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August 15, 2000
Metrolease Lives On???? "I am told while Metrolease is being Closed Down by John Blazek, key players have started LeaseCredit, LLC same address as Metrolease. Phone # is 877-985-8300 Contact names on faxed flyer is "Mike or Bob". According to another broker, LeaseCredit faxed a new flyer this afternoon. I got the first flyer which was right around the time you put MetroLease on your list (30-45 days ago)" Closing of Orix Portland Was Vendor Driven Operation Have no fear! The ORIX small ticket operation, operated out of our office in Oregon, was always a vendor driven operation, not open to lease brokers or finance companies for discount. It is not related to my operation in New Jersey, which continues "business as usual." "Geller,
Steve" 38 Leasing Companies Major Changes American
Business Leasing ( gone )
Cocoexchange, Inc. Announces Joint Venture with Lease2save.com; Arrangement Adds Dynamic Online Financing Advantage to New Lease/Rent Web Site NEWPORT BEACH, Calif., Aug. 15 /PRNewswire/ -- Cocoexchange, Inc., a software developer for e-commerce processing, today announced a joint venture with Lease2save.com, an online service that enables businesses to compare and customize financing options. Earlier this month, Cocoexchange, Inc. launched cocoexchange.com, the nation's first online, real-time, lease and rental exchange business-to-business Web site. The B2B site unites customers with suppliers of a variety of products and services online, providing competitive bids through a bid process and an auction system, and then allowing customers to negotiate contract conditions and arrange delivery all online. The joint venture with Lease2save.com rounds out the cocoexchange.com process by helping to analyze, arrange and coordinate financing. Working directly within the cocoexchange.com site, customers can use Lease2save.com's proprietary online modules to create custom lease proposals. Lease2save.com's registered lenders, some of the nation's premier financing organizations, then bid to meet the parameters of those proposals. "Our agreement with Lease2save.com will dramatically benefit companies seeking to lease a variety of business equipment and other valuable products and services," said Cocoexchange, Inc. President and Chief Executive Officer Ariu Levi. "While customers can efficiently locate the business items that best fit their needs through the cocoexchange.com site, the Lease2save component now provides them with an array of lenders offering competitive rates and customized programs for their particular credit status." The cocoexchange.com site's unique infrastructure allows for a wide variety of vendors to compete with each other for lease or rent inquiries. Launched on July 31, 2000, the site's asset types currently include office real estate, office equipment, computers, medical diagnostic machines and equipment, party and convention equipment, and similar products. The addition of Lease2save.com's features allows each cocoexchange.com customer to design their own lease plans and custom payment schedules. Lenders that specialize in offering financing for that customer's particular credit rating, equipment type or other variable, then enter Lease2save.com's patent-pending "Bidding Arena" to vie for that customer's business. "This
powerful combination of product selection and financing will change the way our
nation's businesses secure leases," said Lease2save.com President Brian G. Murray.
"And while lease customers will benefit greatly, we are also enthusiastic about
the profitable incremental sales that this joint venture will offer to the vendors
and lenders involved." Cocoexchange, Inc., developer of the cocoexchange.com Web site, is based in Newport Beach, Calif. and is privately held by interests led by Ariu Levi. Levi previously co-founded and served as president of Fundtech, Ltd., an international company whose electronic payment processing technology enables financial institutions and large business enterprises to wire transfer funds securely and effectively. For additional information on Cocoexchange, Inc. or the Web site, log onto www.cocoexchange.com. Lease2save.com, headquartered in Marina Del Rey, California, was founded in 1999 by its president, Brian G. Murray. Now a leading force in online capital equipment leasing, the company was developed to give the small- to medium-sized business owner online access to a wide variety of lease financing options. For additional information on Lease2Save.com, log onto www.lease2save.com.
SOURCE Cocoexchange, Inc. CO: Cocoexchange, Inc.; Lease2save.com ST: California IN: MLM REA SU: JVN \
VenServ(TM), the nation's premier Web-based originator of financial services products serving the business-to-business (B2B) marketplace, has been selected by industry-leader firstsource(SM) to utilize VenServ's patent-pending electronic leasing programs and financial solutions for its firstsource.com business customers. VenServ's proprietary electronic financing technology, range of leasing programs and automatic credit decision capabilities at the point-of-purchase will provide firstsource.com customers with a quick and convenient solution to purchasing any of the more than 1.2 million products offered through firstsource.com. "Our relationship with firstsource is yet another perfect example of the ways in which VenServ can compliment and help build business for an already successful and established company," said Robert D. Parker, VenServ president and CEO. "We are providing firstsource with a seamless, streamlined process that offers its customers the best financing options from an array of financing institutions." "As one of the top ten business sites online, firstsource.com and parent company firstsource, required a company that could not only meet our current and future demand generated by our explosive growth. VenServ is that company," said David Hagan, CEO firstsource. "By offering our customers the ease, convenience, and financial options that come from using VenServ's technology and services, we are able to remain highly competitive -- meeting the ever-growing needs of our customers." Hagan continues, "The acquisition of office equipment is a major investment for companies of all sizes. Knowing that you're getting the best financing possible makes that investment easier." Hagan added that the new relationship with VenServ will also provide value to the customers of companies such as Allbusiness.com for whom firstsource provide financing and leasing options. Among the range of financial service options is VenServ's QuickServ "micro-leasing" program that offers business owners with less-than-perfect credit, or very little credit at all, the opportunity to make quick, efficient acquisitions of office equipment. QuickServ is designed for equipment leases of between $500 and $2,000 -- an ideal service for small-to-medium sized businesses. VenServ's relationship with firstsource adds to the already impressive corporate collaborations VenServ has established. Such vendors and strategic partners include: American Express Business Services, Acer Computers, Idea Mall, Egghead, Insight, and E-Credit. Resource America, Inc. Announces Plans to Make a Tender Offer for Its Common Stock PHILADELPHIA, Pa.--(BUSINESS WIRE)--Aug. 15, 2000--Resource America, Inc. (NASDAQ:REXI)(the "Company") today announced that its Board of Directors has authorized a "Dutch Auction" tender offer for up to 5 million shares, or approximately 21% of its outstanding common stock at an expected offer range of between $9 and $11 per share, subject to market conditions. Commencement of the proposed tender offer will be subject to completion of all regulatory filings. Resource America intends to finance the repurchase with a portion of the proceeds of the sale of its small-ticket equipment leasing subsidiary, Fidelity Leasing, Inc., which was recently sold to European American Bank, a subsidiary of ABN AMRO Bank, N.V. Edward E. Cohen, CEO of Resource America, stated "We will be making the offer to buy back our shares because we believe that our shares continue to be undervalued in the public market and that the offer is consistent with our long-term corporate goal of increasing shareholder value." THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO SELL ANY SHARES OF RESOURCE AMERICA'S COMMON STOCK. THE SOLICITATION OF OFFERS TO BUY RESOURCE AMERICA'S COMMON STOCK WILL ONLY BE MADE PURSUANT TO AN OFFER TO PURCHASE AND RELATED MATERIALS THAT RESOURCE AMERICA WILL SEND TO ITS SHAREHOLDERS. SHAREHOLDERS SHOULD READ THOSE MATERIALS CAREFULLY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION, INCLUDING THE VARIOUS TERMS AND CONDITIONS OF THE OFFER. SHAREHOLDERS WILL BE ABLE TO OBTAIN COPIES OF THE OFFER TO PURCHASE RELATED MATERIALS AND OTHER DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THROUGH THE COMMISSION'S INTERNET ADDRESS AT HTTP://WWW.SEC.GOV WITHOUT CHARGE WHEN THESE DOCUMENTS BECOME AVAILABLE. SHAREHOLDERS WILL ALSO BE ABLE TO OBTAIN COPIES OF THE OFFER TO PURCHASE, RELATED MATERIALS AND SCHEDULE TO, AS FILED WITH THE COMMISSION, (EXCLUDING EXHIBITS) WITHOUT CHARGE FROM RESOURCE AMERICA, WHEN THESE DOCUMENTS BECOME AVAILABLE, BY WRITTEN OR ORAL REQUEST DIRECTED TO SECRETARY, RESOURCE AMERICA, INC., 1521 LOCUST STREET, PHILADELPHIA, PENNSYLVANIA 19102, TELEPHONE NUMBER 215-546-5005. Resource America, Inc., operates businesses in energy, energy technology and real estate finance. CONTACT: Resource America, Inc. Pamela Schreiber, Investor Relations 215/546-5005 Fax: 215/546-5388 LINC Capital, a specialty finance company, announced that it reported a net loss for the quarter ended June 30, 2000 of $13.3 million, or $2.55 per share, including provisions for impairment of assets and credit losses totaling $11.5 million, or $2.20 per share. The company reported net income of $621,000, or $0.12 per share, for the three months ended June 30, 1999. For the six months ended June 30, 2000, LINC Capital reported a net loss of $14.7 million, or $2.83 per share, compared with net income of $1.0 million, or $0.19 per share, for the comparable period in 1999. LINC Quantum Analytics and Internet Finance and Equipment, the company's rental and distribution businesses, continue to operate profitably. During the quarter ended June 30, 2000, these businesses reported revenues of $13.9 million and earnings from operations before income taxes of $510,000, compared with $11.0 million and $361,000, respectively, in the comparable period of 1999. For the six months ended June 30, 2000, rental and distribution revenues were $25.3 million and earnings from operations before income taxes were $561,000 compared with $19.8 million and $517,000, respectively, for the comparable period of 1999. In order to continue to reduce bank debt, the company is continuing to work with US Bancorp Piper Jaffray to sell or refinance its rental and distribution businesses. While the company has ceased originating leases in its select growth leasing segment, it continues to hold a portfolio of equity securities in 55 companies. LINC does not recognize income on these securities until they have been sold. Unrealized gains in the portfolio of equity securities have increased materially as a result of the increase in value of the company's holdings in Corvis Corporation, which completed an initial public offering in late July at a price of $36.00 per share. The company reported that it holds warrants to purchase 327,972 shares of Corvis at an exercise price of $0.7625 per share. Since March 2000, LINC has been in default of certain covenants under its loan and securitization agreements. The lenders under the company's revolving credit facilities and liquidity providers to its commercial paper securitization facilities have refrained from exercising their remedies during discussions regarding a forbearance agreement that would permit LINC to sell or refinance its lease portfolio and rental and distribution businesses. LINC has ceased substantially all leasing activities and has completed the outsourcing of servicing of substantially all of its remaining lease portfolio. The company is in the process of selling lease portfolios and other assets to repay bank debt. If agreements are reached to sell substantially all of the company's assets, shareholder approval would be sought for a comprehensive plan of liquidation. Employee headcount has been reduced to 99 (including 50 in rental and distribution) at August 11, 2000 from 221 (including 53 in rental and distribution)at December 31, 1999. The company continues to believe that it will be able to complete a forbearance agreement with its bank lenders. However, in the event that it is unable to successfully complete such an agreement, the company may be required to seek protection under the Bankruptcy Code. The company also reported that two of its directors, Curtis S. Lane and Stanley Green, resigned effective August 9, 2000. UniCapital Corporation Announces Second-Quarter Financial Results MIAMI--(BUSINESS WIRE)--Aug. 15, 2000-- -- Pre-tax loss from continuing operations of $11.4 million, before special charges of $68.4 million and a pre-tax loss from discontinued operations of $174.5 million -- Tangible net worth of $45.8 million, or $ 0.80 per outstanding share UniCapital Corporation (NYSE:UCP) today announced its financial results for the second quarter of fiscal 2000. For the three months ended June 30, 2000, UniCapital reported a net after-tax loss of $193.8 million, or a diluted loss per share of $3.40, compared to net income of $4.6 million, or diluted earnings per share of $0.09, in the same quarter a year ago. Included in the net after-tax loss of $193.8 million are special pre-tax charges of $68.4 million that include: $55.2 million of goodwill impairment charges, $6.7 million of restructuring and other nonrecurring charges and $6.5 million of additional provision for credit losses. Revenue from continuing operations for the quarter increased by 51% to $99.7 million, from $65.9 million for the three months ended June 30, 1999, as a result of growth of the lease portfolio of the Company's Technology and Finance Group and Business Credit Group. As previously reported, the Company decided to exit its Big Ticket Division business and has since developed and implemented a plan to divest all assets of the Big Ticket Division within one year. Therefore, during the second quarter of 2000, the Company discontinued the operations of the Big Ticket Division for financial reporting purposes. As a result, the Company recorded a net after-tax charge of $123.1 million. This charge represents the loss on disposal of the Big Ticket Division, including a pre-tax provision of $33.2 million for operating losses during the phase-out period, as well as the results from operations of the discontinued Big Ticket Division. Following the appointment of new senior management, the Company reached a decision to discontinue certain operations and re-deploy capital to the more profitable business units in its Finance Division. In addition to the discontinuation of the Big Ticket Division, during the three months ended June 30, 2000, the Company decided to exit the operations of two companies in the Business Credit Group and one company in the Technology and Finance Group. The Company wrote off $55.2 million of goodwill related to these three companies. The Company's lenders have waived or amended financial covenants to avoid defaults that would have occurred as a result of the Company's financial results for the second quarter. These waivers and modifications will expire August 31. The Company and its lenders are continuing negotiations with respect to further modifications. From April 1 to June 30, UniCapital's Finance Division originated 2,703 total leases with an aggregate equipment cost of $256.8 million, an 8.3% decrease in lease originations from the same period the previous year. As of June 30, 2000, UniCapital had total equity of $376.8 million and total debt of $1.3 billion. This translates into a debt-to-equity ratio of 3.4x, compared to 3.8x as of December 31, 1999. As of June 30, 2000, the Company's tangible net worth was $45.8 million, or $0.80 per outstanding share. The Company's Finance Division reported a 6.56% delinquency ratio (greater than 30 days past due) on its "at-risk" portfolio as of June 30, 2000, compared to 5.77% the prior quarter. The Company added an additional $3 million to its general loss allowance due to the growth of the Company's lease portfolio and the resulting increase in credit exposure. Also, the Company recorded additional bad-debt expense of approximately $6.5 million for an increase in the allowance for credit losses due to several bankruptcies and general credit deterioration of several customers of the Finance Division. Net charge-offs were 124 basis points of the average net investment in the "at-risk" portfolio for the three months ended June 30, 2000. As a result, forecasted losses for the full year have been increased to 120 basis points. UniCapital Corporation provides asset-based financing in strategically diverse sectors of the commercial equipment leasing industry. Based in Miami, UniCapital originates, acquires, sells and services equipment leases and arranges structured financing in the middle market, small ticket and computer and telecommunications segments of the commercial equipment leasing industry. For more information, visit the company's Web site at www.unicapitalcorp.com. Certain statements contained in this press release (including, without limitation, statements regarding the Company's plan to close unprofitable business units and re-deploy capital to the more profitable business units, forecasted losses in the Company's "at-risk" portfolio and the process and cost of divesting the assets of the Big Ticket Division) may be deemed to be forward-looking statements that involve risks and uncertainties. These statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and should be read in conjunction with the risk factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 1999, as filed with the Securities and Exchange Commission. Those risk factors include, among others, the absence of combined operating history for the Company and its subsidiaries, risks related to internal growth and operating strategies, risks related to the need for additional capital, interest rate risks, risks related to fluctuations in quarterly operating results, risks related to consummating securitization transactions and other risks. The Company may also be severely constrained in its access to liquidity, or may be able to obtain financing to operate its business only on unfavorable terms, if at all. The Company may not be able to negotiate extensions of the waivers granted by its lenders or modification of the financial covenants prior to the expirations of those waivers. These risks and other factors could cause actual results to differ materially from those expressed or implied in any forward-looking statements contained in this press release. In addition, results may vary as a result of factors set forth from time to time in the documents filed by the Company with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements to reflect actual results or changes in the factors affecting such forward-looking statements.
--30--jd/mi* CONTACT:
Investors Contact: Jody Campbell, 305/899-5002 jcampbell@unicapitalcorp.com or Contact: Thorp & Company, Miami Jodi Paradise or David Schull, 305/446-2700 jparadise@thorpco.com or dschull@thorpco.com
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