EXAMPLE EXTENDED DEBT RECOVERY REPORT

SUBJECT

BASE Lease International Equipment Management B.V.
Diamantstraat 9 Corner Office
1101 CK Amsterdam
P.O. Box 1123
1000 BZ Amsterdam
The Netherlands
Telephone number: 0031(0)20-1234567
Fax number: 0031(0)20-1234568
E-mail: info@base.nl
Web-site: www.base.nl

HISTORY & REGISTRATION DETAILS

Founded: 12-04-1929
Continued: 17-04-1972 as a Private Limited Company
Present Legal Status: Besloten Vennootschap met beperkte Aansprakelijkheid/ B.V. (Private Limited Company)
Nominal Capital: € 100.000.000
Issued Capital: € 20.000.000
Paid-up Capital: € 20.000.000
Trade Registry Amsterdam-Haarlem
Registration number: 3389032
V.A.T. number: NL234976B01

Obligation to file accounts: no, due to the fact that the parent company has declared itself liable for all commitments made by subject. As a result these accounts are enclosed.

ACTIVITIES

Leasing, investment and holding company. Leasing and investment mainly related to aeroplanes (operational lease and services). The aeroplanes represented approx. 24% of the total consolidated income in 2003.
One has the disposal of 27 planes, Boeing and Airbus (several types), which they own. 10 Aeroplanes will be sold in the near future but at the end one will still have 20 planes. These planes are leased to Airline-companies specialized in the transport of persons, no freight.
One is a member of one of the major financial institutions within the Netherlands focused on financing, leasing, insurance's etc. of planes.

Number of personnel: none
The consolidated amount however is more than 24.000 persons of which approx. 900 are employed within the BASE Lease Group.

PREMISES

Leasehold.
Consultation of the Land Registry confirmed that subject does not own the premises.
In case of ownership a mortgage inquiry at the corresponding Land-Registry Offices will be required to obtain further details and will include if there are any seizures.

MANAGEMENT

Adriaan Cornelis Willem Leys
Born on December 9th. 1959 in Goes
Resident of 3612 AN Tienhoven, Dwarsdijk 7 A
Appointed on October 29th. 1996, full proxy


Members of the supervisory board:

Willem van Delft
Born on July 14th. 1944 in Amsterdam
Resident of 2061 HT Bloemendaal, Krullenlaan 21
Appointed on December 13th. 1996

Vincent Thomas Maria Laumans
Born on December 21st. 1944 in Bussum
Resident of 1181 PA Amstelveen, Amstelhoven 9
Appointed on December 13th. 1996

Peter Spanhaak
Born on January 23rd. 1948 in Zwolle
Resident of 7314 JH Apeldoorn, Soerenseweg 88 A
Appointed on September 1st. 1997

Proxy holders:

Michiel Maarten Zuur
Born on April 11th. 1948 in Den Haag
Resident of 1333 ZS Almere, Woldbergstraat 4
Appointed on December 13th. 1996, joint proxy

Jan Cornelis Peekstok
Born on October 25th. 1950 in Ouderkerk aan den Amstel
Resident of 1435 PA Rijsenhout, Stuurboord 13
Appointed on December 13th. 1996, joint proxy

Skill/Experience:
With regard to moral standing nothing detrimental was reported
The management is considered capable

AFFILIATIONS

Parent company and sole shareholder since October 29th. 1996: BASE Lease Holding N.V. in Amsterdam.
Trade Registry Amsterdam-Haarlem, registration number 3323456.

The ultimate parent company is the company BASE Internationale Groep N.V..
Fiscally one is integrated in the BASE N.V..
The group comprises dozens of companies. Within the scope of this inquiry we will only reveal the ones directly related to BASE Lease Holding N.V..
These subsidiaries (100%) are divided in divisions:

General Leasing companies:
BASE Lease Nederland B.V. in Amsterdam
Post Lease B.V. in Amsterdam
Graphic Lease B.V. in Amsterdam
BASE Lease Vastgoed B.V. in Amsterdam

General Leasing companies abroad:
BASE Lease Belgium N.V. in Aartselaar, Belgium
BASE Lease Deutschland GmbH. in Hamburg, Germany
BASE Lease France S.A. in Paris, France
BASE Lease U.K. Ltd. in London, U.K.
BASE Farm Finance Ltd. in West Byfleet, U.K.
BASE Lease España EFC S.A. in Barcelona, Spain
BASE Lease Ireland B.V. in Amsterdam
BASE Lease Italia Spa. in Brescia, Italy
BASE Lease Polska Sp. z.o.o. in Warsaw, Poland

Car Lease:
TWC Lease Nederland B.V. in Den Bosch
Noord Lease B.V. in Groningen
TW Lease Belgium/Luxembourg N.V. in Aartselaar, Belgium and Luxemburg
TW Lease U.K. Ltd. in Glasgow, U.K.
TW Lease Deutschland GmbH. in Norderstedt, Germany
TW Lease France SNC in Neuilly sur Seine, France

Truck Lease:
Runoto Leasing Nederland B.V. in Oldenzaal
Runoto Belgium N.V. in Mechelen, Belgium
UTA Finanz und Leasing GmbH. (51%) in Kleinostheim, Germany

Big Ticket Lease:
BASE Lease International Equipment Finance B.V. (financing of airlines) in Amsterdam
BASE Lease International Equipment Management B.V. (renting of aeroplanes) in Amsterdam

Other subsidiaries and members are:
BASE Aircraft Lease B.V. (50%)
BASE Aviation Lease B.V.
BASE Aviation Lease Delaware Inc.
BASE (Holland) Aircraft B.V.
BASE Lease Aircraft B.V.
BASE Lease (Far East) N.V.
BASE Lease France SNC
BASE Lease Interfinance B.V.
BASE Lease Milieu B.V.
BASE Lease Structured Finance B.V.
Air Finance Brussel N.V.
Diamond Lease N.V. (55%)
Esbelto B.V.
Hokabe Lease B.V.
Real Estate Lease SPC
Ship Lease International B.V. (50%)
Sfing Europe B.V. (50%)

FINANCIALS

Turnover last financial year: approx. € 1.500.000.000 (2004)
Turnover preceding year: € 1.765.514.000 (2003)
€ 1.632.027.000 (2002)

Expected turnover current financial year: approx. € 1.300.000.000 (2005).
Average accounts receivable: € 460.000.000
Average accounts payable: € 970.000.000
Average Stock: neglectable

Net Result last financial year:
the financial year 2004 will reportedly be closed with a negative result of approx. € 5.900.000.

Net results preceding years:
2003: € 3.461.000 -/-
2002: € 1.600.000 -/-
2001: € 7.600.000

All financial figures are consolidated. The latest accounts refer to the financial year 2003.

CONSOLIDATED ACCOUNTS OF BASE LEASE HOLDING N.V. (31-12-2003, X € 1.000)

SOLVENCY

General developments: moderate
A re-organization took place in 2003 and continued onwards in order to reinstall the profitability, with limited success. Old planes will be sold.
The negative results in 2002 and 2003 are partly attributed to the decrease in value of aeroplanes and the sudden return of 13 planes from the U.S.A.
where a customer could not fulfill its obligations as well as general economic developments.

Consolidated there were some problems in Spain and Belgium as well.
Payments: payments are met quite slow with constant reminders

Available experiences:

€ 200.000- € 600.000 settled within 90 days
€ 500.000- € 2.000.000 settled within 120 days

Trade references:

- Airbus
- Boeing

The liquidity and solvency may be considered insufficient, based on the payment experiences and the accounts,
showing a liquidity ratio of 0,6 and the proportion Equity Capital-Total Assets/Liabilities showing a troubling -23%.
Various files, data-bases and institutions (like receiver/bailiff) consulted, show several negative payments and juridical procedures registered in the name of subject.
Bankruptcy/Suspension of payment: none

BANKER

ING Bank in Amsterdam
Account number: 65.00.10.906
Credit facilities: available
Limit: approx. € 5.000.000
Use: regularly

ADVICE/CONCLUSION

In view of the above information your clients debt, can in principle be recovered by putting a distraint on their bank account, their planes and related interests (shares in subsidiaries).
Considering the overall indebtedness and the fact that all debentures are fully secured by their banker, the ultimate result may not be very promising.

*END OF REPORT*