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

Year Over Year New Business Volume Reaches New Low;

Tight Credit and Recession Continue to Impede 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 April declined
by 42.5 percent when compared to the same period in 2008. Month-to-month new
business volume decreased 12.8 percent from March to April, from $4.7 billion to
$4.1 billion.

The MLFI-25 is the only index that reflects capex, or the volume of commercial
equipment financed in the U.S. The MLFI-25 is a financial indicator that
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 decreased to 4 percent as compared
to 4.9 percent in March. Charge-offs decreased to 1.79 percent from 2.21 percent
in the prior month. Credit approvals dropped to 59.9 percent from 64.3 percent.
Sixty-eight 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 an increase of 2.9 percent in April.

"Although the April trends offer some reason for optimism, the MLFI-25 data from
the past 16 months are emblematic of the continuation of a very challenging
environment exemplified by reduced demand for capital goods and elevated
underwriting standards," said Ralph M. Martinez, Senior Vice President / COO,
National City Commercial Capital Company, LLC, A PNC Company located in
Cincinnati, OH.

"Increased levels of default, weakened collateral values and an overburdened
court system result in higher net loss performance," said Martinez, whose
company is an MLFI participant. "Credit approval rates continue to suffer from
poorer earnings performance from what were in better times, good risks. While
hopeful that recovery is in process, this economic pause is very deep-seated and
is not expected to reverse quickly," said Martinez.

"Tight credit and the recession continue to impede new business volume," said
ELFA President Kenneth E. Bentsen, Jr. "However, deterioration of portfolio
quality, in terms of delinquencies and charge offs, may have crested," Bentsen
said.

About the ELFA`s MLFI-25

The MLFI 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. The latest Monthly Leasing and Finance Index, including
methodology and participants is available below and also at
http://www.elfaonline.org/ind/research/MLFI/

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
Diane Zyats, 202-238-3438
dzyats@elfaonline.org

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