Correction: Fitch Downgrades $1.6B of DVI Sponsored Medical Equipment Securitizations.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 8, 2003

(This is a revised version of a press release issued October 7, 2003, containing amended rating action information on DVI Receivables XIX, L.L.C., Series 2003-1 Class A-1 notes)

Fitch Ratings downgrades all DVI, Inc. (DVI) sponsored medical equipment lease transactions. In addition, all classes remain on Rating Watch Negative.

This action reflects Fitch's concerns over the heightened potential for significant collateral deterioration in light of DVI's bankruptcy, continued concerns about DVI's ability to service the portfolio with a reduced work force and unresolved delays in providing Fitch with updated servicer reports. While it is difficult to quantify the impact of these issues, Fitch believes that the combination of these risks is no longer consistent with the original ratings.

As indicated in the September 12th press release, Fitch was awaiting transaction performance information, specifically the September servicer report (August data) to determine the magnitude of the potential rating changes. However, Fitch has still not received updated transaction performance information and the timing of the servicer report delivery is still unclear.

Compounding these concerns is the announcement by the U.S. Trustee Office of the appointment of an examiner to probe allegations of accounting irregularities at DVI. Further, U.S. Bank N.A., the trustee of the securitizations, indicated that it has reason to believe that, prior to filing bankruptcy, DVI may have inappropriately used for its own working capital needs somewhere between $2.5 million and $3.5 million of payments related to contracts owned by the securitization trusts, that some equipment vendors have not been paid for equipment and/or related services, and that certain property, sales and franchise taxes have not been paid.

Late last week, the U.S. Bankruptcy Judge in the DVI case indicated that the debtor-in-possession financing to be provided by Goldman Sachs and Ableco Finance would be approved. Fitch has not yet received additional information as to how the approval will affect required servicer advances in each securititization.

As indicated in previous releases, Fitch has been in regular contact with the trustee and back-up servicer, US Bank. It remains unclear when and if a servicing transfer may take place. Fitch believes that US Bank has the appropriate capabilities to service the DVI portfolio but any transfer will likely be complicated and result in at least a temporary decline in performance.

All classes of notes remain on Rating Watch Negative. Upon receipt of updated servicer reports, Fitch will determine whether further rating actions are appropriate. However, the timing and magnitude of any rating actions may be accelerated based upon the timing, quantity and quality of information that Fitch receives.

All of the outstanding classes, other than the Class A-1 notes of the Series 2003-1 transaction which are rated 'F1+' are downgraded as follows:

DVI Receivables VIII, L.L.C., Series 1999-1

-- Class A-5 notes to 'AA' from 'AAA';

-- Class B notes to 'A' from 'AA';

-- Class C notes to 'BBB' from 'A';

-- Class D notes to 'BB' from 'BBB';

-- Class E notes to 'B' from 'BB'.

DVI Receivables X, L.L.C., Series 1999-2, all outstanding classes;

-- Class A-4 notes to 'AA' from 'AAA';

-- Class B notes to 'A' from 'AA';

-- Class C notes to 'BBB' from 'A';

-- Class D notes to 'BB' from 'BBB';

-- Class E notes to 'B' from 'BB'.

DVI Receivables XI, L.L.C., Series 2000-1, all outstanding classes;

-- Class A-4 notes to 'AA' from 'AAA';

-- Class B notes to 'A' from 'AA';

-- Class C notes to 'BBB' from 'A';

-- Class D notes to 'BB' from 'BBB';

-- Class E notes to 'B' from 'BB'.

DVI Receivables XII, L.L.C., Series 2000-2, all outstanding classes;

-- Class A-4 notes to 'AA' from 'AAA';

-- Class B notes to 'A' from 'AA';

-- Class C notes to 'BBB' from 'A';

-- Class D notes to 'BB' from 'BBB';

-- Class E notes to 'B' from 'BB'.

DVI Receivables XIV, L.L.C., Series 2001-1, all outstanding classes;

-- Class A-3 and A-4 notes to 'AA' from 'AAA';

-- Class B notes to 'A' from 'AA';

-- Class C notes to 'BBB' from 'A';

-- Class D notes to 'BB' from 'BBB';

-- Class E notes to 'B' from 'BB'.

DVI Receivables XVI, L.L.C., Series 2001-2, all outstanding classes;

-- Class A-3 and A-4 notes to 'AA' from 'AAA';

-- Class B notes to 'A' from 'AA';

-- Class C notes to 'BBB' from 'A';

-- Class D notes to 'BB' from 'BBB';

-- Class E notes to 'B' from 'BB'.

DVI Receivables XVII, L.L.C., Series 2002-1, all outstanding classes;

-- Class, A-3A and A-3B notes to 'AA' from 'AAA';

-- Class B notes to 'A' from 'AA';

-- Class C notes to 'BBB' from 'A';

-- Class D notes to 'BB' from 'BBB';

-- Class E notes to 'B' from 'BB'.

DVI Receivables XVIII, L.L.C., Series 2002-2, all outstanding classes;

-- Class A-2A, A-2B, A-3A and A-3B notes to 'AA' from 'AAA';

-- Class B notes to 'A' from 'AA';

-- Class C notes to 'BBB' from 'A';

-- Class D notes to 'BB' from 'BBB';

-- Class E notes to 'B' from 'BB'.

DVI Receivables XIX, L.L.C., Series 2003-1, all outstanding classes;

-- Class A-1 notes are rated 'F1+';

-- Class A-2A, A-2B, A-3A and A-3B notes to 'AA' from 'AAA';

-- Class B notes to 'A' from 'AA';

-- Class C notes to 'BBB' from 'A';

-- Class D notes to 'BB' from 'BBB';

-- Class E1 and E2 notes to 'B' from 'BB'.