Leasing News

It is now Tuesday morning at the 41st Annual ELA Leasing Convention. People are mingling in the hallways comparing notes about last night's cocktail parties, reviewing the daily agenda and sizing up their education options. I overhear people saying that the food and drink in San Francisco are great.

However, I also hear one lady who says that the attendee list offended her. She comments that all men are prefixed “Mr.”--- while all women have no prefix. Sure enough. She is correct. Why it is done that way, I do not know.

Mike Fleming started the day with an overview on how ELA will reposition itself to meet the needs of all ELA members. He reviewed ELA's $8 million operating budget and vowed to expand the business and marketing information programs. His number one item (as it should be) will advocate the positive aspects of leasing to a hesitant Congress.

After Mike's opening, David Hale, Global Chief Economist with the Zurich Financial Services Group, lectured on the economy. He indicated that there was an 80-90% probability that the U.S. will go to war with Iraq ( with an estimated duration of 21 days). He is still concerned about the overall world economy and cannot predict when our leasing troubles will end. He also concludes that the housing market will resound a second time if interest rates continue to drop. Business investment may not be as lucky since a lot of companies have become risk averse and less likely to expand until the business climate stabilizes.

From 10:30 to 12:00 people went off to various council meetings. They attended either the small ticket council, middle market business council, vendor programs business council, service provider business council or large ticket business council. In spot checking the rooms, attendees seemed concerned about the direction of ELA and wanted to contribute ideas on how they could make their ELA membership more valuable. Attendees were also given the opportunity to vote for new council members.

Larry Sabato, an Election Analyst and director of the University of Virginia Center for Governmental Studies, outlined his thoughts on the 2002 election race. He believes that many incumbents have locked in their seats using prejudicial redistricting rules. He seemed to be bothered by the recent Jersey incident in which the Democrats pulled their losing candidate and replaced him at the last moment. He considers this event unprecedented and is not fair to the voting public. He also predicted various governor and house races. (Note from Jeffrey: I cannot remember laughing so hard at a political analyst. Larry is funny, insightful and I plan to check out his free website. Because I was laughing so hard, I forgot to write down the name of his website. Once I find it, I will put a hot link at http://executivecaliber.ws)

After lunch I went by the exhibitor room and found the Marriott staff tearing down the booths. It appears that it order to minimize convention costs, ELA decided to use the exhibitor room as the venue for the evening entertainment. As a result, exhibitors had to shut down early. In polling the exhibitors, they felt that they had been denied invaluable lessor face time.

For the remainder of the day, people attended additional workshops, which focused on automation, funding, supply chain management, residual management, and anti-money laundering regulations. I spot checked rooms and attendance had dropped by 90%. Two popular sessions included Curt Glenn's Bonus Depreciation and Don Paynter's Cross-Border Leadership.

The Closing Night Party ran from 7:00 - 10:30 PM and provided all ELA members with a memory that will set the standard for future receptions. It was elegant, sophisticated, subdued and distinguished. The quality was omnipresent and I felt a warm feeling every time I would run into my friends. I enjoy these events and always feel that I get my money's worth by attending.

Reporting from the ELA Annual Convention in San Francisco, I'm Jeffrey Taylor.

Jeffrey Taylor

ExecutiveCaliber - Global Lease Training

2144 South 1150 East

Bountiful, UT 84010 USA

(801) 299-9332

(801) 299-9932 (fax)

JTaylor@executivecaliber.ws

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Taycor Financial One of Top Five in State

Taycor Financial, Culver City – Provides equipment leasing and financing. Grew 4,854 percent in five years. Had sales of $11.9 million in 2001.

http://www.taycor.com/ (member UAEL)

Taycor Financial, Culver City – Provides equipment leasing and financing. Grew 4,854 percent in five years. Had sales of $11.9 million in 2001.

Taycor Financial achieved some 4,854 % growth in the past five years, with sales growing from $241,000 in 1997 to in $11,938,000 in 2001. Taycor Financial is in the business of Leasing & Financing Capital Equipment to businesses nationwide.

"Our whole team is very excited and honored to be included in Inc magazine's extremely prestigious ranking," said Bob Skibinski, Taycor's CEO. "It shows the spectacular results that can be achieved through very hard work, focus and most importantly teamwork."

Started in 1982, the Inc 500 ranks the nation's leading entrepreneurial firms according to sales growth over the previous five years. Former Inc 500 companies that have gone on to become household names include Microsoft, Timberland, Domino's Pizza and Patagonia.

The 2002 Inc 500 reveals a surprising resiliency within the entrepreneurial sector, where leading companies are continuing to show dramatic rates of growth despite the recession.

The average five-year growth rate of this year's Inc 500 companies is 1,521%. While that is less than the 1,933% average for companies on last year's list, it is nonetheless dramatic in the current environment. Average 2001 sales for the Inc 500 dropped only slightly, from $24,976,000 to $24,706,000. More than two-thirds (73%) of 2002 Inc 500 companies are profitable. Despite the technology bust, "Computer Software & Services" remains the leading industry category, representing nearly 40% of firms on the list.

"This is the first Inc 500 ranking to reflect the full impact of the recession" said Inc editor John Koten. "Yet these entrepreneurs are managing to confound the nay sayers and move ahead despite the obstacles. They're showing that smart strategies can succeed even in the toughest times."

To be eligible for this year's Inc 500, companies had to be independent and privately held through fiscal year 2001, have at least $200,000 in sales in the base year of 1997, and their 2001 sales had to have exceeded 2000 sales. Holding companies, regulated banks and utilities are not eligible. Inc verifies all information using tax forms and financial statements from certified public accountants and by conducting interviews with company officials.

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California has 58 of nation's fastest-growing companies

By Jennifer Coleman

ASSOCIATED PRESS

SACRAMENTO – More of the fastest-growing businesses, as ranked by Inc. Magazine, are from California than from any other state, negating an impression the state's business climate is too unfriendly, state officials said.

"Three of the top 10 fastest-growing companies in America are in California, and 58 of the top 500 are in California, substantially more than any other state," said Gov. Gray Davis. "And even though we're dealing with a national recession, California has maintained policies that promote growth and encourage innovation."

The top five

California companies on the fastest- growing list:

–Outsource Group, Walnut Creek – Provides professional human- resources services to businesses. Grew 54,330 percent in five years. Had sales of $294.5 million in 2001.

–Prometheus Laboratories, San Diego – Acquires, develops and markets pharmaceuticals. Grew 11,243 percent in five years. Had sales of $50 million in 2001.

–Blue Pumpkin Software, Sunnyvale – Provides enterprise-software applications and services. Grew 10,945 percent in five years. Had sales of $38.5 million in 2001.

–Taycor Financial, Culver City – Provides equipment leasing and financing. Grew 4,854 percent in five years. Had sales of $11.9 million in 2001.

–Global Domains International, Carlsbad – Sells Internet domain names. Grew 3,479 percent in five years. Had sales of $9.3 million in 2001.

Of the 58 California companies that made the list, 23 were from the Bay Area, 17 were from Los Angeles and 11 were from San Diego.

Texas had the next highest number of companies on the list, with 47 firms. Florida had 31 companies and New York had 28.

The magazine ranked Outsource Group of Walnut Creek, Calif., as the nation's fastest-growing company. Outsource, which provides professional personnel services to businesses, grew 54,330 percent in five years, with sales of $294.5 million in 2001.

Inc. Magazine will release its list at the end of October. This is the second year that California, the nation's most populous state, ranked first on this list.

The state's good showing also is contrary to the impression that California's economy was "incredibly dependent on a smoke and mirrors, dot-com economy," said Karen Dillon, executive editor of Inc. Magazine. "This is good evidence that there's a lot more breadth and depth" to the state's economy.

California, with the fifth largest economy in the world, has a gross state product of $1.4 trillion.

The 500 companies on the magazine's list had an average five-year sales growth of 1,521 percent. The average figure for last year's list was 1,933 percent.

Average sales for the top 500 companies dropped slightly, from $24.9 million to $24.7 million, Dillon said. The technology sector remains the leading industry, with 40 percent of the firms.

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Consumer Spending Boosts Profits at Major Banks

By Caroline E. Mayer

Washington Post Staff Writer

Major banks reported better-than- expected profits yesterday, thanks largely to consumers who refinanced their mortgages and continued to rack up charges on their credit cards.

Citigroup Inc., Bank of America Corp., Wells Fargo & Co. and Bank One Corp. all reported substantial profits in the consumer side of their business, helping to counter losses and declining business in their commercial and investment divisions.

"These banks are offsetting their headaches, getting their money from the consumer side of the business," said Arnold G. Danielson, a banking consultant in Rockville.

The results helped spark the large rally on Wall Street yesterday. Shares of Citigroup closed at $34.14, up $3.83, while Bank of America shares rose by $5.04, to close at $65.75.

Shares of Falls Church-based Capital One Financial Corp., one of the nation's largest credit card issuers, jumped $2.48, closing at $34.64, as it reported that its earnings increased 57 percent in the third quarter. The company also raised its forecast for full-year earnings to 35 percent, from 30 percent, over last year.

The reports again emphasized the importance of the consumer in the nation's economy. Consumer spending helped make last year's recession relatively mild and has largely kept this year's modest recovery going.

"The consumer was very strong, stronger than people had expected," concluded Andrew B. Collins, a senior bank analyst with U.S. Bancorp Piper Jaffray.

However, Collins noted, not all banks were expected to post such positive earnings. "Tomorrow is another day," he said, noting that several banks, including J.P. Morgan Chase & Co., are scheduled to release their earnings today. Chase has already warned that it expects its third-quarter profit to be lower than previously expected.

In a broad sense, bank profits were up because, with interest rates so low, their costs for obtaining funds to lend is much lower than what they charge for the loans they make.

Banks "have been rescued by an abundance of deposits" as individual investors have taken their money out of the stock market and placed it in money market funds, Danielson said. The trend is happening even though many banks are offering interest rates below 2 percent, compared with the 3 to 4 percent rates they paid a couple of years ago.

While the Federal Reserve lowered its target for overnight interest rates to 1.75 percent late last year -- down 4.75 percent for the year to the lowest level in four decades -- there was not a corresponding drop in bank credit card interest rates.

According to CardWeb.com, which monitors the credit card industry, the average interest rate charged by credit card issuers dropped by a little more than 2 points, from 16.49 percent in January 2001 to 14.32 percent in December 2001.

And while the Fed target rate has remained at 1.75 percent, the average interest rate for credit cards has started to climb during 2002, to 14.71 percent in September.

Overall, Citigroup's third-quarter net income rose 23 percent, to $3.92 billion.

In the consumer division at Citigroup, the nation's largest financial services company, the spread between what the bank paid for money and what it charged its customers rose to 11.09 percent. Credit card earnings rose 21 percent, to $849 million.

On the other hand, earnings fell 7 percent, to $1.2 billion, at its investment banking unit Salomon Smith Barney Inc.

At Bank of America, the biggest U.S. consumer bank, profit nearly tripled to $2.24 billion, driven by higher sales of mortgages and credit cards.

Wells Fargo, the fifth-largest bank, saw net income grow 10 percent, to $1.44 billion, with profits from lending, including home loans, growing 15 percent.

Bank One, the sixth-largest bank, saw profit for the third quarter jump 9.2 percent, to $823 million, from a year ago.

Profit from credit cards rose by 7 percent to total $298 million. Charge volume rose by $4.3 billion, and 1.43 million new accounts were opened, the highest level in three years.

Citigroup

Citigroup chairman and chief executive officer Sanford I. Weill said in a statement accompanying Tuesday's report that he was ``exceptionally pleased'' with the results given the state of the global economy.

``This strong performance took place against the backdrop of macroeconomic challenges in Argentina and the political uncertainty in Brazil, which negatively impacted our results, as well as exceptionally weak equity markets, which have reduced the value of our proprietary investment portfolio and led to further realized losses in the insurance portfolios,'' he noted.

Weill also used the report to emphasize that the banking behemoth was committed to ``resolving the issues facing our industry.'' Citigroup has been dealing with allegations related to the company's financing of failed energy company Enron, possible conflicts of interest involving its analysts and concerns over the allocation of profitable initial public offering shares.

Net income for the first nine months of the year was $12.85 billion, or $2.47 a share, up from $10.25 billion, or $1.98 a share in 2001.

Bank of America

Bank of America said that strong performance in its retail operations - including mortgages, credit cards and deposits - boosted net income to $2.24 billion, or $1.45 a share, in the July-September period from $841 million, or 51 cents a share, a year earlier.

The 2001 figures included costs related to leaving the auto leasing and subprime real estate lending businesses as well as a ``goodwill'' write-down.

Analysts surveyed by Thomson First Call had expected the bank, which is based in Charlotte, N.C., had forecast earnings of $1.41 for the quarter.

In trading on the New York Stock Exchange, shares gained $5.04, or 8.3 percent, to close Tuesday at $65.75 each.

Chairman Ken Lewis noted that strength in retail operations offset weakness in market-related revenue from trading and equity investments.

``We continue to benefit from our diversified business mix,'' said Lewis, who also is the bank's chief executive officer.

Chief financial officer James Hance said he expected fourth-quarter performance ``to look a lot like the third, because we expect the same dynamics'' in the economy.

He said consumer banking continued to be strong and that there was some improvement in commercial lending. He warned, however, that ``you still have fragility in the large corporate business sector.''

Net income for the first nine months was $6.64 billion, or $4.22 per share, up from $4.73 billion, or $2.90 per share, a year ago.

Bank One

Third-quarter profits at Bank One Corp. increased to $823 million, or 70 cents a share, in the July-September period from $754 million, or 64 cents a share, a year earlier.

That was in line with the estimates from analysts surveyed by Thomson First Call.

Bank One shares rose $2.61, or 7 percent, to close Tuesday at $39.74 on the New York Stock Exchange.

James Dimon, a former Citigroup official who is chairman and chief executive officer of Bank One, said he was pleased with the results given the challenging economic climate.

``We saw positive signs in each line of business, with some growth in credit card, retail and investment management,'' Dimon said in a statement accompanying the report.

He said retail operations ``had net growth in transaction accounts for the first time in nearly three years'' and that nonperforming commercial loans were down for the first time in three years.

``The economic environment continues to be uncertain and could constrain revenue growth as it has begun to affect commercial loan demand and usage - even after adjusting for our deliberate reduction in commercial loans - and volumes in Treasury services,'' he said.

Net income for the first nine months was $2.45 billion, or $2.08 a share, compared with $2.1 billion, or $1.78 a share, in 2001.

Wells Fargo

Wells Fargo & Co. said third-quarter earnings were propelled by low mortgage rates and a surge in new depositors.

The San Francisco-based bank earned $1.44 billion, or 84 cents per share, in the July-September period, up from $1.16 billion, or 67 cents per share, a year earlier. That matched the consensus of analysts surveyed by Thomson First Call.

In trading on the New York Stock Exchange, Wells' shares climbed $2.55, or 5.4 percent, to close Tuesday at $49.78.

With some mortgage rates falling below 6 percent, millions of homeowners have been refinancing their loans to save money. The trend has been a boon for Wells Fargo, which ranks among the nation's largest mortgage lenders.

Through the first nine months of the year, Wells' mortgage volume totaled $221 billion. That was more than its previous full-year record of $202 billion in 2001.

In the third quarter, the bank collected $6 billion in revenue, a 10 percent improvement from the same time last year. Through the first nine months of the year, Wells' revenue totaled $18 billion, a 26 percent gain from last year.

``We are earning more of our customers' business and gaining market share from our competitors,'' said Dick Kovacevich, Well's chief executive officer.

Loan losses in the third quarter totaled $415 million, down from $454 million a year earlier.

In the first nine months of the year, Wells earned $3.97 billion, or $2.30 per share, up from $2.24 billion, or $1.29 per share, last year.

Mellon Financial

Mellon Financial Corp., based in Pittsburgh, said earnings from continuing operations totaled $186 million, or 43 cents a share, in the third quarter compared with $179 million, or 38 cents a share, a year earlier.

The results beat by a penny the 42 cents in profits expected by analysts surveyed by Thomson First Call.

Shares rose $2.51, or more than 10 percent, to close at $26 at the end of regular trading on the New York Stock Exchange.

The bank said that as of the third quarter, all of the assets and liabilities from it retail branches - sold in December to Citizens Financial Group Inc. - had been removed from its books.

The financial services company also moved to lower credit risk by reducing nonperforming assets by $107 million to $69 million. It said the bulk came from writing down $85 million of a $100 million loan to WorldCom, the telecommunications company now operating under bankruptcy protection.

Eric Rothman, an analyst with Williams Capital Group, said Mellon was doing well considering the markets and how other asset management companies have fared.

``All in all, it was not an overly bad quarter. They took the hit last quarter for WorldCom, and they have set themselves in a fairly decent spot, all things considered,'' Rothman said. ``The overall sum of the pieces at Mellon should do well on a much longer basis.''

Mellon earned $503 million from continuing operations in the first nine months of the year, or $1.14 a share, up from $480 million, or $1 a share, in the first nine months last year.

On the Net:

www.citigroup.com

www.bankofamerica.com

www.bankone.com

www.wellsfargo.com

www.mellon.com

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Rates rise in Treasury bill auction

By Associated Press

WASHINGTON (AP) Interest rates on short-term Treasury securities rose in Tuesday's auction.

The Treasury Department sold $17 billion in three-month bills at a discount rate of 1.630 percent, up from 1.585 percent last week. An additional $15 billion was sold in six-month bills also at a rate of 1.630 percent, up from 1.530 percent.

Both the three-month and six-month rates were the highest since Sept. 16, when the bills sold for 1.660 percent and 1.640 percent, respectively.

The new discount rates understate the actual return to investors 1.659 percent for three-month bills with a $10,000 bill selling for $9,958.80, and 1.666 percent for a six- month bill selling for $9,917.60.

In a separate report, the Federal Reserve said Tuesday that the average yield for one- year constant maturity Treasury bills, the most popular index for making changes in adjustable rate mortgages, rose to 1.59 percent last week from 1.55 percent the previous week.

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Truckers, others ensnarled in port mess

by Dick Larsen, senior editor

www.landlinemag.com

Owner - Operator Independent Drivers Association

Who would have thought an 11-day labor dispute would so completely interrupt America's supply chain, creating an estimated $2 billion-a-day loss to the economy and a gnarly muddle for 2,600 waiting trucks and hundreds of offshore ships?

Evidently, President George Bush.

Bush risked some political capital by invoking the 1947 Taft-Hartley Act, the first president to do so since Jimmy Carter, in an effort to end the dispute between West Coast dock workers and shippers.

A federal judge in San Francisco Oct. 8 ordered an 80-day cooling-off period in the labor standoff that shut down shipping operations at 29 ports, leaving retail goods, manufacturing parts and food stranded on docks or on container ships offshore.

Even as things cool off, they stand to heat up. If no settlement is reached within 60 days, a three-member panel headed by former Republican Sen. Bill Brock will issue a report telling where the two sides stand. Union members would then be required to vote on management's latest offer. However, if members reject the offer and the 80 days pass, the standoff would resume.

Moreover, backlogged goods probably will not arrive at their destinations until Jan. 1, 2003, according to some estimates. And that assumes no further slowdowns during the "cooling off" period.

In Los Angeles, for example, truckers who lined up at terminals Oct. 10 faced a turnaround time of around five hours - nearly double the norm, said Joe Nievez, president of Qwikway Trucking Co., speaking to the Daily Breeze, Torrance, CA.

Nievez said it was too early to tell if the delay was caused by the large number of truckers who rushed to the terminals or by the pace of longshoremen's work.

Meanwhile, it seems only Mexican ports, lawyers and air shippers have benefited.

For example, OOIDA member Jim Shannon and his wife Athena were stranded at the Port of Oakland with 36,000 pounds of pork destined for the Orient. After waiting several days, they traveled to Englewood, CA, to forward the meat for shipment by air via Los Angeles International Airport.

And lawyers representing shipping lines, exporters importers and insurers will hash out who pays for delays and damaged goods.

Meanwhile, Mexican ports such as Ensenada in Baja California have received diverted shipments. One report tells of 20 trucks with merchandise ranging from bananas to Christmas toys that left Ensenada under police escort for the border city of Tijuana.

However, Mexican trucks hauling U.S.-bound fruit and vegetables underwent lengthy inspections by U.S customs officials, risking spoilage. Manuel Gomez, head of trucking association Canacar, told Reuters U.S. checks are "more exaggerated than usual," adding, "It doesn't matter that we are transporting products so their supply chain isn't interrupted."

Gomez said the delivery of goods was also delayed by the fact Mexican customs authorities had to issue special permits to allow local ports to dispatch cargo from the rerouted Asian vessels.

Meanwhile, trucking groups have asked U.S. Secretary of Transportation Norman Mineta to suspend the hours-of-service rules until the ports are cleared of the containers. Another suggestion was to expand terminal operations to 24-hours a day, seven-days-a-week.

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AmSouth Reports Third Quarter Earnings Per Share Up 16.2 Percent

BIRMINGHAM, Ala--AmSouth Bancorporation (NYSE:ASO) today reported earnings in the third quarter ended September 30, 2002, of $.43 per diluted share, a 16.2 percent increase from the $.37 per diluted share reported for the third quarter of 2001. Net income for the third quarter of 2002 was $156.0 million versus $136.1 million for the same period in 2001, a 14.6 percent increase.

AmSouth's third quarter performance resulted in a return on average equity of 20.2 percent, a return on average assets of 1.60 percent and a record low efficiency ratio of 49.5 percent.

"This quarter was marked by growth in noninterest revenues, good deposit growth effective expense control and improving credit quality," said Dowd Ritter, AmSouth's chairman, president and chief executive officer. "We are well-positioned for a rebound in the economy, and in the meantime we are continuing to deliver solid, sustainable earnings."

Net interest income was $371.4 million, a 7.3 percent increase from last year's third quarter. The net interest margin was 4.36 percent, down 25 basis points from the second quarter. The decline resulted from a combination of market forces and actions taken with an emphasis on longer-term performance. The sharp decline in long-term interest rates has accelerated prepayments on loans and investment securities. At the same time, AmSouth continues to aggressively grow deposits and, in light of slower than expected loan growth, hold surplus funding in overnight funds and other very short-term liquid assets.

Average loans for the quarter grew by $1.1 billion, a 4.5 percent increase over the same quarter in 2001, while low-cost deposits grew $889.2 million, or 5.6 percent, during the same period.

Noninterest revenue, which includes earnings from service charges, trust, investment management services and other sources of fee income, was $188.3 million for the quarter, a decrease of $4.0 million or 2.1 percent compared with the same quarter in 2001, but an increase of $7.2 million compared with the previous quarter. Third quarter noninterest expenses were $283.0 million, down 4.8 percent compared with the same quarter in 2001.

Net charge-offs were .66 percent of average net loans in the third quarter of 2002, improving from .76 percent in the previous quarter. The loan loss provision for the quarter exceeded net charge-offs by $8.5 million. The ratio of loan loss reserves to total loans was 1.45 percent at the end of the third quarter.

Total nonperforming assets at September 30, 2002, were $188.7 million, or .72 percent of loans net of unearned income, foreclosed properties and repossessions, compared to $189.5 million or .74 percent in the previous quarter. Nonperforming assets were 8.0 percent below the level for the third quarter of 2001.

About AmSouth

AmSouth is a regional bank holding company headquartered in Birmingham with $40 billion in assets, 600 branch banking offices and more than 1,200 ATMs. AmSouth operates in Tennessee, Alabama, Florida, Mississippi, Louisiana and Georgia. AmSouth is a leader among regional banks in the Southeast in several key business segments, including consumer and commercial banking, small business banking, mortgage lending, equipment leasing, annuity and mutual fund sales, and trust and investment management services. AmSouth also offers a complete line of banking products and services at its web site, www.amsouth.com.

CONTACT:

AmSouth Bancorporation

Investment Community:

List Underwood, 205/801-0265

News media:

Rick Swagler, 205/801-0105

www.amsouth.com

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NetSol Technologies, Inc. Reports Fiscal Year 2002 Results; Losses Reduced by 64% to $5.9 Million From $14.0 Million and Loss Per Share Is Reduced to $0.40 From $1.12 Per Share

CALABASAS, Calif--NetSol Technologies, Inc. (the "Company" or "NetSol") (NASDAQ:NTWK), a CMM Level 2 Software Company specializing in lease and finance enterprise software applications, today reported results for fiscal year ended June 30, 2002. NetSol filed its annual Form 10-KSB along with its financial statements with the Securities and Exchange Commission today.

Revenues were $3,578,113 for June 30, 2002 as compared with $6,726,836, which is a decline of 46%. Operating expenses were reduced dramatically to $6,395,427 in fiscal year 2002 from $18,076,642 in fiscal 2001, which is a reduction of 64%. This was achieved by consolidation of operations; reduction of employee head count by 120 persons worldwide; divestment of the UK and German operations and aggressive cost cutting worldwide in administrative and general operations of the Company. The operating expenses include non-cash depreciation and amortization charges of $2,115,399, which were accelerated from 15 years to 5 years to write off goodwill and intangibles in a shorter period. Other non-cash charges included a compensation related expense of over $800,000. The Company reduced the salaries and wages to $1,461,157 in fiscal 2002 from $2,512,801 in 2001 or a reduction of $1,051,644. General and administrative expenses were reduced by $1,238,477 in fiscal year 2002. In addition, professional and non cash related expenses were also reduced by $1,386,917 in fiscal 2002. Overall, the net loss was reduced to $5,618,348 for June 30, 2002 as compared to $13,923,030; a decline of over 60%. While the Company suffered a decline in revenue, it reduced its loss per share to $0.40 in June 30, 2002 from $1.12 in June 30, 2001.

Naeem Ghauri, the Company's CEO, commented, "Undoubtedly this was the most challenging year for the Company. We were faced with the challenge of rebuilding the Company as a result of the invalid takeover attempt of the Company in April 2001 by an insurgent group of shareholders. In August 2001, the management was back in control of the Company facing the challenge of rebuilding the Company. In addition, the 9/11 terrorist attacks and the severe Information Technology ("IT") spending downturn globally, presented further challenges to the management's attempt to rebuild the Company."

He added, "Today, we are focused on getting our fixed overhead costs of running the global operation to a level in line with our recurring revenue stream. We have made a great deal of progress in this area, as it is demonstrated with the sharp decline in losses in fiscal year 2002."

He continued, "Going forward, the challenge is to grow the top line revenues, against the backdrop of a severe slowdown in IT spending. For NetSol, the silver lining is the fact that our services are greatly needed by the Fortune 1000 companies, to improve their return on investment and rapid deployment of Enterprise Business Applications. NetSol has taken a number of key business development initiatives in the Far East and Europe and, as a result of our sharp focus, we are beginning to see some possible new business engagements in the current quarter."

The management continues to be focused on building its delivery capability and has achieved key milestones in that respect. Key projects are being delivered on time and on budget, quality initiatives are succeeding, especially in maturing internal processes. The Lahore facility was able to receive a CMM level 2 assessment, as the first software house in Pakistan to obtain this assessment. The Lahore subsidiary was told that it would easily qualify for CMM level 3 and to skip that qualification and seek CMM level 4 assessment in the near future. The Lahore subsidiary is currently in the process of obtaining its CMM level 4 assessment.

The company has undertaken many new initiatives for business development in the Asia Pacific region, UK and North America.

Compared to fiscal 2001, the gross revenues for NetSol USA and NetSol eR were lower by approximately 57%, which is mainly due to a severe downturn in the U.S. technology spending. The Company's management continues to face resistance from existing and potential customers to sign new projects. In September 2002, the management made a decision to curtail new business development and marketing expenditure to reflect the current state of the technology sector. Our objective is to sustain the operation with reduced overheads during the downturn. We are, however, looking at new alliances and partnerships, where we do not have to incur upfront marketing costs by revenue sharing with other lead contractors. These tactical moves are warranted by the challenges in the IT services sector and does not change our core business model where we aim to be the lead contractor in a majority of business that we are able to gain.

The Company has been able to refocus its business development activities by enhancing its marketing teams in Asia Pacific Region. In 2002 six more senior level marketing personnel were added to cover the markets of Asia Pacific. New contracts were added due to this initiative. In the U.S. similar efforts were made but the results have been unimpressive, primarily due to the overall slump in the technology sector.

NetSol PK was able to add some new customers to its list such as Citibank Pakistan, ICI Dulux Pakistan and other local customers. As the suite of Leasing and Finance products mature, we are confident that the loss of revenue from discontinued operations and the IT Services business will be gradually compensated by selling more of our proprietary products in the U.S. and the Far East. Our Australian subsidiary, Abraxas, has key software products, which are being developed in our NetSol PK development facility, which will be marketed in Australia as well as other markets. These products are targeted towards the banking, insurance and leasing and finance industries. Management believes that the prospects for the future of Abraxas are to have modest sales growth, anticipating being able to leverage on an enhanced product line and by expanding its customer base. The Company believes that a modest sales growth for its operating subsidiaries for fiscal 2002 is reasonable based upon its ability to further penetrate the IT market.

Some key achievements of the 4th quarter 2002 and Fiscal Year 2002 were:

-- Losses down by over 64%

-- Assessment of CMM level 2 by NetSol Technologies (Pvt) Ltd.

-- Parallel phase of CMS deployment in UMF Singapore and Daimler

Chrysler Finance Australia

-- Completion of the full ERP Leasing and Finance suite of

products

-- New contract with United Nations Development Program

-- New contract with Citibank, Pakistan

-- New contract with Askari Bank, Pakistan

-- NetSolConnect's subscriber growth to 40,000

Mr. Najeeb Ghauri, Vice Chairman and CFO, commented, "We are pleased to cut down our costs significantly at every level such as corporate and professional services at the Company's headquarters in view of the global economic downturn." He continued, "We are very fortunate to have a team of developers and management, who have demonstrated tremendous faith and confidence in the Company and its long term prospects. In this difficult market environment, over 100 employees invested in the Company by exercising stock options and helped the Company overcome short term liquidity issues."

Mr. Ghauri concluded, "A year ago, we faced bigger obstacles and challenges. The fact that we have survived the most difficult year in our history, gives me a great deal of confidence for the future. Going forward, we are a leaner, more focused and a mature provider of IT Enterprise services and products, which is key to our ultimate success."

CONTACT:

NetSol Technologies, Inc.

Naeem Ghauri, 818/222-9195

SOURCE: NetSol Technologies, Inc.

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

Wells Fargo Reports Record Quarterly Earnings Per Share of $.84

SAN FRANCISCO----Wells Fargo & Company (NYSE:WFC)

In accordance with FAS 142, effective January 1, 2002, amortization of goodwill was discontinued. For comparability, all amounts for 2001 in the text and tables before the main table section beginning SUMMARY FINANCIAL DATA -- NEWS RELEASE have been adjusted to exclude goodwill amortization. For 2002, the first quarter transitional goodwill impairment charge of $276 million is excluded. The table, "ADJUSTED" EARNINGS -- FAS 142 TRANSITIONAL DISCLOSURE, reconciles reported earnings to adjusted earnings.

Third Quarter Highlights:

-- Record diluted earnings per share of $.84, up 12 percent from

prior year's $.75 per share

-- Record net income of $1.44 billion, up 10 percent from prior

year's $1.31 billion

-- Return on assets of 1.78 percent

-- Return on equity of 19.38 percent

-- Revenue, excluding market-sensitive income(a) and

acquisitions, up 10 percent from prior year

-- Non-performing assets down $126 million, or 7 percent, from

second quarter 2002

Wells Fargo & Company (NYSE:WFC) reported record diluted earnings per common share of $.84 for the third quarter of 2002, compared with

$.75 in the third quarter of 2001, up 12 percent. Net income was a record $1.44 billion, up 10 percent from $1.31 billion in the third quarter of 2001. For the first nine months of 2002, net income was a record $4.24 billion, or $2.46 per share, compared with $3.83 billion, or $2.20 per share, for the first nine months of 2001, an increase in earnings per share of 12 percent. All net income and per share data for the first nine months of 2001, described above, exclude the non-cash impairment and other special charges recorded in second quarter 2001 of $1.16 billion after tax, or $.67 per share.

"Wells Fargo achieved double-digit revenue growth for the sixth consecutive quarter, a remarkable achievement given the slow economy," said Chairman and Chief Executive Officer Dick Kovacevich. "Our ten percent growth in revenue, excluding market-sensitive income and acquisitions, compared with the same period last year, makes Wells Fargo the only large financial institution that I'm aware of that grew both revenue and profits at double-digit rates, while credit losses and non-performing loans declined compared with last year. Our earnings are on track for a record year in 2002 as we remain focused on our vision of satisfying all our customers' financial needs and helping them succeed financially.

Our industry-leading performance was due to the diversity within and consistency of our business model and, most importantly, to the talent, experience and partnering of our 134,000 team members. They remain customer-focused. They're gaining market share by understanding customers' needs, selling them additional products that better satisfy those needs, and serving them when, where and how they want to be served. They're working as one team bringing to customers the best experts in Wells Fargo to help customers become financially successful. Our people remain disciplined risk takers relative to loan pricing and underwriting, which is why our credit quality, overall, has behaved reasonably well despite the weak economy. Our people have stayed focused on doing the right thing for our customers, not what is fashionable or expedient. We are earning more of our customers' business and gaining market share from our competitors not just in traditional banking, but in every segment of the broad-based financial services industry in which we compete. We believe we're well positioned to continue to grow market share in the years ahead.

The diversity of our revenue sources, loan portfolio and geography enables us to grow in any economic cycle, since money never decreases, it simply moves. Our credit quality stabilized because of our disciplined lending and conservative financial position."

Financial Performance

"We're pleased with another quarter of solid financial performance, achieved in a challenging economic and financial market environment," said Chief Financial Officer Howard Atkins. "Diluted earnings per share were $.84, up 12 percent from $.75 per share in the third quarter of 2001, the fifth consecutive quarter of record earnings. Our third quarter performance reflected a continuation of broad-based, double-digit revenue growth, excluding market-sensitive income and acquisitions, improved credit quality and well-controlled expenses," said Atkins. Third quarter results included a net loss of $31 million in market-sensitive income compared with a net gain of $39 million, or $.01 per share, in the same period last year. Year-to-date diluted earnings per share of $2.46 were up 12 percent over the previous year, as adjusted for last year's impairment and other special charges of $1.16 billion.

Revenue

Excluding market-sensitive income and acquisitions, revenue increased 10 percent from third quarter 2001 and 13 percent for the first nine months of 2002 compared with the same period in 2001. "Growth in revenue, excluding market-sensitive income and acquisitions, reflected strong sales of consumer loans, home mortgages and core deposit products," said Atkins. Due to the decline in longer-term interest rates during the third quarter, the Company realized $121 million in gains on certain longer-maturity mortgage-backed securities subject to prepayment risk. The Company also recorded $152 million of net writedowns in equity investments, the majority of which were in publicly-traded equity securities. At quarter end, the Company had net unrealized gains of $1.71 billion on bond and equity investments available for sale.

Loans

Loans averaged $181.8 billion for third quarter 2002 and $177.7 billion for the first nine months of 2002, up 11 percent and 10 percent, respectively, over the same periods a year ago. Adjusted for acquisitions, average loans in third quarter 2002 increased 9 percent from a year ago and 6 percent (annualized) from second quarter 2002. "We saw strong consumer loan growth, led by robust sales of home equity and home mortgage products," said Atkins. "Our average consumer loans increased 24 percent from the third quarter of 2001 and 27 percent (annualized) from the second quarter of 2002. Due to the ongoing strong mortgage refinancing activity, mortgage loans held for sale increased $11.8 billion from an average of $26.6 billion in the second quarter of 2002 to an average of $38.4 billion in the third quarter of 2002. Although we added new business customers, commercial loan demand remained essentially flat."

Deposits

Average core deposits of $184.5 billion for third quarter 2002 grew $13.7 billion, or 8 percent, since the third quarter of last year and $5.1 billion, or 11.3 percent (annualized), from second quarter 2002. Excluding acquisitions, average core deposits grew 6 percent since the third quarter of last year and 12 percent (annualized) from second quarter 2002. Interest and noninterest checking, market rate and other savings accounts grew in total $18.7 billion, or 13 percent, from last year, and $6.1 billion, or 15 percent (annualized), from second quarter 2002. "These results reflected our success in growing primary account relationships in both Community Banking and Wholesale Banking as well as the increase in mortgage escrow balances," said Atkins.

Net Interest Income

Net interest income on a taxable equivalent basis was $3.7 billion in third quarter 2002, up 15 percent from third quarter of last year, largely due to solid growth in loans and mortgages held for sale, and increases in net interest margin from 5.40 percent a year ago to 5.52 percent in third quarter 2002. On a linked quarter basis, net interest income increased $55 million, or 6 percent (annualized), due to a $9.9 billion increase in average earning assets, partly offset by a 14 basis point decline in the net interest margin. The earning asset growth of $9.9 billion included an increase of $11.8 billion in mortgages held for sale and $4.1 billion in consumer loans, offset by a $4.5 billion decline in the securities portfolio.

"The single largest driver of both the increase in earning assets and the decline in the margin during the quarter was the extraordinary volume we experienced with mortgage refinancing activity," said Atkins. As fundings built in the quarter, mortgage loans held for sale grew to $42.3 billion at September 30, 2002 from $24.7 billion at June 30, 2002. While the increase in mortgage loans held for sale had a positive impact on income, it was also a principal factor for the reduction in net interest margin since the loans in the warehouse during the third quarter yielded 45 basis points less on average than the second quarter due to the decline in mortgage interest rates. "Mortgage loans held for sale grew throughout the quarter as we processed a quarterly record $158 billion in applications. Based on our record quarter-end mortgage pipeline at September 30, 2002, of $89 billion, we expect mortgage loans held for sale to remain high throughout the fourth quarter 2002," said Atkins.

Noninterest Income

Excluding market-sensitive income and acquisitions, noninterest income increased 4 percent in third quarter 2002 from third quarter 2001. "We experienced solid fee growth in many of our businesses, including deposit service charges, credit card fees, mortgage banking, and home equity lines and loans," said Atkins. "However, the weak stock market compared with the second quarter of 2002 negatively impacted trust and investment fees. Insurance revenue was down $35 million from the second quarter primarily due to normal seasonality in that business."

Noninterest Expense

Noninterest expense was $3.41 billion in third quarter 2002 compared with $3.03 billion in third quarter 2001 and $3.41 billion in second quarter 2002. "Most of the increase in noninterest expense from last year was attributable to the robust growth of Wells Fargo mortgage and home equity businesses," said Atkins. "Apart from mortgage and home equity, expenses were up 2.6 percent from third quarter 2001 and were down $93 million, or 3.5 percent, from second quarter 2002. Despite the upward pressure on costs for health care and other employee benefits year over year, expenses have been contained due to our disciplined and focused expense management across the Company. The decline in expenses from the second quarter of 2002 to the third quarter was also in part due to the seasonality of our insurance business," said Atkins. Merger-related and integrated related expenses totaled $8 million in the third quarter of 2002.

The efficiency ratio of 56.4 percent in third quarter 2002 (54.6 percent excluding market-sensitive income and acquisitions) improved slightly from second quarter 2002.

Credit Quality

"Third quarter credit results were in line with our expectations," said Chief Credit Officer David Munio. "While all of our credit metrics improved in the quarter, we continue to witness an uncertain economy that is growing at a slower pace than we would all like."

Third quarter credit losses were $415 million, or .91 percent of average loans outstanding (annualized), including $21 million of charges already provided for in the second quarter of 2002. As disclosed last quarter, these charges were due to the adoption of a new delinquency and loss recognition policy in the consumer finance businesses. Excluding these charges, third quarter credit losses of $394 million were essentially flat compared with the second quarter 2002, were equal to the quarterly provision of $395 million, and were well below the $454 million of losses recorded in the third quarter 2001. For the first nine months of 2002, the provision of $1.30 billion approximately equaled charge-offs.

"The improvement in third quarter losses from the prior year reflected our balanced and diversified loan portfolio," said Munio. "Wholesale losses were spread across a number of portfolios. Consumer losses remained stable compared to previous quarters and we believe our loss rates compared favorably to industry benchmarks. The consumer portfolios benefited from prudent credit standards and well managed collection efforts. At September 30, 2002, our allowance for loan losses was $3.86 billion, or 2.07 percent of total loans outstanding."

September 30, 2002 non-performing assets of $1.74 billion, .9 percent of total loans outstanding, fell $126 million, or 7 percent, from the prior quarter and for the first time since the second quarter of 2001 are below 1 percent of total loans outstanding. "While we are pleased with the decline in non-performing assets, we remain cautious given the uncertain economy," said Munio.

Internet Services

"This quarter, wellsfargo.com was named the world's best commercial internet bank in terms of site design by Global Finance," said Clyde Ostler, Group EVP, Internet Services. "As of the end of the quarter, Wells Fargo had more than 16,500 companies using the Commercial Electronic Office(R), our online portal providing a single point-of-entry for all wholesale services. Revenue from middle-market and large corporate internet customers continued to grow, up nearly 45 percent over year-end 2001."

"Wells Fargo online full-service brokerage also moved up to #5 on Gomez's Summer 2002 scorecard," added Ostler, "and in a very difficult market the number of WellsTrade(R) online brokerage accounts increased by 26 percent this quarter. In addition, we launched the Wells Fargo Portfolio Analyzer(SM) service, which gives customers real-time information and guidance on their asset allocations."

"Wells Fargo was ranked the nation's #1 consumer web site by Speer

Associates, and had a record month of more than 50,000 consumers signing up for bill pay in July alone. We reached 3.3 million active consumer customers this quarter, nearly 1 million of them using online bill pay."

"Wells Fargo was also rated the #1 small business site by Speer & Associates. We reached nearly 275,000 active small business customers this quarter, and rolled out our enhanced Wells Fargo Business Online Banking Plus(SM) service, which allows different user access levels for small businesses. According to the U.S. Department of Commerce, Wells Fargo's national market share of payments for retail e-commerce was nearly 11 percent in the second quarter."

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

Brown Raysman Millstein Felder & Steiner LLP Licenses RainMaker's Business Intelligence Suite (

Data Warehousing and Digital Dashboard Technology Provide Attorneys with

Instant Access to Decision-Making Information

BLUE BELL, Pa., -- RainMaker Software, Inc. today announced that Brown Raysman, a New York City-based firm with more than 250 timekeepers, has site licensed its Business Intelligence product suite. The Business Intelligence suite includes RainMaker's Lightning data warehouse, RainMaker's Thunder inquiry and analysis reporting tool and RainMaker's Digital Dashboard, a library of business inquiry web tools that run from within Microsoft Outlook. Collectively, the Business Intelligence suite is designed to push relevant information to attorneys in a usable format that enables them to effectively manage their clients and grow their businesses.

"Our firm's continued growth and diversification across multiple practice areas increased our need for decision support capabilities. Specifically, we were looking for a way to easily tap into the wealth of information that resides in our financial database for use in making critical business decisions that affect the firm's profitability," said Robert Martin, chief operating officer at Brown Raysman. "With RainMaker's Business Intelligence suite, our attorneys will have 'point and click' access to the information that they need to manage their clients and departments. We can now extract data in practical formats for reporting and analysis, with no custom programming required."

RainMaker's Business Intelligence product suite incorporates a second- generation data warehousing design (Lightning) with built-in analytical reporting (Thunder), presentation and dissemination (Digital Dashboard) tools, which were all developed from a business perspective. For example, with a single click attorneys can access their personal productivity, review daily cash receipts, file openings and view 13-month trend analysis charts for client billings and collections. Firms can also use the Business Intelligence suite to quickly generate highly customized reports, available in Excel spreadsheet and PivotTable formats, which can be electronically distributed automatically by pre-scheduled email.

"To remain competitive, firms today need much more than the routine financial reporting of the past. They need the ability to quickly access information from their critical systems, and view that information in a meaningful way," said Jim Hammond, president of RainMaker Software. "Clearly, Brown Raysman understands the value of business intelligence technology, and we're glad that they've chosen to work with us to meet their needs in this area."

RainMaker Business Intelligence software is available as an add-on product to RainMaker's financial management systems. For more information please contact the sales department at 1-800-341-4012 or via e-mail at legalinfo@rainmakerlegal.com .

About RainMaker Software, Inc.

RainMaker Software, Inc., a leading full service provider of financial management and practice management software for mid to large size law firms, is a wholly owned subsidiary of ASA International, Ltd. (Nasdaq:ASAA), which develops, markets, implements and supports vertical market business solutions throughout the United States, Latin America, and Canada. ASA was established in 1969 and is headquartered in Framingham, Massachusetts. Additional Information can be obtained by contacting the Sales and Marketing Department at Rainmaker Software, Inc. at 1-800-341-4012, ext. 247, or by visiting the company's website at www.rainmakerlegal.com, or by email at legalinfo@rainmakerlegal.com. RainMaker Software, Inc. is headquartered in Blue Bell, Pa.

About Brown Raysman

Brown Raysman Millstein Felder & Steiner LLP, a law firm with offices in New York, Los Angeles, Hartford, New Jersey and Toronto, has expertise and practices in all major areas of business law. The firm is a recognized leader in the areas of technology, intellectual property, real estate finance and leasing, corporate and securities law, private equity, labor and employment law and commercial litigation. Legal services are provided to Canadian clients through an exclusive association with Toronto-based Mann & Gahtan LLP. Brown Raysman can be found online at www.brownraysman.com.

Media Contact:

Stephanie Pfeiffer, The M.O.I. Agency

s.pfeiffer@themoiagency.com

610-853-2180

Company Contact:

Jill Conti, Marketing Department

jconti@rainmakerlegal.com

1-800-341-4012 x 247

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

SPECIAL----

********************************

ELT E-Leasing Newsletter - Special Convention Edition 10/15/02

********************************

NOTE: This is the first of two special E-Leasing Newsletters coming to you

from the ELA 41st Annual Convention in SanFrancisco. The second edition will

arrive Wednesday morning. There will be no regular newsletter on Thursday.

The Equipment Leasing Today E-Leasing Newsletter is published every Thursday

and is sponsored by the Equipment Leasing Association and its co-sponsor. To

get Full-Text Stories, go to the web page associated with the story you wish

to read. The links to news stories require an ELA MEMBERS-ONLY NAME AND

PASSWORD. To receive a password, please go to

http://www.elaonline.com/memberDir/Profile/IndivForm.cfm

NOTE: Address change/unsubscribe instructions and contact information can be

found at the end of this e-mail. If you received this e-mail (but it was NOT

forwarded to you by someone else) you are ALREADY subscribed.

************** The E-Leasing Newsletter is SPONSORED by: ***************

NASSAU ASSET MANAGEMENT

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Table of Contents

******************************

1. Resilience, Discipline, Leadership

2. Convention Photos On-Line!

3. State of the Industry Report - Basics and Opportunities

4. Giuliani¹s Six Principles of Leadership

5. Overheard at the Convention

6. Convention Attendees: We¹ve Seen Tougher Times

7. What Do Funding Sources Really Want?

8. JELF¹s Article of the Year Announced

9. October Quick Poll

10. ELA Calendar of Events

**************** The E-Leasing Newsletter is SPONSORED by: ***********

Southfork Asset Management Corp.

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******************************

1. Resilience, Discipline, Leadership

******************************

At first glance, it would be hard to tell this year's ELA Annual Convention

from one, say, four years ago at the height of the good times in the leasing

industry. There are well over 1200 attendees in San Francisco, doing what

they always do at the Convention: learning, networking, partying and maybe

celebrating another year in the business. But make no mistake, there are

real problems facing equipment leasing and finance companies.

"These are troubled times," ELA Chairman Joe Lane told the opening general

session on Monday morning, "and we are operating in troubled markets." The

leasing business, and American business at large, is suffering the after

effects of a "tech boom that was built on investment made in response to

phony demand," he said. He noted that "just three percent of the fiber optic

cable laid during those years is actually in use."

Some have said the current economic picture is the result of an

"unprecedented convergence of difficulties" - the dot-com crash, 9/11 and the

Enron/Worldcom scandals. "But this is not unprecedented," Lane assured

attendees. "If we look to history, we can find examples," he said, relating

the story of the railroad crisis of the 1870s, which bears a striking

similarity to our current economic problems. "As bad as that was, within a

few years, it had completely turned around," he said, in part because

American entrepreneurs would not be deterred. "Today, we cannot allow the

fallout from a tech bubble to shake our confidence. We must be disciplined

and optimistic. Leadership Matters."

************* The E-Leasing Newsletter is sponsored by: ****************

Asset Control

Doing more for your bottom line.

Providing expert individual attention that allows you to preserve the

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******************************

2. Convention Photos On-Line!

******************************

If you can't be in San Francisco, you can see what you¹re missing.

http://www.elaonline.com/events/2002/annconv/photos/

Welcoming Reception Photos are posted now. Keep checking the site for more

photos from the rest of the event!

******************************

3. State of the Industry Report - Creativity Brings Opportunities

******************************

In a standing-room-only Convention breakout session on Monday morning, The

Equipment Leasing & Finance Foundation debuted its 2002 State of the

Industry Report. The report takes an unflinching look at an industry in the

midst of "repair and rebuilding" from the storms of 2001. Demand for leased

equipment still lags, with overall new business investment off by $80

billion in 2001, and new leasing business predicted to continue in decline

through 2003. And, while many lessors believe the credit problems of 2001

are over, some asset segments aren't out of the woods yet.

According to presenter Ralph Martini, PWC (which conducted and sponsored the

research analysis for the Report), "profitability is down due to an increase

in reserve rates and increases in equity needed for deals." Asked what they

found typical for leverage ratios required by funding sources, co-presenter

Anthony Anderson said, "Banks and securitization sources want to see more

skin in the game. It runs from 15 to 25 percent."

It¹s a tough time to be in leasing. While many companies have shored up

credit practices and are making great strides improving efficiency, some are

finding it hard to develop long term strategic and marketing plans. "It is

increasingly difficult to model or profile a target industry, because in

this economy, everybody is down," Anderson said. Also, "people are telling

us that that they¹re waiting for tax and accounting issues to gel."

As if to illustrate that point, a session attendee said, "If leasing has a

30% penetration of the total equipment finance market now, what will it be

when off balance sheet accounting is no longer an option and incentive for

lessees?" Anderson replied that he believes the overall effect on leasing

will be minimal, because lessors will create new products and find new

incentives to lease equipment. "You¹re creative people," he said, and

stressed that opportunities, such as refinancing existing deals or getting

into synthetic transactions, will open up new possibilities."

This is in keeping with one of the general observations in the State of the

Industry Report. "Optimism is high," Anderson said. People believe leasing

is resilient. Those that maintain discipline will be around to see the next

good times." It¹s an observation that breakout session attendees - and

convention attendees in general - seem to agree with.

The State of the Industry Report is available FREE for download from the

ELA Online Library. Please search KEYWORDS: "2002 State of the Industry

Report".

http://www.elaonline.com/library/

******************************

4. Giuliani¹s Six Principles of Leadership

******************************

Monday¹s Keynote speaker was former New York Mayor Rudy Giuliani, who spoke

on leadership in difficult times. ELT will cover his talk more extensively

in the November/December Issue, but for now, here are the six things

Giuliani says make great leaders: Principles: know what you believe Courage:

having it and understanding what it really is Optimism: nobody follows

pessimists Relentless Preparation: "leaders aren¹t bornS" Teamwork: being in

charge is really a time for humility Communication: the other five make this

the easiest principle.

******************************

5. Overheard at the Convention

******************************

"A lot of people here are OEexploring their options.¹ Last year was like

that, too." ~ a long-time convention attendee observing the number of people

looking for jobs.

"¹Why can¹t the independent company get funding?¹ We¹re kind of hoping

everyone plays golf [the day of that session] and not have to answer that

question." ~ an attendee who works for a bank.

"Credit isn¹t tightening. Lessees are weaker." ~ Mark Lempko, HSBC Business

Credit, Inc. Equipment Finance Division, Buffalo, NY, in response to the

issue of banks scaling back their funding.

"Nine months ago banks were pushing for hard terms, but now there is more

open mindedness by lenders. Everyone has volume issues. Banks are giving

unbelievable terms. Lessees are calling me up saying my bank is willing to

do 100 points on a $50,000 deal." ~ a lessor talking at a roundtable

discussion on what banks want from lessors in order to fund

"Risk based pricing from banks is coming." ~ Overheard by a bank-affiliated

attendee at a roundtable discussion on what banks want from lessors in order

to fund.

"You can¹t price for risk, so you have to price for quality." ~ Attendee at

the State of the Industry Report session.

"Banks are getting whacked due to Enron and WorldCom and we didn¹t¹ do any

deals with these guys. There is a contraction of approvals, deals being done

and the number of players." A bank lessor at a roundtable discussion on what

banks want from lessors in order to fund.

"The word OEcreative¹ has a frightening connotation right now for lenders.

You can¹t say that word anymore to funders." A lessor at a roundtable

discussion on what banks want from lessors in order to fund.

"There are 8 remaining AAA rated companies. Ten years ago there were 50." ~

Joseph Lane, outgoing Chairman of ELA.

"The companies with the best risk management discipline will be the

winners." ~ David Weiner, GE Capital, presenting the State of the Industry

Report.

"Where¹s the bar?" ~ this one could have been anybody.

******************************

6. Foundation Honors Donors

******************************

The Equipment Leasing & Finance Foundation is supported entirely through

donations from companies and individuals. During Monday¹s Recognition

Luncheon, the Foundation honored its most generous donors. Space doesn¹t

allow a full listing, which can be found at the Foundation website.

http://www.LeaseFoundation.org/Gifts/index.htm#contributors

The following received the Foundation Founders award for contributing

$25,000:

Southfork Asset Management

GE Capital Corp.

Delage Landen Financial Services

ATEL Capital Group

CIT

IBM Global Finance

Thomas C. Wajnert

KPMG

FINOVA

ELA

BancOne Leasing Corporation

Paul S. Gass

ORIX Financial Services

******************************

6. Convention Attendees: We¹ve Seen Tougher Times

******************************

A quick poll of ELA convention attendees at the opening reception shows that

approximately 75 percent of lessors have seen worse economic conditions,

citing the 1981-1982 recession as being more challenging than the present

situation. The remaining 25percent - mostly newer leasing industry

participants - say this is the worst business climate they have ever

experienced.

******************************

7. What Do Funding Sources Really Want?

******************************

The ELA convention offers many sessions where panelists and attendees

explore a variety of industry issues. The 41st annual convention has offered

it share of sensitive discussions. At the Monday breakfast roundtable,

"Putting Capital to Work: What Funding Sources are Expecting from Lessors

and Brokers Today," was no exception. With a program that ranged from

identifying an organization¹s number one "hot button" for approving a

transaction to exploring how lenders/buyers have changed their attitude in

the current economy, the lively roundtable that attracted more than 50

people - mostly funding sources. (Even a representative of the FDIC

participated.)

"Getting the right information is so important," said Tom Steinke of

Dresdner Kleinwort Wasserstein, New York. "Only then can we get into credit

and economic issues." He added, "Sometimes we approve one thing and it

changes. Give me one legal name that stays the same! First it¹s GE and then

it¹s a sub of a sub. It makes it hard to do business."

Mike Evans of Sterling Bank, New York, said, "All deals start out titled

OEThis is a great credit!¹ A deal needs to be complete in order to interest

funders. Everyone thinks banks are laying back but we¹re just looking for

more information information we should get all the time, during good or

bad economic conditions."

Another bit of advice for anyone trying to interest funders was from William

Henak, TCF Leasing, Inc., Minnetonka, Minnesota. "What¹s the value of the

deal you are bringing to the table? We need to show this, not just the

rate."

Building relationships - a long-time theme around funding issue - also was

underscored at the roundtable. "We¹ve made a conscious decision that we¹re

not going to do business with someone we don¹t know," said Evans.

"Integrity, character, these all count. We come to events like [the ELA

convention] and get to know them."

But, as everyone agreed around the table, the leasing industry has a short

memory. "Good times make people lax," added Evans.

******************************

8. JELF¹s Article of the Year Announced

******************************

The editorial review board of the Journal of Equipment Lease Financing

(JELF) presented its "Article of the Year" award to Jan B. Rowland, Dunn &

Bradstreet, for her contribution, "The Role of Automated Detection in

Reducing Cyber Fraud." This, and other JELF articles can be downloaded from

the ELA Online Library.

http://www.elaonline.com/library/

JELF is published twice a year by the Equipment Leasing & Finance

Foundation.

******************************

9. October Quick Poll Quiz

******************************

Do you expect volume to increase, decrease, or stay the same over the next

six months?

Let us know! Visit http://www.elaonline.com/ and log in your answer to the

ELA Quick Poll today.

******************************

10. ELA Calendar of Events

******************************

Please visit ELA's Calendar of Events online at

http://www.elaonline.com/events/

If you have any questions about ELA conferences and workshops, please

contact Lesley Sterling at lsterling@elamail.com

November 7, 2002

MAEL 20th Annual Dinner Meeting

Westin O'Hare, Chicago, IL

http://www.mael.org/members/news.asp

December 2-4, 2002

Principles of Leasing Workshop

Embassy Suites, LaJolla, CA

http://www.elaonline.com/events/2002/principles/

December 9-11, 2002

Principles of Leasing Workshop

Philadelphia Marriott, Philadelphia, PA

http://www.elaonline.com/events/2002/principles/

January 26 - 28, 2003

2003 ELA Equipment Management Conference & Exhibition

Westin La Paloma, Tucson, AZ

http://www.elaonline.com/events/2003/equipmgmt/

March 3-5, 2003

Principles of Leasing Workshop

Hyatt Harborside. Boston, MA

March 6-7, 2003

Investor Conference

Roosevelt Hotel, New York, NY

March 16-18, 2003

Executive Roundtable

Hilton LaJolla Torrey Pines LaJolla, CA

April 7-9, 2003

Principles of Leasing Workshop

Marriott Fisherman's Wharf, San Francisco, CA

For more information on the events listed above, or to view ELA's entire

calendar, visit the ELA Conference & Training Home Page at

http://www.elaonline.com/events/ and click on the links to programs of

interest to you.

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http://www.elaonline.com/news/newsaddedit.cfm

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Amy J. Miller, ELA's Vice-President of Communications, edits ELT's E-leasing

Newsletter. If you have questions or comments relating to ELT's E-Leasing

Newsletter, please email her at amiller@elamail.com.

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Phone: 703/527-8655 Fax: 703/527-2649

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