STOCKREPORTS

Leasing Solutions, Inc.

NASDAQ Symbol LSSI

Recent Price 15.88 52 Wk Range 33.63 - 9.75

Yield Nil 12-Mo. P/E 13.1

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) NA Fair Value NA Risk HIGH Earn/Div Rank NR
Technical Evaluation: BULLISH since 02/97 Rel. Strength Rank (1 Lowest - 99 Highest) 30 Insider Activity NA

Business Profile 13-MAY-97

This vendor leasing company expanded its access to financing in October 1996 by selling $71.8 million in convertible subordinated debt. LSSI also started expanding its business abroad in early 1996. In April 1996, the company acquired a small independent leasing company in the U.K., to begin its expansion into Western Europe. Shortly afterward, LSSI opened leasing offices in Germany, France, Belgium, and The Netherlands. In North America, the company entered into a letter of intent to acquire an equipment leasing portfolio in Canada. In April 1997, in an effort to raise shareholder value, directors authorized the repurchase of up to 1,000,000 common shares.

Operation Review 13-MAY-97

Total revenues in the first quarter of 1997 advanced 76%, year to year, paced by strong demand for information processing products leased by large corporate customers. Operating lease revenue jumped 79%, while earned lease income decreased 37%, reflecting a corporate focus on operating leases. Interest expense rose 70%, and depreciation charges were up 86%. After taxes at 41.8%, versus 40.0%, net income was up 42%, to $2,525,000 ($0.30 a share, on 17% more shares), from $1,777,000 ($0.25).

Stock Performance 20-JUN-97n

In the past 30 trading days, LSSI's shares have increased 13%, compared to a 9% rise in the S&P 500. Average trading volume for the past five days was 81,760 shares, compared with the 40-day moving average of 100,026 shares.

Key Stock Statistics

Fiscal Year Ending Dec. 31

Dividend Data: No cash dividends have been paid. The company intends to retain earnings for use in its business. In addition, terms of its credit facility restrict dividend payments.

Business Summary 13-MAY-97

Leasing Solutions is a vendor leasing company engaged principally in the business of leasing information processing and communications equipment to large, creditworthy customers. It provides full-service lease financing, primarily through operating leases, to end-users of such equipment through vendor programs (equipment purchase and remarketing relationships with equipment manufacturers). The company has vendor programs with Apple Computer, Dell Computer and NCR. About 85% of its business in 1996 (by dollar volume) was generated through these programs.

Information processing and communications equipment that the company purchases for lease, or may purchase through its vendor programs, includes communication controllers, database machines, desktop and laptop computers, display stations, file servers, printers, tape and disk products, and video and document conferencing systems. The majority of equipment acquired by LSSI in 1996 is used in client/server network environments.

Through its vendor programs, as of December 31, 1996, the company served more than 400 customers in connection with its direct leasing activities and an additional 1,000 customers in connection with its private-label leasing activities. In 1996, the 10 largest lessees, based on dollar volume of equipment leased (and listed alphabetically), were America Online, Continental Information technology Systems, Dell, Entergy Operations, Ernst & Young, Honeywell, the State of California, Warner Lambert, Western Digital and Xerox. The 10 largest lessees accounted for a total of 70% of new lease originations in 1996, based on dollar volume.

Historically, the company has acquired equipment leased using funds borrowed from financial institutions. Beginning in 1994, LSSI began to obtain most of its required long-term borrowings through the sale of secured, nonrecourse debt securities in the public debt market.

The company began expanding abroad with the acquisition of a small independent leasing company in the U.K. in April 1996. LSSI also opened leasing offices in Germany, France, Belgium and The Netherlands, and entered into a letter of intent to acquire an equipment leasing portfolio in Canada.

Important Developments

Apr. '97 Directors authorized the repurchase of up to 1,000,000 common shares.

Capitalization

Recourse Notes Payable: $182,739,000 (12/96).
Nonrecourse Debt: $138,919,000.

Curr. Ratio	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA
% LT Debt of Cap.	50.0	56.1	63.7	76.1	92.6	96.4	NA	NA	NA	NA
% Net Inc.of Revs.	6.5	7.4	7.7	6.4	6.1	3.3	NM	12.5	31.5	NA
% Ret. on Assets	2.9	3.2	3.5	3.3	2.2	1.2	NM	9.5	NA	NA
% Ret. on Equity	19.8	21.4	24.2	40.5	63.7	49.6	NM	45.5	NA	NA

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--10 Almaden Blvd., Suite 1500, San Jose, CA 95113. Tel--(408) 995-6565. Chrmn, Pres & CEO--H. J. Krauter. EVP & CFO--R. J. Kearns III. Investor Contacts--T. P. Laehy, S. L. Yeffa. Dirs--L. R. Adimare, G. L. Bragg, J. C. Castle, H. J. Krauter. Transfer Agent & Registrar--Bank of Boston. Incorporated--in California in 1986. Empl-- 117. S&P Analyst: J. Robert Cho

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997