The FINOVA Group Inc. Announces Franchise Finance Portfolio Sale To Two GE Capital Units

Press Release: The FINOVA Group Inc.
April 12, 2002
SCOTTSDALE, AZ -- The FINOVA Group Inc. (OTC Bulletin Board: FNVG) announced yesterday that is has sold approximately $485 million of its franchise finance portfolio to GE Capital Franchise Finance Corporation and GE Capital Canada Equipment Financing Inc., for approximately $490 million. This sale includes substantially all the performing assets in FINOVA's franchise finance portfolio, and represents approximately 7.5% of the Company's total financial assets at December 31, 2001. FINOVA will continue the orderly liquidation of approximately $220 million of its retained franchise finance portfolio, which substantially consists of non-performing assets. The Company will use the net proceeds from the transaction to repay a portion of the loan it obtained in August 2001 from Berkadia, LLC.

The FINOVA Group Inc., through its principal operating subsidiary, FINOVA Capital Corporation, is a financial services company headquartered in Scottsdale, Ariz.

SOURCE: The FINOVA Group Inc.