CORRECTION: Fitch Downgrades GE Capital Home Equity Loan Pass-Thru Ctfs.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 12, 2001

(This is an amended version to a press release issued earlier today. Series 1997-HE2, in addition to being downgraded, remains on Rating Watch Negative. There is also additional contact information at the conclusion of this release.)

Fitch lowers the ratings of the following GE Capital Mortgage Services Inc. (GECMSI) home equity loan pass-through certificates:

-- Series 1996-HE4 class B1 from `BB' to `CCC';

-- Series 1997-HE1 class B1 from `BB' to `CCC';

-- Series 1997-HE2 class B1 from `A' to `BBB-`, Remains on Rating Watch
Negative;

-- Series 1997-HE2 class B2 from `B' to `CCC';

-- Series 1997-HE4 class B3 from `BB' to `CCC';

-- Series 1997-HE4 class B4 from `CCC' to `D'.

In addition, the following certificates are placed on Rating Watch Negative:

-- Series 1996-HE4 class M rated `AA';

-- Series 1997-HE1 class M rated `AA';

-- Series 1997-HE3 class B2 rated `BBB';

-- Series 1997-HE4 class B2 rated `BBB';

-- Series 1999-HE1 classes B3 rated `BB' and B4 rated `B';

-- Series 1999-HE3 class B4 rated `B'.

Fitch's rating actions reflect the likelihood of loss to the referenced classes, given the performance to date and the outstanding 90+ day delinquent loans, including loans in foreclosure and REO.

As of the March 25, 2001 distribution:

Series 1996-HE4 remittance information indicates that approximately 8.08% of the pool is over 90 days delinquent, and cumulative losses are $4,568,831 or 2.08% of the initial pool. Classes M and B1 have 7.68% and 1.89% of credit support remaining respectively.

Series 1997-HE1 remittance information indicates that approximately 8.37% of the pool is over 90 days delinquent, and cumulative losses are $3,475,886 or 1.76% of the initial pool. Classes M and B1 have 7.68% and 2.52% of credit support remaining respectively.

Series 1997-HE2 remittance information indicates that approximately 8.36% of the pool is over 90 days delinquent, and cumulative losses are $4,258,536 or 1.74% of the initial pool. Classes B1 and B2 have 3.58% and 1.59% of credit support remaining respectively.

Series 1997-HE3 remittance information indicates that approximately 7.61% of the pool is over 90 days delinquent, and cumulative losses are $1,957,665 or 0.83% of the initial pool. Class B2 has 3.84% of credit support remaining.

Series 1997-HE4 remittance information indicates that approximately 6.09% of the pool is over 90 days delinquent, and cumulative losses are $1,296,892 or 0.72% of the initial pool. Classes B2, B3 and B4 have 3.46%, 1.42% and 0% of credit support remaining respectively.

Series 1999-HE1 remittance information indicates that approximately 6.84% of the pool is over 90 days delinquent, and cumulative losses are $2,703,156 or 0.53% of the initial pool. Classes B3 and B4 have 2.63% and 1.60% of credit support remaining respectively.

Series 1999-HE3 remittance information indicates that approximately 5.47% of the pool is over 90 days delinquent, and cumulative losses are $1,058,081 or 0.24% of the initial pool. Class B4 has 2.43% of credit support remaining.

Fitch will continue to closely monitor the performance of these transactions.