Truck Repossessions Increased, While Construction Repossessions Declined

Nassau Asset Management’s Index Shows Medical Repos Also Up, While Printing
and Machine Tool Repos Decreased

Repossessions and liquidations of
tractor-trailer trucks increased 110% in 2007 compared with 2006, according to
Nassau Asset Management’s NasTrac Quarterly Index (NQI). In addition,
repossessions and liquidations of construction, printing and machine tool
equipment declined in a year-to-year comparison, while medical equipment
repossessions rose.

"We are seeing a very significant correction in the market," said Nassau
President Edward Castagna. "Even in a category such as construction equipment,
where the 12-month total showed a decline, repossessions were up significantly
in the second half of 2007." However, Castagna also pointed out, "Nassau is
still selling equipment because there are still some very vibrant businesses
that need equipment, have good credit and still look good on paper. These
businesses made conservative financial decisions, maintained focus on their core
business values and now flush with equity. They are taking advantage of their
position in the current economy."

Trucking Repossessions and Liquidations
Nassau Asset
Management cited several reasons for the 110% increase in truck repossessions
and liquidations. Leading the way is the decline in homebuilding, which affects
a number of peripheral business sectors, most of which utilize trucks. "From the
forest to the saw mill to the construction site, along with the movement of
people in and out of those homes and the delivery of appliances and furniture to
the home, there are trucks involved in every step of the process," Castagna
said. "The rings continue to expand out of the housing epicenter."

In addition, government regulations (including restrictions on travel time),
rising fuel costs and competition placed greater financial strain on businesses
that utilize trucks. Low interest rates in the past few years and significant
sales of the remaining trucks with ’06 engines as compared to the less proven
’07 versions with tougher emission standards, led to an increase in late model
trucks on the market, driving down prices in the used truck market.

Other Repo Trends
Nassau’s latest NQI compares the
company’s internal repossession and orderly liquidation activity in 2007 with
2006. In addition to reporting on tractor-trailer trucks, the latest NQI
revealed the following trends:

Construction Repos Declined—Repossessions and liquidations of construction
equipment dropped by 32% in 2007, as compared to 2006.

Machine Tool Repos Also Declined—Repossessions and liquidations of machine
tools declined by 47% in 2007 over 2006.

Medical Repos Increased—Repossessions and liquidations rose in 2007 for
medical devices by 121%.

Printing Repos Decreased—Repossessions and liquidations of printing equipment
dropped by 23% in 2007 compared to 2006.

Source: Nassau Asset Management

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