NorVergence: ELA Representatives meet with NY Attorney General's staff

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: 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 management: Hope, NJ.

25 years in optimizing call center operations, collections, billing, and back end revenue generation. Experienced in $7 + billion dollar portfolios.

Verifiable achievements.

E-mail: cmate@nac.net

Senior Management: 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: New York, NY, NJ, Ct Tri-State

Top Exec. middle and big ticket, top skills treasury,funding, ops,transaction detail, syndication, ready to max profit, help build quality operation. right now!

E-Mail: leasefinance@optonline.net

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

full listing of all classified “job” ads at:

http://64.125.68.90/LeasingNews/JobPostings.htm

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Economic Events this Week

Tuesday

October 19

Consumer Price Index: September

Housing Construction: September

October 21

Thursday

Leading Indicators: September

Weekly Jobless Claims

UAEL Conference, Monterey, CA

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Pictures from the Past---1996---IFC Credit Corp

Standing, left to right: Dale Volkamer, CLP, Rudolph Trebels, CLP;

Seated: Scott Kreissl, Patrick A. Witowski, Gary Trebels, CLP

“When you visit the corporate headquarters of IFC Credit Corporation in Chicago, you get another example of President Rudolph Trebels CLP’s exuberance. It’s hanging on the walls, it decorates is office, and it provides a backdrop in the conference room.

It’s everywhere. It’s Trebels’ art collection.

Like his business practice his collection of pastoral hunting theme paintings directly reflect his personality. ‘the look is traditional, conservative, and elegant, but also fun,’ Trebels said. “

‘The Paintings definitely add a flair for excitement.’

Trebels’ appreciation for the traditional has translated to the offices’ decoration as well. As in the photo above, IFC evokes the feel of a hunt club, gentlemen’s club or country club.

Trebels is always looking to add to his collection. But why does he pursue this particular passion? Again, it’s his way of balancing business and pleasure. “Why not enjoy your workplace since we spend so many hours at the office?”

June/July 1996 UAEL Newsline

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NorVergence: ELA Representatives meet with NY

Attorney General's staff.

ELTnews

On Wednesday afternoon, October 14, Equipment Leasing Association representatives met with five officials of the NY Attorney General for nearly three hours to discuss small ticket leasing practices in general in connection with the investigation of the NorVergence matter. ELA was represented by General Counsel Ed Groobert, President Michael Fleming and Paul Gamez, an executive with Great America Leasing. The meeting was held to review and reinforce certain legal principles fundamental to small ticket leasing and to discuss how small ticket leasing is conducted.

The meeting's discussion focused on typical documentation that includes assignability of the lease, the waiver of defense clause and "hell or high water" language. Such provisions are not only standard but play a significant role in making leasing more readily available to small business. In describing small ticket leasing practice, the ELA representatives stressed the credit, rather than collateral, nature of the small ticket transaction. They also emphasize that the end user makes the business decision regarding contracting for a service and / or selecting equipment. "The lessor assumes that the lessee knows what it is doing," Fleming told the group.

Ed Groobert stressed that ELA is not in a position to know all of the facts of the NorVergence matter, but described how the leases of equipment in dispute were most likely subsequent and separate events from the lessee's contracting for a discounted long distance service. Lessors are not in the position to give representations or warranties.

The NYAG staff were well prepared and understood the basic legal principles. Their questioning focused primarily on what lessors know about the vendors with whom they do business and the equipment they lease. Paul Gamez did an excellent job of reviewing the typical approach of small ticket lessors in a vendor program. He described how leasing companies decide on certain vendor program relationships and how they manage the relationship. He indicated that in a "deal flow" business, it is not possible to become expert in every type of equipment or be personally familiar with every lessee it accepts on lease assignment. The NYAG staff continued a line of questioning more focused on company practices than on the fundamental legal principles. "Are complaints tracked? Are major variations in capital costs for the same equipment questioned? Would lessors make judgments about the viability of what a vendor is offering?" ELA representatives discussed these issues generally, but were reluctant to be too definitive because facts and practices can vary.

The ELA may meet further with the NYAG. Fleming indicated that ELA is approaching the matter on parallel tracks. "Defending the legal principles fundamental to the business is our top priority," said Fleming. "We are prepared to meet with other state AG offices as appropriate and will likely prepare a brief or white paper at the appropriate time. This matter will take time to play out."

A second track is to deal with the publicity that NorVergence has brought to leasing. "At the end of the day, the NorVergence matter is the story of a failed business model," according to Fleming. "

We have spent a great deal of time with writers in an attempt to put this entire matter in context. ELA is explaining the separate nature of the lease of equipment from a service for which lessees also contracted. Unfortunately, leases are implicated in ways everybody in the industry understands. Consequently, the publicity implicates leasing. The leasing issue requires explaining some very mundane legal points in the media - something the media is not able nor inclined to do as it is not much of a story. The small business done wrong versus ‘Hell or high water' is a tough public sell. ELA can only continue to make the business benefit points and stress the tens of thousands of successful leases that provide satisfactory solutions for business every day."

The NYAG meeting concluded with a defining question. One senior staff member asked how frequent this kind of thing (NorVergence matter) occurs. Ed Groobert who has been counsel to ELA for 35 years and Michael Fleming who has been president for 25 years agreed that they had never seen anything like it. NorVergence is unique, it is a dramatic exception to the rule.

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Bad News for Leasing

The negative impact has been growing, including more national

media attention, such as this broadcast on CBS TV News:

Bum Leases Hit Small Businesses

http://www.cbsnews.com/stories/2004/10/15/eveningnews/consumer/

main649724.shtml?CMP=ILC-SearchStories

Recent Sample of Comments Leasing News Has Received:

“I will NEVER lease anything from anybody. You whole industry is rampant with fraud. If the biggest leasing companies in the country are involved in the Norvergence mess, there is no hope for commercial leasing.”

Paul Klinger

“Since I am a member of the Weir Group I can substantiate that 1,278

firms joined them. In addition the cost was a 3 month lease

payment, in my case slightly over $1800. The count on the Weir Group

was at their original deadline to join. I do not know how many

others have joined since the middle of September ( the end of the 3

month payment enrollment fee).”

Mike Honold

“...There are three: the NJ Class Action, the Weir Group, and a third class action out of Miami Fl. The Weir action is a group, not class action which has already filed with over 20 pages of plaintiffs. At last count the number of companies enjoined was approaching 2000 which would make a war chest approaching 2 Million dollars. Hardly a shoestring. The Weir action is offensive for companies that have not been sued by an LC yet; added to this is probably hundreds if not thousands of business's or groups with various attorneys around the country defending LC law suits in their home states... I will never

lease again.”

(name with held )

[headlines]

Alexa Ranks Leasing Association Web Sites

Rank	10/15/2004	9/17/2004	WEBSITE NAME
1.	88,236	85,952	www.aba.com American Bankers Association
2.	106,536	108,622	www.leasingnews.org Kit Menkin's Leasing News
3.	264,588	234,557	www.nacha.org The Electronic Payments Association
4.	348,516	309,186	www.monitordaily.com Monitor Daily
5.	516,941	460,599	www.ibaa.org Ind Community Bankers of America
6.	549,559	634,882	www.cfa.com Commercial Finance Association
7.	592,811	477,186	www.elaonline.com Equipment Leasing Association
8.	623,347	568,079	www.Leasingpress.com Leasing Press
9.	871,985	1,433,844	www.nvla.org National Vehicle Leasing Association
10.	872,241	825,921	www.iicl.org Institute of International Container Lessors
11.	903,743	851,607	www.us-banker.com U.S.Banker
12.	1,210,328	1,125,234	www.uael.org United Association of Equipment Leasing
13.	1,245,136	1,326,055	www.executivecaliber.ws Exec Caliber-Jeffrey Taylor
14.	1,504,378	1,449,198	www.leasefoundation.org Equip. Leasing & Fin Fndn
15.	2,489,610	3,541,052	www.naelb.org National Assoc. of Equip Leasing Brokers
16.	2,748,251	3,138,148	www.nationalfunding.org The National Funding Assoc
17.	3,333,708	3,427,699	www.clpfoundation.org CLP Foundation
18.	3,676,138	2,520,203	www.lessors.com eLessors Networking Association
19.	4,164,732	4,314,294	www.efj.com Equipment Financial Journal
20.	5,005,147	3,481,332	www.leaseassistant.org Lease Assistant
21.	No Data	No Data	www.aglf.org Assoc of Government Leasing Financing
22.	No Data	No Data	www.mael.org Mid-America Association of Equip Lessors
23.	No Data	No Data	www.eael.org Eastern Association of Equipment Leasing
24.	No Data	No Data	www.leasecollect.org Lean -Lease Enforcement Att Net

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Leasing Conference Count-Down

UAEL Monterey, CA October 21-24

United Association of Equipment Leasing

http://www.uael.org/events/conferences/ace/default.asp

“This will be the best attended conference in many years. The 30th year Reunion Party and Welcome Reception on Thursday Evening , October 21, 2004, wail be a special night. We have attending the Reunion many of the Original Founding Members of WAEL/UAEL like Steve Dunham, Art Schwartz, Harold McAfee, Steve Head, Craig Knudson, Bob Jacobson, as well as most of the more recent Past Presidents and prior Board of Directors Members. There is an after hours Presidents reception (9PM til--) on Friday evening and an, always popular, Saturday Night Live Beach Party/Lobsterfest. There are close to sixty exhibitors for Friday and Saturday has some strong educational sessions as well as some afternoon team building. We are extremely exited about Monterey and hope to see you there.

Thank you.”

Joe

jwoodley@uael.org

Walk-ins are accepted, and all past members are invited to

the 30^th re-union without paying a registration fee. The front

desk would like to issue a name badge, but there is no

registration fee.

2004 ANNUAL CONFERENCE & EXPOSITION (ACE)
October 21-24, 2004
Hyatt Regency Monterey
Monterey California

If you are a former UAEL member and would like to attend the 30th anniversary party, please call Joe Woodley or email to: jwoodley@uael.org

United Association of Equipment Leasing
78120 Calle Estado, 201
La Quinta, CA. 92253
760.567.2227 / 760.564.2206 Fax

ELA Palm Desert, CA October 24-26

The Equipment Leasing Association

www.elaonline.org/events/2004/annconv/convhome.cfm

You can still register on site, If you have not attended an ELA Conference before, and are a non-member, you will be eligible to attend.

AGLF Rancho Mirage, CA November 10-12

Association for Government Leasing and Finance

www.aglf.org/25AM04_fallpgm.pdf

MAEL Rosemont, Illinois November 18

Mid-American Association of Equipment Lessors

www.mael.org

To learn about these and other leasing associations, please go to:

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

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Visit our website by clickng on the logo below

122-A Foothill Blvd., Arcadia, CA. 91006
Voice 626-305-1053 . Fax 626-305-0019 . ted@cclease.com

The 30 Year History of UAEL---Part I

by Kit Menkin

History of WAEL

by Art Schwartz, CAE

WAEL Associate Director

June 1985 WAEL Newsline Edition

Once upon a time in a land not so far away, there was the beginning of an organization of the people in the equipment leasing business. They had an occasional luncheon meeting in San Francisco and Los Angeles in the early 1970's, but without strong continuing leadership the group soon began to fade and, finally lay dormant for about two years.

In the fall of 1974, luncheon meetings were set up in Los Angeles and San Francisco to see if enough people would come forward to rejuvenate what was called the Western Association of Equipment Lessors. There was some interest generated from among the 45 people who attended those two meetings, but mostly there was a lot of, "Let's wait and see."

One of the underlying principles that emerged from those first meetings was the necessity of making the organization truly western, not just focused on Los Angeles and San Francisco. The second determination was to orient the organization from the standpoint of the independent lessors. The third determinant was to hire professional management . These fundamental precepts have guided the growth and vitality of WAEL ever since.


Harold McAfee, Triple C Leasing San Rafael, CA. WEAL President 1975-1976	Steve Head, Interbank Leasing Corp., N. Hollywood, CA. WAEL President 1977-1978

In the first part of 1975 dues invoices were sent out, and 15 members paid. A format of two conferences per year was begun. Harold McAfee was the founding President in 1975. The first two meetings at the Palm Springs Riviera and the Santa Barbara Miramar were a far cry from the kind of hotels and conferences we see today. Steve Head was Vice President and Jack Kilbourne and Manufactures Bank was Treasurer.

In 1976, regional luncheons were held in February and July in both Northern and Southern California to supplement the semi-annual conferences. 27 people attended these first two regional meetings. Seattle was added to this list of sites in 1977, and Denver in 1979. Last January we had over 400 people attend our Winter Workshops conducted in eight cities. Harold McAfee continued to serve throughout 1976 and was followed in 1977 by Steve Head. The conferences really started to take off in 1977 with people who were willing to share and participate. Hyjacking the bus in San Diego set a standard of performance that was hard to match. Conference attendance in San Diego was 125.


Armon Kamesar, Amstat Capital, San Diego, CA. WAEL President 1978-1979	Fred Shieman California Group Services Walnut Creek, CA. WAEL President 1979-1980

In 1978 Armon Kamesar became President with 58 member firms. Under Armon's enthusiastic style at the podium, conferences took off with a more expansive flair. We started the golf tournament and had a lot of extra trimmings like ice carvings of the organization. The educational side of the conference grew, too.

Fred Shieman was President in 1979, membership jumped to 145 firms and we created our first five year plan, "Forward By Plan." Attendance to our Reno Conference was up to 275 people.


Bob Putman Amstat Capital, San Diego, Ca. WAEL President 1981-1982	Bob Skinner Renniks Leasing Corona Del Mar, CA. WAEL President 1980-1981

Bob Skinner held the reins in 1980 and brought a sophisticated, mature hand to the helm, having been in leasing over 25 years. We held our first suppliers show about that time. Membership crossed the 200 mark.

Bob Putman became President in 1981. During his year we adopted the Standards of Professional Practice which have become a milestone of progress for the leasing industry.

In 1982 Craig Knudson became President. During his tenure membership climbed to 250. And who can forget some of the memorable parties we've enjoyed: the rodeo during our first trip to Scottsdale...the attempt to drown the boat in Seattle with wine ... the horror story brunch at our first conference in Hawaii.

Ray Corob became President in 1983, and before the gavel was passed to Bob Jacobson in 1984 membership climbed to 300. Twice-a-year regional luncheons were added to the Winter/Summer Workshops, and a month ago over 500 people attended one of these programs in nine cities. Our Fall 1983 Conference was a return to Hawaii, and the Hula will never be the same.

In the 1984 under Bob Jacobson's stewardship we produced our Rock and Roll Revival Sock Hop. Membership passed 400 and we adopted a new five year plan, "Strategy for Success," that should insure a continuing bright future for WAEL.


Craig Knudson, Heritage Leasing Corp., San Diego, CA. WAEL President 1982-1983	Ray Corob, BEHR Leasing, Los Angeles, CA. WAEL President 1983-1984

John Torbenson, of course, is now serving as our President. This year we have seen the start of our long-awaited Certification Program.

It has been a vital, growing and productive ten years and as we enter WAEL's Second Decade we know the best is yet to come.


Bob Jacobson, Tri Continental Leasing Corp., Mountain View, CA. WAEL President 1984-1985	John Torbenson Heritage Leasing Corp., Bellevue, WA. Current WAEL President

Companies who were charter members of a rejuvenated WAEL and are still members today:

AMERICAN STATES LEASING, now
AMSTAT CAPITAL, Bob Putnam
CALIFORNIA GROUP SERVICES, Fred Shieman
CB LEASING, Charlie Brust
CROSSPOINT LEASING COMPANY, Jean Hamilton
HAVAS LEASING, now
HLC LEASING CORP., Paul Havas
INTERLINK LEASING CORP., Steve Head
LEE BROTHERS LEASING INC., Richard B. Lee
MANUFACTURERS CAPITAL, Alan Debernochi
M.B. LEASING COMPANY, now
MITSU MANUFACTURERS, Norman Campbell
TRIPLE C LEASING, INC., Harold McAfee
FOOTHILL THRIFT & LOAN, Robert J. Ciborowski
HEMAR & WARSAW, now
HEMAR, GORDON, ROUSSO LAW OFFICES, Richard Hemar

According to the original minutes of the meeting given to Leasing News by Russ Rickard’s, now retired from Bank of the West, Harold McAfee was not the first president. Also Steve Dunham’s and other roles are not included in this story. For the sake of this series, Leasing News will let the WAEL news story stand, and for the record, here is a picture of John Torbenson, still active in the leasing business, who has just moved into larger quarters in Arizona. He was with Heritage Leasing, then BJ Leasing, and started Odyssey Equipment Financing in 1985 in Seattle. Company sold part of the company in 1997 and moved to Scottsdale, Arizona. Company specializes in medical equipment financing and acts as both a funder and broker.

This is the best picture we have of John, to the far right seated on the first row of the picture. It comes from the May, 1993 issue of UAEL Newsline.

“Golf Champions: Western Association of Equipment Leasing Spring Conference Palm Springs, California First Place Team: Ron Mitchell, account executive, ITT Capital Finance, Pleasanton, CA(far left) Kelly Hutchison, National account manager, Lease Pro, Marietta GA (front row, left) and Kevin Libert, VP, ITT Capital Finance ( standing with visor;) Second place went to Kelly Long, regional marketing manager, First Concord Acceptance, Corp., Denver, CO ( back row, third from left) and to Kelly's right, Jim Lahti, president, Affiliated Corporate Services, Inc. Dallas, TX., John Torbenson, president BJ Leasing, Inc., Bellevue, WA(bottom, right).

Closest to the hole: Phil Dushey, EVP, Global Leasing Services, New York, New York (standing, far right).

Longest Drive: Doug Hatch, AVP, Bank of the West Walnut Creek, CA. (center, holding plaque).”

(and yes, he still likes to play a lot of golf.)

John Torbenson, President

Odyssey Equipment Financing Company

4130 N. Goldwater Blvd. Ste 217

Scottsdale, AZ. 85251

Toll-Free (888)607-6800

480-607-6800 Fax (480) 607-6868

www.oefc.net

In later editions of WAEL and UAEL Newsline’s Steve Dunham’s role

in the formation of the association was recognized, and he was

formally recognized as the organizations first president. Here is

a 1991 picture in UAEL Newsline, along with the identification of

Mr. Dunham:

Pictured here is some of the Western Association of Equipment Leasing

Past President who were honored during special recognition ceremonies in commemoration of WAEL's Fifteenth Anniversary---the Crystal Celebration.

Conference Chairman Peter Eaton, CLP, First National Leasing Corporation(center) joins Past Presidents (l to r) Jim Possehl, CLP, President Republic Financial Corporation(1989), President Steve Dunham, Leasing Associates (WAEL's first President—1974); Bob Jacobson, III, CLP, Consultant (1984 president); Eaton (1994 president); Ted Parker, CLP, LSA West Capital Corporation (1986 President): and Steve Head, Interbank Leasing Corporation (1977 President).”

WAEL moved from the management firm of Art Schwartz to

hiring a full time executive director and opening an office.

Tomorrow--- Part II Randy Bauler,CAE, Jon Bedernick,CAE

[headlines]

Classified Ads----Help Wanted

Brokers

Brokers. We get deals done! We can help you make more money. We are on top of the changing marketplace with more sources due to our volume. Must have 4 years of leasing experience w/ strong client base. 70% Commission, 70% Residual. Barbara Griffith bgriffith@socalleasing.com or 714-573-9804

About the company: SCL has been in business for 12 years. We are contracted with multiple funding sources which enables us to provide more competitive rates and flexible terms and conditions.

Funding/Loan Processor

Funding/Loan Processor: Irvine, CA. Experienced Lease/Loan Processor to join growing operations staff. Must be organized and very detail oriented. Leasing experience helpful but not main determinant.

Vendor Sales Specialist: Experienced in developing relationships & vendor programs. Will need to establish/head our new vendor division. Must be knowledgeable in all aspects of leasing from the broker lessor perspective.

Please E-mail resume to: elang@nationwidefunding.com

About the Company: Nationwide Funding, with its prime location in Southern California and offices in Chicago, has been able to secure specialized credit facilities and create funding partnerships with a wide variety of financial institutions. This diversity allows us to be a complete funding partner for your business.

CFO / Leasing Sales Leader

Leasing Sales Leader: Atlanta GA.
Outstanding opportunity for highly motivated, exp. leasing rep. for fast growing tech solutions provider. Unlimited earnings potential, fast paced enviroment. Exper. end-user sales/ tech leasing required.
Full description here.
Email: OHCResumes@OHC-LLC.com

CFO: Atlanta, GA.
CPA/10yrs exp. required. Direct/oversee all financial activities and manage leasing operations. Full description here.
Email: OHCResumes@OHC-LLC.com

About the Company: Located in Atlanta GA. Optimus Solutions is a leading provider of enterprise Information Technology solutions including systems, storage, and software enhanced by a complete range of integration and consulting services.
http://optimussolutions.com/

Dealer Credit Finance Analyst / Dealer Credit Finance Services Supervisor

Dealer Credit Fin. Analyst, Torrance, CA Click here for full descrip. & to apply.

Dealer Credit Fin. Services Supervisor, Torrance, CA. Click here for full descrip. & to apply.

To learn more about us, please visit: www.toyotafinancial.com/careers

National Account Manager

National Accounts Mgr: Truck/Trailer Industry. Must generate minimum of $500K/month. Click here for detailed description & resume submission info.

Trinity Capital, a subsidiary of Bank of the West, is a national leader in the equipment financing industry with a consistent presence and superior reputation.

Vendor Account Executive

Vendor Account Executive: Troy, MI, Proven sales exp in developing vendor relationships. Must be knowledgeable in all aspects of leasing. Strong communication skills. Send email to resume@leasecorp.com

About the Company: Lease Corporation of America is a well established, 16 year old, national equipment leasing company.

To post an ad, please go here:

http://64.125.68.90/LeasingNews/PostingFormWanted.asp

or send copy to Maria@leasingnews.org and let

her send you the most economical version. She has created

all the classified and banner ads, too. No extra charge.

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David G. Mayer Business Leasing News Oct. Issue

1. Is Off-Balance Sheet Leasing on Its Last Legs?

2. Wind Energy Tax Credit Revived, Gives Boost to Ailing Wind Power

Industry

3. Federal Leasing Expands as Government Deficits Grow

4. Case & Comment: Dragnet Clause Rules in Pride Hyundai, Inc. v. Chrysler

Financial Co.

5. Leasing 101: What Is a "Dragnet Clause"?

6. BLN Briefs: IT Managers Buy Instead of Lease; Bonus Depreciation Expires

Soon

7. Reader Feedback; Recent Publications; ELA Convention Speeches; Training

Offered

http://www.pattonboggs.com/Newsletters/Bln/Release/bln_2004_10.htm

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

Fitch: Italian ABS Leasing Performance Down In Q2 2004

Fitch Ratings-London/Milan-Fitch Ratings, the international rating agency, says the Italian leasing asset-backed securities (ABS) market deteriorated in the second quarter but remains broadly in line with the agency's expectations.

In the report, entitled "The Fitch Italian Leasing Performance Index - 2Q04 Update", Fitch says the negative macroeconomic environment continues to have only a marginal impact on the performance of the 10 Fitch-rated leasing ABS deals that closed prior to July 2003. The overall increase in default indices in the last quarter tends to be related to specific features of the individual originators and transactions.

The report shows that currently "Fitch Delinquency Index (DI)" is at approximately 2.62% (2.82% in Q1), whereas "Fitch Net Default Index" ("Fitch NDI")" is currently at 1.59% averaging over time around 0.98%. (1.18% in Q1).

As well as providing an analysis of the latest developments in the Italian market, the report also contains updates on the agency's four indices used by Fitch in its reviews and ongoing analysis: the "Fitch Gross Default Index", "Fitch Excess Spread Index", "Fitch DI", and "Fitch NDI".

In addition, the report tracks each transaction's current net and gross default performance versus Fitch's original base case net and gross default expectation, a key piece of information considered by the agency in its performance review committees. This is illustrated by a table showing the most recent performance levels, and a graph in the appendix tracing historical performance for each transaction. Significantly, this gives readers a leading indicator of the direction that ratings are likely to move in the future.

The first report in the series was launched in Q1 2004 to provide investors with frequent, objective and standardised analysis on the performance trends in this important European ABS sector. The indices will continue to be updated on a quarterly basis.

A copy of the report is available on the agency's website at www.fitchratings.com.

Contact: Rui Barros, London,

Tel: +44 20 7417 3534;

Bernardo Ghilardi, Milan,

+39 02 879087 232;

Federico Ravera

+39 02 879087 226;

Alessandro Settepani

+39 02 879087 229.

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

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