May 22, 2000

Former NAELB Exec. Back On Line

Kit:

I wanted to let you know that I'm back connected to the world of the Internet. My new Email address is cspurdle@dellnet.com. Please add me once again to your daily newsletter.

Thanks to a few very good friends, I have been able to stay in touch with the industry through your news updates.

I would also like to thank you for your very supportive comments following the NAELB Conference. Your Email newsletters provide a very valuable service to our industry.

Thank you,

Cindy

PS I'll keep you posted as to future plans.

Survey of Small Businesses Reveals Equipment Leasing is the Favored Strategic Financing Solution

ARLINGTON, Va.--(BUSINESS WIRE)--May 22, 2000--

Small Business Administration and Equipment Leasing Association

Release Results During Small Business Week Small Companies

Look to Leasing for Equipment Procurement

The nation's leading small businesses are using equipment leasing as a strategic financing solution. In a survey to the winners of the Small Business Administration's (SBA) State Small Business Contest, the Equipment Leasing Association (ELA) found that small businesses are twice as likely to lease their business equipment than to purchase their equipment outright.

Leasing wins out to other financing options considered in equipment procurement decisions. The most common other financing options companies consider include cash purchase, in-house financing, credit cards, bank loans or a line of credit. Although 70 percent of respondents stated that they consider using cash for equipment procurement because there is no interest cost associated with cash, companies recognize that purchasing their equipment with cash decreases cash flow and increases opportunity costs.

According to the SBA and ELA's joint survey, the benefits of equipment leasing derive from a company's ability to control their monthly costs through a set lease. Interest rates, inflation and changes in business volume can make for uncertainty when budgeting costs, whereas a structured lease affords stability and certainty in cost modeling. Survey participants say the primary economic factors that lead them to lease instead of purchase equipment include:

-- Interest rates 60 percent

-- Disproportionate growth in technology requirements 43 percent

-- Cash Flow 34 percent

-- Dollar Value and Inflation Rates 10 percent

"Leasing offers businesses the ability to leverage their existing capital, control monthly costs and reap the benefit of top of the line equipment while transferring the risk of obsolescence to the financial partner," ELA President Michael Fleming said.

According to the survey conducted by ELA, small businesses lease everything from photocopiers to mainframe computers. Of the survey participants who lease equipment, 17 percent of the respondents lease more than 45 percent of all their business equipment. Seventy-two percent lease photocopiers, 36 percent lease computers, 22 percent lease fleet vehicles, 18 percent rent postage machines, 13 percent lease telephone systems and 13 percent lease printing and imaging equipment.

The survey was conducted in May 2000. Fifty-two SBA State Small Business Person of the Year nominees, one from each U.S. state, one from Puerto Rico and one from Guam were surveyed. Sixty-seven percent of the companies surveyed responded. The Small Business Person of the Year will be named during National Small Business Week, May 21-28, 2000.

For more information on ELA or the leasing industry, please visit elaonline.com

The Equipment Leasing Association of America (ELA) is a nonprofit organization headquartered in Arlington, Virginia. ELA represents more than 800 member companies and provides a variety of asset-based financial products, primarily in equipment leasing.

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CONTACT: Equipment Leasing Association

Laurie Kusek, 703/516-8367

lkusek@elamail.com

or

Promarc Agency

Jennifer Shields,

202/293-8563

shields@promarcagency.com