May 2012 MCI Survey Comments from Industry Executive Leadership: Depending on the market segment they represent, executives have differing points of view on the current and future outlook for the industry.

Independent, Small Ticket, “We continue to experience a weaker demand level than we would have expected at this time. Small business owners seem reluctant to invest in business equipment expansion. After the robust end to 2011, we were hopeful that our customers were ready again to take on new equipment, and with such low interest rates still in place, the financing that we provide. It seems as though, absent stimulus, growth is flat. My concern is that we could see this trend continue until after the elections in November.” Valerie Hayes Jester, president, Brandywine Capital Associates

Bank, Small Ticket, “Equipment leasing continues to increase as the economy in the United States continues to improve, albeit at a measured pace, especially for small to medium sized businesses. When companies do invest, they are looking for total solutions beyond just the equipment and including all the services that surround it. Those equipment providers that can provide total service-related solutions are seeing a new segment of growth for their business and equipment leasing is an important component of this total solution by providing capital while leveraging expertise in billing and services.” Ron Arrington, global president, Vendor Finance, CIT

Bank, Middle Ticket, “Generally equipment finance is continuing to improve. Some industries like energy and energy-related are particularly robust. Other traditional equipment industries like construction are slowly improving.” Harry Kaplun, president, Frost Equipment Leasing and Finance

“We are cautiously optimistic about the improving, short-term opportunity for equipment finance companies serving, large creditworthy borrowers in the United States.” Bill Verhelle, CEO, First American Equipment Finance, a City National Bank Company

“Many global political and economic headwinds are causing lack of growth. Demand for quality equipment finance transactions is high and there is too much money chasing too few quality deals and as such spreads continue to be pressured.” Anonymous