Serious Problems at Unicapital As "Deals" Starting to Unravel. Vendors and
Brokers not being paid, deals "frozen" in Limbo-------------
will Bank of America postpone again after November 6, Monday---
Look for Lawsuits Galore if this continues--editor

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This appeared on the Yahoo UCP Stock Message Board from Thomas S.Depping, Houston, Texas.

"If all of you guys like this company, then you should check out mine, Sierracities.com! We offer no communication to our investors, hopeless visions of B2B internet leasing, and poor management! YEEEEEEEHHHHAWWWWW! "

http://messages.yahoo.com/bbs?.mm=FN&action=m&board=9133423&tid=ucp&sid=9133423&mid=3124

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P.S. Sierra Cities Stock at last check was almost $5, a high for the last quarter, most likely on the contemplation that an announcement will be made soon that Washington Mutual has infused the company with capital with thier purchase ( just a rumor )

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=BTOB&script=340&layout=6&item_id=BTOB

Metwest Leasing, Spokane, WA.---They are on the list, and now downgraded, as five confirmations that they have pulled the plug on the operation.

The lastest:" MetWest is/has pulled the plug. We have a $181,000 transaction that is partially funded and are on pins and needles trying to get the deal done before everyone has left. We've got a QuickTrac inspection scheduled for Friday or early next week. Almost everyone is gone.

"They have brought back some of the back room people to book the remaining transactions they have commited to do. It appears that there were some major changes in Senior Senior Management at the Parent level and its a major change in direction overall.

name with held ( our choice )

We have two leasing companies, that may be added to the bulletin board, for not paying broker commissions, and have both sides to the story---but the bottom line, the broker has not been paid. If the broker is not paid, we will publish both sides of the story ( one has documented e-mails of many months of promises ).

Two Funder Comments on Today's Situation in the Leasing Market Place ...

the bigger question is why brokers continue to send deals to funding sources, or super brokers , when they know there is trouble. Why are they always so surprised then when vendors/brokers don't get paid? In my 18 years in the industry, this continues to amaze me.

name with held by request

I cannot even guess of the number of funding sources that enter a market, lose their financing, then don't pay the vendors, return security deposits, or pay the brokers. They are almost universally the "low ball" funders trying to buy market share. Yet, surprisingly, the brokers continue to send in deals and security deposits, no doubt because of the rate; not having a clue that the rate is what got the funder in trouble in the first place.

name with held by request

Finova to Discontinue and Sell Business Units

The Finova Group announced that it is continuing its evaluation of strategic alternatives, including alternatives for addressing the company's credit facilities.
"The board, management and the company's investment banker, Credit Suisse First Boston, continue to pursue potential opportunities regarding a sale or significant equity infusion. In addition, Finova has begun to implement a new strategic direction that will focus on core specialty niche businesse s", said Finova Chairman John Teets.
Earlier this year, Finova sold its Commercial Services and Harris Williams & Co. lines of business, which improved liquidity. Other lines of business are being discontinued and offered for sale, including Corporate Finance, Business Credit, Growth Finance and Distribution and Channel Finance. Proc eeds from the divestiture of businesses will be used to enhance liquidity and reduce Finova's debt obligations. The company said it is also trimming operating expenses to reflect the disposition of these business units.
Chief Executive Officer Matt Breyne said, " Finova continues to have adequate financial resources to satisfy its obligations and fund operations. Disposition of businesses or assets represents the initial steps of a plan under development for dealing with $1.6 billion of principal payments due in May 2001 under the company's credit facilities. Finova has engaged Jay Alix & Associates, a nationally recognized financial consulting firm, to assist in connection with the development of strategic and financial planning, including re-negotiation of its bank debt."

50 Leasing Companies Major Changes

American Business Leasing ( gone )
Balboa Capital ( Founder Byrne "...office available any time he wants to use it" ).
The Bancorp Group, Inc. (Southfield, MI) ( no longer in business )
Bankvest (bankrupt)
Bombadier ( reported having problems, not confirmed )
Charter Financial ( purchased by Wells Fargo 9/5/2000 )
Colonial Pacific (11/98) purchased by GE Capital 5/2000 no more re-brokered applications, except from one or two sources, such as Steve Dunham's Leasing Associates )
Commerce Security ( 9/99 closed to leasing broker program )(11/99 last fundings)
Comstock Leasing ( 3/2000 Unicapital then Linc and discontinued operation this date )
Copelco ( 4/2000 sold to Citibank/10/2000 stock down rated/10/2000 ceases broker business, many complaints in manner turning off faucet )
Creative Capital" of Bloomfield Hills, MI. ( shut-down 3/2000 )
Dana ( sold off, active as captive )
DVI Capital ( out of broker )
El Camino Leasing, Woodland Hills, Caifornia (10/2000 No longer taking broker business )
eLease ( June/July/2000 senior management changes )
FMA Finance ( reportedly closed to brokers )
Fidelity ( 4/2000 acquired by EAB, a wholly owned subsidiary of ABN AMRO Bank N.V., headquartered in the Netherlands, raising funds )
Finova ( out of market place )( 10/11/2000 Dow Jones headlines "Finova Stock Falls As Buyout Hopes Wane 10/25/2000 Dow Jones notes stock falling and problems at Finova 11/3 Announces they will discontinue business, sell units ))
First State Bancorp, Albuquerque, N.M ( 3/2000 sold leasing division-$64 million---)
Franklin Leasing, Des Moines, Iowa--owned by Liberty Bank-- (2/2000)-no longer writing leases ( limited by regulations and leases are for sale ).
Golden Gate Funding ( 2/99 purchased by Westover Financial )
Heller Financial's Commercial Services Unit ( 10/99 purchased by CIT )
Imperial ( sold portfolio )
Japan Leasing Credit claims ( JLC --6/99 purchased by Orix )
Lease Acceptance Corp---( ceases broker business 7/26/2000 )
Leasing Solutions ( bankrupt )
Liberty Leasing ( closed, California company )
Linc Capital ( out of vendor and broker business, Nasdaq halts stock sales, $13.4 loss last quarter,10/2000 assets for sale )
Lyon Credit Corporaton ( 9/99 purchased by Hudson United Bancorp )
Manifest Group--( 9/1/2000 purchased by US Bancorp Leasing and Financial, "...a win for all the parties involved," Brian Bjella.
Matsco Financial ( purchased by Greater Bay Bank )
Merit Leasing ( gone )
Metwest Leasing, Spokane Wa. ( 9/2000 advising brokers that they have run out of funds so they are unable to fund a transaction we have there for funding. 11/2000 Metwest Leasing Spokane, WA. is pulling the plug, confirmed by five sources. )
Metrolease--reports closing operation,John Blazek at Evergreen Leasing, Hathcock losing assets, will not confirm nor deny; many serious rumors of serious fraud floating around the marketplace, including debt to Textron Financial.)
NationsCredit, Business Leasing Group (1/29/99 sold to Textron**) *"The Business Leasing Group of Nations Credit was sold to Textron and we still do broker business," Jim Merrilees, very well respected individual in the leasing industry..
NIA National Leasing ( 3/2000 purchased by Lakeland Bancorp )
New England Capital ( sold to Network Capital Alliance a division of Sovereign Bank. Sovereign did hire two people who will run a sales office in CT, doing basically the same deals with the same people as before. Little will change in that aspect.
Newcourt ( sold off )
Onset Capital ( Irwin buys 87% equity )
Orix 10/2000 "long-term Outlook has been revised from Stable to Negative" Credit Allianchat it has changed its name to ORIX Financial Services, 9/2000 Japanese Bank President Committs Suicide (Orix is a 14.7% shareholder in bank having problems ), ( 8/2000 closes small ticket vendor division in Portland, Oregon, "Business as usual (in New Jersey and with brokers)," says Steve Geller )
Phoenix ( both divisions )
Republic Leasing, South Carolina 9/27/2000 ( "The expected result will be a sale of Republic Leasing"---Dwight Galloway )
Rockford ( sold to American Express )
Scripp Financial ( 6/29/2000 ( purchased by US Bancorp )
SDI ( closed to broker programs )
SFC Capital ( 9/15/2000 purchased by Trinity Capital )
SierraCities ( posted $7.7 million second quarter loss, rumors abound,including pending sale. Oct 16/lot of venom posted on Yahoo bulletin board 10/19 date has passed. Is there really anyone interested in purchasing SierraCities? A Thomas S. Depping, Houston, Texas puts this message on United Capital Yahoo Stock Bulletin Board " If all of you guys like this company, then you should check out mine, Sierracities.com! We offer no communication to our investors, hopeless visions of B2B internet leasing, and poor management! YEEEEEEEHHHHAWWWWW! "
T&W, Washington ( bankrupt, lost their listing )
Transamerica ( sold )
Unicapital ( $11.4 million first quarter loss chairman,CEO,CFO resign, 38 employees cutback, 8/23 BSB to use other funders reported, rumor that BSB will be "spun off", not confirmed and appears to be in the rumor stage right now. Good news, 9/1 Bank of America extend revolving credit line to October 16,2000. 9/29/2000 Many rumors floating around. 10/12 Prognosis is "challenging," at best.10/17 BofA gives them until Friday to complete "process." Bank of America extends to November 6 as division look for direct investors and all deals start turning sour, brokers and vendors not getting paid. Looks like going down the tubes to many.
USA Capital Leasing ( gone-bk )

any corrections, additions, comments will be appreciated. We are presently working on dividing the list into last twelve months and prior.

Marlin Leasing Completes $96.9 Million Securitization

Marling Leasing proudly announces the completion of its second term securitization. Marlin recently sold $96.9 million in asset-backed securities that were rated by both Moody's and Fitch. "We are quite pleased with the execution of this recent transaction," said Dan Dyer, Marlin Leasing's CEO. "The company continues to grow; maintaining investor confidence in the asset-backed market plays a vital role in our long term success."

This is how Source Capital introduced the news of the 16% decrease----

Source Capital Earns $256,394 or $0.20 Per Basic Share in Third Quarter PDS Financial Posts Gain ( Gaming Equipment Lessor )

SPOKANE, Wash.--(BUSINESS WIRE)--Nov. 2, 2000--Source Capital Corporation (Nasdaq:SOCC), a commercial lender, today reported net income of $256,394 or $.20 per basic share for the quarter ended September 30, 2000, a nominal increase over income reported for the second quarter of 2000, but a 16% decrease from net income of $305,158 or $.22 pershare for the third quarter of 1999.
Net income for the nine months ended September 30, 2000 was $798,640 or $.60 per basic share, a nominal increase over net income of $796,128 or $.59 per share for the first nine months of 1999. Earnings per share assuming full dilution, were $.53 per share for the first nine months of 2000 compared to $.49 per share for the first nine months of 1999, an 8% increase.

In October 2000 a lease having an outstanding balance of approximately $135,000 became a serious collection problem. The status of this lease may require a write off of almost the entire balance, which will negatively impact fourth quarter earnings performance if the write off is necessary.

Loans outstanding at September 30, 2000 increased 21.6% to $56.1 million from $46.1 million outstanding a year earlier. Leases, however, declined 6.6% from $14.6 million in 1999 to $13.6 million at September 30, 2000. The decline was primarily the result of reduced lease origination volume in the year 2000 due to the imposition of tighter credit standards and increases in required lease rates during the year. Loans and leases delinquent as to principal or interest more than ninety days equaled 2.44% of loans and leases outstanding at September 30, 2000 compared to 3.98% at September 30,1999.

Source Capital Corporation is a commercial financial services company specializing in commercial real estate lending and equipment leasing. The Company is headquartered in Spokane, Washington with lending offices in Phoenix, Arizona, Portland, Oregon, Seattle and Spokane, Washington.

Any trend or forward-looking information included in this press release is subject to numerous possible risks and uncertainties. These include, but are not limited to: the possibility of adverse economic developments which may, among other things, increase default and delinquency risks in Source Capital's loan and lease portfolios; shifts in interest rates which may result in lower interest rate margins; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; changes in the regulatory and competitive environment, and other risks. Source Capital's future results may differ materially from historical results as well as from any trend or forward-looking information included in this re ease. This news release should be read in conjunction with Source Capital's annual report on Form 10-KSB for the fiscal year ended December 31, 1999, its Form 10-QSB report for the quarter ended JuDe 30, 2000, and other Source Capital Corporation filings with the Securities and Exchange Commission.