Mission Statement

Senior Credit Officer experienced in middle- market leasing; structured, vendor and 3rd party to the fortune 1000. Proactive team builder, originations capable with strong work ethic. Email: kyletrust@hotmail.com

Senior Management: Baltimore, MD

25 year veteran of commercial and equipment leasing seeking a senior management position with leasing or asset based financing company in the southeast (Florida preferred)

Email: kellogg_md@yahoo.com

Senior Management: Chicago, Illinois

Twenty plus years. Senior sales and marketing management most recently Building "businesses" from scratch. Leveraging leadership, administrative, operations, financial, auditing background. WANTED: challenging new opportunity.Email: edok@sbcglobal.net

Senior Management: Denver, CO. Fortune 500 GM/SVP wants to team up with aggressive lender looking for Western expansion mid-market equip. finance/leasing. 20+ years experience within Rocky Mountain/ Southwest and Ca markets.

Email: legal@csotn.com

Senior Managment: Irvine, CA.

Credit executive, portfolio manager and syndication facilitator. Extensive business building experience in small and mid-ticket operations. Highly innovative. Fortune 100 audit and technology skills. Bottom-line manager.Email: lenhubbard@bigfoot.com

Senior Management: Long Island, NY

Degree Banking/Finance. 13 years leasing exp. Now prez young leasing company where promises were not met. Interested in joining established firm with future. Email:bob33483@yahoo.com

Senior Management: Portfolio Management Consultant; 25+years experience in Collections, Customer Satisfaction, Asset Management, Recoveries, Continuous Process Improvement, Back end Revenue Generation, Cost per Collection Analysis. $5+Billion Portfolio expertise. Email: efgefg@rogers.com

Senior Management: San Francisco, CA., 25 years experience w/global leasing company, sales,marketing,business dev., P&L responsibility, asset mgmt, brokering and re- marketing. Interested in joining an est. firm with a future. Email:rcsteyer@yahoo.com

Senior Management: Somerville, NJ.

28 year veteran in Construction Equipment/ Transportation.

Full P&L responsibility, profit driven, team builder, sales manager, strong portfolio management skills. Will consider relocation.email: leasingman_95@hotmail.com

Senior Management: Tampa FL.20+ years of small to middle ticket finance, operations and sales management experience. Outstanding record of revenue enhancement, operational improvement and team development. Email: rlindcpa@earthlink.net

full listing of 87 job wanted ads at: http://64.125.68.90/LeasingNews/JobPostings.htm#sec10

post a free “job wanted” ad by going to:

http://64.125.68.90/LeasingNews/JobPostings.htm#sec10

We help people find work. No fee, no charge, not costs.

Many testimonials. Why? We have over 7,500 readers

in the leasing industry. You get the truth here, not

the “spin” or “outright lies.” No talk the talk, we walk

the walk.

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__________________________________________________________________

Where is Michael Sheehan? Not Answering His Phone

Since last week have been trying to get a confirmation or denial that Michael Sheehan, General Manager, Commercial Equipment Group, American Express Business Finance, was let go.

Have many telephone calls, e-mails, and if there is a complaint that we print “gossip,”

it’s because companies don’t return telephone calls or e-mails from leads we get,

which are generally valid. For almost a week now no response. Sheenan did not

answer his telephone. Perhaps he is no longer there. editor

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_______________________________________________________________________

Cartoon---On His Way Up?

http://two.leasingnews.org/cartoons/VENUS-Amex.jpg

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Jay Fudemberg departs Pure Markets

by Kit Menkin

http://two.leasingnews.org/photos/Fudemberg_Jay.jpg

Leasing News has confirmed that Jay Fudemberg has departed after five years of building the company to became the largest internet aggregate funder on our list with 70 employees. Founded in 1988 and located in San Francisco, California, the company specializes in " advisory service, online marketplace and web-based tools, providing access to both leases and secured loans"

http://www.leasingnews.org/elease/elease.htm

The web site states:

Pure Markets is the leading provider of enterprise solutions for equipment finance.

"Our powerful web-based tools, online marketplaces and expert services enable corporate borrowers and funding sources to finance equipment with lower costs, streamlined process and superior results.

" Over 300 corporate borrowers and 250 funding sources.

" Deep executive management team comprised of seasoned industry professionals from leading finance and technology organizations, including GE Capital, Bank of America, Credit Suisse First Boston, Sun Microsystems, Oracle and IBM.

" Well capitalized by blue-chip investor group, including Crosspoint Venture Partners, Canaan Partners, Sun Microsystems, Mitsui & Co., Ltd. and J. & W. Seligman."

"Led by founder and CEO Jay Fudemberg, Pure Markets has assembled a team of expert professionals from leading financial institutions such as GE Capital, Bank of America, and Wells Fargo, as well as from top technology companies like IBM, Sun Microsystems and Oracle.

"Jay Fudemberg is the founder and CEO of Pure Markets. Previously, Jay directed the origination, financing and development of large infrastructure projects throughout Europe, Africa and the Middle East for Enron International until 1996. Jay was also a management consultant with Bain & Co., where he helped create and implement strategies for increasing the growth, competitiveness and profitability of financial service, technology and manufacturing companies. Prior to Bain, Jay spent five years as a software engineer and manager at System Applications Engineering, Inc. Jay holds an M.B.A. from Stanford University, as well as multiple academic honors. He is a frequent speaker on the evolution of electronic commerce and its role in transforming today's economic institutions."

According to the transcript from CEOcast, July 24, 2000,

“ I was a senior executive at Enron Corp., running Europe and the Middle

East, where I was responsible for a lot of project

development. I was heavily engaged in project

financing, equipment financing, and structured

financing, and found these efforts to be more

inefficient, time-consuming and expensive than

need be. As the Internet started to bubble up, it

became very clear to me that there was a much

better way of conducting secured financing, and

I left Enron to found the company.”

A top inside source for PureMarkets said that everyone was "up-beat" about the decision...Fudemberg was "high profile, " had "implemented the general plan" and more importantly, "he raised $50 million for this company," but it was "time for him to leave."

In an interview for up-dating the web leasing Leasing News site, Fudemberg stated

the company sales were doing very well, despite other aggregate leasing companies

having to raise new capital, and reportedly behind in their lease arrangements

with companies such as Comdisco and Pentech Financial. It also was reported that

CapitalStream after they had raised $21 Million for “strategic acquisitions” and

failed to win the bid for Decision Systems, were after an “aggregate funding”

operation. They evidently are in a new direction, concentrating on the

“banking sector.” http://www.capitalstream.com/AmericanBanker.pdf

Capital Stream recently acquired CapitalThinking Inc., a vendor of process automation and risk management software products for the commercial lending and commercial mortgage industry.

Where Fudemberg will wind up, do not know, but Leasing News offers

him a free classified ad by going to: http://64.125.68.90/LeasingNews/PostingForm.asp

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Orix-—Down Dates

“On February 13^th, forty people will be let go in Orix's New York Office and twenty-five in Kennesaw with layoffs continuing every two weeks from then on through the end of the fiscal year (3/31).

“The layoffs will hit IT and Accounting the hardest but they will be across the board (SFG, EFG, RPG, Operations, HR).

“Also, apparently there is an internal memo among the Dallas Executives that has a timeline for vacating Kennesaw entirely.”

(name with held )

Previous Orix articles:

http://www.leasingnews.org/Conscious-Top%20Stories/Orix.htm

[Top]

Grand Old Doug Pierce Passes Away

http://two.leasingnews.org/imanges_uael_wael/Pierce_Durham.jpg

1985--Doug Pierce(left), Pierce Capital, San Luis Obispo, Ca visits

Western Association of Equipment Lessor Funding Source Forum participant Terry Durham, General Electric Credit Corporation

Early January, Leasing News reported Doug Pierce, Pierce Capital Corp, San Luis Obispo, was fighting brain cancer. He has had experimental surgery in Cleveland, Ohio.

January 7, 2003

“Doug Pierce, Pierce Capital Corp, San Luis Obispo, is fighting brain cancer. He has had experimental surgery in Cleveland, Ohio.

“Doug is expected to be home later this month, approximately 1/20, to celebrate his 71 birthday. He is doing OK and his spirit is good, but could always use a lift.

“It would be great if all Doug's friends in the industry would drop him a card for a fast recovery and/or a birthday wish to his home at:

219 Albert Drive

San Luis Obispo, = CA 93405

Thanks for anything you can do.”

Ron Lear

learlease@aol.com

“Dear Friends & Family,

“Early this morning Douglas Pierce passed away in his sleep. Today is his 71st birthday. He spent his last week surrounded by his entire family. His three children were with him, as well as his wife Betty. In addition, his two sisters and his brother from out of state were here last weekend. For months there has been a steady procession of friends and relatives coming by to give support and show their caring.

“As most of you know, for almost 2 years Doug has fought brain cancer with immense courage and with an incredibly positive attitude and love to all around him. We all wanted so much for him to win the battle and achieve those retirement years he so richly deserved. However, he has had a beautiful life full of family, love, learning & teaching, travels and adventures and wonderful memories. He never gave up trying to the end, yet he never once complained as he went through such a hard, hard fight. We know that as he went through this long battle he was determined to show us all (ever the teacher :-) how to go through such a difficult battle with optimism, courage and showing love and caring for others. So many friends who have seen him go through this have remarked on what an incredibly positive attitude he maintained, no matter what his discomfort. We're all so sorry to see him go, but also glad that he is finally beyond his suffering.

“A memorial service is planned for Wednesday, January 21st, 2pm, at the Reis Chapel in San Luis Obispo. Our phone number is 805-544-7004 if you wish to attend and need directions or information. Thank you for your caring and understanding as Doug and our family have gone through this. We look forward to seeing you all soon.

“Warmest Regards,

“Betty, Julie and Duane Pierce and Cindy and Doug Fleenor”

from the “San Luis Obispo Tribune:”

Douglas R. Pierce, 71, of San Luis Obispo passed away Friday, Jan. 16, 2004, after his long, brave battle with cancer.

A memorial service will be held at 2 p.m. Wednesday, Jan. 21, 2004, at Reis Family Mortuary of San Luis Obispo.

Doug is loved by all who have known him; the students he loved to teach and mentor, the many friends he came to know through his later work in lease financing, and his wonderful friends in Wines and Steins.

Born Jan. 16, 1933 in Cape Gireadeau, Mo., he loved to learn. Doug earned his doctorate in educational administration from the University of Florida, and a post-doctoral Smithsonian fellowship which he served at UC Berkeley. He taught throughout the USA, at Cornell, University of Minnesota, California Polytechnic State University SLO, and many more. He founded a successful equipment leasing firm in San Luis Obispo. He loved challenges and worked with Michigan State University on projects in Brazil, upgrading the University of Brazil's administration processes while residing there with his family for two years.

Doug loved helping people. He loved being there for family and never missed a chance to attend their accomplishments, from school performances, to track meets to graduations and celebrations. He was well known for his photography, capturing the moments he so loved to share.

Doug is survived by his loving wife of 49 years Betty; daughter and son-in-law, Cynthia and Doug Fleenor; daughter Julia Pierce; son Duane Pierce; three grandchildren, Janell, Diana and Matthew Fleenor; two sisters, Sue Grigg and Nancy Ackerman; and a brother, Willitt Pierce.

Donations may be made In Memory of Douglas R. Pierce, Brain Tumor Research Fund, UCSF Foundation, Box 0248, UCSF, San Francisco, CA 94143-0248.

Published in the San Luis Obispo Tribune on 1/17/2004

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_________________________________________________________________

### Press Release #######################################

U.S. Bancorp Reports 19.2 Percent Increase in Net Income for Fourth Quarter 2003

(Lease Financing Down 8.4%):

Percent Percent

Change Change

4Q 3Q 4Q 4Q03 vs 4Q03 vs

2003 2003 2002 3Q03 4Q02

Commercial $35,080 $36,958 $36,880 (5.1) (4.9)

Lease financing 4,959 5,022 5,413 (1.3) (8.4)

Total

commercial 40,039 41,980 42,293 (4.6) (5.3)

Commercial

mortgages 20,230 20,089 20,056 0.7 0.9

Construction

and development 7,060 7,308 6,587 (3.4) 7.2

Total commercial

real estate 27,290 27,397 26,643 (0.4) 2.4

Residential

mortgages 13,374 12,234 8,966 9.3 49.2

Credit card 5,713 5,606 5,662 1.9 0.9

Retail leasing 5,895 5,806 5,626 1.5 4.8

Home equity and

second mortgages 13,084 13,093 13,651 (0.1) (4.2)

Other retail 13,905 13,866 12,564 0.3 10.7

Total retail 38,597 38,371 37,503 0.6 2.9

Total loans $119,300 $119,982 $115,405 (0.6) 3.4

Full Full

Year Year Percent

2003 2002 Change

Commercial $36,238 $38,244 (5.2)

Lease financing 5,088 5,573 (8.7)

Total commercial 41,326 43,817 (5.7)

MINNEAPOLIS, -- U.S. Bancorp (NYSE: USB - News) reported net income of $977.0 million for the fourth quarter of 2003, compared with $819.7 million for the fourth quarter of 2002. Net income of $.50 per diluted share in the fourth quarter of 2003 was higher than the same period of 2002 by $.07 (16.3 percent). Return on average assets and return on average equity were 2.05 percent and 19.4 percent, respectively, for the fourth quarter of 2003, compared with returns of 1.83 percent and 17.8 percent, respectively, for the fourth quarter of 2002. Net income in the fourth quarter of 2003 included after-tax merger and restructuring- related items of ($5.0) million, which had an immaterial impact on earnings per share, compared with ($69.9) million, or ($.03) per diluted share, in the fourth quarter of 2002.

U.S. Bancorp Chairman, President and Chief Executive Officer Jerry A. Grundhofer said, "2003 concluded a 5- year period dominated by transformational acquisitions and their resulting integration activities. Due to the dedication and support of our exceptional employees, we now have a company that is uniquely positioned to achieve consistent earnings growth as a result of our balanced business mix, advantaged scale, reduced risk profile, low-cost leadership position and emphasis on customer service.

"Specific to 2003, we achieved our earnings objectives, despite the soft economy, increasing net income by 17.8 percent while producing industry-leading returns on assets and equity of 1.99 percent and 19.2 percent, respectively. In addition, we completed the spin-off of Piper Jaffray to our shareholders, a company with a market value of approximately $880 million, increased our cash dividend twice during the year resulting in a increase of 23.1 percent from the rate paid in the fourth quarter of 2002 and announced our intention to return 80 percent of earnings to shareholders through dividends or share repurchases.

"Looking forward to 2004, we see business conditions improving, as evidenced by the significant improvements we saw in the fourth quarter of 2003 in credit quality, as well as improving trends in our fiduciary and payments businesses. In this improving environment, we intend to achieve our stated long-term earnings per share growth goal of 10 percent, while continuing to make the investments that are necessary to ensure top line growth.

"In closing, I would like to thank all of our employees for their hard work and commitment in making 2003 a year of significant progress. Their focus on service quality, expanding existing customer relationships and acquiring new customer relationships was apparent in 2003 and will be critical to achieving our objectives in the future."

The Company's results for the fourth quarter of 2003 improved over the same period of 2002, primarily due to growth in net interest income and fee based products and services, as well as controlled operating expense and lower credit costs. Net income from continuing operations was $970.3 million, or $.50 per diluted share, for the fourth quarter of 2003, compared with $858.6 million, or $.45 per diluted share for the fourth quarter of 2002, representing an 11.1 percent annual growth rate.

Total net revenue on a taxable-equivalent basis for the fourth quarter of 2003 was $37.7 million (1.2 percent) lower than the fourth quarter of 2002, which primarily reflected the net reduction in securities gains (losses) of $106.3 million, in addition to an unfavorable variance in commercial products revenue and lower year-over-year gains from the sale of assets. Otherwise, favorable revenue growth occurred in net interest income, payment systems revenue, cash management fees, trust and investment management fees, and mortgage banking revenue. Acquisitions, including the 57 branches of Bay View Bank in California and the corporate trust business of State Street Bank and Trust Company ("State Street Corporate Trust"), contributed approximately $33.0 million of additional net revenue year-over-year.

Total noninterest expense in the fourth quarter of 2003 was lower than the fourth quarter of 2002 by $144.2 million (9.7 percent), primarily reflecting a $99.7 million reduction in merger and restructuring-related charges, a $54.1 million favorable change in the recognition of mortgage servicing rights ("MSR") impairment and cost savings from completed merger and restructuring- related activities. These positive variances were partially offset by expense increases due to acquisitions, which accounted for approximately $16.0 million of expense growth year-over-year.

Provision for credit losses for the fourth quarter of 2003 was $286.0 million, a decrease of $63.0 million (18.1 percent) from the fourth quarter of 2002. Net charge-offs in the fourth quarter of 2003 were $285.1 million, compared with the third quarter of 2003 net charge-offs of $309.9 million and the fourth quarter of 2002 net charge- offs of $378.5 million. The decline in losses from a year ago was primarily the result of an improving credit risk profile and collection efforts. Total nonperforming assets declined to $1,148.1 million at December 31, 2003, from $1,318.3 million at September 30, 2003 (12.9 percent), and $1,373.5 million at December 31, 2002 (16.4 percent). The ratio of the allowance for credit losses to nonperforming loans was 232 percent at December 31, 2003, compared with 202 percent at September 30, 2003, and 196 percent at December 31, 2002.

On December 31, 2003, the Company announced that it had completed the spin-off of Piper Jaffray Companies (NYSE: PJC - News). The Company distributed one share of Piper Jaffray Companies common stock for every 100 shares of U.S. Bancorp common stock held by shareholders of record as of 5:00 p.m., EST, on December 22, 2003, by means of a special dividend. In connection with the spin-off, accounting rules require that the financial statements be restated for all prior periods. As such, historical financial results related to Piper Jaffray have been segregated and accounted for in the Company's financial statements as discontinued operations. Net income in the fourth quarter of 2003 included after-tax income from the discontinued operations of Piper Jaffray Companies of $6.7 million, which had an immaterial impact on diluted earnings per share. This compared with an after-tax loss of ($38.9) million, or ($.02) per diluted share, in the fourth quarter of 2002. For the full year 2003, net income included after-tax income from discontinued operations of $22.5 million, or $.01 per diluted share, compared with an after-tax loss of ($22.7) million, or ($.01) per diluted share, for the full year 2002.

(Full Press Release with all numbers available at: http://biz.yahoo.com/prnews/040120/cgtu011_1.html

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### Press Release ###################################

Site Inspection

Site Inspection: Placentia, CA

On site verifications, document signing or collections. Quick, accurate and professional. Reports with photographs e-mailed direct. Agents throughout US. Contact for coverage and rates. E- mail:pwright@yk2bizsolutions.com

Site Inspection: Tampa/St. Pete, FL.

Contact Dick Mitchell @ Randolph Lynn Associates for prompt professional pre- funding equipment inspections, collateral "visits", and related lessee/vendor contacts. (Florida locations) 727-302-9144 E-mail: dmrla@gte.net

Site Inspection: US & Canada

Quiktrak performs equipment inspections within 24 hours of your job placement anywhere in the US. Order, check status & receive reports & photos online. E- mail:sdresser@quiktrak.com

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### Press Release ############################

Fred St. Laurent Joins Z Resource Group

Boston, MA ¾ Z Resource Group (ZRG – Private) As part of the firm’s active strategy to expand its presence in the Financial Services market, Fred St Laurent has joined the firm as a Managing Director and will manage the firms new office in Atlanta, Georgia.

Fred St Laurent is a seasoned marketing professional with a real understanding of the Financial Services Industry. Having been a member of Equipment Leasing Association, United Association of Equipment Leasing and National Association of Equipment Leasing Brokers and an active member of the Leasing News Advisory Board, he has been a participant in many forums on behalf of industry related issues, and has published articles and spoken publicly about his views concerning topics related to the future of the Industry.

He began his recruiting career being trained in the trenches as a Project Coordinator with Management Recruiters International, learning from thousands of financial professionals before being promoted to a Senior National Recruiter. He has been mentored under some of the best Financial Professionals and Recruiters in the industry. His relationships are structured as partnerships with the goal of building highly productive teams. He has a depth of sales management experience, having developed marketing plans, hired and trained sales teams, and has a firm grasp on what elements are required to create an environment of success for both clients and candidates.

Managing Partner Larry Hartmann stated, “We are committed to expanding our presence Nationally in 2004 and Atlanta is a key location to establishing our presence in the South. The addition of Fred St Laurent provides us with an experienced Financial Services professional. It also provides Z with an excellent platform for growth in the Atlanta area”.

Mr. St Laurent commented, “I am thrilled to join Z Resource Group at this time in my career. My experience and contact base within the Financial Services space will weigh in nicely with Z’s platform. They are ‘cutting edge’ in the way that they approach recruitment; they bring ‘new thinking’ and methods that create a true consulting relationship with the client”.

Z Resource Group is a fast growing, nationwide specialty Executive Search/Consulting firm headquartered in the Boston, MA area. The company is entering its sixth year of providing talent acquisition and consulting services focused in the Financial Services and Health Care markets. Z Resource Group has offices in Boston, New York, Philadelphia, Tennessee, California and now Atlanta.

Mr. St Laurent can be reached at

Fred St Laurent

Managing Director

Z Resource Group

Atlanta Office

Direct Line 678-947-9910

Digital Secure Fax 678-623-8283

Email fstlaurent@zrgroup.com

[Top]

#### Press Release ########################

Orion First Financial, LLC and Alliance Funding Group, Inc. Announce a New Joint Venture to Fund Leases

Gig Harbor, WA -- Orion First Financial, LLC and Alliance Funding Group, Inc. have formed a new joint venture, Alliance Financial, LLC. The joint venture has established a revolving line of credit with PFF Bank and Trust (Rancho Cucamonga, California) to warehouse leases originated by Alliance Funding Group, Inc. The new venture bundles the warehoused leases into portfolios and the lease receivables are sold to Union Safe Deposit Bank (Stockton, California) under a permanent funding facility. Orion First Financial, LLC will provide lease servicing and administrative services to Alliance Financial, LLC and Union Safe Deposit Bank.

Brij Patel of Alliance Funding Group, Inc. said, "Orion offers us the experience in the support and servicing of portfolios giving us the opportunity to focus on our core competency of lease originations. Over the past five years we have originated over $150 million in leases and now we have a partner to provide treasury, risk management, and reporting functions which enhances our position in the small & middle market equipment leasing arena."

David T. Schaefer of Orion First Financial stated, "We welcome the addition of Alliance Funding Group to our joint venture program. This marks another step towards our goal to provide servicing and treasury functions to an exclusive group of lease originators."

The Orion First program is unique in that it provides a level of control and flexibility needed in today's leasing marketplace. As funders have made dramatic changes in underwriting standards, or exited the market altogether, originators are looking for funding alternatives that are more predictable and stable. The Orion First program allows participants to expand funding resources, improve transaction flow and build lasting value.

Orion First Financial, LLC located in Gig Harbor WA, provides primary and back up lease servicing, complete portfolio management, and advisory/consultative services to the commercial equipment leasing industry. Orion has differentiated itself from other lease servicing companies by not only offering the standard billing, accounting and tracking services, but by providing complete portfolio performance management and treasury functions.

Alliance Funding Group, Inc. is an Anaheim, California based equipment leasing company. Alliance is a full service equipment lessor that provides a broad range of cost effective and flexible lease programs for its customers through out the United States & Canada. For more information on Alliance Funding Group, Inc. visit www.alliancefunds.com or call (800) 978-8817.

CONTACT:

David T. Schaefer, CLP

Orion First Financial, LLC

PO Box 2149

Gig Harbor, WA 98335-4149

Phone: 888.705.8778 ext. 210

http://www.orionfirst.com

dtschaefer@orionfirst.com

[Top]

### Press Release ################################

Mellon Reports Fourth Quarter EPS Of $.43

( cut 1,600 employees in 2003 )

- Fourth Quarter Performance Reflects Record Level of Investment Management

Fees, Higher Operating Margins and ROE of 20.4% -

PITTSBURGH / -- Mellon Financial Corporation

(NYSE: MEL) announced that income from continuing operations in the

fourth quarter of 2003 totaled $185 million, or 43 cents per share. This

compares with income from continuing operations of $163 million, or 38 cents

per share, in the fourth quarter of 2002 and $153 million, or 36 cents per

share, in the third quarter of 2003. Income from continuing operations

increased 13 percent during the fourth quarter of 2003 compared with the

fourth quarter of 2002. The third quarter of 2003 results included charges of

$50 million pre-tax, primarily in the Human Resources & Investor Solutions

sector, which reduced third quarter earnings by 7 cents per share.

Income from continuing operations, before the cumulative effect of a

change in accounting principle, for the full-year 2003 totaled $677 million,

or $1.57 per share, compared with income from continuing operations of $663

million, or $1.51 per share in 2002. Net income for full-year 2003 totaled

$701 million, or $1.63 per share, compared with $682 million, or $1.55 per

share for the full-year 2002. See page 4 for summary financial data for the

comparable periods.

"Through a combination of an exceptionally strong performance by

Institutional Asset Management, remaining on track to meet our profitability

targets in Human Resources & Investor Solutions and the everyday execution of

our strategy by all our employees, Mellon was able to deliver positive

operating leverage in our core business sectors and generate top tier returns

on shareholders' equity of 20.4 percent for the fourth quarter of 2003," said

Martin G. McGuinn, chairman and chief executive officer of Mellon Financial

Corporation. "We are beginning 2004 with a better foundation for growth than

2003. Demonstrating greater momentum and our commitment to positive operating

leverage, our earnings from continuing operations are 13 percent higher than

the fourth quarter of 2002. We are also cautiously optimistic based upon an

improving economic outlook and stronger equity markets, both of which are key

drivers for our fee-based businesses. During 2004 Mellon will continue to be

focused on generating organic growth as well as aggressive expense management

to deliver increasing returns to our shareholders."

Fourth Quarter Highlights (comparisons are with the third quarter of 2003,

and percentage changes are unannualized, unless noted otherwise).

-- Total fee revenue increased 9 percent to a record level of $981

million for the Corporation and represented 89 percent of fee and net

interest revenue. The increase was primarily driven by higher

investment management fees ($65 million) and institutional trust and

custody fees ($18 million).

-- Assets under management increased to a record level of $657 billion at

Dec. 31, 2003 from $625 billion at Sept. 30, 2003. Assets under

administration or custody also increased to a record level of $2.845

trillion at Dec. 31, 2003 from $2.611 trillion at Sept. 30, 2003.

-- Investment management fee revenue in the fourth quarter of 2003 was

$413 million, a record level and an increase of 19 percent. The

increase in investment management fees reflects the impact of a record

level of performance fees of $56 million as well as improved equity

markets, new business generation and the favorable impact of foreign

exchange rates.

-- Institutional trust and custody fee revenue in the fourth quarter of

2003 was $132 million, a record level and an increase of 16 percent.

The increase reflects the benefit of new business highlighted by the

investment management outsourcing contract of a London-based client

and improved market conditions.

-- Total operating expenses in the fourth quarter of 2003 were $843

million, an increase of $11 million. Excluding charges recorded

primarily in the HR&IS sector in the third quarter, the increase in

fourth quarter expenses reflects higher incentives ($30 million)

associated primarily with the record level of performance fees, higher

severance ($7 million), the impact of foreign exchange rates as well

as expenses related to new business and product development.

-- During the fourth quarter of 2003, the headcount of the Corporation

declined by 400 to 20,900. For the full-year of 2003, the Corporation

reduced headcount by 1,600 or 7 percent compared to the beginning of

the year.

-- The Corporation continued to reduce its credit risk profile. Total

loans and commitments declined by $740 million during the fourth

quarter of 2003. The level of non-performing assets declined by $11

million to $52 million. There was no net provision for credit losses

during either the fourth or third quarters of 2003. Net interest

revenue in the fourth quarter of 2003 totaled $120 million, a decrease

of $12 million. The decrease related to the sales and prepayment of

higher coupon mortgage-backed securities and the continued reduction

in large corporate loans.

-- The tangible common equity ratio was 5.94 percent at Dec. 31, 2003

compared to 6.18 percent at Sept. 30, 2003. The decrease was due to a

higher period end balance sheet level due to period end inflows of

deposits and the repurchase of 4 million common shares in the fourth

quarter.

The Corporation also declared a quarterly common stock dividend of 16

cents per share. This cash dividend is payable on Friday, Feb. 13, 2004, to

shareholders of record at the close of business on Friday, Jan. 30, 2004.

In the fourth quarter of 2003, the Corporation adopted discontinued

operations accounting for the fixed income trading business of Mellon Investor

Services, which was sold in December 2003. This business was formerly

included in the Corporation's HR&IS sector. All information in this earnings

release is reported on a continuing operations basis, before the cumulative

effect of a change in accounting principle recorded in the first quarter of

2003, unless otherwise noted. Net income amounts include the results of

discontinued operations, discussed further on page 24.

Mellon Financial Corporation is a global financial services company.

Headquartered in Pittsburgh, Mellon is one of the world's leading providers of

financial services for institutions, corporations and high net worth

individuals, providing institutional asset management, mutual funds, private

wealth management, asset servicing, human resources and investor solutions,

and treasury services. Mellon has approximately $3.5 trillion in assets under

management, administration or custody, including $657 billion under

management. Its asset management companies include The Dreyfus Corporation

and U.K.-based Newton Investment Management Limited. News and other

information about Mellon are available at http://www.mellon.com .

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#### Press Release #####################################

Edmunds.com Reports Automakers' True Cost of Incentives: Average Incentive Swells Nearly 30% From 2002 to 2003, Expected to Level Off in 2004

SANTA MONICA, Calif., -- Edmunds.com ( http://www.edmunds.com ), the premier online resource for automotive information, reported today that the average incentive per vehicle sold in the United States was $2,455 in December 2003, up $251 or 11.4% from December 2002, and up 2.9% from November 2003. For calendar year 2003, the average incentive was $2,442 per vehicle sold, which was 28.9% higher than the 2002 average of $1,894.

Edmunds.com's monthly True Cost of Incentives(SM) (TCI(SM)) report takes into account all of the manufacturers' various United States incentives programs, including subvented interest rates and lease programs as well as cash rebates to consumers and dealers. To ensure the greatest possible accuracy, Edmunds.com bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used.

Incentives spending for domestic models decreased slightly, falling 0.5% to $3,339 in December compared to $3,355 per unit in November. Chrysler increased incentives spending by 1.5% to $3,415 per vehicle and experienced a market share gain of 0.3%. Ford's total incentives spending per unit dropped by 3.3% to $2,868 in December while the company's domestic brands gained 0.2% market share. Despite reducing its incentives by 0.6% to $3,589, General Motors gained a sizable 2.4% market share.

Trucks and SUVs reached all time highs in market share in December despite lowered incentives over the last three months of the year.

"The increased market share can be credited to an increased variety of trucks and SUVs manufactured by both domestic and import automakers," stated Dr. Jane Liu, Executive Director of Data Analysis for Edmunds.com. "In the current market, enhanced product variety and quality motivate buyers more than incentives do, and create far more positive brand equity in the process."

The numbers clearly show incentives do not always translate into market share gains. The brands with the greatest incentives expenditures in 2003 included Mitsubishi, GM and Chrysler while the biggest losses in market share were suffered by those companies. Conversely, the biggest market share gainers overall in 2003 were Honda, Toyota and Nissan, which were among the companies that spent the least on incentives.

"Going forward, we should no longer expect to see the rapid acceleration of incentives consumers enjoyed this year," said Dr. Liu. "Incentives will flatten out as automakers introduce a record number of new models and major vehicle redesigns that will have more intrinsic appeal to buyers just as the overall economic outlook becomes more optimistic."

About Edmunds.com True Cost of Incentives(SM) (TCI(SM))

Edmunds.com's TCI(SM) is a comprehensive monthly report that measures automobile manufacturers' cost of incentives on vehicles sold in the United States. These costs are reported on a per vehicle basis for the industry as a whole, for each manufacturer, for each make sold by each manufacturer and for each model of each make. TCI covers all aspects of manufacturers' various incentives programs (except volume and similar bonus programs), including dealer cash, manufacturer rebates and consumer savings from subvented APR and lease programs (including subvented lease residual values used in manufacturer leasing programs). Data for the industry, the manufacturers and the makes are derived using weighted averages and are based on actual monthly sales and financing activity.

About Edmunds.com, Inc.

Edmunds.com ( http://www.edmunds.com ) is the premier online resource for automotive information. Its comprehensive set of data, tools and services, including Edmunds.com True Market Value(R) pricing, is generated by Edmunds Data Services and is licensed to third parties. For example, the company supplies over 800,000 pages of content for AOL's auto channel and NYTimes.com's auto section and delivers monthly data reports to Wall Street analysts. Edmunds.com was named "best car research" site by Forbes ASAP, is viewed by consumers as the "most useful Web site" according to the J.D. Power and Associates New Autoshopper.com Studies(SM) for both 2001 and 2002, and was ranked first in the Survey of Car-Shopping Web Sites as reported by The Wall Street Journal. The company is headquartered in Santa Monica, California and maintains a satellite office in Troy, Michigan.

SOURCE Edmunds.com

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