BACKGROUND

LPI SOFTWARE FUNDING GROUP, INC.


OUR VISION

BE THE SOFTWARE LEASING COMPANY THAT SOFTWARE VENDORS AND USERS GO TO FOR SOFTWARE LEASING ACROSS THE BROAD SPECTRUM OF USER SIZE, USER CREDIT QUALITY, AND TRANSACTION SIZE.


HISTORY

LPI Software Funding Group, Inc. (“LPI”) is a 23-year old leasing company which focuses on providing creative and cost-effective financing alternatives for vendors and users. LPI will lease computer software separately or in conjunction with hardware. LPI emphasizes working with software vendors, but also provides software leasing directly to users.

LPI and its management has concentrated in the computer and communications industries since the late 1960's. After leasing more than $2 billion of computer and communication equipment, primarily by short-term operating leases, in the United States,Canada and Europe, we concluded in late 1991 that the computer industry model was shifting -- the value of hardware was declining at an accelerating rate and the primary value generator in the industry was now software. SO LPI CHANGED ITS FOCUS FROM EQUIPMENT AND NOW CONCENTRATES ONLEASING COMPUTER SOFTWARE -- although we will lease hardware on a finance lease. We have leased software from more than 100 vendors and have formal or informal relationships with more than 60 software vendors.

In the past, LPI's lease base has varied from individuals and small businesses to AAA-rated corporations with the cost of individual leases ranging from less than $1,000 to more than$5,000,000. We now focus on medium-size to AAA-rated corporations and prefer the minimum lease size to be $25,000, although there are exceptions to this limit. There is no maximum lease size. In the last five years, our smallest transaction has been for $4,000; our largest, $10,000,000.



OUR MISSION

Provide software VENDORS with increased sales through offering leasing alternatives with a partner which knows the software business and works closely with the vendor.

Provide software USERS with a leasing alternative that will enable them to obtain the software they need now in a way that satisfies their budgetary and financial requirements.


EXPERIENCE AND INNOVATION

In the operating lease area, LPI management had pioneered numerous concepts, including the use of the nonrecourse loan structure which was treated as a sale for accounting purposes, the introduction of operating lease programs into Europe, multiple levels of pooling to protect our lenders, and the combination fixed/floating debt structure to lower funding costs and yet retain payment flexibility.

In the finance lease area, LPI has structured programs in which, subject to mutually agreed upon standards, the vendor controls credit approval, the monthly payment amount, the down payment, and deals directly with the customer. LPI structures the program around the vendor's marketing policies. Programs have also been arranged where there is a participation by the vendor in profitability beyond an agreed upon minimum.

In the software leasing area, LPI is pioneering a lease structure tailored to software in which the software license continues to flow directly to the user, but is flexible enough to also include hardware. LPI has also developed a simple structure to handle progress payments of a license or of software modules. LPI has applied some lease structures used in large leases to much smaller ones, including floating rate leases and using a balloon payment at lease end so monthly payments will fit within the user’s budget. Lastly, we have arranged for the enhancement of the lessee’s credit through a letter of credit, cash collateral account, or security deposit so that a transaction could be consummated. For some details, go to “Success Stories”.


INTEGRITY

LPI's management and staff have a long history of dealing openly and fairly with vendors and users in arranging leases and addressing the problems and issues which arise over the life of a lease or leasing program. References to vendors, users, and our lenders are available upon request.


CUSTOMER SERVICE

LPI’s leases and leasing programs are characterized by a high degree of flexibility and customer service so that the needs of both vendors and users are met. Our information systems group has written all of our computer programs (other than financial accounting) so we can structure a transaction to meet a customer's needs without being inhibited by a computer system. We have maintained detailed records for over 125,000 units of equipment, focusing upon the detail so as to provide the highest level of administrative support to both vendors and users, as well as statistical information and sophisticated management level reports concerning the portfolios of software or equipment leased. We set up our Web site, www.lpilease.com, in 1995 and have kept improving it to provide more information to our customers.


FINANCIAL STRENGTH

LPI’s management has arranged financing for its leases with some of the largest and most reputable banks in the United States (most of the names are the original ones since the banking industry continues to implode) - Ameritrust Bank, Bank of California, BOT Financial Corporation, Chase Manhattan Bank, Citibank, Commerce Bank, Continental Bank, Continental Illinois National Bank, Copelco Capital, Inc., CoreStates, Dolphin Capital Corporation, First Fidelity Bank, First Bank Systems, First Pennsylvania Bank, First Union National Bank,  GreatAmerica Leasing Corporation, Manufacturers Hanover, Meridian Bank, Morgan Guaranty Trust Company, National Bank of Canada, Newcourt Financial USA, Inc., Progress Bank, Society for Savings, Swiss BankCorporation, and U.S. Trust Company, among others.

"CREATIVITY. COMMITMENT. LEADERSHIP."

© LPI Software Funding Group, Inc.  

593 Cricket Lane, Suite 200, Wayne, PA 19087  

610.687.4434    610.341.6100    sales@lpilease.com
                          March 6, 2006