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March 13 , 2001
Headlines: Surprise! Surprise! Bermuda based company Tyco International Buys CIT CapitalStream Closes $20 Million in Series "C" Financing ELA Launches LeaseAssistant.org Web Site Legal Authorities Close in on U.S.Capital, Santa Barbara, California Plot Thickens at United Capital/Spectrum Leasing, Austin, Texas Netbank Gets Regulatory Authority E-Bills and E-Payments through E-Mail NEC Leasing Launches New Program New Feature added to LeasingNews.org website--- ---------------------------------------------------------------------------------------------- Tyco International Buying CIT NEW YORK (AP) -- Tyco International Ltd. is buying commercial lender CIT Group Inc. for about $9.2 billion in cash and stock in a deal that would allow the manufacturer to finance purchases of its wide array of products. The deal announced Tuesday by Tyco -- whose products include electronic equipment, fire and security systems and disposable medical supplies -- would give CIT shareholders a 54 percent premium for their shares over Monday's closing prices. L. Dennis Kozlowski, Tyco's chairman and chief executive, said buying CIT will help Tyco grow faster, while allowing the 93-year-old finance company to bolster its lending business. Several manufacturing companies already have such arrangements in place. They include General Electric Co., whose GE Capital helps finance GE businesses and is a profitable financial services business. Most CIT shareholders will get stock for their shares, but a Japanese bank that owns 27 percent of CIT will get cash. Tyco is paying 0.6907 Tyco shares for each of CIT shares, representing $35.02 a share in value based on Tyco's closing price Monday of $50.70 a share. But Tyco is paying $35.02 a share in cash to Dai-Ichi Kangyo Bank for its 71 million CIT shares. The deal was approved by the boards of both companies but is subject to approval by CIT shareholders and regulators. Investors gave the deal a mixed review. Shares of Tyco fell $5.68, or 11 percent, to $45.02 in midday trading on the New York Stock Exchange, where shares of CIT were up $7.45, or 33 percent, to $30.20. CIT, a diversified commercial finance company based in Livingston, N.J, has $50.4 billion in managed assets, mostly loans. As part of the deal, Albert Gamper, who has served as CIT's chief executive since 1987, will continue to run the business and become a member of Tyco's board. Tyco is based in Bermuda, but has operational headquarters in Exeter, N.H. The company expects to generate sales of $37 billion this year. ( Note: There are many stories being written by the Financial Media, most have the theme that Tyco paid too much. But as we say in buying wine, " If you really like it, you didn't pay too much." editor. ( for more on this story--Their press releases at end of report ) --------------------------------------------------------------------------------------------- Huge Success Story, Especially in This Market to Company Well-Known in the Leasing Industry, who's executives participate at all Leasing Association Conferences---- CapitalStream hits financing goal with venture investors 'Flight to quality' helps ( headline of the story ) Tuesday, March 13, 2001 By JOHN COOK SEATTLE POST-INTELLIGENCER REPORTER CapitalStream of Seattle has raised $20 million in venture capital to promote its online transaction and leasing platform for the financial services industry. Investors in the company include FTVentures, Banc of America, Polaris Venture Partners, Spectrum Equity Investors, Voyager Capital, Merrill Lynch Ventures and the Benaroya Co. To date, the privately held company, formerly known as System One Software, has raised $47.5 million. "The market climate has changed substantially over the last three quarters with the significant sell-off of not only tech stocks, but anything Internet- and dot-com-related," said Stephen Campbell, chief executive of CapitalStream. However, he said the 6-year-old company hit its financing goal and "benefited from a flight to quality" among venture investors who were looking for functional business models and strong management teams. CapitalStream provides the back-end infrastructure necessary for banks, manufacturers and other companies conducting business -- especially financing of equipment -- to do business over the Internet. So far, more than 39 companies have signed up for the hosted service, including Banc of America, Textron and Siemens Financial Services. "One of the reasons we are seeing so much success is that we are really helping traditional brick-and-mortar companies become more Web-enabled and more automated ... as opposed to hanging out a shingle and trying to attract consumers or businesses that are looking for commercial credit," Campbell said. The company's competitors include Dun & Bradstreet and eCredit. A third company, PrimeStreet, recently closed down. Dan Sholler, an analyst at Meta Group in Stamford, Conn., said CapitalStream and eCredit are considered the leaders in the emerging area of e-finance. But both companies face challenges, he said. "To a certain extent, these companies are not in control of their own destiny," he said. "What will make this category successful is if people continue to invest in e-business arrangements and they extend that to include financing. It is inevitable that will happen, but the question is will it happen fast enough for these folks to survive and capitalize on the opportunity." More on CapitalStream Closing $20 Million in Series C Financing FTVentures and Others Invest in Leading Finance Automation Company The financing led by an investment from FTVentures with additional investment from existing investors Polaris Venture Partners, Spectrum Equity Investors, Voyager Capital, Merrill Lynch KECALP and the Benaroya Company. The strong interest in CapitalStream by leading investors is a result of two factors: CapitalStream's proven business model and its success in helping the commercial finance industry to better automate customer management, transaction management and integration with back office systems. This round of financing will take CapitalStream to its break-even point, as the company moves toward profitability. CapitalStream has seen a steady increase in revenues, subscribers and contract values since launching its network-enabled e-finance infrastructure in April 2000. Some of CapitalStream's key customers include Textron Financial Corporation, Siemens Financial Services, Inc. and Bank of America. "CapitalStream has been the beneficiary of the "flight-to-quality" that is occurring in the venture community. This round of funding validates our networked solution, as well as our leadership position within the commercial finance automation industry," said Stephen Campbell, president and CEO of CapitalStream. "We will continue to improve our applications and services with aggressive product development, while expanding our customer service. " "CapitalStream is the leading solutions provider in this market segment and is well positioned for continued success," said Richard Garman, General Partner of FTVentures. "The CapitalStream team has exceptional industry knowledge, a superior product set and a growing customer base. We are very pleased to be a partner in helping the company continue to grow." One of the "coups for CapitalStream was having Bank of America select them for Real-Time Credit Applications and Approvals for Its Small Business Clients With CapitalStream, Bank of America small business clients can now get an answer in seconds when applying for business credit cards online. Under the terms of the three-year service agreement, Bank of America will subscribe to CapitalStream's automated online commercial finance transaction system. With two million small business customers, Bank of America is the leader in small business banking in the United States. "Our goal is to provide clients with the online tools and resources to help manage their business more efficiently and effectively," said Mike Anzenberger, channel strategy and development executive for Bank of America. "With the addition of the CapitalStream platform, our small business clients can get quick access to the information they need, making it easier to run their businesses." In the first phase, small businesses using the Bank of America Business Center at www.bankofamerica.com can complete an online business credit card application and receive a response in less than a minute. In the future, Bank of America small business clients will be able to use the CapitalStream platform for automated equipment financing, business loans and lines of credit. "From submitting customer applications all the way through to the approval process, Bank of America now has a complete online solution, without having to build it from the ground up," said Stephen Campbell, president and CEO of CapitalStream. "Our solution is the most complete, real-time way to conduct e-commerce with business customers." "We were looking for a better, more efficient way to serve our small business customers' credit needs, and CapitalStream had the solution that integrated with our front-end and credit management systems," said Anzenberger. "It was fast to implement and it was very cost-effective." Last year, Bank of America processed more than 250,000 small business credit applications. Bank of America is also the leader in online banking, with over three million customers and is adding an average of 130,000 new online customers per month. CapitalStream has a program for leasing companies, CapitalAdvantage, plus a very low cost System 1 program for leasing brokers. About CapitalStream Seattle-based CapitalStream provides network-enabled e-commerce solutions for commercial financing, a $4 trillion global industry. The company provides infrastructure and tools that enable finance companies and manufacturers to create branded financing sites, tailor finance programs, build credit workflow, retrieve credit scores and content, and offer financing at the point of sale. CapitalStream, an established industry leader, has helped hundreds of financial organizations increase their competitiveness, customer service and profitability. To learn more, visit its Web site at www.capitalstream.com. About FTVentures Financial Technology Ventures invests in companies developing technologies that are transforming the financial services industry. FTVentures was the first venture capital fund in the U.S. to focus on providing equity financing to companies with technology solutions that enable large financial institutions to operate more efficiently or expand their products and services. Many of the world's leading financial institutions are FTVentures limited partners including: U.S. Bancorp, Bank of America, BNP Paribas, National City Corp., Wells Fargo & Co., Deutsche Bank, Credit Suisse Group, AIG, BANK ONE, Charles Schwab, CIBC, Fidelity National Financial, Fifth Third Bancorp, Fleet Financial, HSBC, Key Corp, PNC Bank, Royal Bank of Canada, Sallie Mae, Wachovia Corp. and Washington Mutual. ----------------------------------------------------------------------------------------------- ELA Launches LeaseAssistant.org Web Site; A One-Stop Educational Portal for Financial Decision-Makers
ARLINGTON, Va.--(BUSINESS WIRE)--March 13, 2001--The Equipment Leasing Association (ELA) announced today the introduction of its LeaseAssistant.org Web site, a one-stop informational portal for financial decision-makers. Rich with information on leasing and strategic financing methods, ELA's LeaseAssistant.org provides potential lessees with equipment financing information to help them make informed equipment financing decisions. "ELA's LeaseAssistant.org provides objective answers to the questions companies may have about leasing equipment and demonstrates that this strategic financing option is a means of leveraging capital and controlling costs," noted Amy Miller, ELA's vice president of communications. ELA's LeaseAssistant.org is the online encyclopedia for equipment financing and leasing. This easy to use, easy to navigate Web site provides visitors with information including leasing basics, case studies, market research, leasing news, a detailed list of what can be leased, a checklist of questions to ask when negotiating a lease, the differences between a lease and loan, how to select a financing partner, and how to leverage leasing for business success. ELA is currently offering its members the option to license a customized version of this site. 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 850 member companies and a staff of 27 professionals. Equipment leasing is estimated to be a $280 billion industry in 2001. --30--DD/ph* CONTACT: ELA, Arlington Robin Baker, 202/293-8567 rbaker@promarcagency.com or Stacey Wells, 202/293-8560 swells@promarcagency.com ---------------------------------------------------------------------------------------------------------------------------- U.S. Capital, Santa Barbara, California The Santa Barbara Sheriff's Department, the Senior Assistant for the Santa Barbara County District Attorney and the FBI have assigned an agent to look into the many complaints surrounding U.S. Capital. I have talked with Mr. Gerald Franklin, the Ass't DA and he would be very desirous to hear from all lease company entities that have suffered harm from the relationship. Particularly, he would like to hear about retained prepayments and other questionable acts. He would prefer to receive the facts, and contact information, over his fax machine at (805) 568-2398. From what I understand, the FBI is interested, but the numbers have to be sizeable before they will become involved. It appears that they are only aware of a gross cost of equipment of something over $300,000. We know that there is much more that that.
To me, the more pressure we put on U.S. Capital, the better chance we will have of least getting a refund on some of these retained prepays. Tom Cadle Leasource Financial Services <tcadle@leasource.com> ( The more we get involved, certainly it will have an effect, but don't look for a check in the mail soon. It is rumored this company has filed, or is filing bankruptcy, protection under Chapter 11. The routine is to go through this, and when this stalling technique does not work, or there is evidence of fraud, it goes to Chapter 7, where the creditors are involved in the dissolution, and if there is any money to be divided from assets, after the attorneys and court costs, you may see something ( unless there is fraud ) and if you are a young man, you may live long enough to see some pocket change. Look at the Leasing News list of leasing companies in the last two years who have pulled this stunt. Your best hope it to help the legal authorities to not only demonstrate to others about ethics and legal obligations, but criminal charges may be of faster financial benefit to you.. I would like to quote my late mentor Mac Pollock of Key Lease, Redwood City, California. " You sleep with dogs, you get fleas." editor ) ------------------------------------------------------------------------------------------------- Dean Menzel Speaks Up!!! As a funder that has been consistently in the market for over 25 years with the same portfolio, I can only wonder why brokers and other sources do business with people or companies they don't actually know personally. When will they learn that the time and money lost in dealing with unknown funding sources just isn't worth it ... including their reputation. Some would call it their just reward ... but I hate to see anyone get hurt. Let us all get a little smarter ... quickly. Paul J. Menzel, CLP Senior Vice President / General Manager Leasing Division SANTA BARBARA BANK & TRUST P.O. Box 1199 Santa Barbara, CA 93102-1199 1 South Los Carneros Road Goleta, CA 93117 (805)560-1650 PaulM@sbbt.com -------------------------------------------------------------------------------------- United Capital/Spectrum Leasing, Austin, Texas The plot thickens and it gets stinky... It's my understanding: Steve Dallas and Jack Lieberman were partners in United Capital and started Spectrum Funding, 4th quarter 1998 as a Broker group. The original name was, Countrywide Leasing; later changed to, Spectrum Funding Group. The marketing was directed to the lessee with an automated phone message system. Jack and Steve split their partnership last year after United Capital lost funding from Liehman Bros. and Old Kent. Steve is running both United and Spectrum a few people. As you are aware from other Brokers, United Capital is providing the Vendor and lessee information to Spectrum. Spectrum is currently contacting the customers who originated from other Broker's databases and presented to United Capital in good faith; this information should not be shared or sold. Broker customers are currently being solicited. Spectrum is working from prior approvals that were pulled by United Capital. They are misrepresenting their association to our customers. Both United and Spectrum occupy and share the same office space and phone system. It's my understanding that Jack Lieberman and Steve Dallas are both landlords of the shopping center. Jack Lieberman owns Countrywide Leasing, LLC. If you look at the site: countrywideleasing.com, Jack Lieberman is their CEO. Also, the names of the other people on their website... Jack, Melissa, Dan, Tom, Matt, are all former employees of Spectrum & United Capital and hired by Jack Lieberman. The address location for: Spectrum Funding Group, Spectrum Leasing, United Capital, United Leasing (told to one of my customers) and Countrywide Leasing, LLC et al, is the same. http://www.countrywideleasing.com/aboutus.htm Thanks for your interest in helping to promote professional and quality business ethics within the industry. Name With Held --------------------- Why Are You Surprised???? Why are people so surprised to learn that these two companies are one? There are numerous other lessors who have vendor direct business sides of the company. The only thing that is not like the rest of the lessors, is that company is nothing more than brokers. They still use and I have seen the approvals and declines from Manifest, Fischer-Anderson, Financial Pacific, etc. People like Steve and Peter should not be allowed to broker business until they have cleaned up their mess. When do we, as an industry, start to take care of the people and companies that give us all a bad name? It seems the industry organizations have kept a low profile when they should have become more vocal about doing business with these people. Keep up the good work Name withheld ( Yes, it appears there are leasing associations that look the other way, as there appears to be little enforcement of a Code of Ethics.editor ) -----------------------------------------------------------------------------------------------------------------
Sunday Sermon This has been so well received, that we will continue this feature, plus archive them. http://www.leasingnews.org/Sunday.htm Each of our pages have a button at top, to "Send to a Friend." I am a first time receiver of your "Leasing News" & "Sunday Sermon" - This is not what I was expecting to receive - (Excerpt from I Love You, Ronnie) - but certainly is a welcome refreshment - if more men in this country loved their wives in this manner, society would not have a "dim view" of the marital bond and marriage would be held in the high regard that God intended - I am confident you feel the same way about your wife - otherwise you would have not printed this excerpt - thank you for helping set the example. Mark B. Fonseca <ez2buy@bellsouth.net> + + Thanks for the suggestion and the excerpt. Archie Julian <JulianA@ExchangeBank.com> What a wonderful way to remember the ones we love so dearly and most especially what a tribute to a very great human being. Were you able to see the dedication of the Aircraft Carrier, the Ronald Reagan. How more beautiful could this have been then to dedicate this magnificent ship on Ron and Nancy's 49th Wedding Anniversary. Thank you, Cindy Cynthia Spurdle <CWSpurdle@msn.com> ( Whether you are a Democrat or Republican or whatever, this book of love notes is one of the most inspirational, showing no matter how busy or where he was, he wanted to tell his wife how much he loved her. These were not written for the public or for public relations, but came from his heard. editor ). Wow. Cool Kit. Thank you. I read/listen to all the Jim Rohn, Og Mandino etc. I can get my hands on. Today's "sermon" is refreshing and inspiring. I really appreciate your service. In the office we read and discuss every issue, I refer everyone I know to Leasing News. Keep up the great work. Troy Lovick Equipment Financing Group Inc. Troyest1@aol.com ---------------------------------------------------------------------------------------------- NetBank(R) Receives Regulatory Approval of Its 2001 CRA Strategic Plan
ATLANTA, March 13 /PRNewswire/ -- NetBank(R), Member FDIC, Equal Housing Lender, (Nasdaq: NTBK; http://www.netbank.com), and the world's leading Internet bank with more than $1.8 billion in assets, today announced that the Office of Thrift Supervision (OTS) has approved its strategic plan on meeting requirements under the Community Reinvestment Act (CRA) during 2001. The bank's strategic plan incorporates suggestions and counsel from regulators and community leaders. NetBank has taken the lead in CRA compliance among pure online banks. Online banks typically serve broader geographic areas than traditional brick-and-mortar banks, which makes CRA assessment of online institutions more challenging. In addition to low- and moderate-income lending and investing, NetBank supports numerous CRA-related programs, benefiting such organizations as Habitat for Humanity, the United Negro College Fund, YMCA, Georgia Affordable Housing Corporation, Southwest Christian Hospice and others. For more information on NetBank's 2001 CRA plan, see the bank's November 20, 2000, announcement, NetBank Details Its CRA Strategy in a Proposed Plan Submitted to Regulators. About NetBank(R) NETBANK, Inc., (Nasdaq: NTBK; http://www.netbank.com), is a financial services company whose wholly owned subsidiary, NetBank, Member FDIC, is the first profitable pure Internet bank in the country, having achieved profitability in the past 11 consecutive quarters. With more than $1.8 billion in assets and customers in all 50 states and 20 foreign countries, NetBank was recognized as the best online bank by readers of Worth magazine in its 2000 "Readers' Choice Awards" survey and as a Money.com pick for "Best Online Banks." With its low-cost, branchless business model, NetBank is able to reward its customers with high interest rates on deposits with low- or no-fee banking services. Products and services include free online account access, free checking, free unlimited online bill payment and presentment, free unlimited ATM use, VISA(R) Check Card, VISA(R) credit card, online brokerage services, mortgage lending, home equity lines and loans, insurance, IRAs, online safe deposit boxes, and business equipment leasing services. NetBank is a member of the AFFN, Cirrus, Honor/Star, MAC and NYCE ATM Networks. For more information on NetBank, its products and services, visit the Web site at http://www.netbank.com, or call 888-BKONWEB (256-6932). "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Information in this press release about NetBank's intention to execute its strategic plan for CRA compliance in 2001 is a "forward-looking statement" involving risks and uncertainties that could cause actual results to differ materially. Risks include unforeseen circumstances of an operational, financial, regulatory or other nature that prevent NetBank from carrying out the plan exactly as written. The bank has no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties facing NetBank, see "Risk Factors" in the Company's SEC filings. SOURCE NetBank CO: NetBank ST: Georgia ------------------------------------------------------------------------------------- E-Bills and E-Payments through E-Mail Set to Accelerate Convenience for Consumers Using Services Backed by CheckFree Business Editors ATLANTA & LOS ANGELES--(BUSINESS WIRE)--March 13, 2001--CheckFree (NASDAQ: CKFR) -- Financial services sites and portals offering CheckFree's Electronic Billing and Payment services can e-mail their customers' e-bills to them -- Biller customers can view and pay summary e-bills through e-mail, and link to billers for bill details -- Extension to core electronic billing and payment enables consumers to exchange money with each other for any reason, using e-mail CheckFree Corporation, the leading provider of electronic billing and payment (EBP) services and software, today debuted two extensions to its electronic billing and payment capabilities, aimed squarely at accelerating the convenience of Internet billing and payments for consumers. The first enhancement is the ability for consumers to receive and pay e-bills over e-mail. The second is the ability for consumers to exchange money with each other using e-mail "invitations" to send or receive money. Both extensions leverage the fact that using e-mail at work and home has become an integral part of life for consumers. "We're enabling our customers to take e-bills and e-payments to where consumers live or work, without sacrificing the security of having a trusted central site to provide payment authentication, tracking and customer care," said Randy McCoy, CheckFree's chief technology officer. "This blend of distributed bill delivery and payment functionality through e-mail, with consolidated e-billing and e-payment history, security and customer care, is unique in the industry. The power of the model lies in melding consumer convenience with consumer confidence and control," McCoy noted. E-Billing and Payment over e-Mail Financial services organizations and portals that deploy the most recent version of CheckFree WebPay will be able to give their customers the ability to elect to receive any e-bills they choose via e-mail. When the bill is available, the financial services organization or portal simply sends an e-mail to the consumer containing bill summary information, a link to bill details and a "pay" button. Consumers can pay based on the summary information and link to the biller site to view bill details. When the consumer clicks "pay," his or her identity is authenticated at the financial services organization or portal's secure site before the payment is validated and settled with the biller. A January 2001 GartnerGroup report titled "Making E-Mail More Productive" notes that the average person working in an office environment spends four hours each day reading and responding to e-mail. In a consumer study conducted by CheckFree at Spring InternetWorld on April 5-7, 2000, the ability to receive and pay bills through e-mail was the potential service enhancement respondents found most attractive. Results were similar for both users and non-users of electronic billing and payment services, with 65 percent of EBP users and 56 percent of non-users selecting "being able to receive and pay bills through e-mail" an "attractive" or "very attractive" feature. "Gartner research shows that many consumers perceive paper mail to be more convenient than going to a web site to view and pay bills," says Avivah Litan, vice president of Gartner Financial Services Payment Systems. "By delivering bills through e-mail, CheckFree promises to break down this adoption barrier by making bill delivery, pickup and payment more convenient than paper mail processes." E-Payments over E-Mail Organizations deploying the latest version of CheckFree WebPay also will be able to offer their customers the ability to exchange money with each other electronically as a natural extension of electronic billing and payment. This service supercedes other electronic money exchange services in several ways: Industry report: DaimlerChrysler sells leasing service March 13, 2001 DaimlerChrysler sells leasing service Fiserv Inc., which provides data and manages information for financial companies, said it bought a car-leasing service from DaimlerChrysler AG for an undisclosed amount of cash and stock. Remarketing Services of America Inc., had $28 million in revenue last year. DaimlerChrysler said last month it would sell off subsidiaries as it tries to cut costs. The world's fifth-largest automaker lost $1.75 billion in the second half of 2000 and may lose about $3.9 billion before taxes and interest in the first quarter of 2001. ------------------------------------------------------------------------------------------------ SACRAMENTO, Calif.--(BUSINESS WIRE)--March 13, 2001-- Leasing Program Offers Flexibility and Convenience for Enterprise Customers Through Special Low Introductory Rates and Complete Financing Options NEC Computers Inc., a leading provider of mobile, desktop and server computing solutions for the enterprise market, today announced the availability of a new leasing program for its Express5800servers, Versa(R) notebooks, PowerMate(R) desktops and MobilePro handhelds. Available immediately through NEC Leasing Services, a division of NEC Industries Inc., this leasing program offers customers the flexibility of leasing award-winning NEC Computers' PC and servers. With this program, NEC Leasing Services can provide customized leasing solutions on NEC Computers' products for enterprise customers, as well as 100 percent financing for all eligible program participants. Authorized resellers and partners of NEC Computers will have access to NEC Leasing's online credit applications, allowing them to approve requests in as little as one hour. NEC Leasing Services also provides regional sales support and staff to facilitate the leasing and sales finance process. "We want to give our customers the ability to remain on the forefront of technology so that they can stay one step ahead of their competition," said Steve Boogar, COO for NEC Computers. "The leasing program allows us to provide our PCs and servers in large quantities at an incremental charge, giving our customers the advantages of flexibility and convenience in meeting their individual business needs." The leasing program offers resellers and VARs a number of financial benefits by providing extension, add-on and upgrade paths to customers, thereby improving customer retention and enhancing long-term relationships. Additionally, existing and potential NEC Computers partners will be able to provide a single solution through leasing packages, including hardware, software, installation, services, and customer training programs. "NEC Leasing is committed to helping NEC Computers and its resellers to aggressively grow their business," said Herschel Salan, director, NEC Industries, Inc. "Our program will offer an integrated financial solution for latest technology products sold through the NEC Computers reseller channels." About NEC Leasing Since 1986, the NEC Leasing Services (www.neclease.com) division of NEC Industries, Inc. has delivered flexible leasing and financial solutions to customers nationwide. As a subsidiary of NEC USA, Inc., NEC Industries, Inc. has the financial capacity to comfortably fund its portfolio of commercial leases from modest communication technologies to complex data centers. NEC Leasing Services offers the best of both worlds: uncompromising excellence in financial services delivered by professionals that understand technology. For more information about NEC leasing services and financing programs, NEC Leasing Services can be contacted at 877/NEC-FINANCE or info@neclease.com. About NEC Computers Inc. NEC Computers Inc., a wholly owned subsidiary of NEC Technologies, Inc., delivers mobile, desktop and server computing solutions to the commercial market in North America. For years, select models of NEC's Versa(R) notebook and PowerMate(R) desktop computers, MobilePro(TM) handheld PCs, and Express5800 servers have won awards in leading industry publications, including Smart Business, PC Magazine and Mobile Computing. NEC Computers (www.neccomp.com) focuses on the computing needs of the corporate market and sells systems primarily through the distributor and reseller channel. NEC Computers taps into the technological resources of NEC Corporation's extensive research and development facilities in Japan, where products are developed for the global marketplace. In 2000, NEC Corporation held the second largest number of patents in the U.S. and serves as the source of NEC Computers' technologically sophisticated products. Note to Editors: NEC and PowerMate are registered trademarks, and Versa is a U.S. registered trademark of NEC Corporation. MobilePro is a trademark of NEC Corporation and/or one or more of its subsidiaries. All are used under license. All other trademarks are property of their respective owners. CONTACT: NEC Computers Inc. Beth Makosey, 408/844-1128 beth.makosey@nec-computers.com or Walt & Company George Millington, 408/496-0900 ext. 2974 gmillington@walt.com ----------------------------------------------------------------------------------------------- Press Releases from Tyco and CIT Tyco Will Use CIT's Capabilities Across Full Breadth of its Operations Tyco International, a diversified manufacturing and service company, and The CIT Group, the largest independent commercial finance company, announced that they have entered into a definitive agreement pursuant to which Tyco will acquire CIT in a tax-free stock-for-stock exchange. CIT shareholders will receive 0.6907 Tyco shares for each share of CIT. The transaction is valued at $35.02 per share to the CIT shareholders, or approximately $9.2 billion, based on Tyco's March 12, 2001 closing price on the New York Stock Exchange of $50.70 per share. The transaction will be immediately accretive to Tyco earnings. Tyco has entered into a purchase agreement with The Dai-Ichi Kangyo Bank for their approximately 71 million shares of CIT (which constitutes approximately 27% of the outstanding shares) at a price of $35.02, in cash, per CIT share. "For years, our operating managers have advocated creating a financing capability within Tyco to support the growth of our businesses," said L. Dennis Kozlowski, Tyco's chairman and CEO. "After evaluating several paths to this goal, including developing a financing capability in-house, we concluded that acquiring CIT gives us a faster, more efficient and more robust solution at lower risk than anything we might have done internally or through joint-venture or other approaches. Putting in place a fully established leader in the commercial finance industry is the ideal platform for us to fulfill this need. "CIT is a very attractive growth company in its own right and will be its own profit center. It is also an ideal fit for Tyco and will add great value to our businesses as part of a total package we can offer customers," continued Kozlowski. "CIT has a strong credit culture, an excellent customer base, and a broad range of services that match up well with the full range of our financing opportunities. This acquisition will enable us to capitalize on significant organic growth opportunities within CIT and in each of our businesses. CIT will enable us to deliver better working capital management to enhance our already strong cash flow and financial leverage to greatly increase Tyco's capital efficiency. Further, it will give us the ability to meet the current and emerging financing needs of our customers, solidify customer relationships by enabling us to move toward lifetime customer management in several Tyco units, and create a platform for future growth and opportunity. In all, we expect this transaction to result in enhanced levels of organic growth, recurring revenue, stable profitability, and competitiveness across the entire Tyco enterprise. "The CIT acquisition is a cornerstone transaction consistent with significant past acquisitions of premier franchises such as Kendall, Sherwood, Davis & Geck, US Surgical, Mallinckrodt, Grinnell, Keystone, ADT, AMP, and Raychem," added Kozlowski. "In each case, we expanded the Tyco model to include an adjacent business and we built that business into a world leader in its respective market. We expect that the acquisition of CIT will provide similar ongoing positive benefits to the shareholders and customers of CIT and Tyco." Albert R. Gamper, Jr., chairman, president, and CEO of CIT said, "This transaction provides exceptional value for our shareholders and allows CIT shareholders to participate in the future growth of Tyco. Like Tyco, we have leadership positions in key industry sectors, a highly diversified revenue stream, and strong operating platforms. The combination of our diversified product offering and customer base with Tyco's financing opportunities, growth prospects, and detailed industry knowledge enhances our competitiveness and access to capital. CIT will continue to access funding markets independently and maintain its strong credit ratings. That's why our Board and management team are very excited by the opportunities the combination with Tyco presents for both companies, our investors, and our customers." Gamper will remain with Tyco as CEO and president of CIT, and will join Tyco's Board of Directors. Tyco envisions utilizing CIT's financial capabilities across the full breadth of its operations: "Strong drivers for the demand of water and wastewater systems throughout the world, from Clean Water Act compliance in the U.S., to aging systems in Europe, to infrastructure development in Asia and South America, coupled with a shift from public to privately financed systems is creating an enormous market for companies with the ability to design, build, finance and operate these systems in an integrated model," said Diane Creel, president of Tyco's earth tech division. "Today, we are a world leader in this industry, but we have been constrained in our ability to provide prospective customers with a complete package that includes financing. Access to this resource through CIT will create a compelling growth story through our ability to capture additional water project market opportunities." Neil Garvey, president of TyCom, said, "The strong demand outlook for undersea bandwidth continues to exceed our expectations and forecasts. TyCom is the undisputed leader in providing undersea fiber optic networks to help meet this demand. As our business model has shifted to include bandwidth sales, our ability to offer financing will be a significant competitive advantage. Along with these bandwidth sales, as our TyCom Global Network is constructed as a global undersea backbone, the need for regional feeder systems will accelerate. Evidence our contracts with C2C, Bezeq, and DishNet DSL, all signed during the past 6 months. The capability to provide turn-key solutions, including project financing, for these regional feeder networks will be a key driver of the growth of our third-party systems business." "The ability to couple our product offering with financing and promote long-term customer affiliations will significantly enhance our growth prospects," said Juergen Gromer, president of Tyco Electronics. "This customer relationship creates possibilities for product upgrades and replacements in areas such as our Tyco Power Systems and M/A-COM business." Mike Snyder, president of Tyco's ADT Security business said, "The ability to offer on-the-spot financing or leasing options to both qualified commercial and residential customers creates an opportunity to leverage the relationship with our over 3 million customers in the U.S. For example, the services offered by CIT's Vendor Technology Financing operation provide us an excellent life cycle management tool, giving us the ability to harvest our loyal customer base with systems enhancements and upgrades as security technology evolves as well as offering a variety of other financial products." The transaction, which will be accounted for as a purchase, is contingent upon customary regulatory review and approval by CIT shareholders. The Boards of Directors of both companies have approved the transaction, which is expected to be tax-free for the shareholders of CIT. Under the terms of the agreement, CIT's shareholders will receive Tyco stock in a fixed exchange ratio of 0.6907 for each share of CIT.
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