Leasing News

Comparatively, according to the FDIC, banking industry ROA edged up 1 basis point in 2001 to 1.19% (from 1.18%) and ROE rested at 13.57% (compared to 2000 ROE at 13.98%).* * **

"The survey results demonstrate that U.S. businesses continue to

capitalize on the benefits of leasing for their equipment needs," said

Michael Fleming, ELA president. "Equipment leasing is a strategic

financing option, which offers value beyond just acquiring equipment.

Leasing allows companies to maximize their purchasing power and secure

the equipment they need when they need it." (from the archives, 1981.editor).

ELA 2002 survey results highlights:

. Most new business volume was found in the large ticket market

segment, the more than $5 million transaction size category (35%). The

$250,000 to $5 million segment represents 26% of the business volume;

the $25,000 to $250,000 category shows 12% of the volume; and

transactions less than $25,000, 27%. (according to the ELA survey .)

. The average write-off is 0.8% of the average net lease

receivables balance. (not counting Comdisco, Finova, or other companies

noted at: http://www.leasingnews.org/list.htm )

. More than 97% of average receivables were current (less than 30

days). (Accordingly, a man with one foot in a bucket of ice water and the

other in steaming hot water, is on the average, comfortable.)

. The most widely used remarketing method to dispose of equipment

at the end of the initial lease term was equipment purchased by the original lessee at 54%. (46% was abandoned or returned?editor)

. 71% of applications submitted were approved, with 54% booked and

funded or brokered. (According to the ELA survey, editor).

. Overall 42% of survey respondents reported being engaged in

e-commerce in some form. (They had a website, an e-mail address,

or sold abandoned or returned equipment on eBay or bought a Miles

Davis album from Amazon.com. editor).

. Independent lessors represent approximately 36% of industry new

business volume. Bank lessors represent 38%, and captive leasing

companies represent 26% ( according to the survey, please see the following

declaration..)

ELA survey results were compiled from responses from 134 companies in

one of four market segments that were determined based on the typical

transaction size of a majority of their lease volume. The 2002 survey

participation rate was significantly higher than in recent years, and

the mix of respondents varied to a greater degree from past surveys. The

four market segments include: micro-ticket (transactions less than

$25,000), small ticket (transactions between $25,000 and $250,000),

middle market (transactions between $250,000 and $5 million) and large

ticket (transactions greater than $5 million). In addition, the data is

analyzed and presented by the category of respondent organization: bank,

independent or captive, and specific industry sector such as:

transportation, agriculture, computers, furniture, medical, and

telecommunications. (and by leasing companies still in business

as of the date of the survey. Editor).

"In October, ELA's Foundation will release its annual State of the

Industry Report, which will provide further insight into the overall

health of the equipment financing industry," added Fleming.

(I wonder if Mr. Fleming is driving a new car? Editor)

A copy of the SIA or requests for future surveys, please

contact Suzanne Jackson at 434-972-7278 or sj@FourLeafPR.com. For more

information on the leasing industry, visit ELA online at

http://www.elaonline.com or check out ELA's informational portal for

financial decision-makers at http://www.leaseassistant.org.

++++(Caution: This survey may be harmful to diabetics. editor)+++

*(sic) Used in written text to indicate that a surpringsing or paradoxical word, phrase, or fact is not a mistake and it to be read as it stands. American Heritage Dictiontionary of the English Language

****Source: FDIC:

http://www.federalreserve.gov/pubs/bulletin/2002/0602lead.pdf

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 http://www.leaseassistant.org.

Headquartered in Arlington, Va., ELA has more than 800 member companies

and a staff of 27 professionals.

( http://www.leasingnews.org/links_4.htm)

Equipment leasing is estimated to be a $244 billion industry in 2002.

(and according to Treasury Secretary Paul O’Neil, “the economy is in very good shape. “ Editor )

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

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

Area Recovery Shows New Signs of Stalling

By Neil Irwin

Washington Post Staff Writer

Labor Department statistics released yesterday indicate that the local economy may be backsliding instead of recovering from last year's recession.

Maryland and Virginia lost large numbers of jobs in July, according to employment numbers released by the department. Many analysts thought the Washington area would be among the fastest to emerge from last year's recession. But the new data suggest that not only has the recovery stalled, but the local economy is getting worse.

"This is bad news," said Anirban Basu, chief economist of Towson University's Regional Economic Studies Institute. "All the data are starting to point in the same direction, which is that the economy is actually losing momentum rather than picking it up."

Maryland shed 23,500 jobs in July and Virginia lost 10,400, according to yesterday's report, even as the unemployment rates in the states were relatively stable. The job losses were disproportionately concentrated in Washington's Maryland suburbs and Northern Virginia, according to an analysis of the data by MBG Information Services. The District, meanwhile, gained 700 jobs. Nationally, employment was virtually unchanged in July.

While economists caution that the monthly data can be volatile and misleading, they said the July results indicate that businesses in a wide range of industries are still not hiring in significant numbers, and government employment hasn't picked up the slack.

Indeed, in Maryland, preliminary numbers showed that governments shed more jobs than any other category of employer in July, although economists said that may not turn out to be true when the data are revised. And William F. Mezger, chief economist of the Virginia Employment Commission, said the state has gotten an economic boost from defense spending but the gains have been seen in the Hampton Roads area rather than the Washington suburbs.

"It's not that new jobs aren't being created," said Charles McMillion, chief economist at MBG Information Services. "It's just that more jobs are being lost than are being created."

It could add up to a tough situation for job seekers for many months to come.

"Businesses and individuals need to be realistic that this economy is not recession-proof," McMillion said. "It may be some time before we actually start adding net new jobs again."

The collapse of technology businesses such as WorldCom Inc., which has laid off thousands of workers here, accounts for many of the job losses, according to people who study the region, but the economic turmoil is increasingly broad.

Some of the steepest job losses in July were in transportation and public utilities, which includes workers in two of the hardest-hit industries in this recession -- telecommunications and airlines. The District, Maryland and Virginia shed a combined 3,800 jobs in July in that category.

Construction employment, which exploded during the building boom that ended in 2000, dropped by 2,500 in the three jurisdictions -- and economists warn that it could fall still more sharply if the strong market for housing cools appreciably.

And the service category, a broad employment classification that includes workers as varied as accountants and waiters, shed 5,700 jobs in the three jurisdictions in July.

Driving it all, economists say, is an extremely cautious business environment, in which a slumping stock market, a wave of corporate scandals and tepid demand have made firms reluctant to buy new equipment or hire new workers. "Corporate America remains in a cost-cutting mode," said Mark Vitner, a senior economist at Wachovia Corp. who tracks the Washington region. "In that type of environment, we're just not likely to see strong employment gains."

Companies have tried to increase profits in recent months by cutting expenses -- through layoffs and other actions -- rather than trying to increase revenue by hiring new employees, Vitner said. "The economy is just not strong enough to generate new opportunities for profits."

And that tight-fisted approach ripples through the economy. Cautious corporate spending is the reason for hard times at local companies as varied as U.S. Airways, business-software seller Manugistics Group Inc. and innumerable smaller firms. For example, Rand Construction Corp. in Arlington builds office interiors and has seen many would-be customers delay decisions on renovation projects.

"One quarter it's 'We're cautiously optimistic,' and the next quarter it's 'We're just cautious,' " said President Linda D. Rabbitt, describing the attitude of corporate clients. "People are making decisions at the last feasible moment."

One of the key areas of strength in the local economy has been in industries tied to consumers: People have largely kept buying new cars and houses. Economists generally argue that employment will pick up in earnest by the start of 2003 -- as long as consumers keep up their buying ways. Some worry they won't.

"Consumers are dealing with a jobless recovery, have big losses in their 401(k)s and have record levels of debt," McMillion said. "I think that consumers are likely to start cutting back in spending to save a little more and pay down debt. You can only buy so many new cars."

Even as the region loses jobs, the unemployment rate has been steady, according to yesterday's report, perhaps helping explain why those new cars keep getting bought. In the District, unemployment fell to 6 percent in July from 6.3 percent in June; in Maryland it was unchanged at 4.2 percent; and in Virginia it rose to 4 percent from 3.8 percent.

-------------------------------------------------------------------------------------------------------

Weaker Dollar Has Yet to Spur a Boom in Exports

By DANIEL ALTMAN

New York Times

The nation's trade deficit has narrowed slightly from record highs, the Commerce Department said yesterday, but the falling value of the dollar has yet to spur a boom in exports that could jump-start the sputtering economic recovery.

The trade deficit fell to $37.2 billion in June from $37.8 billion in May, thanks to a fourth consecutive month of rising exports, according to government data. Exports of capital goods — including machines, engines, semiconductors and telecommunications equipment — rose, but imports rose as well, led by consumer goods like pharmaceuticals, toys and sporting goods.

With the dollar having lost about 12 percent of its value against the euro and the yen since February, many politicians, most recently Treasury Secretary Paul H. O'Neill, have cheerily forecast a more drastic shift in trade favoring exports over imports. A weaker dollar makes it cheaper for foreign countries to import American goods and more costly for Americans to buy foreign-made goods.

Instead, "what we have so far is not really enough to bring about a robust recovery," said Frank Vargo, vice president for international economic affairs at the National Association of Manufacturers.

One reason lies in the vicissitudes of economic statistics: when adjusted for inflation and judged against the currencies of the United States' biggest trading partners, the dollar has fallen only about 7 percent. Judged against all trading partners, it has dropped only 3 percent.

The dollar settled at 118.69 yen in New York yesterday, up from 118.57 yen on Monday, while the euro traded at 97.89 cents, up from 97.62 cents. In February, the dollar traded around 134 yen, and the euro was trading below 88 cents.

Even for companies sending goods and services to or from the countries that use the euro and Japan, however, adjustments to the dollar's decline could be slow or slight.

"A lot of businesses have locked-in contracts," said Charles Engel, a professor of economics at the University of Wisconsin. Because prices and quantities of imports and exports are fixed in advance, it may take months or even years for companies to react to the dollar's downward drift.

Over short periods of a few months, import prices — the costs of bringing foreign goods to the United States border — reflect only one quarter of exchange-rate changes, according to recent research by Linda S. Goldberg, a vice president at the Federal Reserve Bank of New York, and Jose Manuel Campa of IESE Business School in Madrid. Moreover, Ms. Goldberg said in an interview, retailers might not pass changes in import prices on to consumers in their entirety.

Some companies may choose to vary prices but not quantities to maintain market share. "We will certainly not import less," said Bette Kahn, a spokeswoman for Crate and Barrel, the Chicago-based chain of home furnishing stores run by Euromarket Designs Inc. "We will have to negotiate harder with suppliers all over the world. Prices will go up, but in our 40 years of doing business in Europe and Asia, we have seen lots of fluctuations in the dollar's exchange rate, and we have always been able to work through it."

Yet small changes in quantities now, especially for imports, could herald big changes in the future.

Mr. Vargo posed the example of a company with a long-term contract setting the quantity of its imports. When the dollar loses value, he explained, "it takes more dollars to pay for your contract in foreign currency terms." Though the quantity of imports stays fixed, "the value of your imports looks like it has risen."

But once the contract expires, he said, "then the imports start to go down, and the trade balance at that point will start to improve rapidly."

Mr. Vargo estimated that the adjustment process could take 18 to 24 months, though it might be shortened by the increasingly electronic nature of global trade. "If the dollar continues to depreciate," he said, "then we will see a huge drop in the trade deficit."

Responses to exchange-rate changes have also diminished because of hedging behavior. Trading derivatives to minimize exchange-rate risk has insulated many multinational companies based in the United States from fluctuations in the dollar.

"Certainly, the Fortune 500 are aware of these strategies," said Perry Parker, a managing director at Deutsche Bank who heads foreign exchange trading for North America. "They might make a decision not to hedge, but I think that's rare."

Having assets spread across the globe also acts as an automatic hedge against exchange-rate changes. Archer Daniels Midland, the agricultural exporter, holds roughly 40 percent of its assets overseas, estimated Dwight E. Grimestat, the company's vice president for investor relations. All of those assets, Mr. Grimestat said, "are carried in local currencies."

"If it's carried in local currency," he said, "and the dollar is weakened, then our assets just went up on the balance sheet."

In addition to changes in the trade balance, economists usually look for currency declines to be associated with upward pressure on prices and a shrinking flow of overseas capital.

The economy's sluggishness seems to have quelled the first danger, at least. "There's no evidence that investors see an inflationary threat," said Kermit L. Schoenholtz, chief economist of Salomon Smith Barney. In that respect, he added, "the retreat of the dollar is a gradual and benign one."

Yet foreign investment in the United States does appear to have suffered. Subtracting capital sent abroad from the United States, the net inflow into the country fell 83 percent, or $16.4 billion, in the first quarter compared with figures in the period a year earlier. Switzerland alone invested $11.1 billion in the United States in the first quarter of 2001; in the first quarter of this year, it withdrew $154 million worth of capital.

Mr. Schoenholtz said he viewed the dollar's decline as a signal of these retreating capital flows. The business climate in the United States, crippled by accounting scandals and faltering profits, makes investment in American securities less attractive. With less demand for American securities comes less demand for dollars with which to buy them, and the currency loses value.

-----------------------------------------------------------------------------------------------

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

Precom “Rescinds” Acquisition of Saddleback Financial's Assets

(Leasing News reported Saddleback would be closing last Thursday, with reports

from readers that they new people fired, and also saw furniture being moved. It

was after our two reports, that the company made it official. Here is their

press release where they “rescind:”.

Precom Technology, announced that it will complete a one for two reverse split of its stock, effective at the close of business on August 26, 2002. All shareholders of record as of the close of business on August 26 will be notified, in accordance with Florida corporate law, to surrender their existing certificates for a new certificate, representing one-half of the shares originally held. As a result of the reverse split, Precom will have 23,402,065 common shares issued and outstanding.

The proposed reverse split was first announced on March 22, 2002 in the company's filing with the SEC on Form 8-K. As required by Florida law, written notice of the reverse split, which was accomplished by action of the Board of Directors, will be sent to all shareholders of record on August 26, 2002, within 30 days of the record date.

Robert Hipple, CEO of Precom, stated, "This reverse split is being completed at this time before the company embarks on anticipated acquisitions and growth, and while management, directors and employees, and related parties control more than 92 percent of the stock, so that the effect of the reverse is felt primarily by the insiders. It was also necessary because more than 48 million shares were issued and outstanding, out of 50 million common shares authorized, which was too many total shares outstanding. This left no room for issuing shares in connection with future acquisitions".

Precom also announced the acquisition of the assets of Saddleback Financial Corp. announced on June 3, 2002, had been rescinded. According to Drew Roberts, CFO of Precom, "after reviewing the financial operations of Saddleback, it was determined that the business could not be operated profitably because of past problems associated with the selling corporation, and the acquisition should not be completed. Under the terms of the acquisition transaction, 2 million shares of Precom stock were to be transferred by CGI International Holdings, Precom's then majority shareholder, in exchange for all of the tangible assets of Saddleback, good will, the Saddleback name and all work in process. In addition, Precom agreed to issue convertible preferred shares for the balance of the agreed acquisition price, and to enter into a consulting agreement with the owner of Saddleback for an additional 500,000 shares. CGI has not transferred any shares to Saddleback, and Precom has not issued the preferred shares or any shares in connection with the consulting agreement, and a number of the conditions to a final closing were not completed.

According to Roberts, "The proposed acquisition of the Saddleback business represented what we believed was an opportunity to acquire a going business in a growing market segment. Unfortunately, our due diligence has disclosed that the Saddleback business was badly managed and under-funded, and could not be saved. Therefore, we determined not to complete the acquisition. We are still positive about the equipment lease finance market and have already been in discussions with other potential acquisition targets in this market segment. We will also continue our own leasing services to our existing client base while we locate suitable acquisition partners."

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

CIT's Technology Rentals & Services Unit Awarded Federal Supply Contract by U.S. General Services Administration

LIVINGSTON, N.J., -- Technology Rentals & Services (TRS), a leader in the rental, lease, and sale of high-quality electronic test, measurement, and computer products, and a unit of CIT Group Inc. (NYSE: CIT - News ), announced that the U.S. General Services Administration's (GSA) Federal Supply Service has awarded TRS a contract to lease test and measurement equipment to government agencies.

"This contract enables TRS to extend our highly competitive pricing, flexible financing terms, and consistent, accurate fulfillment practices to the federal government," said Susan Boutwell, executive vice president of Sales/ Operations at TRS. "We look forward to a long and productive relationship with the GSA and the many government agencies that they serve."

In addition to electronic rental and leasing services, TRS offers several related programs such as asset management and the QuickShip Disaster Recovery Program. As one of the leading equipment rental and leasing companies in North America, TRS' extensive inventory and quick delivery ensure companies will have the equipment they need when they need it.

Testing and measurement equipments covered by the GSA contract include oscilloscopes, logic analyzers, generators, meters, recorders and more from the leading manufacturers.

About Technology Rentals & Services

Technology Rentals & Services (TRS) is a leader in the rental, lease, and sale of high-quality electronic test, measurement, and computer products. From its centrally located, ISO-9002 registered facility at Dallas Fort Worth Airport, TRS ships equipment worldwide. Coupled with its traditional programs such as asset management and disaster recovery, TRS provides a complete set of services matching its clients diverse business needs. For more information, call 1-800-874-7123, or visit us at http://www.TRSonesource.com.

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

Jeff Taylor Speaking at Five Leasing Association Conferences

ExecutiveCaliber - Global Lease Training Company

In addition, I have completed the first draft of my new

book, Start With 100 (working title) which deals with

selling leases in a tough economy. Expect the book to

be published in Spring/Summer 2003.

Thursday, Aug 29B

Event: eLNA Annual Conference

City: Atlanta<

Topic: How To Maximize Sales

Tuesday, Sep 10

Event: ELA Lease Accountants Conference

City: Washington, D.C.

Topic: Trends in Management, Motivation and

Leadership<

Wednesday, Sep 11

Event: ELA Lease Accountants Conference

City: Washington, D.C.

Topic: Advanced Customer Service Training

Monday, Sep 23

Event: EAEL Expo 2002

City: East Rutherford, NJ

Topic: How to Lead Sales Professionals

Saturday, Oct 5

Event: UAEL Annual Conference

City: San Diego, CA

Topic: How to Maximize Sales

Monday, Oct 14

Event: ELA Annual Conference

City: San Francisco, CA

Topic: How to Lead Sales Professionals and Win More

Business

Jeff Taylor’s complete travel schedule

http://rs6.net/tn.jsp?t=5ds5msn6.6khjkde6.4znoarn6&p=http%3A%2F%2Fexecutivecaliber.ws%2Fsys-tmpl%2Ftravelschedule

*** More articles on Equipment Leasing ***

He also is expanding the amount of free training material

at his website:http://executivecaliber.ws

Jeff has completed the first draft of his new

book, “Start With 100”, a working title, which deals with

selling leases in a tough economy.

He says he hopes to have the book on the market and to

be published in Spring/Summer 2003.

United Association Of Equipment Leasing—September 10th

Dallas Region

Take Part in Planning Local Activities for 2003

Your Input Counts!

Tuesday, September 10th, 2002

Logan's Roadhouse

2513 South Stemmons Freeway

Lewisville, TX

972-459-6642

(NW Corner of 121 Bypass & 1-35 by Vista Ridge Mall)

Time: 11:30 AM to 1:30 PM

Cost: Non-Hosted Luncheon

Questions? Contact James Lahti, CLP 972-221-7335

Bruce Lurie 800-255-0552

Bill Grohe 510-444-9235

Registration Form

NAME: _____________________________________________________

TITLE: _____________________________________________________

COMPANY: _________________________________________________

PHONE: ____________________________________________________

ADDRESS: __________________________________________________

CITY, STATE ZIP: ___________________________________________

Return to: UAEL * 520 Third Street, Suite 201 * Oakland, CA 94607 * Tel: 510-444-9235 * Fax: 510-444-1346

James R. Lahti, CLP

Affiliated Corporate Services, Inc.

1550 Waters Ridge Road, Lewisville, TX 75057

972-221-7335, Fax: 972-221-7336

Austin Area Office: 10804 Ridgeway, Suite 100, Jonestown, TX 78645

512-267-5445, Fax: 512-267-5443

-----------------------------------------------------------

Please send to a colleague as we are trying to build our readership. You get the “truth” here, “insider news,” and less press releases than elsewhere.

Broker Protection----New Series

The Manifest Insurance Policy

August 1987

In today's competitive marketplace it seems as though everyone is trying to get more from their current base of customers. Whether it is your lessee base or your vendor base, we would all agree that these are the lifelines of any third party leasing company. At The Manifest Group, we understand the importance of your customer base and we would like to insure the protection of these lists with the following policy:

Your lessee and vendor lists will remain confidential to The Manifest Group. At no time will this information be shared with anyone outside The Manifest Group. This policy holds true even if your company is no longer doing business with The Manifest Group.

At The Manifest Group, we take this "Insurance Policy" very seriously. We understand that the cost of a "claim against our integrity far outweighs any revenues that we might receive from a vendor or lessee that calls us directly.

This policy was initiated when The Manifest Group opened its doors back in 1987. Our industry has experienced tremendous change over the years. One thing that has not changed is the confidentiality of your database. This policy is taken just as seriously today as it was when it was introduced in 1987.

Troy Molitor, General Manager

The Manifest Group

April 2000

---

“We protect brokers who are still active with us, but to h**l with the rest.

Don’t print my name, or else.”

“With this economy, we are seeing more brokers trying to put through

deals they would not in past, or add points because the lease applications are so far

and in between, that loses they deal because it is too high, “ he explained.

“ Some are desperate.”

“We just told one broker not to send us any more business. His operation submitted

thirty-five deals, forty-five percent of them were approved, but only one was funded.

Terrible. Some were top credits, but he wanted to put seven points on some good

medical deals and lost them to others.

“While our application rate has been high, the approval ratio is much lower,

and the signed ratio is even worse. It’s the state of the economy..

“We stand behind our broker business, but the quality is down, and anyone

else telling you different, is lying. “

( Name With Held---This was also edited to eliminate any

identity to the sender who did not want to be named for

obvious reasons. )

----------------------------------------------------------------------------------

Venture capital dried up further in 2nd quarter/Detroit

By Detroit Cranes News Andrew Dietderich

Venture-capital investments in Michigan companies dropped $19.1 million or 43.6 percent in the second quarter, according to the most recent PricewaterhouseCoopers/Venture Economics/National Venture Capital Association Money Tree survey.

Venture capitalists invested $24.7 million in the second quarter, which ended June 30. That compares with $43.8 million in the same period last year and $31.1 million in the first quarter, which ended March 30.

“The decline in overall venture capital invested in Michigan companies is still a reflection of the uncertain economic climate,” said Jackie Goforth, director of PricewaterhouseCoopers’ Detroit high-technology practice.

Michigan companies that received funding during the second quarter were:

Asterand Inc., Detroit, $5.12 million.

QuatRx Pharmaceutical Co., Ann Arbor, $2.1 million.

Ardesta L.L.C., Ann Arbor, $400,000.

HandyLab Inc., Ann Arbor, $5.5 million.

Sensicore, Ann Arbor, $850,000.

Crystallize Inc., Ann Arbor, $3 million.

Nexcerpt Inc., Kalamazoo, $200,000.

Interlink Networks, Ann Arbor, $7.5 million.

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

Affinity Vehicle Leasing contracted with NDSI for its LeaseComplete©, the vehicle and equipment leasing software

Hampton, VA - Recently, Affinity Vehicle Leasing selected LeaseComplete to process their vehicle leases plus those of some twenty plus Credit Unions, nation wide. Affinity, based in Warren, NJ, is a subsidiary of Affinity Federal Credit Union, Basking Ridge, NJ. LeaseComplete was developed and is supported by Nnovative Data Systems, Inc., Hampton, VA. More information on this system and the other products may be found on NDSI's website at www.ndsisoftware.com.

NDSI's LeaseComplete provides banks, credit unions and leasing companies a core leasing accounting system for direct and indirect vehicle and equipment leasing. This software was developed for FirstMerit Bank, Akron, OH and Frost National Bank, San Antonio, TX. Frost is in production, having converted from software from First Security Bank, Salt Lake City, UT. FirstMerit is in the final phases of User Acceptance Testing of interfaces to other core systems and on track for a fall conversion from LeaseTek to LeaseComplete. LeaseComplete is a comprehensive, cost effective lease accounting and asset management software solution.

A true 32-bit Windows-based product, LeaseComplete boasts a robust feature set capable of supporting both equipment and vehicle leasing. Through the use of an intuitive graphical interface, customizable screens, and intelligent wizards, the System is able to marry complex accounting features and ease of use in a way never before realized in the software industry. LeaseComplete will increase user efficiency, reduce data entry and related errors, promote relationship management, and improve user's bottom line.

Here is a direct quote of one of our customers, Harry Kaplun, President, Frost Leasing Corporation, part of Cullen/Frost Bankers, Inc., and parent of The Frost National Bank, San Antonio, Texas:

LeaseComplete has proven to be a solid and reliable product to handle all aspects of managing and servicing our growing equipment lease portfolio. Although relatively new, it has weathered several challenges including a very aggressive conversion schedule. The support and continued additions to the system are provided by a company, NDSI, who insures quality service by proven professionals in credit software development and industry knowledge. Based on my experience their support has been second to none in both turn around of issues and attention to our expanding needs. LeaseComplete will compare favorably with any product, especially when you consider cost, features, and superior support.

For additional information, please contact: John Strain, Senior Vice President, NDSI, by telephone at 734-676-7566 or by email at jwstrain@ndsisoftware.com .

John W Strain III

Senior Vice President

Nnovative Data Systems, Inc.

Hampton, VA

Website: www.ndsisoftware.com

jwstrain@ndsisoftware.com

734-552-0260.

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

Comdisco Announces Fiscal Third Quarter and Nine-Month Financial Results

ROSEMONT, Ill.----Comdisco Holding Company, Inc. today reported operating results for its fiscal third quarter and nine months ended June 30, 2002. (The per share results stated in this press release are based on common stock outstanding as of June 30, 2002. Such common stock has been cancelled in connection with the company's emergence from Chapter 11. Therefore, per share results are for historic comparative purposes only.)

Operating Results: For the fiscal third quarter, Comdisco reported a loss from continuing operations of $ 94 million, or $.62 per common share, as compared with a loss from continuing operations of $168 million, or $1.10 per common share, for the year earlier period. Total revenue for the fiscal third quarter was $326 million, a decrease of 44 percent from the $585 million for the prior year quarter. The decrease in total revenue in the current year compared to the year earlier period is due to lower revenues across all of its businesses as Comdisco continues the orderly sale or runoff of all its existing asset portfolios.

For the third quarter, Comdisco reported a loss from discontinued operations of $3 million, or $.02 per common share, compared to earnings from discontinued operations of $4 million, or $.02 per share, for the prior year period. During the current quarter, the telecommunications industry continued to decline and, as a result, the company recorded a charge of $3 million, or $.02 per common share, to write down Prism's assets to current fair market value.

Overall for the fiscal third quarter, the company had a net loss of $97 million, or $.64 per common share diluted, as compared with a net loss of $164 million, or $1.08 per common share diluted, for the year earlier period.

For the nine months ended June 30, 2002, Comdisco reported a loss from continuing operations of $404 million, or $2.69 per common share, as compared to a loss of $94 million, or $.62 per common share, for the year earlier period. This loss is primarily attributable to the loss on the sale of the majority of the company's electronic and lab and scientific leased assets.

Net earnings from discontinued operations for the nine months ended June 30, 2002 were $201 million, or $1.34 per common share, compared to a net loss of $38 million, or $.25 per common share, for the year earlier period. Approximately $199 million, or $1.32 per common share, of the net earnings from discontinued operations for the current period relates to the gain on the sale of the company's Availability Solutions business to SunGard (NYSE:SDS) on November 15, 2001. Also included in the current year discontinued operations is $5 million of net earnings, or $.04 per common share, from Availability Solutions prior to the sale, as well as the Prism charge discussed above.

Overall, the company had a net loss of $203 million, or $1.35 per common share diluted, for the nine months ended June 30, 2002, compared to a net loss of $130 million, or $.86 per common share, for the year earlier period. Total revenue for the nine months ended June 30, 2002 was $1.3 billion versus $2.2 billion for the prior year period.

Plan of Reorganization Becomes Effective: On August 12, 2002, Comdisco's First Amended Joint Plan of Reorganization became effective and the company emerged from Chapter 11. The newly emerged company, called Comdisco Holding Company, Inc., is the successor to Comdisco, Inc.

The Plan provides for an up to three-year orderly runoff or sale of the company's remaining assets. The distribution of net proceeds realized from such runoff or sale and the cash accumulated to date is anticipated to result in an approximately 90 percent recovery to creditors. Comdisco expects to make an initial distribution under the Plan of Reorganization prior to the close of its current fiscal year, which ends on September 30, 2002.

Comdisco's old common stock, traded on the NASDAQ:OTC under the symbol CDSOQ, was cancelled on August 12, 2002, the Effective Date of the Plan of Reorganization. Prior to making the initial distribution, the company will issue new common stock and expects that the new common stock will trade on the NASDAQ:OTC under the symbol CDCOV.

About Comdisco

The purpose of reorganized Comdisco is to sell, collect or otherwise reduce to money the remaining assets of the corporation in an orderly manner. Rosemont, IL-based Comdisco (www.comdisco.com) previously provided equipment leasing and technology services to help its customers maximize technology functionality and predictability, while freeing them from the complexity of managing their technology. Through its Ventures division, Comdisco provided equipment leasing and other financing and services to venture capital backed companies.

CONTACT:

Comdisco, Inc.

Mary Moster, 847/518-5147 marymoster@comdisco.com

Kekst and Company

Fred Spar or Jeremy Fielding, 212/521-4800

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

Starbucks: Your Wireless Computer Showcase?

By Eric Griffith Internetnews.com

Seattle, WA-based Starbucks Coffee, the mega-coffee chain, will be

announcing a new deal with Hewlett-Packard and T-Mobile today.

This pact, building on relationships Starbucks already had in place, will likely expand not only T-Mobile's wireless foot print, but could also turn Starbucks into the largest cyber cafe chain ever, as HP/Compaq products will be provided for use by coffee drinking customers. Whether the provided HP equipment will take the form of kiosks, rented products, or something else should be announced during the press conference tomorrow in San Francisco.

The question is, where will the revenue from this venture come from?

"It will be the "after the morning rush" people providing the revenue," says David Chamberlain, Research Director for Wireless Internet Services and Networks at Probe Research. "It could help Starbucks expand and pull in revenue from the people who will tinker on a laptop... and want a cappuccino."

Chamberlain is skeptical, however, that any Wi-Fi hotspot network in a coffee chain can sustain itself, simply because of the numbers. "Consider all the laptops [available] and all those going to Starbucks with laptops, and that have an 802.11 adapter, and that are willing to pay the price [for wireless access]. There's a finite number; there's a small market you're trying to extract numbers from."

What benefit will there be for HP, now the top computer seller? There is some speculation that the Starbucks locations could be used by as a display case for selling its wares.

Sarah Kim, Analyst at the Yankee Group, cautions the partners to move slowly. "Providing products is a dangerous move -- walk before we run here," she says. "They need to get the WLAN started again, get the branding and awareness of the service [in place], and target the users already familiar with it."

How It Began

The genesis of this latest pact began with separate deals Starbucks already had in place with Compaq, which is now part of HP, and MobileStar, which went under and had its assets acquired by VoiceStream Wireless.

In May 2001, Compaq announced it would provide Starbucks locations with iPaq handhelds running the Pocket PC operating system for use by customers in 4,100 stores over five years. The expectation was for users to get not just Web access but also a platform for streaming audio and video on-demand. The deal was rolled out in at least Dallas, San Francisco, New York and, or course, Seattle.

Earlier in 2001, MobileStar Network of Richardson, TX, began providing a wireless infrastructure for Starbucks, frist using frequency hopping (FHSS) technology, and later moving to 802.11-based direct-sequence spread spectrum (DSSS).

In late 2001 VoiceStream Wireless, itself a subsidiary of German phone company Deutsche Telekom, made plans to acquire the bankrupt MobileStar and its network. In March of this year the company announced a name change to T-Mobile, unifying its cellular and hotspot brands under one logo. The plan is for WLAN services to be a compliment to the existing nationwide GSM/GPRS service.

T-Mobile currently has hotspots in airports and even some Starbucks locations in San Francisco and New York. T-Mobile sells access in everything from per-minute plans to local subscriptions to national subscriptions.

No Taste for Coffee

As VoiceStream was announcing its MobileStar take over, it was already at work on some Starbucks equipment, specifically at the location in Pioneer Courthouse Square in Portland, OR. The park, the sight of the city's first real schoolhouse and sometimes called Portland's living room, is used daily by traveling commuters, tourists, shoppers, students -- and now by competing wireless networks.

The Portland Oregonian reports that the Personal Telco Project, the grassroots effort to provide free 802.11-based Internet access in a "cloud" around downtown Portland, is at odds with the local Starbucks in the square.

There are about 70 donated access points for the project in the area, one of which is in an office over Pioneer Courthouse Square. New users coming for free access to the park, however, could find themselves connecting to the Starbucks/T- Mobile connection. What's more, since both providers are using 802.11b technology -- they're running in the same 2.4GHz band -- performance is already taking a hit.

Starbucks and T-Mobile reportedly said they weren't aware of the Personal Telco presence there, but have other wise made little statement. With rollout to thousands of locations to come, the coffee giant should be expecting some similar problems in other locations close to neighborhood area networks.

Don't Say Cyber

Kim says, to make sure Starbucks doesn't be come too wrapped up in the technology involved in this pact, the company should "stay away from the world 'cyber cafe'." This echoes the words of Starbucks chairman Howard Schultz from the initial Compaq deal in 2001. He denied that Starbucks would become a cyber cafe at all, saying "It will be the antithesis of that."

Kim adds that Starbucks should stay focused on what it does best. "Keep the core business of Starbucks -- coffee-- and maintain those margins," she says. "This will be a passive role out. [Wireless access] should not disturb the Starbucks experience."

After all, unlike the nascent market for wireless hotspots, coffee is a proven money maker.

Eric Griffith is the managing editor of 802.11 Planet..

News Briefs---

Negotiations Are Under Way for Clinton Talk Show on CBS

By BILL CARTER and DAVID D. KIRKPATRICK New York Times

Some associates of Bill Clinton and executives from CBS are involved in negotiations to make the former president the host of a daily afternoon talk show.

The seriousness of the talks is a matter of dispute among the people surrounding Mr. Clinton. West Coast friends of his are advancing the negotiations and believe that a deal can be made. But his advisers on the East Coast said Mr. Clinton was unlikely to commit himself to a daily talk show. ( May be Republicans worse nightmare---Democrats, too.)

Barr Loses to Fellow GOP Linder

ATLANTA (AP) - Four-term Republican Rep. Bob Barr ( news, bio, voting record) of Georgia was bounced out of Congress by Rep. John Linder ( news, bio, voting record) on Tuesday after the two veteran conservatives were thrown together in the primary by Democrat-led redistricting.

With 65 percent of precincts reporting, Linder had 38,328 votes, or 70 percent; Barr had 16,144 votes, or 30 percent.

Barr, the fiery maverick who led the House impeachment of President Clinton ( news - web sites), becomes the seventh House incumbent ousted in a primary this year. Linder is expected to win a sixth term this fall.

Another Georgia firebrand, Democratic Rep. Cynthia McKinney ( news, bio, voting record), was locked in a primary fight against Denise Majette, a Yale-educated former judge. With 18 percent of precincts reporting, Majette had 14,419 votes, or 80 percent, and McKinney had 3,594 votes, or 20 percent.

---

MD Unveils World's Highest-Performing Processor for Desktop PCs On Third Anniversary of AMD Athlon Processor

SUNNYVALE, Calif.--

--Delivering performance over clockspeed, the new AMD Athlon(TM) XP processors 2600+ and 2400+ offer PC customers exceptional choices--

AMD (NYSE: AMD) today celebrates the third anniversary of the award-winning AMD Athlon(TM) processor by announcing the world's highest-performing processor for desktop PCs, the AMD Athlon XP processor 2600+. AMD also introduced the AMD Athlon XP processor 2400+.

---

Lawmakers investigating Martha Stewart stock sale aren't ruling out subpoena

WASHINGTON (AP) Lawmakers leading an investigation of Martha Stewart's sale of ImClone stock aren't ruling out issuing a subpoena to force her to appear on Capitol Hill.

---

Former Enron executive to plead guilty to money laundering, conspiracy

WASHINGTON (AP) A top lieutenant to Enron Corp.'s former chief financial officer will plead guilty to criminal charges, the first admission of guilt by an executive of the fallen energy-trading company, sources close to the investigation said Tuesday.

----

Source: At least 3 Tyco board members ready to step down

CONCORD, N.H. (AP) At least three members of Tyco International Ltd.'s 11- member board of directors are ready to step down to help restore the company's credibility with investors, a source said Tuesday.

---

EBay-PayPal deal clears Justice Department hurdle

SAN JOSE, Calif. (AP) A deadline for the Justice Department to request more information on the proposed acquisition of payment processor PayPal by online auctioneer eBay has passed with no queries from regulators.

---

Dell to sell no-name computers to dealers

AUSTIN (AP) Dell Computer Corp., which has been successful selling its personal computers directly to customers, plans to sell generic computers to dealers who in turn sell the PCs to small businesses, the company said Tuesday.

---

Fleet names new president, chief administrator

BOSTON (AP) FleetBoston Financial has appointed Eugene M. McQuade as president and chief operating officer and H. Jay Sarles as chief administrative officer.

Cal prof says coaches should kick themselves

By Corey Lyons

CONTRA COSTA TIMES

BERKELEY, Calif. - At a campus known for its esteemed professors and intellectual jousting matches,

David Romer poses a question sure to fetch a double-take at any faculty cocktail party.

It's fourth down: Go for it or kick?

The economics professor recently finished a three-year study of the NFL in which he analyzed thousands of plays that agonize coaches.

His paper, "It's Fourth Down and What Does the Bellman Equation Say?," offers a cerebral-minded spin to a game often dismissed as simplicity squeezed into pads and helmets.

In a swift kick to conventional football wisdom, Romer concludes NFL teams could benefit by ditching the conservative nature of fourth-down plays.

"The results are striking," Romer, 44, said. "The analysis implies that teams should be more aggressive ... In practice, however, teams almost always kick on fourth down early in the game."

Romer reviewed nearly 20,000 first-quarter plays in 732 regular-season games between 1998-2000.

He narrowed his interest to the first quarter, presumably when neither team had a significant advantage over the other that could influence play-calling.

He used an economic concept called the "Bellman equation," which helped explain the consequences of trying for a first down, field goal or touchdown.

In the end, Romer was able to calculate the average value in points for decisions made at several specific positions on the field.

For instance, a team inside its own 50-yard line has a better chance at going for it on fourth down and 4 yards or less.

But in 1,100 fourth-downs scenarios that Romer felt teams should have gone for it, coaches opted to kick the ball away 90 percent of the time.

He's not quite sure why coaches are so conservative in calling their plays.

"I don't know. Maybe they hadn't thought of it," he said. "When you hire a football coach, maybe analyzing plays is not as important as being able to motivate players or lead a team."

Romer, who joined the economics department in 1988, has been a football fan since he grew up in Massachusetts. The idea for the project kicked off a few years ago while the professor sat in his Honda Accord, listening to a Raiders game over the radio.

"It was fourth-and-goal, and they kicked a field goal," he said. "Whoever called the game said it was the right thing to do, to take the sure points.

"So I started thinking. It wasn't obvious to me that it was the right thing to do."

In any case, he wants to see his paper published in a major economic journal. But he's not holding his breath NFL coaches will review his report and start re-thinking their decisions on the field.

"I tend to do well in persuading reporters," Romer said. "But when they call coaches, they generally dismiss it."

----------------------------------------------------------------------------
E-Mail Removal Form: \http://65.209.205.32/LeasingNews/removalform.asp

+++++++++++++++++++++++++++++++++++++++++++++++++

Subscribe, Unsubscribe, Make Changes

E-Mail. You may subscribe by using the contact form at LeasingNews.org or by contacting me directly at kitmenkin@leasingnews.org.

If you change your e-mail address, please don’t forget to notify me. If mail

comes back more than a few times, we will delete the mailing address ( usually

every five days .)

If you would like to be deleted, the list is kept under your first and last name or how you asked to be listed ( not your URL ). Either use the contact form or

e-mail directly or go to: http://65.209.205.32/LeasingNews/removalform.asp . Changes are made daily, including additions, corrections, and removal when the right information is provided.

There is a trend for Spam programs for workstations and networks. In addition, some companies block their employees from receiving news from us. If you have stopped receiving Leasing News, it may be due to being blacklisted.

You can correct this by using another e-mail address. If a “Spam” issue, on your workstation, you will need to “delete us” from your filter. Most programs allow

you to make exceptions to what the program considers “Spam.” If done by your carrier, you will need to contact your carrier or the “relay carrier” to allow our e-mail. It is our experience, once named, we cannot contact you , meaning we can’t tell you that our mail is being rejected. Your carrier will make changes when contacted by the subscriber, not by us. Contact www.orisoft.com.

If we are being block, go to www.leasingnews.org for the on line edition. Each edition is normally posted to the website ( www.leasingnews.org ) at 12pm, PDT.

The e-mail is sent out very early in the morning.

++++++++++++++++ ++++++++++++++++++++++++++++++++++

Policy Statement

Policy Statement---Nothing is sent out that is not “fair.” Always unbiased reporting. Fairness always. If it is questionable, we will ask the writer’s permission to quote them. We will print information without attribution, but feel as long as we do not name the person who sent it, we can use the information.

Any information we think is suspicious, we try to have if substantiated first by at least two reliable people. We will not purposely send out “negative” news.

We prefer “positive” news. We have no “axe” to grind or are not paid or seek or accept any remuneration for product or promotion. We do not Spam anyone. To be added to the mailing list, you must request it. We do not send anything

about our company or personal e-mail or jokes to the leasing news list. We

do not share our mailing list with anyone. We try not to send more than one

report a day, if at that, unless an “alert.”

We follow Internet Netiquette at all times. Our sole purpose is to provide communication to improve our profession. We reserve the right to deny sending the newsletter when requested. We reserve the right to edit or delete an opinion that is not in good taste or is outright derogatory.

Leasingnews.org

[Back to Archives]

www.leasingnews.org
Leasing News, Inc. (Pending)
346 Mathew Street,
Santa Clara,
California 95050
E-Fax: (781)459-4789
kitmenkin@leasingnews.org
Policy Statement