Kit Menkin’s Leasing News

                   www.leasingnews.org  Friday, June 14, 2002

Accurate, fair and unbiased news for the equipment Leasing Industry

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           Headlines----

                       Tyco—Tyco---Tyco

        Sean Wheeler/1Lease/Wet Pet/Deep Blue Marine

  Funding Tree, Riverside, California---Arrest Charge

          Centerpoint Financial Services Latest Fax

             (Connie Brazier thanks readers for their support)

               American Express Medical Division

                  E-Commerce - Color It Green

.                    Hard times sting Arizona's bee industry

Sunrise Int. Leasing Board Approves New Growth Strategy

  Direct Alliance Simplifies Delivery of Services Thru Marketplace Suites

    Key Equip. Names Paul Frechette Senior VP Global Biz Development

       Comdisco Reaches Agreement with Creditors' and Equity

         Two More Tyco Board Members Had Hidden Dealings

###  Denotes Press Release

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     Tyco! Tyco! Tyco!

     Heron’s cry.

     Stabs the darkness.

            Al Gamper

Many Believe $5 Billion Floor Tyco Set for CIT’s Valuation Won't Be Achieved

By Daniel Golden and William M. Bulkeley, The Wall Street Journal

Tyco International Ltd.'s initial public offering of its CIT Group finance unit attracted
preliminary interest from some investors -- but also predictions that Tyco won't get
the $5 billion it has set as a minimum target valuation.

Tyco shares rose 36% on Thursday on news that the Securities and Exchange
Commission had cleared the offering late Wednesday, as several analysts upgraded
their ratings on Tyco's stock and worries were reduced that the company will face
liquidity problems.

Nevertheless, analysts and investors said the valuation may fall below the $5 billion,
or $25-a-share, floor. Tyco is counting on the IPO to help pay off about $27 billion
in debt, of which $12 billion comes due next year. Tyco set $29 a share, or $5.8 billion,
as the high end of the range, but the actual prices of IPOs frequently vary from their
target prices.

Rob Plaza, an analyst at Morningstar in Chicago, said that "it's unlikely Tyco will get that
$5 billion number." But he said the IPO is likely to be successful: "It's a viable business
trading at a distressed price. It's a good IPO to get in on."

In another move Thursday, Tyco announced $125 million of cost-cutting measures
in its corporate operations, including layoffs of 115 workers. Among the steps planned:
dismissing executives' bodyguards and selling its fleet of five airplanes and one helicopter.
The company and state and federal authorities have been investigating many of the benefits
lavished on management prior to the resignation last week of L. Dennis Kozlowski as chief executive.

As of 4 p.m. in New York Stock Exchange composite trading Thursday, Tyco was up
$3.65 to $13.80 on heavy volume of about 61 million shares.

Martin Whitman, portfolio manager of Third Avenue Value Fund, which invests in distressed
stocks and bonds, said he is interested in buying between $100 million and $125 million of CIT
shares if the price drops below $25. Mr. Whitman said he purchased $36 million of Tyco notes,
or debt securities, Wednesday, calling them an "unbelievable opportunity" at a distressed price
that could bring him a yield of 15%.

Mr. Whitman says his fund doesn't hold Tyco shares but was an investor in CIT before Tyco
purchased the finance company last year. Mr. Whitman said he believes the CIT unit operated
separately and is unlikely to be tarnished by the SEC and New York district attorney investigations into Tyco.

James McKelvey, senior analyst at John Hancock Advisors, a mutual-fund firm, said that
"we owned CIT" before Tyco acquired it and did well. He said he and other former CIT holders
are pleased that the old CIT management team will continue to run it. "They did a good job,"
he said. He said he "absolutely" will consider investing in the IPO, although he thinks a realistic
valuation is no more than $5 billion.

But David Sowerby, a portfolio manager at Loomis Sayles & Co. in Detroit, which owns Tyco shares,
isn't planning to participate in the CIT offering. "We're content with our high-quality financial" stocks,
he added.

Kevin McCloskey, a portfolio manager at Federated Investors Inc. in Pittsburgh, a Tyco investor,
said Federated would be interested in buying CIT shares, although he wouldn't say at what price.
He added that the SEC clearance also enhances Tyco's negotiating leverage with potential corporate
bidders for CIT.

Earlier this year, Tyco tried to sell CIT to a corporate buyer, and analysts predicted a price of $7.7
billion to $12 billion. But the expected big offers never appeared. Recently Lehman Brothers Holdings
Inc., one of its lead underwriters, privately offered to buy CIT for $5 billion but withdrew when the
offer was publicized, according to people familiar with the situation.

Tyco restated earnings Wednesday to take a $4.5 billion charge for a write-down of CIT's value,
and the company said it might take an additional hit of $1 billion to $1.5 billion to earnings,
depending on the final share price it gets in the offering.

Now that the corporate buyers see that CIT can proceed with the IPO, they may reconsider
making an offer, with Lehman's $5 billion serving as an effective floor for bidding, Mr. McCloskey
said. He listed insurance companies and Japanese banks as possible buyers.

Also, Tyco said Thursday that it will have to pay a higher interest rate of 8.2% --
up from 7.2% -- on $389.5 million of its Raychem unit's debt due to recent downgrades
of Tyco's credit by Moody's Investors Service to junk-bond status.

(Friday, stock at time of this report is up at: $14.55

 (better than a few days ago, but not as good as the

  52 week high of $60.09  Yahoo Target Est. is $30.71)

http://finance.yahoo.com/q?s=TYC&d=c&k=c1&a=v&p=s&t=5d&l=on&z=m&q=l

Sean Wheeler/1Lease/Wet Pet/Deep Blue Marine

Leasing News reported that the rumor about Sean Wheeler, formerly of 1Lease,

being back in the equipment leasing business was not true.  His father Ken Wheeler

confirmed it.

Today we received further confirmation, as Sean Wheeler has applied to a leasing
company for $60,000 to $90,000 in water pumps, p.o.s. system, and copier.  Leasing

News was contacted as a reference.  The signed application states
“Deep Blue Spa Marine” is a sole proprietorship, has been in business for four years and
bank account is under the name “Wet Pets.” in Fresno, California.

This also confirms that while he was in the leasing business, attending conferences,
getting his CLP certificate, he was also  in “Wet Pets.”

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Funding Tree, Riverside, California---Arrest Charge

Leasing News has been writing about this company since November of last

year.  It appears all one has to do is send a fax or e-mail that you do “deals

no one else will do,” and you get leasing application, including advance rentals.

It appears some companies live off of this.

Leasing News wrote about Kendra Bernal being on probation, including conformation

with the District Attorney’s office, but that did not stop submitting applications.

While the government moves slowly, it still gets to the destination.  Kendra Bernal

is accused of being in violation of her parole.  Here are:

Kendra Ameliarae Bernal Charges

http://www.leasingnews.org/docs/kendra.htm

In addition, here is the Riverside Better Business Bureau report:

http://www.labbb.org/scripts/cgiip.exe/WService=wsbroker1/C%3A/Inetpub
/wwwroot/SouthlandReport/default.htm?hCompID=13158660&hAKAID=1&hAddrID=1

Better Business Bureau Report

The Funding Tree, Inc.

6141 Riverside Avenue Suite 1

Riverside CA 92506

Business Started: 01/01/98 File Open Date: 08/29/01Last Report Date:06/12/02

Principal Contact:Kendra Bernal Phone: (909) 369-3150 Fax: (909) 369-3420

EMail: fundtre2@pacbell.net Web Address: http:// www.thefundingtree.com

Bureau ID: 13158660

Nature of Business

This company's business is providing equipment leasing and consumer financing loans

services.

   Bureau File Experience

We rate this company as having an unsatisfactory business performance record based
on a pattern in their customer complaints which causes us concern.

 Complainants allege dissatisfaction with the company's failure to provide refunds of
deposit amounts for equipment leases not funded.

Complainants contend they gave the company thousands of dollars in the form of first
lease payments, insurance fees, processing fees, or other costs associated with leasing
trucks or other equipment. After extended delays of several months, loans or lease
agreements remain unfulfilled by the company.

The company responds to complaints by explaining in most cases the "leasing pool" has not
closed and they continue to work diligently to resolve the matter. One complaint was
responded to by an advisory that the lease had been fulfilled. Some complaints were closed
as disputed, meaning the customers were not satisfied with the company's response.

 One complaint remains unanswered.

We advise careful consideration on choosing a funding source to expand or start a business.

The complainants for this company have report ably invested up to several thousand dollars,
waited several months and still do not have the funding necessary to complete their business plan.

 Our experience with similar offers has been many who complain never receive a refund when no
funding occurs, or, previously undisclosed processing fees allow the company to retain sometimes
50% of the amount paid. This means the investor receives back half the amount invested.

We routinely suggest contacting the Small Business Administration in your area for information
on venture capital sources. The Better Business Bureau does not endorse, recommend, or
disapprove of any company, product or service.

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Centerpoint Financial Services Latest Fax

   by Christopher Menkin

“Centerpoint Financial Services, LLC, has been unable to place

backlog.  Please accept our apology for the inconvenience this has caused”

Thank you.

Chuck Brazier

Leasing News complimented the forthright handling by Chuck Brazier.  There

is  criticism and unhappiness with lessees, vendors not paid, and lessor/discounters

and brokers caught in between.

Unfortunately, no one would sign their name as they were hoping their “deal” would

fund and to sign their name would jeopardize the funding of their transaction

Here are some more “calm” ones:

“Praise to CHUCK at Centerpoint ASIDE, the real issue is that CENTERPOINT is

NOT honoring approvals and NOT funding deals that were all set to fund.  As

we all know this can be catastrophic to a leasing broker's existence.

"Nature of the BROKER BEAST" or "Broker Beware" I guess !”

-dedicated reader-

“We placed one and the other was not.   I do not know what we are going to do with
the second deal at this point.    If there is anything you can do, you would save our hides. ..”

 ( name with held )

“Centerpoint wrote checks (*approvals) under an account (line of credit) which had
no funds under the belief that a check would be received (line extended) to cover the
exposure (written approvals). If you did this with your retail bank, you would be kicked out.”

  ( name with held )

 Leasing News interviewed both Gordon Roberts, president, and John Otto, the major
investor behind Centerpoint Financial in March,2002, regarding “rumors” about financial

statements, sales, and other problems, including line of credit for warehousing of
leasing.. Both parties denied any difficulties. It was expressed that John Otto would stand
behind this company. Both he and Gordon Roberts have no comment to make to date.

To the best of our knowledge, Mr. Brazier has been forthright and candid, trying

to help all parties involved.  In the instances of Metrolease, SDI Capital, United Capital,
Unicapital and many others on the Leasing News list, no one warned what was going to happen.

Brazier sent out three faxes to all brokers on the Centerpoint Financial  list, called people,
working with other funding sources ( Leasing News has confirmed this with “several”

funding sources, and tried to be of  assistance in every manner he could, although we
assume his days are numbered at Centerpoint Financial.  He has been up-front,

and should be recognized for this fact.

While no one at Centerpoint will make any comment, Leasing News assumes these faxes
were also “cleared” or “approved” by both Gordon Roberts and John Otto. We also assume
they have been working on “damage control” to the best of their abilities. We can further
assume neither of them are very happy with the circumstances.  While I have

never met the wife of John Otto, if he is married. I do know Pat Roberts very well.

And I am sure she is not very happy about the circumstances.  Most likely this

is Centerpoint’s last day as an “active” company.. Editor)

To all of you that are sending your support to my husband Chuck Brazier

through Kit Menkin@Leasingnews.org and phone calls.

THANK YOU!

Connie J. Brazier

PS   Don't tell Chuck I sent this. 

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

Add my name to the long list of Chuck Brazier's admirers.  My admiration of
him as a leasing professional is only exceeded by my admiration of him as a
human being.  He is a person of the highest integrity who has devoted his
professional career to injecting that virtue into the industry he serves.

 If everyone in the leasing industry would care and contribute as much as
Chuck has over the years, we would be at the top of the world of finance
right now.  It is not too late!

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

Paul J. Menzel, CLP

Senior Vice President / General Manager

Leasing Division

SANTA BARBARA BANK & TRUST

P.O. Box 60607

Santa Barbara, CA 93160-0607

1 South Los Carneros Road

Goleta, CA 93117

Dir Ph# (805)560-1650

Email     PaulM@sbbt.com

-----  

I too, knew Chuck Brazier and worked with him in the old CPL days.  High on

his list of virtues is that he "cares".  We wish him well and offer any help

we might give in this troubled time.

Terry Maher

TMAHER4444@aol.com

Commercial Equipment Finance

Albuquerque, New Mexico.

----

                  Name = Lee Greif

               Address = 7500 College Boulevard

                  City = Overland Park

                 State = Kansas

               Zipcode = 66210

                 Phone = 913-754-0850

                   Fax = 913-906-9840

                 Email = Leeg@herfund.com

              Comments = I am pleased that leasing news has chosen to give
positive information about a standout guy in our industry like Chuck Brazier
during difficult times in the industry.

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American Express Medical Division

Three big wheels that account for 30 mm in leasing volume just left Amex Medical,

big shake up..........from good authority, several in fact.

( name with held )

(Can’t get anyone at American Express Business Finance to confirm or deny this. Editor )

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

Kit, get off the Lakers bandwagon. Ha! Are you a Laker fan?

George Meyer

Account Executive

GMCapital

Ph: 877-462-2748

Fx: 650-553-9515

George@GMCap.com

P.S. Celtics next year, baby!

(I like the Celtics.  I was rooting for New Jersey. Sue’s father is a big Jason Kid

fan, but then, he is for anyone from Cal (He is a graduate of Cal ). I was for the underdog.
  If you want to know, I am a Sacramento King fan.  I thought the real tournament was playing them.

I always salute the winning team, even if they beat my favorite.

(Except for the New York Yankees, as I am a diehard Brooklyn Dodger fan (when

they moved, I started rooting for my second favorite team, which is the Chicago Cubs.

Sue is a big San Francisco Giants fan, but I still like the Cubs, whether they win

or lose, I am a loyal “Cubbie.” Kit ).

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E-Commerce - Color It Green

By Beth Cox  Internet.com

There's good news for e-commerce entrepreneurs - a new

industry report says that a majority of American retailers reported profitable online operations last year.

In fact, the Shop.org annual study, entitled "The State of Retailing Online 5.0," says that fully
56 percent of retailers reported online profits in 2001, compared to only 43 percent in 2000.
Multi-channel retailers are at the head of the pack in profits.

The study, conducted by The Boston Consulting Group with market-sizing data supplied by
Forrester Research, also found that online retailers are competing in a larger market as consumer
online spending in 2001 grew by 21 percent to an estimated $51.3 billion.

And for this year, the study predicts a 41 percent increase in consumer spending online to $72.1 billion.

Shopping online is clearly becoming a mainstay of retailing. Out of 15 categories studied, sales in seven,
including computer hardware and software, books, music and video, toys, and consumer electronics,
accounted for more than 5 percent of all retail sales for those categories, with some category penetration
as high as 17 percent.

"Consumer adoption of the online channel has reached critical mass, and retailers have been able
to respond by turning this trend into profits," said Elaine Rubin, chairman of the Washington,
D.C.-based Shop.org.

"This is all the more remarkable in a year like 2001, which experienced a weakened economy,"
she said. "Multi-channel retailers, who are driving much of this profitability, are achieving this
goal by creating shopping experiences that take advantage of multiple channels and contact points."

Multi-channel retailers would seem to have an advantage, the study found, as their share of online
revenues increased to 67 percent in 2001, up from 54 percent in 2000.

What's driving profits in addition to market growth? The study found that profit indicators include
continued performance improvements in marketing efficiency, an increase in the number of repeat
online buyers and tighter expense control.

Marketing efficiency has increased significantly resulting in marketing costs per order falling from
$20 in 2000 to $12 in 2001 and customer acquisition costs down from $29 in 2000 to $14 in 2001.
Repeat buyers now account for over half of sales, with 53 percent of revenue in 2001, up from
40 percent in 2000.

"2002 is likely to be the beginning of a profitable era in online retailing," said Michael Silverstein,
senior vice president of BCG's consumer practice. "Not only will retailers continue to improve
marketing effectiveness, but they will also have opportunities to realize efficiencies in supply
chain and product fulfillment. We will also see strong top-line growth, especially from store-based
and catalog-based retailers as they take customer relationship management and targeted
marketing to the next level ..."

The study is based on data from more than 100 retailers who participated in a detailed survey,
including store-based, catalog-based, and Web-only retailers.

. Hard times sting Arizona's bee industry

By Associated Press,

PHOENIX (AP) Arizona's honey industry is struggling because of urban sprawl, parasitic mites
and cheap foreign imports.

Production of the rich elixir sought by connoisseurs for its low moisture content and traces of
citrus, ironwood, mesquite and catclaw blossoms is down, along with the number of domestic
bee colonies and the average wholesale price of honey.

The drought in Arizona is also posing a problem for the struggling industry.

Pat and Ken Orletsky of Mesa are sending 150 million bees to North Dakota. Their bees
usually spend their summers near Flagstaff, but with the drought this year, they said,
it didn't seem safe.

The couple run Bee World Inc., one of a dwindling number of local businesses that specialize
in raising, removing and renting colonies of honeybees, which are responsible for pollination
of three of every five food crops.

The U.S. census in 1997 counted 131 honey-producing enterprises in Arizona, compared
with 230 in 1992. Figures from the 2000 census are expected to show an even further decrease,
said Dennis Koong, a researcher with the state Agricultural Statistics Service.

Even with the stinging reality, there is some encouragement.

Robert Danka, a research entomologist with the U.S. Department of Agriculture, said there
is anecdotal evidence that native bee populations may be developing some resistance to
parasitic mites, which have destroyed 75 to 85 percent of the native honeybee population
of the United States since 1984.

And tariffs placed on foreign honey in November, in a response to an unfair- competition
lawsuit filed by local beekeepers, has produced the highest wholesale honey prices in years.

At nearly $1 per pound, the price for wholesale honey is more than double what it was last year.

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Sunrise International Leasing Board Approves New Growth Strategy

GOLDEN VALLEY, Minn.,  -- Sunrise International Leasing Corporation's (SILC) board of
directors has approved a strategic plan that includes the purchase of leasing portfolios
as well as leasing companies. SILC, which has served the vendor leasing business for more
than 28 years, is a pioneer that develops and implements customized market-oriented vendor
lease programs for manufacturers and software developers.  To date, the company has
concentrated exclusively on internal growth.

"We have decided to pursue the acquisition of portfolios to augment our growth beyond our
traditional markets, and to acquire other leasing companies who could benefit from SILC's
financing capacity and asset management capabilities," said Peter J. King, chairman and
CEO of SILC.  "We also will consider business affiliations with other major institutions if it
would result in utilizing SILC's business model to strategically expand into new markets."

The company intends to retain an investment banker to both advise it and to raise $300
million to $400 million to successfully implement this strategy.

SILC recently was judged to be the fastest growing private company in the state of
Minnesota and second in employee productivity.  It also announced that it expects to
be debt free in the third quarter of this year with respect to its current equipment portfolio.

About Sunrise International Leasing Corp 

SILC's business consists primarily of developing customized market-oriented lease and rental
programs for vendors of high technology and other equipment.  The lease options offered by
the company generally focus on short-term, fair market value leases.  SILC is also a competitive
reseller of high-quality used equipment.

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Direct Alliance Simplifies Delivery of Services Through Marketplace Suites

TEMPE, Ariz.--( --Direct Alliance Corp. ("Direct Alliance"), a wholly owned subsidiary of
Insight Enterprises Inc. ("Insight Enterprises") (Nasdaq:NSIT), Thursday announced it has simplified
its delivery of Business Process Outsourcing (BPO) services by creating Marketplace Suites.

Each suite addresses one of the Five Critical Needs(c) of direct business relationships.

Services are available as an end-to-end solution or in the following individual suites:
Marketplace Logic(SM) (Supply Chain Management and Logistics), Marketplace
Matrix(SM) (Financial Services), Marketplace Agent(SM)
(Sales Channels), Marketplace Catalyst(SM) (Direct Marketing) and Marketplace
Intelligence(SM) (Analytics).

Patterned after Maslow's Hierarchy of Needs, each suite lays the foundation for the next
critical business need to be satisfied.

"During the dot-com heyday many online companies and customers discovered the
painful reality that attracting eyeballs or driving visits to high traffic Web sites
where customers placed orders did not always end in a satisfying customer experience
or a profitable operation.

"The dot-com companies and others that followed their lead made it very obvious to the
buying public that poor supply chain management and logistics failures means angry
customers," said Mike Rather, COO of Direct Alliance. "Mastery of the supply chain
and efficient coordination and delivery of product is the basis of every successful business.

"This is especially true when selling direct to customers. Due to the complexities of
supporting direct end-user transactions or when extending to multichannel direct
relationships many manufacturers have difficulty executing this business model and
fail in their efforts.

"Direct Alliance meets the needs of these companies that want to adopt a 'DELL-like' (Nasdaq:DELL)
business model and extends the cost efficiencies of direct relationship selling to all sales
and distribution channels."

Marketplace Suites(SM) simplify the delivery of direct relationship systems, processes
and expertise. Manufacturers increase their ability to compete using the most
efficient business model of the 21st century by outsourcing any or all the five
critical needs of direct relationships and create a seamless end-to-end customer experience.

Direct Alliance has been providing outsourced business processes and marketplace
solutions for over eight years to leading manufacturers.

Marketplace Logic(SM) provides real-time information and services to improve logistics
and supply chain management. Companies can accurately and profitably control all
aspects of their supply chain, eliminate product touch points and reduce overall costs.
Services include fulfillment, supply management, order management, complex account
integration, returns management, product exchanges and cross shipments.

Marketplace Matrix(SM) provides accurate financial information and secure transaction
services to improve business operations and increase profitability. Services include
trade credit, credit card processing, fraud detection and prevention, leasing,
collections, tax administration, accounts payable, accounts receivable and
vendor returns processing.

Marketplace Agent(SM) enables companies to expand their market reach through
telesales professionals across all sales channels when using tactics such as
telephone, direct mail, e-mail, the Internet and more. Services include outbound
telesales, inbound telesales, Internet sales and field sales enablement.

Marketplace Catalyst(SM) generates demand for products and services.
Offering agency services in electronic direct marketing, project management
and consulting, services delivered include Transactive e-mail, extranets,
print catalogs, direct mail and CNet Transactive Product Data(TM).

Marketplace Intelligence(SM) identifies ways of refining and profitably
growing relationships with customers. Using data generated by
transactional systems, we increase customer satisfaction and
total life-time-value. Services include Campaign Management,
Sales Reporting, Customer Performance and Web Analytics.

About Insight Enterprises Inc.

Insight Enterprises Inc., a Fortune 1000 company, is a holding
company composed of the following operating units: Direct Alliance Corp.
is a business process outsourcing organization providing marketplace solutions
in the areas of direct marketing, direct sales, finance, logistics and analytics
using state-of-the-art proprietary technology, infrastructure and processes.

For additional information about Direct Alliance Corp., call 480/446-2147 in the
United States or visit www.directalliance.com. Insight Direct Worldwide Inc.
is a leading global direct marketer of computers, hardware and software,
offering a broad line of more than 180,000 brand name products primarily
to businesses in the United States, Canada, and the United Kingdom.

Insight sells its products and services via a staff of customer-dedicated account
executives utilizing proactive outbound telephone-based sales, a customer-focused
direct sales force, electronic commerce and electronic marketing and via the Internet.
For additional information about Insight Enterprises Inc., call 480/902-1001 in the
United States or visit www.insight.com.

Transactive Product Data(TM) (TPD) is a trademark of CNET Channel. All other names
are trademarks and/or registered trademarks of their respective owners.

CONTACT:

Direct Alliance Corp., Tempe                                                 

Jim Kebert, 480/350-1131 (Finance)

jkebert@directalliance.com

Ian Gilyeat, 480/446-2147 (Marketing)

igilyeat@directalliance.com

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                         KEY EQUIPMENT FINANCE

                          NAMES PAUL W. FRECHETTE

                          SENIOR VICE PRESIDENT,

            GLOBAL BUSINESS DEVELOPMENT AND STRATEGIC PLANNING

SUPERIOR, CO, -- Key Equipment Finance, one of the nation's

largest bank-affiliated equipment financing companies, announced that Paul

W. Frechette has been named senior vice president, global business

development and strategic planning. Frechette will lead the organization's

merger and acquisition activities and help guide strategic planning

processes and new program development. His office is located at Key

Equipment Finance's world headquarters outside Boulder, Colorado.

"Paul Frechette is well known throughout the global equipment leasing

industry and is highly respected by his clients," said Paul A. Larkins,

president and chief executive officer, Key Equipment Finance. "His desire

to come to Key Equipment Finance says a lot about our ability to attract

the best talent and speaks well for our future business prospects."

Frechette comes to Key Equipment Finance with 29 years of equipment finance

experience. Prior to joining Key, he was senior vice president and managing

director, GVF Business Development, for Heller Financial, Inc. (acquired by

GE Capital in 2001) in San Francisco, California. Paul's career includes

past executive assignments with U.S. Bancorp Leasing and Financial., U.S.

Leasing International and Fleet Credit Corporation.

Frechette earned his bachelor of science degree in marketing management

from the University of Rhode Island at South Kingstown. He is a member of

the ELA (Equipment Leasing Association) Vendor Programs Business Council

Steering Committee and chaired the ELA's Captive and Vendor Leasing

Conference in Florida this past spring.

Key Equipment Finance is an affiliate of KeyCorp (NYSE: KEY) and provides

business-to-business equipment financing solutions to businesses of many

types and sizes. They focus on four distinct markets:

·     small businesses in the U.S.;

·     mid-to-large size businesses in the U.S. and Canada for acquisitions

from $5,000 and up;

·     equipment manufacturers, distributors and value-added resellers

worldwide; and

·     federal, state and local governments as well as other public sector

organizations.

Headquartered outside Boulder, Colorado, Key Equipment Finance oversees an

$8 billion equipment portfolio with annual originations of approximately $3

billion. The company, which operates in 25 countries and employs more than

600 people worldwide, has been in the equipment financing business for

nearly