April 26, 2001

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Equipment Leasing Association Special Report:

    Equipment Leasing Continues to Help Companies Increase Profitability and Leverage Capital;

 Companies Gain a Competitive Advantage in Today's Uncertain Economy

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  Headlines:

                     Ken Nelson Remembered

                CFS Group/Decision Systems Loss

               CIT Reports Profit/Plus Declares Dividend

             Tech Com/Universal Products Fraud--$1 Million

         Oestreich Predicts 450 New Orleans Attendance/300 signed to date

     CapitalStream Names Fuhrman New Senior Vice President & Chief Financial Officer

  Leasing News List is Up-Dated

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   More on  Alleged Fraud by TechCom/Universal Equipment

Thanks to feedback from several of you we have been able to provide the

police with additional information that is valuable in developing a case

against this vendor and their conspirators.   I have learned that this

vendor has potentially been paid by numerous funding sources in excess of $1

million and has victimized several brokers over the last 8 months.  I

encourage each of you to search your company database for any additional

transactions that have involved Tech Com, Inc. (Costa Mesa, CA) as a vendor.

TechCom operations as a vendor appear to have been shut down entirely.  The

phone is no longer in service.  The alleged ringleader "Ernie" has retained an

attorney and has been contacted by the Costa Mesa Police Dept.   He is being

questioned for potential fraud, operating without a business license, not

reporting sales tax and income tax.  Of note is that all leases funded

appear to be "current" after a few were delinquent.

Tech Com operated under a different vendor name in 1999 of Universal Equipment (Dana Point, CA).

 The principal of this company was Ernest Robert Reinhardt ("Ernie")

and he is the ring leader of Tech Com, the current vendor being investigated

for fraud.  Research reveals that Universal Equipment approached at least

three funding sources, all which had direct vendor programs (Advanta, Orix,

ABL), in the summer of 1999 to get approved as a vendor on the respective

vendor finance programs.  Well, Ernie and Universal blundered when they

submitted financials to one source to get approved, problem was they used

the exact same financials as those that they submitted on behalf of one of

their clients.  So you may want to again search your database for a vendor

named Universal Equipment with principal being Ernest Robert Reinhardt (ss#

620-10-9572  or  ss# 620-10-9973).  It was learned that one of the above 3

sources looked at a minimum of 6 deals before pulling the plug on Universal

as a potential vendor.  Once again, any additional information regarding

this individual contact myself  Det. Sheila Cannan - Costa Mesa Police Fraud Unit

(714-754-5294).  Thanks

As a result of the mode of operation of this vendor, it is believed that

someone involved has extensive leasing experience and a link to a leasing

company called "KNOLL LEASE SERVICES" has been uncovered - operated during

1998 -1999 - do any of you recognize or have information about this company,

please contact Det. Sheila Cannan  Thanks for your help and I will keep you

posted to developing information, as there is anticipation that Fraud

charges will be filed soon.

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  United Capital/Spectrum Leasing

It has come to my attention that Spectrum Leasing( United Capital ) is

even lower than what we first imagined. We recently rated a comp credit

rating on one of our clients that we discounted to United Capital. They did

give us the rating after 2 days, but funny, our client got a call from

spectrum funding the very same day we asked for our rating. I hope you print

this and let everyone know the type of company United Capital has become.

Name withheld

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    Ken Nelson, U.S.Capital, Santa Barbra, California

Kit Menkin,

I would like to suggest to that in the future you use a little bit more

emotion when spitting out such shitty news.

I am fairly certain that you have never met Ken Nelson let alone a quick

conversation over the phone with him. Ken was not just another person who

committed suicide because he could not handle all of the pressure and dept

he found himself under. He was also a remarkable, energetic, and

compassionate man who had a heart larger than you and any other person

combined that may have received your Leasing News Update.

Ken was my Best Friend of 10 years and he was like a brother to me. He did

not leave without any friends as your quote from Detective Alvarez had

mentioned. He left with a number of people that loved him very much and who

deeply cared about him and we are absolutely torn up over what has happened.

My world will never be the same without my friend.

Kenny had more issues than just his business and the dept that he had

incurred. You are absolutely out of line for painting a snapshot picture of

him and titling it "End Of Story" when you do not have any idea of what the

beginning of the story is about.

In all fairness, people that read your updates should also know the positive

side to Kenny and not just the selective piece that you have painted. Kit,

he was a PERSON Just like you and I and neither one of us are without our

faults. He deserves more than what you have simply wrote as an Update to the

leasing world. My life will never be same now that he is gone and neither

will his families.

Kenny had much more to give and he certainly had a lot more to say then the

single sentence "I could no longer handle the debts that my company and I

have incurred". There was much more in his letter to his family and to me

and to the rest of his friends than what you are reporting.

Your National Enquirer gutter information is nothing less than sickening to

me. It just goes to show what media and the reporters are all

about....shallow heartless people who care nothing about the whole

story...just a sliver of negative will do just fine!

Thank you for nothing Kit!

Rick Sellman

ricks@balboacapital.com

  ( As stated in the story, the letter was considered private and we did not

   read it, and with the company closed, there are only creditors, lessees,

   people who were hurt by U.S.Capital that we could contact.  We did not think

   it was appropriate to do so.  Unfortunately, most news is "bad news." This

   certainly was a sad one,too, as we stated. editor )

                +            +          +

Mutltifund has never done business with US Capital.

I have spoken with Ken that is before he moved to Santa Barbara. I found him to be friendly and

easy to get along with. However, this was the extent of my association with Ken.

 Bob Wilkins

 bobw@multifund.com

  ( We said "reportedly" Nelson was a salesman for your company when it was located in

   San Jose.  I thought I remembered meeting him in your office when I think you had a dozen

   or more salesman working for you. I spoke to two other "old timers" in the industry,

   and they remember him being an early salesman for your company.  We never reported that      

   Multifund did business with U.S.Capital. As requested, we will print your

   statement above. editor )

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   " 100 US lessors and 28 of the top 50 US Banks"

   Decision Systems/CFS Group

Alfred Stein, Tom Brockbank and Fred Newall have resigned from the board of directors

of CFS, following the acquisition of Decision Systems, Inc. (“DSI”) in October, 2000.

the business, which comprised the CFS Group will record a substantial loss for the period ended

31 December 2000. Negotiations in respect of these substantial license agreements are continuing

and the Board expect these to be concluded in early 2001.

It was further stated, " negotiations with regard to substantial new license agreements in the

businesses that comprised CFS Group plc were not concluded prior to 31 December 2000 year end,

resulting in the resignations." it was reported, "Businesses that comprised Decision Systems,

Inc. performed in line with expectations in the period since acquisition in October 2000."

Commenting on the outlook for the Group, John Hubert, Chairman, said:

"We have taken decisive action to stabilize the Group while remaining

focused on building on our core strengths and rebuilding shareholder value.

"The first half of the year will be affected by the high cost base of the

Group prior to the implementation of the reorganized structure and the

management time spent on addressing the issues within the CFS Group.

However, I am confident that the steps we have taken will ensure a more stable

earnings base for the Group and we will see the effects of this from the second half

of the year."

Their press release states:

"The Group is the US market leader in the provision of software and services

to the equipment leasing industry and a world market player in the provision of

software and services to the asset based finance industry. The Group has

over 300 customers including 54 of the top 100 US lessors and 28 of the top 50 US

banks where it is the supplier of core leasing software and services."

Some excepts from the press release include:

"Following a review of the entire product range of the merged companies,

conducted by a team led by DSI, concerns emerged as to the underlying

stability of the CreditLine LeaseManag-r product. The previous Board was

working to resolve these issues through ongoing product development work.

However, by the end of 2000, it had become apparent that the product's

failings could not be resolved on an economically satisfactory basis. The

decision was therefore taken to discontinue this product. As a consequence,

sales could not be delivered and it was no longer possible to recharge

on-going development costs for the customization of the product to

customers.

"The combination of sales that were not completed, unrecoverable development

costs and previously booked revenue that could no longer be realized, were a

principal contributor to the significant operational losses outlined in this

report."

The Pittburgh, PA has been closed.

The Annual Report and Accounts for IDS Group for the year end 31 December

2000 was posted to shareholders during the week commencing 23 April 2001

and copies will be available from the registered office: IDS Group plc, 1

Stewart Road, Kingsland Business Park, Basingstoke, Hampshire, RG24 8NF.

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Equipment Leasing Continues to Help Companies Increase Profitability and Leverage Capital;

 Companies Gain a Competitive Advantage in Today's Uncertain Economy

ARLINGTON, Va.---Businesses are looking for ways to control costs, leverage capital and ensure

long-term survival in today's changing financial landscape. 

The leasing industry has emerged as a strategic financing option that companies of all sizes are

utilizing to leverage capital, increase cash flow, take advantage of tax benefits and hedge

against the risk of technological obsolescence. 

Companies across all industries are taking advantage of leasing to better control procurement

costs, contribute to the bottom line and increase business growth. In 2001, the Equipment

Leasing Association (ELA) estimates that the leasing industry will grow by 8 percent ($20

million).

Equipment leasing offers companies the opportunity to procure equipment at a fixed rate, for a

fixed amount of time without having to purchase equipment outright. By leasing, a company is

relieved of the uncertainties and risks associated with equipment ownership and can concentrate

on using that equipment as a productive part of its business.

"Leasing has always been a strategic solution for businesses, and with the economic uncertainty

of the past few months, businesses in all sectors of the economy are considering how leasing can

help them successfully ride out the storm," said Amy J. Miller, ELA's vice president of

communications. "Leasing offers valuable financing options that allow companies to maximize

their purchasing power."

Benefits of Leasing

--  100 Percent Financing. With leasing, there is very little

money down - perhaps only the first and last month's payment

is due at the inception of the lease. Since a lease does not

require a down payment, it is equivalent to 100 percent

financing.

--  Tax Treatment. Companies can deduct lease payments from

corporate income because the IRS does not consider an

operating lease to be a purchase, but rather a tax-deductible

overhead expense.

--  Balance Sheet Management. Because an operating lease is not

considered long-term debt or a liability it does not appear as

debt on corporate financial statements, making a company more

attractive to traditional lenders.

--  Flexibility. Companies can upgrade or add equipment to meet

ever-changing needs at any point during the lease term.

Companies also have the option to include installation,

maintenance and other services, if needed.

--  Asset Management. A lease provides the use of equipment for

specific periods of time at fixed payments. It assumes and

manages the risk of equipment ownership.

--  Upgraded Technology. If the nature of an industry demands

having the very latest technology, a short-term operating

lease can help acquire equipment and control cash flow.

--  Customized Solutions. A variety of leasing products are

available allowing companies to tailor a program to fit

month-to-month or year-to-year cash flow needs.

--  Speed. Leasing allows companies to respond quickly to new

opportunities with minimal documentation and red tape. Many

leasing companies approve applications within one or two days.

For more information on the leasing industry or ELA, please contact Robin Baker at 202.293.8567

or via email rbaker@hillandknowlton.com. You can visit ELA online at http://www.elaonline.com or

check out ELA's informational portal for financial decision-makers at www.leaseassistant.org. 

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. ELA maintains an informational portal for financial

decision-makers at www.leaseassistant.org. 

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. Visit ELA

online at http://www.elaonline.com.

CONTACT: 

Equipment Leasing Association, Arlington

Robin Baker, 202/293-8567

rbaker@hillandknowlton.com

or

John Blacksten, 202/293-8559

jblacksten@hillandknowlton.com

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Heller Financial Adds Merger and Acquisition Services

Led by Industry Veterans, Heller Financial Advisors  

To Serve Middle-Market Companies 

CHICAGO, April 26 /PRNewswire/ -- Heller Financial, Inc. (NYSE: HF), a leading provider of

commercial finance products and services, today announced the formation of Heller Financial

Advisors (HFA).  This team will provide merger and acquisition services to Heller's corporate

finance client base and other companies, primarily in the middle market.

HFA's main focus will be on sell-side engagements while also providing targeted buy-side

services, fairness opinions and other financial advisory services to shareholders and directors

on issues relating to enhancing shareholder value.

Focusing on companies that generate $25 million - $500 million in annual revenue, HFA will

concentrate on Heller's equity sponsor relationships and on industry sectors where Heller and

the team have demonstrated expertise.  These include the distribution, industrial products,

general manufacturing, food, telecommunications, natural resources, information services,

general business services, financial services and consumer products/services industries.

"Adding merger and acquisition advisory services fits naturally with our long-standing

consultative approach to business, and complements our current offerings to meet the changing

and expanding needs of our clients," said Dan Marszalek, Group President, Heller Corporate

Finance.  "We now have a core group of seasoned professionals to lead our expansion into the

merger and acquisition arena, and we expect this team to become a key component of our Corporate

Finance group."

The senior team members of HFA are Frederic D. Floberg, Philip R. Clarke III and Jacqueline L.

Archer.  Combined, they have more than 50 years of experience in the investment banking

business.  Prior to joining Heller, all three were managing directors of ABN AMRO's North

American investment banking operation in Chicago.

During the last four years, ABN AMRO's group of approximately 35 professionals generated over

$100 million in revenues and completed more than 100 merger and acquisition transactions

representing in excess of $10 billion in total transaction value.  The deal sizes averaged

approximately $100 million and ranged from $25 million - $900 million.  Several former ABN AMRO

colleagues have joined the senior members of HFA, with plans for a team of ten professionals by

mid-year.

HFA further plans to provide incremental deal flow and to initiate buy- side ideas for equity

sponsors.  The team also will offer clients access to several hundred equity sponsor

relationships of Heller Corporate Finance in the United States, Canada and the United Kingdom.

The team also will focus on its own private and public company relationships, Heller's portfolio

of non-equity sponsor borrowers, and opportunities identified by Heller's Financial Intermediary

Team that covers accounting firms, law firms and turnaround consultants.  In addition, HFA will

offer to provide financial advisory services on a referral basis to clients of financial

institutions that do not want to devote significant resources to the middle market.

Heller Financial, Inc. is a worldwide commercial finance company providing a broad range of

financing solutions to middle-market clients.  With $20 billion in total assets, Heller offers

equipment financing and leasing, sales finance programs, collateral- and cash flow-based

financing, financing for healthcare companies and financing for commercial real estate.  The

company also offers trade finance, factoring, asset-based lending, leasing and vendor finance

products and programs to clients in Europe, Asia and Latin America.  Heller's common stock is

listed as "HF" on the New York and Chicago Stock Exchanges.  Heller can be found on the World

Wide Web at www.hellerfinancial.com .

SOURCE  Heller Financial, Inc.

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  Monitor Ads

Just check the monitor and look at the help wanted ads for sales people.

Preferred Capital is hiring for sales offices long since scuttled.

First Sierra is eager to add sales people too.

There seems to be quite a few stale ads there. A stale sponsorship wouldn't

be surprising.

No Name Attached

 ( It also may be in the same manner as eLease.  They paid for the ad, and the Monitor

  is fulfilling their obligation.  It is really up to Preferred to change the copy,

  not the newspaper. Also Len Bacaro, sales manager for Sierra Cities is actively

  looking for sales people. Nevertheless, you are correct, the ads are "stale." editor )

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  National Association of Equipment Leasing Association New Orleans Conference

We have been having an incredibly positive response this year Kit.  We

are closing in on almost 300 registered already!

Buzz Thomas will be sending you an official NAELB Press Release tomorrow,

to clarify where we are exactly.  I'm not sure we've ever had this many

registered so early!  I wouldn't be surprised if we hit over 450 before

our weekend in New Orleans rolls around!

I guess the underlying message is "Get around the rest of the folks in

the industry" if you want to learn how to do more business now,  in whatever

kind of times you consider these to be.  I personally find business to

be great!  Looking forward to seeing you in New Orleans Kit!

Ciao!

Gerry Oestreich

gerryo@mail4.nyroc.rr.com

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CapitalStream Names New Senior Vice President & Chief Financial Officer

Fuhrman brings twenty years of financial and administrative experience to

online financing service provider

Seattle - April 26, 2001 - CapitalStream, a provider of web infrastructure

that automates commercial financing, today announced the promotion of Alan

Fuhrman to senior vice president and chief financial officer.  Fuhrman takes

considerable expertise to his new role, having provided leadership in the

finance, accounting and operations of various electronics, medical device,

software and professional service firms during the past twenty years.

"CapitalStream's growth over the last year, especially in the small to

mid-ticket arena, combined with bigger e-commerce partnerships coming to

fruition, demands a steady, strategically-oriented leader at the financial

controls," said Steve Campbell, president and CEO.  "Alan provides that. He

is ideally prepared to keep our finances sound while we grow our market

share and forge our future path in this industry."

Fuhrman's promotion follows his tremendous efforts in helping CapitalStream

close two rounds of equity financing, including a $20 million round in March

when many technology companies were struggling just to stay afloat.  His

versatile financial skills have helped him effectively managed

CapitalStream's financial affairs through many challenging market trends.

His experience in equity and debt financing, business information system

implementation and corporate administration helped fundamentally shape

CapitalStream's business strategies.

Fuhrman's prior experience as a CFO includes ten years of developing young,

high-growth technology companies prior to joining CapitalStream, including

Neopath and Innovation, Inc.  He has also served as a financial analyst for

Hewlett-Packard and a CPA for Coopers & Lybrand.  Fuhrman holds Bachelor's

degrees in business administration and agricultural economics from Montana

State University. He and his family reside in the Seattle, Washington area.

About CapitalStream

Seattle-based CapitalStream strengthens existing business relationships and

streamlines transaction workflow through its flexible web infrastructure for

commercial finance automation. The company provides finance companies, banks

and manufacturers the ability to manage, distribute and automate commercial

lease, loan and credit card financing programs for their business customers

and associates.  CapitalStream, an established industry leader for more than

five years with deep knowledge about the inner workings of the commercial

finance market, has helped hundreds of financial organizations increase

their competitiveness, customer service and profitability.

For additional information visit www.CapitalStream.com.

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 CIT Announces Quarterly Dividend

NEW YORK--(BUSINESS WIRE)--April 26, 2001--The CIT Group, Inc. (NYSE: CIT, TSE: CIT.U and

Exchangeable Shares: TSE: CGX.U) today announced that its Board of Directors has declared a

regular quarterly cash dividend of $.10 per share, payable on May 31, 2001, to shareholders of

record on May 9, 2001.

The CIT Group announced first quarter 2001 net income of $160.1 million, an increase of 11.3

percent over the same period last year. Earnings per diluted share were $0.61 for the first

quarter compared to $0.55 in the first quarter of 2000. CIT's first quarter earnings growth was

driven by improved finance margins and stable operating expenses, offset by lower venture

capital gains.

"Our first quarter results reflect CIT's diverse and balanced businesses, which have enabled us

to sustain our consistent high quality growth for well over a decade regardless of the economic

climate. We are well positioned to capitalize on a wide range of opportunities in the

marketplace," said Albert R. Gamper Jr., CIT chairman, president and CEO. "By creating multiple

revenue streams, operating efficiently and maintaining our focus on credit quality, CIT has been

successful in increasing earnings."

"Additionally, we look forward to the second quarter closing of the Tyco transaction. We will

bring Tyco a significant financial services platform with the ability to provide comprehensive

financing solutions to Tyco's customers, while allowing CIT to continue to build scale in its

core franchises. We are very excited to be joining Tyco and look forward to working with Dennis

Kozlowski and his team in building Tyco's financial services enterprise."

About CIT:

CIT is a leading, global source of financing and leasing capital and an advisor for companies in

more than 30 industries. Managing more than $50 billion in assets across a diversified

portfolio, CIT is the trusted financial engine empowering many of today's industry leaders and

emerging businesses, offering vendor, equipment, commercial, factoring, consumer and structured

financing capabilities. Founded in 1908, CIT operates extensively in the United States and

Canada with strategic locations in Europe, Latin and South America, and the Pacific Rim. For

more information on CIT, visit the Web site at www.cit.com.

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