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PricewaterhouseCoopers Survey

PricewaterhouseCoopers Letter to Survey Participants

• PwC Study
• PwC Survey

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January 20, 2000

Dear Lease Survey Participant:

PricewaterhouseCoopers is conducting a survey of lessees at the request of the Equipment Leasing Association of America. The purpose of the survey is to examine the impact of a change in the accounting standards for operating leases in company financial statements. The change being examined would require operating leases with a lease term in excess of one year to be accounted for in the same manner as capital leases. Such an accounting standard is proposed in a report prepared for the International Accounting Standards Committee (the "McGregor Report"). This change in accounting standards is not presently under official consideration by the Financial Accounting Standards Board. However, if the FASB were to consider action on such a standard, the analysis from this survey would be helpful in illustrating the potential impact of the accounting change on lessees.

This survey is being conducted only for research purposes. Survey results will not be disclosed in a way that would permit identification of participating companies. No company-specific data will be shared internally with audit staff of PricewaterhouseCoopers or with the Equipment Leasing Association and its members.

In return for your participation, we will provide you with our analysis of the effect of the proposed accounting change on your company's financial statements. This analysis may be useful in the development of your capital expenditures strategy. The analysis provided to you is only for internal informational purposes.

A survey is attached that requests certain information about your company's operating leases. We understand that in some cases the information requested might be readily available in electronic form and in other cases will be more difficult to access. We would be happy to work with you to minimize the burden placed on your company in providing this information. We would also consider developing an alternative methodology that is better tailored to the manner in which your data are stored.

Please return the attached survey to:

Robert Zuraski
PricewaterhouseCoopers LLP
1301 K Street NW, Suite 800W
Washington DC 20005

Please call us if you have any questions about the project or survey. On behalf of the Equipment Leasing Association, thank you for your participation in this study.

Peter Merrill Principal (202) 414-1666

Robert Zuraski Manager (202) 414-1476