Fitch Downgrades Lease Investment Flight Trust.

Business Editors

NEW YORK--(BUSINESS WIRE)--July 21, 2003

Fitch Ratings has taken the following rating actions for Lease Investment Flight Trust (LIFT) as outlined below:

-- Class A-1 notes are downgraded to 'A' from 'AA';

-- Class A-2 notes are downgraded to 'A' from 'AA';

-- Class A-3 notes are downgraded to 'A' from 'AA';

-- Class B-1 notes are downgraded to 'BBB' from 'A';

-- Class B-2 notes are downgraded to 'BBB' from 'A';

-- Class C-1 notes are downgraded to 'BB' from 'BBB';

-- Class C-2 notes are downgraded to 'BB' from 'BBB';

-- Class D-1 notes are downgraded to 'B' from 'BB';

-- Class D-2 notes are downgraded to 'B' from 'BB';

-- All classes are removed from Rating Watch Negative.

The downgrades reflect the increasing gap between expected and actual lease rental payments during 2003 as well as Fitch's expectation that the current gap may narrow but will likely remain in excess of those levels experienced previous to 2003.

The reduced cash flow lease rental trend is primarily attributable to increased nonperforming aircraft and aircraft that have been released at rates well below historical levels. The nonperforming aircraft include 2 B767-300ER aircraft leased by Air Canada, who is in bankruptcy and has not been making payments to most of its aircraft lessors. While Fitch expects the resumption of the Air Canada lease payments shortly, the new lease rates will likely be below the original rates as the market for widebody aircraft has deteriorated during the past two years.

LIFT's lease expirations during 2004 are not overwhelming and include only 3 aircraft, 2 B737-300s and 1 B737-400. The continued depressed demand for many aircraft types will likely continue to impair lease rates. Additional market events such as terrorist attacks, airline bankruptcies and or airline liquidations are possible and would exacerbate weak lease rates.

LIFT is a Delaware business trust formed to conduct limited activities, including the issuance of debt, and the buying, owning, leasing and selling of commercial jet aircraft. LIFT originally issued $1,429 million of notes in June 2001, while as of July 2003 had $1,337 million of notes outstanding. Primary servicing is being performed by GE Capital Aviation Services, Limited (a wholly owned subsidiary of General Electric Capital Corp.), while the administrative agent role is being performed by Phoenix American Financial Services, Inc., a subsidiary of Phoenix American Incorporated.