2 - Q. You own them? A. Yes. Q. What happens to them when the lease is up? A. We re-lease them or sell them. Leasees have the option to purchase them at fair market value. Q. Is this something you got into in the 70's? A. In the mid-1960's we entered the leasing field. It looked very promising to us. Particularly leasing to large capital-intensive industries. To railroads, ocean-going vessels, etc. We have $660 million of rolling railroad stock on lease to the railroads. Q. Then you could be a bank or a finance company or a plain credit company, and not GE? Why would anyone come to the GECC to buy an airliner or a mobile home? A. We have strong competitors in every field. Presumably people come to us just the same as to any company in the competitive market. We provide a service, maybe with more of a smile, maybe more promptly. We have people with expertise. If you ask why we are able to compete, it would be because of our specialized knowledge of certain markets where we can develop a high degree of competence and knowledge. Q. For instance. A. Lease financing is a very complex one which requires an understanding of federal and state tax laws, a knowledge of complex cash flows. By virtue of the fact we have an intricate knowledge of airlines and the railroads, we are one of the largest leasers of transportation equipment in the nation. Q. If you were an individual company, where would you rate? A. If we were ranked with independent financing companies, we are #1 in assets, #3 in shareowners1 equity, and #2 by net income. If we are ranked with all bank holding companies and finance firms, we are #28 by assets, #13 by shareowners' equity, and #15 by net income.