Fitch Releases Corrections Regarding ORIX's Servicer Rating Downgrades.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 19, 2004

Fitch Ratings has been provided with some corrected statistics by ORIX Capital Markets (OCM) following Fitch's downgrades of OCM's servicer ratings. Based on that information, Fitch issues the following corrections.

Fitch surveyed OCM and five of the most active commercial mortgage-backed securities (CMBS) special servicers to determine the number instances over the last three years that loans were involved in litigation other than foreclosure and borrower bankruptcy. The data OCM provided to Fitch covered the period from Jan. 1, 2001 to Oct. 31, 2003. For each of these servicers Fitch calculated the following percentage:

The number of loans involved in litigation other than foreclosure or borrower bankruptcy (including loans not in special servicing) divided by the total number of specially serviced loans plus the loans with litigation that are not specially serviced.

In Fitch's opinion this percentage accurately captures litigation activity. OCM has now given Fitch a more detailed breakout of these loans. The primary difference is that the previous calculation had double counted some loans subject to multiple lawsuits. The corrected figure for OCM is 23%, based on this new information vs. the previously reported 27%. The percentage reported by the other special servicers surveyed using the same methodology ranged from 2% - 6%.

In the March 9 press release, Fitch reported that OCM's 2003 master servicer employee turnover was 24% and its 2003 special servicer employee turnover rate was 29%. This information had been provided by OCM as part of Fitch's annual servicer review. It has been discovered that the time periods for OCM's 2002 and 2003 employee turnover statistics both included the month of September 2002. Therefore, adjusting for this initial double counting, the correct employee turnover rate for the period Sept. 1, 2002 through Aug. 31, 2003 is 12% for OCM's master servicing group and 23% for OCM's special servicing group. The majority of this turnover has been at the staff level.

These corrections do not alter Fitch's ratings opinion (see Fitch press release 'Fitch Downgrades ORIX Capital Markets' Servicer Ratings' dated March 9, 2004 and available on the Fitch Ratings web site at 'www.fitchratings.com').