is one of the largest commercial aircraft and railcar operating lessors in the world and has an information technology business with long-term growth potential.

Contact: Philip S. Walker, Jr., CFA 1-212-908-0624 or Matthew D. Gallino 1-212-908-0218, New York.

Media Relations: James Jockle 1-212-908-0547, New York.

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“Mick” First ---“Bruni” Second at Westminster Kennel Club

Ch. Torums Scarf Michael, the 6 1/2-year English-bred Kerry blue terrier known as Mick wins “Best of Show” at the Westminster Kennel Club yesterday

in New York.

Second was Bruni: http://www.leasingnews.org/images/Brun Desk 2 (2).JPG

http://www.keystoneleasing.com/Archie_shoe_guilty.JPG

( His name was originally Archie, but this pictures shows how he

got his name.)

(Barry Reitman says Bruni will always be first in his heart. He even

has a Valentine gift for his beloved “live-in” companion. He denies

the rumor that he plans to put Champagne in the water dish on Friday.)

Here, Kitty. Here, Kitty, Kitty----

http://www.keystoneleasing.com/Here_Kitty.JPG

For more pictures of Bruni, please go to: http://www.keystoneleasing.com/Archie_Hannah2.JPG

You judge with the pictures of the “Best of Show.”

http://graphics7.nytimes.com/images/2003/02/11/sports/12dog.jpg

http://graphics7.nytimes.com/images/2003/02/12/sports/12DOGS.jpg

Full story and Multi-Media available at New York Times

(you may have to register, but it is free )

http://www.nytimes.com/2003/02/12/sports/othersports/12DOGS.html

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“Niners Go With A Beaver”

I remember when the 49ers fired George Seifert (remember him) and

all we fans were mad as h*ll. It took us almost four years to pronounce

his successors name, and then as we learned how to pronounce Maah—ree—oooch-eee , they let him go for an Oregon State coach.

None of us wanted Mora to succeed the job ( he is often booed more

by fans than the opposing team ). It worse however, if you are an Oregon Duck

(Sue graduated from Beaverton High School and the University of

Oregon.) Her first question, “Why do we need all the 49er tickets

that we have?”

To make it worse, the San Francisco Chronicle headlined the announcement:

“Niners Go With A Beaver”

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2003/02/12/349ERS.TMP

Here is ESPN view of the matter;

http://espn.go.com/nfl/news/2003/0211/1507238.html

Here is Sue’s view of the matter:

http://www.utdallas.edu/police/wavs/hstlavsta.wav

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