Fitch Downgrades DVI Medical Equipment Securitizations.

NEW YORK -- Fitch Ratings takes rating actions on the classes of DVI, Inc. securities listed below. These rating actions affect 52 classes of notes in nine transactions totaling $774 million in current outstanding securities. Many of these classes were previously downgraded by Fitch on May 28, 2004. Fitch notes while the legal final maturity of the class A-3 notes of the DVI Receivable XVI, series 2001-2 transaction was July 11, 2005, interest and principal payments continue to be made on these notes. As such, Fitch downgrades this class to 'CC' from 'CCC'.

Fitch's actions are based on continued loan performance deterioration as reflected in the servicer reports for the period ending Aug. 31, 2005. While the rate of defaults has slowed, the amount of potential restructured contracts has decreased dramatically since Fitch's last rating actions in May 2004. Restructured contracts are contracts which have the greatest amount of potential proceeds and are added back to the collateral balance once the contract has been brought back to current status. As of the September 2005 reporting period, the nine outstanding transactions are only expected to benefit from approximately $3.1 million in restructured contract proceeds versus $336 million in July 2004. As a result, the improvement in the under-collateralization position across all nine transactions will be solely dependent upon recoveries on previously defaulted contracts. To date the average recovery rate for all nine transactions is 33.92%.

Fitch has had discussions with U.S. Bancorp Portfolio Services (USBPS) which replaced DVI, Inc. as servicer for each of the securitizations under the terms of each transaction's Contribution and Servicing Agreements in February 2004. Since taking over servicing duties, USBPS has been successful in working out and realizing recoveries on previously defaulted contracts. Furthermore, the majority of the transactions have experienced significant declines in delinquencies and the pace of new defaults has slowed down dramatically.

Fitch will continue to closely monitor performance of the transactions, will have regular contact with USBPS, and may raise, lower or withdraw ratings as appropriate.

Ratings have been lowered or affirmed as indicated below.

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

-- Class A-5 notes affirmed at 'B';

-- Class B notes affirmed at 'CCC';

-- Class C notes downgraded to 'C' from 'CCC';

-- Class D notes downgraded to 'C' from 'CCC';

-- Class E notes downgraded to 'C' from 'CC';

DVI Receivables X, L.L.C., series 1999-2, all outstanding classes:

-- Class A-4 notes downgraded to 'CC' from 'CCC';

-- Class B notes downgraded to 'C' from 'CCC';

-- Class C notes downgraded to 'C' from 'CC';

-- Class D notes downgraded to 'C' from 'CC';

-- Class E notes downgraded to 'C' from 'CC';

DVI Receivables XI, L.L.C., series 2000-1

-- Class A-4 notes affirmed at 'CCC';

-- Class B notes downgraded to 'CC' from 'CCC'';

-- Class C notes downgraded to 'C' from 'CC';

-- Class D notes downgraded to 'C' from 'CC';

-- Class E notes downgraded to 'C' from 'CC';

DVI Receivables XII, L.L.C., series 2000-2

-- Class A-4 notes affirmed at 'CCC';

-- Class B notes affirmed at 'CC';

-- Class C notes affirmed at 'CC';

-- Class D notes affirmed at 'CC';

-- Class E notes downgraded to 'C' from 'CC';

DVI Receivables XIV, L.L.C., series 2001-1

-- Class A-3 notes affirmed at 'CCC';

-- Class A-4 notes affirmed at 'CC';

-- Class B notes affirmed at 'CC';

-- Class C notes affirmed at 'CC';

-- Class D notes affirmed at 'CC';

-- Class E notes downgraded to 'C' from 'CC';

DVI Receivables XVI, L.L.C., series 2001-2

-- Class A-3 notes downgraded to 'CC' from 'CCC';

-- Class A-4 notes downgraded to 'CC' from 'CCC';

-- Class B notes downgraded to 'C' from 'CC';

-- Class C notes downgraded to 'C' from 'CC';

-- Class D notes downgraded to 'C' from 'CC';

-- Class E notes downgraded to 'C' from 'CC';

DVI Receivables XVII, L.L.C., series 2002-1

-- Class A-3A and A-3B notes affirmed at 'CCC';

-- Class B notes downgraded to 'C' from 'CC';

-- Class C notes downgraded to 'C' from 'CC';

-- Class D notes remain at 'C';

-- Class E notes remain at 'C'.

DVI Receivables XVIII, L.L.C., series 2002-2

-- Class A-3A and A-3B notes affirmed at 'CCC';

-- Class B notes affirmed at 'CC';

-- Class C notes affirmed at 'CC';

-- Class D notes affirmed at 'CC';

-- Class E notes downgraded to 'C' from 'CC'.

DVI Receivables XIX, L.L.C., series 2003-1, all outstanding classes:

-- Class A-3A and A-3B notes affirmed at 'CCC';

-- Class B notes downgraded to 'C' from 'CC';

-- Class C-1 and C-2 notes downgraded to 'C' from 'CC';

-- Class D-1 and D-2 notes remain at 'C';

-- Class E-1 and E-2 notes remain at 'C'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.