Leasing News

Senior Sales Representatives- Nationwide. AEF has aggressive pricing, products and programs to serve your Lessee and Vendor requirements. Work from your home while our Citrix server keeps you connected 24/7. Generous compensation and bonus for exceptional results. To become a representative please e-mail your credentials to: rbaccaro@aefllc.com.
Credit: Campbell, CA. 3+ yrs exp in finance, bank or venture market. Portfolio mngment, credit assessment, underwriting and collections. Degree with concentration in Finance preferred. email:ephaniew@pentechfinancial.com
SALES--Territory Mgrs. needed. Small to lower- middle-market lessor. Unequaled backroom support. Lead generation. Bruce Larsen 877-333-5864, or, blarsen@leasingpartnerscapital.com
"Telesales Reps-Newton, MA/Nationwide. Integrity Leasing seeks reps to call on our Vendors and Lessee's. Should have at least two years experience structuring and CLOSING small/mid ticket transactions and Vendor programs, and bring A BOOK OF BUSINESS. Generous commissions, draw possible. Email resumes to markg@integrityleasing.com or fax to 617-641-9374. " About the Company: www.integrityleasing.com

[Headlines]

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

What Lessors Are Saying About. . .Staffing Up

Equipment Leasing Association

According to the Equipment Leasing Association's quick poll located on the home page of www.elaonline.com, lessors may have finally hit the limit to staff reductions. At press time, poll results showed 19 of 33 respondents will not be adding (or reducing) their projected staffing level for the balance of the year. Just three report they will reduce staff with 11 industry players conveying they will increase staff. Since jobs are hot on everyone's mind these days, we asked a number of lessors where they may be adding staff and why. Interestingly, several organizations plan to staff up significantly

“ We are trying to hire 20 to 24 people right now from all over the country,”¨ said Gary Shivers of Marlin Leasing Corp. “We're poised to take advantage of the rebound.” Shivers is not alone in his confidence.

While Shivers primarily will be adding sales people, Jim Possehl of Republic Financial Corp. is actively seeking to hire 20 people in sales, asset management and accounting. Vince Kolber told us two areas for staffing needs will be in originations and portfolio management & underwriting for his company, Residco. Paul Larkins of Key Equipment Finance reports that as the economy improves they expect to incrementally add staff to both credit and asset management departments and add sales staff on an ¡§as-needed basis.¡¨

Why such optimism?

“Our vendor base has been slower than we've experienced historically lately, meaning we have less deals per vendor,¡¨ said Shivers. ¡§ But, we are doing business with more vendors. So, when the rebound comes we'll experience a sling shot effect.¨

Republic, which buys nonperforming portfolios, is taking advantage of market conditions.

“We’re trying to add staff now due to the timing in the marketplace. We'll grow our staff by 20 percent this year,¡¨ said Possehl.

Key's Larkins said, ¡§As the economy improves, we will need to incrementally add staff to our risk management areas (both credit and asset management departments) to handle the flow of business. We will also ¡¥opportunistically¡¦ add sales staff to further support both our commercial and vendor partners, as needed.

“Naturally as clients begin to invest, we need to spend even more time with them (sales), and turn around their transactions (credit and asset management) in a manner that exceeds their expectations,”¨ continued Larkins.

For companies looking for people, the good news is people are available. This allows for organization to upgrade their capabilities.

“¡§Lots of good talent is available,¡¨ said Shivers. ¡§There are more experienced people, and you don't have to stretch.¨

New Employment Numbers. . .
„X     Total non-farm payroll employment declined 48,000 in April 03 to 130,348,000. (Source: U.S. Department of Labor)
„X     Manufacturing employment declined 95,000 in April 03 to 16,251,000. (Source: U.S. Department of Labor)
„X     Manufacturing workers accounted for 12.5 percent of the workforce in April 03. (Source: U.S. Department of Labor)
„X     The unemployment rate in April 03 was 6 percent. (Source: U.S. Department of Labor)
„X     After peaking at 18,542,000 in July 2000, manufacturing employment has fallen by 2.3 million over 33 consecutive months to 16.3 million by April 2003. This is the second-largest decline in the post WWII era and just 80,000 short of the 2.4 million decline that took place between 1974-75. (Source: U.S. Department of Labor)
„X     Since July 2000, employment other non-manufacturing sectors of the economy has risen by 812,000 through April 2003 to 114,097,00. (Source: U.S. Department of Labor)

[Headlines]

Grant Street Group at AGLF Spring Conference

Perhaps the last standing aggregate “funders” has entered the municipal

leasing field with Lehigh Municipal Leasing. They presented their website,

www.grantstreet.com and ”Muni Auction” to the Association of Equipment Leasing and Finance ( AGLF )Spring Conference in Las Vegas Wednesday,

May 14.

The company has been in the municipal bond business on the internet since

1997, completing $4 trillion dollars to date in business as a “transaction

medium” working with financial advisors and issuers of bonds, according to

William K.Haskins, Chief Financial Officer.

Many of the recent transaction have been as low as $90,000 for school districts

and upwards of $300 million for municipal projects. They bring the “financial

advisor” together with the issuer of bonds in an “on line” bidding basis. The

final aspects of the transactions are completed off line, he explained.

“For Lehigh, they can win a transaction, then go ‘on line’ to find

a group of investors who will fund at the best rate for Lehigh, “ he said. “ We

are bringing this platform to the leasing industry with auction hosting and

administration, marketing support, training, private labeling, plus if required,

clearance and settlement through Grant Street Securities ( a wholly owned subsidiary.)”

This is Grant Streets first venture into the leasing community. Their handout

includes many other services including CD’s, Flex Repos/debt exchange/securities/swaps, yield auction working with “broker-dealers/financial advisors” and government agencies plus financial institutions.

Their flyer lists major agencies such as Freddie Mac, TVA, FHLB, plus state and local treasurers, financial institutions such as Deutsche Bank, Mellon Financial, Wilmington Trust, Fleet, and many Financial Advisors.

Leasing News will write a more detailed story about this company in a future

issue. If you care to reach Mr. Haskins, please wait until next week and e-mail

him at: bill@grantstreet.com

[Headlines]

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

Government Leasing and Finance---The Basics

“Municipal leasing is a $30 billion a year industry Moderator Karen Mikan, Marquette Bank, Illinois, said. “ We have completed a $6,000 copier for one city,

a $90,000 for the fire department where I live, and we have completed

much larger leases.”

The brochure states, “She is responsible for providing financing solutions to local

government along with cash management and investment services. Her main focus is to provide tax exempt funding to leasing companies in the municipal

leasing market. Karen has over 20 years in the banking field.”

The two hour session was an overview of municipal leasing including pricing, structuring, documentation, and credit.

Municipal prospects also including hospitals, private schools, churches,

and other such entities in addition to city, counties, colleges, university,

state institutions and public school. Real estate is leased as well as personal

property.

Almost all the transaction are “tax exempt” and based on “interest in time,” most

have a $1.00 out or nominal purchase at the end, and are subject to annual appropriations ( California and Indiana have abatement laws and other

state have different regulations, as do tax entities.) Entities may vote the end

of appropriations and contracts, plus who signs them, and the tax exempt

status often require legal counsel fees.

Another major consideration is the “collateral” due to the annual appropriation

clause, with the common sense approach: “ Is it essential.”

“Credit is very important,” said George Day, III, Old National Bank, Evansville, Indiana. “You look at census figures, wealth and income levels, industry employer concentration, as well as financial and standard credit analysis.”

Day is on the board of directors of AGLF and has been at Old National Bank since 1955. He currently serves as Vice President and Manager of the Bank’s Southern Region Leasing Division.

“Credit requirements have tightened, and we take a much closer look at

everything today, “ he said. “ We are active in the re-finance market,

including municipals as well as mortgages, and have an appetite in this

market.”

He explained business has been good, but municipality such as the commercial

industry has waited for budget and is holding back on projects not only for

political reasons but waiting to see what is going to happen in the overall

economy. He states it is the same with the commercial side, when business

had courage, they will expand, seek more credit, and when they are bearish,

timid, they hold back and wait.

Karen Mikan of Marquette Bank after the session said business was very good

at her bank, that she was quite busy. George R. Culm, also on the AGLF board

of directors, managing director of AllAmerican Investment Group in Chicago, Illinois, specializing in high structured tax-exempt securitizations, and capital market syndications, said they were doing a lot of construction projects.

“Leasing is very popular today as it is not considered debt, plus many municipalities treat it differently on their balance sheets, “ he said. “But

it also is the low cost of funds for those with a tax appetite. Look for more

in the near future as it offers many advantages to muncipalities.”

Francine H.Katz, Riker, Schere, Hyland & Perretti, said her firm is very

busy with municipal and health transactions. She serves as bond counsel, underwriter’s counsel and trustee’s counsel in connection with issuances of revenue bonds by “conduit” issuers, particularly in the healthcare field and with

issuance of state and local government general obligation and revenue bonds.

Ms. Katz also specializes in representing leasing companies and governmental

lessees in state and local government lease transactions.

Interesting the panel referred to “originators” and did not consider them “brokers.”

Often they are banks, investment advisers, plus individuals and leasing companies

who are serving as “brokers,” as we know it in the commercial side, but in

the municipal arena, they call them “originators.”

In the muncipal market place, the originator wins the transaction, and then finds a specific funder for the transaction, and often in the documents cannot assignment, and should they, must remain active in the collection and service of the lease.

With the tightening on all government budgets, lack of tax and other income,

leasing is surely to become more the avenue to proceed, and has reached

the small dollar transaction marketplace.

[Headlines]

__________________________________________________________________

About the Association for Governmental Leasing & Finance

Located at:

1255 23rd Street, NW

Washington, DC 20037

202.742.AGLF (2453)

fax: 202.833.3636

email: gsh@aglf.org

http://www.aglf.org

Graham Hauck

Executive Director

Mr. Hauck invited Leasing News to the session, paying all conference fees.

The association went from 250 members in June of last year to 343 at the

end of last year.

AGLF was founded in 1981 to serve municipal leasing industry. Publishes

Bi-monthly newsletter; sponsors 2 annual conferences; 50-state leasing

survey; federal leasing survey; and conducts numerous industry projects.

Two types of membership: regular member - private sector organizations

active in leasing/finance; governmental member - any state, territory, US possession, District of Columbia, or political subdivision of above.

Dues information:

As many people as would like to from any one company may join. One person

must be designated the Regular Member and pay $650/year dues. The other

members are designated Additional Members and pay $150/year dues.

Non-members are very welcome at our conferences. For registration materials, they can call 202.742.AGLF (2453) or email info@aglf.org

[Headlines]

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

Please send to a colleague as we are trying to build our readership.

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

Cartoon---Running Away from the Circus

http://two.leasingnews.org/cartoons/CIRCUS-Matsco.jpg

[Headlines]

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

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

ICON Capital Corp. Announces Successful Completion of Income Fund Nine for Equipment Leasing Investments

NEW YORK-- $100 Million Investor Equity Raised; On Track to Acquire $250 Million of Equipment ICON Capital Corp., a major sponsor and manager of publicly registered equipment leasing investment programs, today announced the completion of ICON Income Fund Nine, LLC ("ICON Nine"). The fund raised

$100 million of investor equity and is on track to acquire approximately $250 million of equipment subject to leases with large, creditworthy companies. Combined with prior ICON-sponsored programs, more than $500 million of equity has been raised and more than $1 billion of equipment has been acquired.

"We began marketing Fund Nine in late 2001, so it has been completed in a

very short time period and illustrates our continued success in attracting

investment capital," said Beaufort J.B. Clarke, Chairman and CEO of ICON

Capital Corp. "The lackluster investment environment for stocks and bonds

has generally prompted a resurgence of interest in hard asset alternatives,

such as quality equipment leases."

"We continue to see compelling investment opportunities in all of our core

markets," added Paul B. Weiss, President and Chief Acquisition Officer, ICON

Capital Corp. "While the environment necessitates great care and proper

portfolio diversification, we remain busy in the pursuit of equipment lease

acquisitions from major financial institutions. The sellers continue to

rely on ICON to facilitate their objectives to liquefy assets at fair

prices. Therefore, we benefit from above average return opportunities."

ICON Income Fund Nine's equipment lease assets acquired to date include:

- A 10% interest (in joint venture with another managed ICON Income Fund) in

a McDonnell Douglas DC-10-30F aircraft built in 1980, and two spare

CF6-50-C2 engines, subject to lease with Federal Express through March 2007.

- An 85% interest (in joint venture with another managed ICON Income Fund)

in a DC-10-30F aircraft built in 1979, subject to lease with Federal Express

through March 2007.

- 110 gondola-type railcars on lease to Trinity Rail Management through

April 2010.

- 324 gondola-type railcars on lease to Texas Genco Holdings, Inc. through

May 2007.

- A 51% interest (in joint venture with another managed ICON Income Fund) in

a portfolio of miscellaneous equipment subject to lease with various

lessees, formerly owned by a regional bank. The lessees and equipment types

are:

- - International Paper Company - forklifts, material handling and

excavators for a lease term of 42 months

- - Lockheed Martin - various personal computers and accessories for a lease

term of 19 months

- - Ball Corporation - forklifts, sweeper scrubbers and phone systems for a

lease term of 27 months

- - Heafner Tire Group, Inc. - forklifts and materials handling equipment

for a lease term of 52 months

- - Delphi Automotive Systems Corp. - four rotor coil-winding machines for a

lease term of 41 months.

- A 50% interest (in joint venture with another managed ICON Income Fund) in

one Airbus A340-300 aircraft built 1996, on lease to Cathay Pacific for 50

months.

- An Airbus A340-300 aircraft built 1997, on lease to Cathay Pacific for 50

months.

- A cogeneration facility that began operating in 1989; it is a 30-megawatt

natural gas fired combined cycle plant that generates electrical power and

steam for Schering Corporation's facilities and headquarters buildings, on

lease to Energy Factors Kenilworth for a lease term of 24 months.

- Three car-carrying oceangoing marine vessels on lease to Wilhelmsen Lines

for 75 months.

Today, hundreds of thousands of creditworthy companies across the world have

leasing relationships with ICON Capital Corp., which specializes in

acquiring business-necessary equipment subject to lease with leading

companies. Its investments are acquired in the secondary market from other

leasing companies or financing institutions, rather than originated

directly. Over 28,000 investors are limited partners in ICON's equipment

leasing investment programs, allowing them to diversify their portfolios

beyond equities, fixed income, cash and other asset classes. ICON Capital

Corp.'s affiliate, ICON Securities Corp., acts as a dealer/manager with

broker/dealers to market its programs to investors.

About ICON Capital Corp.

ICON Capital Corp, based in New York with a major office in San Francisco,

is one of the leading sponsors of programs for investments in equipment

leases. For more information, visit www.iconcapital.com or call (860)

514-2756.

Account Supervisor

Kodora Communications

2150 Joshua's Path, Suite 100

Hauppauge, NY 11788

631-952-4600, ext. 203

ben@kodora.com

[Headlines]

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

DVI Closes New $100 Million Credit Facility; New Credit Facility to Finance Medical Equipment Leasing Business

JAMISON, Pa.----DVI, Inc. (NYSE:DVI), an independent specialty finance company for healthcare providers, announced today the completion of a new $100 million credit facility. The new credit facility, which closed on May 5, 2003, is available to a wholly owned subsidiary, DVI Financial Services Inc., to finance loans and leases of medical equipment in the United States.

This credit facility, issued by West LB AG, New York Branch, will provide interim, or warehouse, financing for DVI's domestic medical equipment leasing business with permanent financing generated from the proceeds of periodic asset-based securitization transactions. West LB will provide this financing through its Paradigm Funding LLC commercial paper conduit program.

Michael A. O'Hanlon, president and chief executive officer of DVI, commented, "We are very pleased to have West LB as one of our new funding sources. This additional credit capacity will play a key role in the growth of our core domestic business. We look forward to a long term and profitable working relationship with West LB and its parent organization."

DVI is an independent specialty finance company for healthcare providers worldwide with $2.7 billion of managed net financed assets. The Company extends loans and leases to finance the purchase of diagnostic and other therapeutic medical equipment directly and through vendor programs. DVI also offers lines of credit for working capital backed by healthcare receivables in the United States. Additional information is available at www.dvi-inc.com.

CONTACT:

DVI, Inc.

John F. Schoenfelder, 877/219-1001

[Headlines]

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

HPSC, Inc Reports 59% Increase in Net Earnings in First Quarter Results

BOSTON--(BUSINESS WIRE)-- (AMEX:HDR) today reported a 59% increase in net income for the first quarter ended March 31, 2003, with net income of $1.3 million, compared to $824,000 in the same quarter last year. Earnings per share on a diluted basis were $0.30 in the first quarter of 2003 versus $0.19 in the same period in the prior year. Basic earnings per share were $0.32 in the first quarter of 2003 compared to $0.21 in the first quarter last year. Net revenues for the first quarter of 2003 were $14.9 million, a 19% increase from $12.5 million reported in the first quarter of 2002. The increase was the result of higher levels of earning assets and higher asset sales activity. Net operating expenses for the first quarter of 2003 were $12.7 million, a 14% increase over the $11.1 million recorded in the same period last year.

Said John W. Everets, Chairman and Chief Executive Officer, "During the first Quarter of 2003 we experienced robust growth in originations of new financing contracts. Also, during the month of March we completed a $323 million asset-backed term securitization led by Merrill Lynch and co-managed by ING. This important financing was done at borrowing rates that are favorable to the Company."

In the first quarter of 2003, the volume of new financing contract originations rose to $78 million, a 24% increase over volume of $63 million produced in the first quarter of 2002. The gross portfolio of leases and notes under management, which includes both financing contracts owned by the Company and those which we have sold and continue to service, increased to $963 million at the end of the first quarter of 2003, a 16% increase from a gross portfolio size of $827 million at the end of the first quarter of 2002. Unearned income increased 11% to $122 million at the end of the first quarter of 2003, from $110 million at the end of the first quarter last year.

HPSC Inc. (AMEX:HDR) is a leading non-bank financial services company providing leasing and financing opportunities to the medical and dental professions in all 50 states. For more information, the company's website can be accessed at www.hpsc.com.

CONTACT:

HPSC

John W. Everets, 617/720-3600

[Headlines]

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

WeirFoulds LLP Selects RainMaker Gold Suite

Firm Chooses Advanced Practice Management System to Enhance Functionality and

Organization

BLUE BELL, Pa., -- RainMaker Software, Inc., a leading full-service provider of financial management, practice management and business intelligence software for medium-to-large size law firms, today announced WeirFoulds LLP, a 120-timekeeper firm, based in Toronto, Ontario, has purchased the full suite of the company's RainMaker Gold Financial Management and Practice Management software. The firm has also licensed RainMaker's Business Intelligence suite that allows a firm to access, extract and analyze financial information in practical formats for supporting critical business decisions.

"We were previously on RainMaker's Unix based system. Our technology needs were changing and we were looking to upgrade to something that provided us with the next generation of functionality and technology," said Tom Nixon, accounting manager for WeirFoulds. "We also needed a fully integrated practice management system and RainMaker Gold provides us with these capabilities. Further, we have previously had very positive experiences with their customer support and felt comfortable staying with the company."

James Hammond, president of RainMaker, said, "We are very happy to provide a firm of WeirFoulds' caliber with proven and practical technology to grow and manage its practices. Innovative offerings like practice management and the business intelligence toolset provide a quick return on a firm's investment. It's good to see that our long history of providing exceptional customer support is still an important element in a firm's decision process."

RainMaker Gold financial and practice management applications are built using Microsoft's SQL Server 2000 database technology. The Business Intelligence suite includes Lightning data warehouse, Thunder inquiry and analysis reporting tool and Digital Dashboard, a library of business inquiry web tools that run from within Microsoft Outlook. For more information regarding RainMaker's products, interested parties can contact the sales department at 1-800-341-4012 or via e-mail at legalinfo@rainmakerlegal.com.

About RainMaker Software, Inc.

RainMaker Software, Inc. provides proven, practical and progressive financial and practice management systems designed to help mid-to-large sized law firms effectively and profitably manage and grow their businesses. With more than 30 years of legal-specific development experience, RainMaker has consistently delivered stable and feature-rich, yet easy to use products. The company's premier Rainmaker Gold product line provides a comprehensive offering of useful features and functionality, along with a proprietary Business Intelligence toolset designed to extract decision-support data in practical formats for reporting and analysis, with no custom programming required. RainMaker takes a hands-on, customer-centric approach to evaluating and responding to firms' needs, and is dedicated to long-term client satisfaction. Headquartered in Blue Bell, Pa., RainMaker was formed as the result of a merger between longstanding legal technology providers CompuTrac and ASA Legal Systems. RainMaker is a wholly owned subsidiary of ASA International, Ltd. (Nasdaq:ASAA). Additional information about RainMaker Software Inc. and its products can be obtained by contacting the sales and marketing department by phone at 1-800-341-4012, via e-mail at legalinfo@rainmakerlegal.com, or by visiting the company's website at www.rainmakerlegal.com.

About WeirFoulds LLP

WeirFoulds LLP is a Toronto law firm with experience and expertise to address the most complex and sophisticated legal problems. The firm provides a wide range of legal services in all types of matters including civil, commercial, constitutional and public law litigation; business and corporate law; labour and employment law; financial services; mergers and acquisitions; securities law; commercial real estate and leasing; wills and estates planning; health care law; education; municipal, planning and development law; environmental law, charities and not-for-profit law; and other specialized practice areas. The firm's clients range in size from individuals, small business owners and entrepreneurs to very large organizations in the private and public sectors, and in government. WeirFoulds LLP has earned a high reputation for legal excellence and service to clients, and is committed to maintaining these high standards in the future. For more information, call 416-365-1110, email firm@weirfoulds.com or visit www.weirfoulds.com.

Media Contact: Company Contact:

JoAnn Buono, The M.O.I. Agency Jill Conti, Mktg. Dept.

j.buono@themoiagency.com

jconti@rainmakerlegal.com

[Headlines]

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

Key Launches Web Site for Women Business Owners

KeyBank launched a dedicated website for women business owners - www.key.com/women. The site is an in-depth information resource for the 10.1 million firms that the Center for Women's Business Research estimates are majority- or 50-percent-owned by women in the U.S.

Visitors to the website can access vital advice on how to write a business plan, secure funding, market their company, forecast sales, manage accounts payable and finance equipment. With a couple of mouse clicks, women will be able to identify a relationship manager in each Key district who can help with these and other small business needs.

"Key is committed to the needs of all small businesses," said Maria Coyne, senior vice president of Small Business Banking who leads Key's women-owned business initiative. "Businesses owned by women don't necessarily need specialized products, but we have found that women are looking to save time and build long-lasting relationships. It makes sense that Key, a relationship- focused bank, would offer a variety of flexible and time-saving delivery channels and dedicated specialists throughout our communities to serve this growing segment. We built this site to augment the services we already offer. It's convenient, easy to use and very content-rich."

The launch of Key's new website is part of Key's continuing strategy as a trusted financial advisor to enhance the resources and tools women entrepreneurs can use to succeed.

"As part of our ongoing initiatives, we are also co-sponsoring a national survey conducted by the Center for Women's Business Research. It will examine women-owned firms with more than $1 million in annual sales to identify best practices and paths to success that we can share on our Web site, with our clients and with our relationship managers so that we can better help women business owners to achieve their goals," stated Coyne.

The website also includes a calendar of events that Key is coordinating or sponsoring for women-owned businesses across the country in 2003. Among these events are Key's Financial Forum for Women conferences being held in selected cities to aid women in successful financial management.

[Headlines]

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

U.S. Office Property Sector to Start 'Non-Dramatic' Recovery in 2004

Fitch Ratings- As of the first-quarter 2003, the average vacancy for the US office sector virtually doubled to 16.9% nationwide from 8.6% in 2000. In a new report, Fitch Ratings predicts that any improvement in the sector over the next two years will be tempered by the need to absorb underutilized space.

'The decline in most office markets has been dictated more by a lack of demand than by oversupply, which was the principal source of trouble in the 1990's real estate downturn,' said Geraldine Keegan, Director, Fitch Ratings. 'While some cities have shown great resiliency with office vacancies at approximately 11%, many other markets exceed the national average and present real challenges to owners, lenders, brokers and commercial mortgage backed securities (CMBS) bond investors.'

The report 'Downsized Demand: The Office Sector in San Francisco, Dallas and Chicago' helps investors better understand the vacancy variances between markets. San Francisco, Dallas and Chicago are three major cites with vacancies above the national average; all experienced a contraction and consolidation of both high-tech and Fortune 500 companies, and all have substantial amounts of loan collateral in CMBS transactions. Keegan notes that the report highlights how subtle differences in each market affected the impact of waning demand.

In San Francisco properties with a disproportionate share of tech startups, or those built or bought at the apex of the real estate boom, and older properties unable to compete with the more attractive newcomers are most vulnerable over the next several years. Fitch anticipates a slow but gradual increase in occupancy in San Francisco over the next three years, but cautions that investors should be concerned about properties with a lot of near term rollover because of the dramatic rent spikes from 1999 to 2001.

While Fitch anticipates the migration of people and companies to the Dallas metropolitan statistical area (MSA) will continue well into the future and expects the office market to grow accordingly, the central business district (CBD), with vacancies of 48% in class B and C properties, will be the last to recover.

With respect to Chicago, it appears inevitable that vacancy increases will continue into 2004 as a number of construction completions are slated for 2003. The influence of that construction should be negligible in the CBD as it will only increase inventory by 1%, but it may delay a rebound in office occupancy in suburban Chicago.

A copy of 'Downsized Demand: The Office Sector in San Francisco, Dallas and Chicago,' is available on the Fitch Ratings web site at 'www.fitchratings.com'.

Contact: Geraldine Keegan 1-212-908-0685, New York.

Media Relations: Matt Burkhard +1-212-908-0540, New York.

[Headlines]

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

Sea Containers Announces First Quarter Results-- -"Seasonal Loss"

HAMILTON, Bermuda, -- Sea Containers Ltd(NYSE: SCRA and SCRB, http://www.seacontainers.com) marine container lessor,

passenger and freight transport operator, and leisure industry investor, today

announced its results for the first quarter ended March 31, 2003. Net

earnings for the period were a loss of $10.3 million (loss of $0.49 per common

share) on revenue of $351 million, compared with a loss of $6 million (loss of

$0.32 per common share) on revenue of $218 million in the prior year period.

The first quarter is traditionally loss making because of the seasonality

of the company's passenger and freight transport business. It is also the

weakest period for marine container leasing because of reduced consumer

purchasing post Christmas and Asian holidays which cause factory closures. In

the first quarter of 2002 the company owned only 50% of Silja Oyj Abp while in

the first quarter of 2003 it owned 100%, thus it had to include 100% of

Silja's first quarter seasonal losses this year.

Silja's first quarter 2003 revenue was $115 million compared with $94

million in the year earlier period. This winter has been exceptionally harsh

with heavy ice conditions which cause fuel consumption to rise and prevent

operation of aluminium hulled fast ferries. Fuel costs were $3 million higher

than budget in the period due to ice and fears of disruption to world oil

supplies because of the Iraq war and Venezuelan strikes, causing a short term

spike in prices. Oil prices have now declined back to more normal levels and

Silja is 50% hedged for the second and third quarters at prices lower than

current levels so it should recover the overspend in the first quarter in the

remainder of the year. (The company's other ferry operations are similarly

hedged.) Silja also had a large passenger ship out of service for drydocking

(this work is always done in the slow first quarter) and this caused a $1

million reduction in revenue.

Irish Sea ferry operations showed improvement over the prior year while

SeaStreak in New York had worse results due to ice conditions which closed two

of its three New Jersey ports for a number of days. English Channel ferries

had increased losses in the period due to the high fuel prices and the Easter

holidays falling in the second quarter while last year they fell in the first

quarter.

Profits from rail operations include an improved offer from Network Rail

to settle GNER's outstanding claims. The parties are still about $30 million

apart. The company has only taken to profit the settlement offered by Network

Rail which in its opinion is still insufficient to recover GNER's loss of

revenue and other costs related to the Hatfield rail disaster which was the

fault of Network Rail's predecessor, Railtrack.

Collection of GNER's claims has been strengthened by a recent ruling of

the Rail Regulator to uphold on appeal the earlier decision of an industry

arbitration panel that "Network Change" had occurred and hence GNER is

entitled to recover the consequences. It is difficult to predict when the

claims will be finally settled but in the meantime GNER has withheld from

track access payments the amount it believes it is owed.

EBIT from marine container leasing continued to rise year on year,

reaching $9.9 million in the first quarter of 2003 compared with $8.2 million

in the prior year period, an increase of 21%. Demand for used standard dry

cargo containers flattened as normal in the first quarter but has now risen to

the point where GE SeaCo is finding it very difficult to meet demand. A

shortage of space in vessels to reposition containers to locations of demand

is contributing to the problem. GE SeaCo is encouraging the early return of

standard dry cargo units from lessees who have them at below current market

rates so it can re-lease them at higher rates. The utilization of GE SeaCo's

own fleet was 98% at May 1, 2003 while utilization of the older "pool" fleet

owned by Sea Containers and General Electric Capital Corporation was 83%. At

May 1 GE SeaCo had taken delivery of 23,000 new containers in 2003 at a cost

of $45 million. Demand for new containers is very strong and is expected to

continue so. World trade in containerized cargoes has risen 9% year to date

over the prior year period.

Sea Containers owns 47% of Orient-Express Hotels Ltd.'s equity

representing 16% of the votes. Its minority interest in Orient-Express Hotels

first quarter losses was $1.2 million. The Iraq war, SARS epidemic, harsh

winter, Easter falling in the second quarter and other transitory factors

influenced that company's first quarter results. At the end of April, Orient-

Express Hotels made a major acquisition of the Hotel Ritz in Madrid, Spain in

partnership with a local real estate investor.

The company has signed letters of commitment with three banks led by

Citigroup to provide the financing for $158 million of public debt scheduled

for redemption on July 1, 2003. It has also received satisfactory offers for

assets to be sold, expected to yield cash net of debt repayment of a similar

amount to the bank loan. The bank loan is for one year and will be repaid

from the proceeds of the asset sales.

In addition, the company expects the SEC to complete shortly a review of

the company's registrations of exchange offers for its 2003 and 2004 maturing

public debt. Even if there is a substantial take up of the exchange offers

the asset sales will still be concluded and any surplus cash will be used to

reduce other debt.

EBITDA excluding Orient-Express Hotels in the first quarter was

$41.4 million compared with $31.9 million in the year earlier period.

Mr James B Sherwood, President, said that he felt comfortable with the

company's outlook. The drop in fuel prices, favorable decision on the rail

appeal, strong growth in container leasing, expected large profits from asset

sales and lower interest costs upon the retirement of public debt would all

improve the company's profits. He said that he expects the value of the

company's 14.4 million common shareholding in Orient-Express Hotels to rise,

and when it is sold at much higher prices than today it would provide

substantial cash for debt reduction and new investment. He said that the

challenges of the company are to renew its rail franchise in 2005 and to

replace profits lost from the sale of the Steam Packet Company and in this