Fitch Upgrades Marlin Leasing Receivables VII, LLC, Series 2003-1

CHICAGO)--May 3, 2006--Fitch Ratings upgrades the following classes of equipment contract backed notes for Marlin Leasing Receivables VII, LLC, series 2003-1 as follows:

Class A upgraded to 'AA' from 'A+';

Class B upgraded to 'A' from 'BBB+;

Class C upgraded to 'BBB' from 'BB+'.

In its review of the Marlin 2003-1 transaction, Fitch noted increasing levels of credit enhancement available to the class A, B, and C notes. The continued increase in credit enhancement is a result of better than expected portfolio performance. As of April 17, 2006, 30+ day delinquencies equaled 2.79%, cumulative net losses were 2.18%, and the recovery rate on previously defaulted contracts is 39.16%. In addition, the transaction also benefits from a reserve account ($2,371,050), over-collateralization ($2,123,470), and expected future booked residual realizations.

In addition to the aforementioned transactions, Fitch also rated the Marlin 1999-2, 2000-1, 2001-1, and 2002-1 transactions, which matured in December 2002, March 2004, July 2004, and August 2005, respectively. All four transactions outperformed original base case expectations, with consistently low delinquency and default rates, resulting in steadily increasing levels of credit enhancement available to all classes.

Fitch will continue to closely monitor these transactions and may take additional rating action in the event of changes in performance and credit enhancement measures.

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