May 15, 2000

Here is a list with comments from a very well known publically traded leasing company to their sales people ( it is an internal memo and I make no attribution to validity or the comments, just pass it along without attribution ):
Bankvest (gone)
Linc Capital ( out of vendor and broker business )
DVI Capital ( out of broker )
Leasing Solutions Prime Capital ( sold off )
VGM ( out of business )
American Business Leasing Fidelity ( acquired by ABN Amro Bank )
Phoenix ( both divisions )
Dana ( sold off )
Rockford ( sold )
Franklin Bank Transamerica Commerce Security Nationbank Leasing Unicapital ( struggling ) Imperial ( sold portfolio )
Newcourt ( sold off )
United Leasing ( out of liquidity )
Leasing Corp of America ( for sale below book value )
C&W Leasing Merit Leasing USA Leasing Libery Leasing Copelco ( sold to Citibank )
Finova ( out of market place )
Bombadier

We have an opportunity to grow from the departure of others. I am confident the rate increase will not obstruct your efforts to win vendors.

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

Kit---

I don't know if you have noticed it and am very curious to learn if lease business is as slow for you as it is for me? Broker friends on the East Coast say they are busy, but it has been slowing down since the end of January, and the last month has really been dead. Perhaps I should have been doing some marketing in January, but December and the beginning of January were terrific. It is almost as if someone has turned off the spigot.

( name withheld by request )

(My response: You are not the only one who has made the same remark to me, as I did get a few telephone calls after the conference, asking the same question about what was happening with leasing companies closing down, consolidating, and lease business slowing down. It is difficult to see the trees here in Silicon Valley as we get ten to twenty-five new millionaires each month, bidding up houses, cars ( certain BMW's sell for $1,000 over retail, and even many Surburban models go a full retail ), good wine, and it is quite topsy-turvey here. Most of our business is referrals or end users and we don't get much vendor business, so our niche is different. I will use your e-mail without attribution and see if any others have to say.

Kit

John Kruse jfk@capitalstream.com Meets with Bob Rodi drlease@leasenow.com

We were able to sit down with Bob on Saturday and go through a pretty thorough demo and I think Bob understands exactly what CapitalStream.com does and how much it differs from the LeaseExchanges and TotalFunding.com's of the world. Bob also realized that we are a truly web-based application with no software needed at the desktop which is quite different from his. The most important fact is that leasing companies, whether they are the smallest broker to the largest funding source, can utilize this tool to enhance the relationships that they have, as well as creating new ones.

Bottom line, CapitalStream.com is another tool available for the leasing professional to use to further their business. What we are NOT doing is brokering, matching or funding transactions. We are allowing the leasing companies to still leverage the relationships they have, on both sides of the transaction, and control who they work with and how.

Ask Jim Merrilees, Bob Fisher, and a number of others in our growing customer base why they have chosen the CapitalStream direction. The proof is in who is using it and not in marketing hype!

We look forward to the possibilities of working with Bob in the future. I think he felt there may be some ways that our 2 systems could work well together for him, especially given that we are starting to work with some of the funding sources that Bob has relationships with.

Thanks for the note Kit and thanks again for the great job moderating the panel.

-jfk

- TO MY FELLOW LEASING COLLEAGUES:

The dust has finally cleared from the recent Spring Education Conference presented by the United Association of Equipment Lessors. The consensus is that the conference was an overwhelming success. Early estimates from the UAEL office suggest that attendance was the second highest ever for a non-joint spring conference.
More importantly, I have heard nothing but praise for the quality of the sessions and speakers, who provided one of the richest programs ever to our association. Dr. James Canton opened the conference with a stimulating discussion of the inevitability of change in the world and the marketplace, and the new power of technology. Prof. Haim Mendelson gave us an educational and insightful look into the economics of that new technology. The extremely entertaining Mark Oman taught us that in business, much like golf, your primary adversary is yourself, and the most difficult space to navigate are the few inches between your ears . . . that final putt! Rich Masterson instigated a provocative and essential discussion of the changes in the leasing marketplace and gave participants an opportunity to air their concerns and grievances. Christopher Blunden, Esq., taught us about the need for preventive training to avoid litigation in the workplace.
Other pearls came, not surprisingly, from within the ranks of the association itself, in which there is an amazing wealth of knowledge and experience. As our good friend Kit Menkin stated, leasing guru Oren Hall "still has it," and generously provided invaluable insight as to the opportunities awaiting those who are brave and industrious enough to take advantages of the ever changing landscape of the industry. Kit himself moderated an excellent panel on the special problems associated with quasi-captive lessors. Irrepressible and ubiquitous UAEL President Bob Rodi lead a thought provoking discussion dealing with redefining the third party funder relationships, a timely and indispensable session on the impact of the Internet on the leasing industry, as well as a panel on the burgeoning emphasis upon fee income programs. Erudite Bob Teichman, who deserves the honorary title of "Professor" educated us on how to get the deal done, and Victor Harris brought us up to date on licensing laws impacting the leasing industry.
The hotel and entertainment were top notch. We had a blast on Friday night at the Afterglow. I was able to convince some of my musician friends, including Gail Muldrow (one of the original members of Sly and the Family Stone, and currently the lead guitarist in the Jerry Garcia Band), to come and entertain. By all accounts, the party was a success. Then, Tainted Love blew the house down on Saturday night. Many told me it was the best Saturday night party ever. In fact, having heard from many people who, like me, have been attending UAEL/WAEL conferences for over a decade, I am pleased to report that this conference appears to have provided to attendees everything they wanted . . . and more!
Thanks to all for helping out. Everyone at the UAEL office, including (Sugar) Ray, the indefatigable Joannie, the talented Chio and Phong, wonderful Estarlita (a true "Star"), as well as the rest of the staff, should be recognized and congratulated for making this a top notch conference. (Feel free to drop them a thank you note.) I would also like to thank all the sponsors and speakers who made the program possible, and everyone else who helped to put the event together. Last but not least, kudos to all of you who attended, for without you, there would be no conference, and no association.

See you in Orlando!
Ken Greene Conference Chair