Headlines---

     LeaseExchange--Tom Williams

      Dot Com Massacre

       PinnFund--Tommy Larsen

        Fair, Isaac Announces Three-For-Two Stock Split

          401K--Now Is the Time To Increase Your 401K

 ### denotes press release      

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    LeaseExchange--Tom Williams

Tom is a great guy, but LeaseExchange is definitely "out of business" and

not a viable entity anymore.  Aaron Ross, one of the founders, is training

for the triathlon.  Richard Donat, VP of biz dev, is at Equidity now.  The

IT team has all scattered.  I think the LeaseExchange platform is running

out of Tom's apartment.  That said, it is a great platform and someone should

contact Tom and offer him a couple hundred grand.

Cheers,

John Long

EVP

Equidity

john.long@equidity.com

  ( He said he was on a slim fast diet, plus there are many people in the

   leasing business working out of their residence.  We at Leasing News

   hope Tom Williams "grows" the company. editor )

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          Dot Com Massacre

You can look toward more mergers and consolidation of not only strictly internet

leasing companies, but more regular Dot Com's. Remember, they are basically "retail"

businesses.  If the "buyers" or "consumers" are not purchasing in the number needed

for them to stay in business, then the "retailers" go out of business.

For almost two years, the Emperor has been going around, saying look at these magnificent

clothes, buy with me, I am looking great, and then one day, this young lad sees the

Emperor walking and says to the group," See, why are you saying he looks so good?

He isn't wearing any clothes at all.  He is naked."

And the crowd hears the young lad, and they say, "Wow, he is right. The Emperor is

naked."

Well, if you remember that yarn when you were small, it is appropriate today to

the internet retail business.

We are experiencing many dot.com layoffs, and it appears the second quarter

will be the other shoe dropping.  Traffic has even eased up on the freeway.

I heard on KCBS that a person who used to leave at 6am to get to work

at 8am in San Jose, was now leaving at 7am, and getting to work early.

A few hundred less cars must make a lot of difference.

Webmerger reports there were 44 Dot Com companies that closed in March

and 55 Dot Com in April.  It appears in the last few weeks the number is

growing.

Here is a site from readers in the spirit of the title. While you may not like the name of this site, it records all the dot com's going out of business, including wine.com.

http://www.fuckedcompany.com/index.html

Here is a more journalistic approach:

http://www.dotcomscoop.com/

On both of them, sometimes going out of business, means a merger, that

someone has bought the name or mailing list, such as wine.com becoming

part of evineyard.com

Venture Groups have plenty of cash, but they are putting it into their venture

funded companies or other existing companies, rather than fund new "start-ups."

In a related story:

Comdisco, in a further sign of financial distress, has stopped honoring some of its financial commitments to start-ups it backed during the dot-com boom, according to several sources familiar with the matter.

Over the past few years, the Rosemont-based leasing company backed hundreds of young technology companies through direct investments or by setting up lines of credit for the firms. Now as companies try to draw on those loans to cover equipment purchases and other expenses, Comdisco is not coming through with the money, venture capitalists and others say.

While Comdisco disputes the charge, the company's decision not to deliver cash in some cases gives further evidence of the firm's fragile financial condition. Comdisco, which leases technology equipment and helps protect firms' electronic data, is considering a sale of its entire business or of individual units to satisfy creditors.

General Electric and IBM are among the companies believed to have an interest in buying Comdisco, according to Salomon Smith Barney analyst John Jones Jr.

"Those are two logical companies that would be considering looking at taking over the whole thing," Jones said.

Both companies operate in similar markets as Comdisco, and IBM bought the Rosemont firm's mainframe leasing business in 1999.

Jones said a third company that helps businesses preserve their electronic data has also been mentioned as a potential buyer, but he declined to name the firm.

Mary Moster, a Comdisco spokeswoman, declined to comment on the potential buyers.

Comdisco is expected to address analysts when it releases results for the quarter ended March 31. That earnings release was previously pushed back from April 25.

The company is struggling to find a way to cover its debts, particularly since its recent troubles caused it to lose access to long-term loans.

Still, Moster said Comdisco is not inappropriately withholding money. "We are absolutely living up to our loan commitments," Moster said.

Comdisco backed start-ups in several different ways, including by setting up lines of credit so the firms could buy equipment or cover other expenses.

Venture capitalists said the structure of such loan agreements often leaves wiggle room for the lender to get out of the arrangement if a "material adverse change" occurs.

"The wording is generally loose enough that it's open to interpretation," one said.

This clause appears to be why Comdisco has not made some payments, yet maintains it has lived up to the agreements.

"The marketplace has changed dramatically and some of the companies within the market, their situations have changed," Moster said.

She added that Comdisco's 76-employee ventures unit was recently cut by 15 percent, but that was related to a slowdown in new investments.

In a research note several weeks ago, Jones wrote that Comdisco's venture unit has $400 million to $500 million in outstanding commitments.

By escaping some payments, Jones said, Comdisco could have enough cash to make it through the year.

"The numbers work out unless there's a very dramatic shortfall that we're not aware of," Jones said. "It's what we don't know that scares us."

Comdisco is looking to raise cash by selling particular business units, including its venture arm. Silicon Valley Bank, which makes similar investments in start-up companies, is considering buying a portion of the company's portfolio, according to two sources.

The changes under way within Comdisco's venture unit are part of an ongoing review of the entire business.

The company disclosed in early April that it retained Goldman, Sachs & Co. and McKinsey & Co. to evaluate its options, causing its credit rating to be cut.

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  PinnFund--Tommy Larsen

I would like to provide for publication some clarification to certain comments which I previously made to you and which were published by you in the Leasing News on April 9, 2001.

In my memo to you I stated to you that "Tommy Larsen, then President/CEO of PinnLease, USA, was the sole stockholder of the vendor of all the equipment, a San Diego company dba "CopyFax, Inc."

At that time I made that statement in good faith based on information we had received from a Dun and Bradstreet report dated 09/10/99, which report indicated that 3KL Communications, Inc. dba "Copyfax" was 100% owned by Tommy Larsen. 

All of our dealings in the PinnFund, USA transactions which were booked by Vision Capital and assigned to Scripps Bank (three Schedules; $600k) and also a fourth Schedule which was ultimately rescinded for cause and was never funded were all handled by Tommy Larsen, then President of PinnLease, USA, acting as the representative for PinnFund, USA.  As I learned during the course of the transactions, Mr. Larsen was also acting as the representative for Copyfax, Inc.  On one occasion, when I called Mr. Larsen to get a copy of an invoice to confirm the serial numbers for the fax and copy machines for a Schedule which was pending documentation, I learned that Mr. Larsen was out of town for a couple of days.  I then called Copyfax directly to get the serial numbers and was told by the lady on the phone that she could not help me and I "would have to get all serial numbers from Tommy". 

When we subsequently discovered irregularities in our transactions and had reviewed the D&B report, we naturally presumed that "Copyfax" and "Copyfax, Inc." were one and the same entity and was still owned by Mr. Larsen.

However, we have since been informed by Mr. Larsen's legal counsel that:

1)  Mr. Larsen originally founded Copyfax as a proprietorship in 1989 and later incorporated as 3KL Communications, Inc., continuing to use the tradename, "Copyfax".

2)  Mr. Larsen sold the business rights to the tradename "Copyfax" to his three children in 1998, who incorporated a new company as "Copyfax, Inc.".  Mr. Larsen is not a stockholder nor officer of "Copyfax, Inc.". The principal shareholder of Copyfax, Inc. is Mr. Larsen's son, Kim Larsen.

Please publish these comments in order to clarify my earlier comments regarding Mr. Larsen and the ownership of Copyfax, Inc.

Thank you,

Larry B. Turner, President

Vision Capital Corporation

858-487-6530

lbt@visioncapitalcorp.com

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Fair, Isaac Announces Three-For-Two Stock Split

    SAN RAFAEL, Calif.----May 2, 2001--Fair, Isaac and Company, Incorporated, (NYSE: FIC) today announced a three-for-two stock split of its outstanding shares of common stock. As a result of the stock split, shareholders of record at the close of business on May 14, 2001, will receive an additional share of Fair, Isaac common stock for every two shares owned. Additional shares resulting from the split will be distributed on June 4, 2001, and the company will pay cash in lieu of fractional shares. The stock split will increase the number of shares outstanding to approximately 22.2 million from 14.8 million.

    Company CEO Tom Grudnowski said the stock split was motivated by "a strong desire on our part to help improve the market liquidity in our stock and by our confidence that the value of Fair, Isaac stock will continue to increase over time."

    About Fair, Isaac

    Fair, Isaac and Company is a global provider of customer analytics and decision technology. Widely recognized for its pioneering work in credit scoring, Fair, Isaac revolutionized the way lending decisions are made. Today the company helps clients in multiple industries increase the value of customer relationships. Fair, Isaac has made the Forbes list of the top 200 U.S. small companies eight times in the last nine years and is headquartered in San Rafael, California.

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House overwhelmingly passes bill raising IRA, 401(k) limits

WASHINGTON  The House overwhelmingly passed legislation Wednesday to increase the amount of money Americans can put in IRAs and 401(k) plans and to give companies greater incentive to offer traditional pensions to workers.

The lopsided 407-24 vote  a rarity on a tax bill in a Congress narrowly divided between Republicans and Democrats  should send a strong message to the Senate, where a nearly identical bill died last year, sponsors said. President Bush has expressed support for the approach but did not include retirement measures in his package of tax cuts.

At an estimated cost of $52 billion over 10 years, the bill gradually would raise contribution limits for tax-preferred traditional and Roth individual retirement accounts from $2,000 to $5,000 by 2004 and for tax-deferred 401(k)-type plans from $10,500 to $15,000 by 2006.

House overwhelmingly passes bill raising IRA, 401(k) limits

By Curt Anderson

ASSOCIATED PRESS

May 2, 2001

WASHINGTON  The House overwhelmingly passed legislation Wednesday to increase the amount of money Americans can put in IRAs and 401(k) plans and to give companies greater incentive to offer traditional pensions to workers.

The lopsided 407-24 vote  a rarity on a tax bill in a Congress narrowly divided between Republicans and Democrats  should send a strong message to the Senate, where a nearly identical bill died last year, sponsors said. President Bush has expressed support for the approach but did not include retirement measures in his package of tax cuts.

At an estimated cost of $52 billion over 10 years, the bill gradually would raise contribution limits for tax-preferred traditional and Roth individual retirement accounts from $2,000 to $5,000 by 2004 and for tax-deferred 401(k)-type plans from $10,500 to $15,000 by 2006.

401(k) Increases

Highlights of pension legislation passed Wednesday by the House, estimated to cost about $52 billion over 10 years.

IRA Provisions

Raises limits for traditional and Roth IRAs from $2,000 now to $3,000 in 2002, $4,000 in 2003 and $5,000 in 2004. Indexed for inflation thereafter.

For individuals age 50 and up, raises limit to $5,000 beginning in 2002. 401(k)-type Provisions

Boosts maximum annual tax-deferred contributions from $10,500 now to $11,000 in 2002, $12,000 in 2003, $13,000 in 2004, $14,000 in 2005 and $15,000 in 2006. Indexed for inflation thereafter. Limits on employer matching contribution also would increase.

For individuals age 50 and above, an additional $5,000 in contributions would be permitted beginning in 2002. Other Provisions

Vesting requirements for employer pension matching contributions would be reduced from five years to three years.

Makes it easier for employees to roll over retirement assets when they change jobs and combine differing retirement plans.

Simplifies regulations to encourage more businesses to offer pension plans and reduce costs for new plans for businesses with 100 or fewer employees.

Increases from 15 percent to 20 percent the deduction limit for stock bonus and profit sharing plans.

Increases employment and benefit limits for employer-provided pension plans.

People age 50 and older would get special provisions raising their contribution limits more quickly. The legislation would not, however, change the income limits that prevent some middle-to-upper-income people from participating.

Supporters said the bill would boost a U.S. savings rate now at the lowest level in 67 years and supplement Social Security, which faces an uncertain financial future just as 76 million baby boomers begin to retire.

"Social Security isn't enough. It's hard to live on," said Rep. Rob Portman, R-Ohio, the main sponsor along with Rep. Ben Cardin, D-Md. "People need to have increased savings."

The measure contains more than 50 provisions intended to prompt more companies to offer pensions, enhance those pensions and simplify the system, from faster vesting requirements to greater portability of pension plans for employees who change jobs.

About 70 million American workers are not covered by a pension plan. While 401(k) plans are increasingly popular, the Employee Benefits Research Institute estimated that the average account balance is only about $37,000  and half of all 401(k) participants have saved less than $10,000.

A study released by the Financial Services Roundtable, which represents 100 major financial companies, found that the increased limits will not only boost savings but also cut taxes for millions by deferring more of the taxes owed.

A family of four with $50,000 in income and a 401(k) plan, for example, would see a 28 percent tax rate cut when the measure is fully implemented in five years. The same family with $75,000 in income would see a 13 percent cut.

"This bill provides individual tax relief," Cardin said.

Despite its popularity, many Democrats say the bill does little for lower-income people who have the most trouble saving for retirement.

"The problem isn't what's in the bill. It's what is left out," said Rep. Earl Pomeroy, D-N.D.

But the House voted 223-207 to defeat an amendment by Rep. Richard Neal, D-Mass., to create maximum $1,000 tax credits for lower-income people to invest in an IRA or 401(k) plan and provide credits for small businesses that offer retirement plans.

The issue is likely to resurface in the Senate, where a similar bipartisan bill includes more limited credits for lower-income people.

The House also voted 276-153 against an effort by Rep. Bernie Sanders, I-Vt., to require companies to give workers a choice when changing from a traditional pension plan to a cash balance plan, which critics say can sharply reduce benefits.

Senate Finance Committee Chairman Charles Grassley, R-Iowa, said the retirement measure was not likely to be included in the compromise 11-year, $1.35 trillion version of Bush's tax cuts. That means it must win at least 60 votes to avoid delaying tactics in the Senate.

Still, Sen. Pete Domenici, chairman of the Senate Budget Committee, predicted the legislation would clear the Senate this year, perhaps attached to unrelated legislation.

"Before this year passes, it's coming to a head and probably getting passed," Domenici, R-N.M., said in an interview.