Equipment Leasing and Finance Association`s Survey of Economic Activity:Monthly Leasing and Finance Index

February Follows January Decline in Year-Over-Year New Business Volume
WASHINGTON--(Business Wire)--
The Equipment Leasing and Finance Association`s (ELFA) Monthly Leasing and
Finance Index (MLFI-25), which reports economic activity for the $650 billion
equipment finance sector, showed overall new business volume for February
declined by 37.7 percent when compared to the same period in 2008.
Month-to-month new business volume decreased 26.7 percent from January to
February, from $4.5 billion to $3.3 billion. This follows a 24 percent decline
in January (YOY) volume.

The MLFI-25 is the only index that reflects the volume of commercial equipment
financed in the U.S. The MLFI-25 complements other relevant economic indices,
including the monthly durable goods report produced by the U.S. Department of
Commerce, which reflects new orders for manufactured durable goods, and the
Institute for Supply Management Index, which reports economic activity in the
manufacturing sector. Together with the MLFI-25 these reports provide a complete
picture of the status of productive assets in the U.S. economy: equipment
produced, acquired and financed.

The MLFI-25 reported receivables over 30 days increased to 4.5 percent as
compared to 3.9 percent in January. Charge-offs increased to 1.74 percent from
1.41 percent in the prior month. Credit approvals dropped to 64.7 percent from
65.2 percent, surpassing January`s record low. Forty-seven percent of
participant companies reported that fewer transactions were submitted for
approval during the month, due to tightening underwriting standards and lower
demand. Total headcount for equipment finance companies showed a slight decline
in February (one percent).

"In the near term, we see continued deterioration of customer credit quality and
delays in capital spending as companies re-evaluate the current economic
situation. These factors have been driving the overall decline in new business
volume in the equipment finance sector," said Anthony Cracchiolo, President,
U.S. Bank Equipment Finance, Portland, Oregon. US Bank Equipment Finance is an
ELFA member and a participant in the MLFI-25. "Some markets have been less hard
hit and we do expect delays in spending to result in pent up demand for
equipment in a variety of industries late in the year and into early 2010," said
Cracchiolo.

"After finishing the fourth quarter of 2008 down, the first quarter of 2009
continues on a downward trend as businesses pull back from making new
investments in plant and equipment," said ELFA President Kenneth E. Bentsen, Jr.
"We also witnessed continued deterioration in portfolio quality, albeit better
than many other asset classes," Bentsen said.

About the ELFA`s MLFI-25

The index is released globally at 9:00 a.m. Eastern time from Washington, D.C.
each month, on the day before the U.S. Department of Commerce releases the
durable goods report. More information on the Monthly Leasing and Finance Index,
including methodology and participants is available below and at
http://www.elfaonline.org/ind/research/

MLFI-25 Methodology

The ELFA produces the MLFI-25 survey to help member organizations achieve
competitive advantage by providing them with leading-edge research and
benchmarking information to support strategic business decision making.

The MLFI-25 is a barometer of the trends in U.S. capital equipment investment.
Five components are included in the survey: new business volume (originations),
aging of receivables,charge-offs,credit approval ratios, (approved vs.
submitted) and headcount for the equipment finance business.

The MLFI-25 measures monthly commercial equipment lease and loan activity as
reported by participating ELFA member equipment finance companies representing a
cross section of the equipment finance sector, including small ticket,
middle-market, large ticket, bank, captive and independent leasing and finance
companies. Based on hard survey data, the responses mirror the economic activity
of the broader equipment finance sector and current business conditions
nationally.

The results of each MLFI-25 are posted on the ELFA website. ELFA is the premier
source for statistics and analyses concerning the equipment finance sector.
Please visit http://www.elfaonline.org/ind/research/ for additional information.

ELFA MLFI-25 Participants

ADP Credit Corporation

Bank of America

Bank of the West

Canon Financial Services

Caterpillar Financial Services Corporation

CIT

De Lage Landen Financial Services

Dell Financial Services

Fifth Third Bank

First American Equipment Finance

GreatAmerica

Hitachi Credit America

HP Financial Services

John Deere Credit Corporation

Key Equipment Finance

Marlin Leasing Corporation

National City Commercial Corp.

RBS Asset Finance

Regions Equipment Finance

Siemens Financial Services

Susquehanna Commercial Finance, Inc.

US Bancorp

Tygris Vendor Finance

Verizon Capital Corp

Volvo Financial Services

Wells Fargo Equipment Finance

About the ELFA

The Equipment Leasing and Finance Association (ELFA) is the trade association
that represents companies in the $650 billion equipment finance sector, which
includes financial services companies and manufacturers engaged in financing
capital goods. ELFA members are the driving force behind the growth in the
commercial equipment finance market and contribute to capital formation in the
U.S. and abroad. Its over 700 members include independent and captive leasing
and finance companies, banks, financial services corporations, broker/packagers
and investment banks, as well as manufacturers and service providers.

For more information, please visit www.elfaonline.org

Equipment Leasing and Finance Association (ELFA)
Diane Zyats, 202-238-3438
dzyats@elfaonline.org

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