"This acquisition complements our existing franchise finance business and reflects our on-going expansion in this growth market," says Paul Bossidy, president and chief executive officer of GE Capital Commercial Equipment Financing. "With this acquisition, we will strengthen our position in franchise financing."

"We are excited about the benefits our new relationship with GE Capital will bring to our customers," notes Morton Fleischer, chairman and chief executive officer of Franchise Finance Corp. of America. "By joining GE Capital, we will be able to offer additional services and the expertise of a large financial services company. We'll also now have the ability to expand globally to bring franchise finance solutions to customers around the world."

In January of this year, Franchise Finance reported year-end 2000 and fourth quarter financial results which included revenues for the year 2000 which totaled $232 million, an increase of 6% over $218 million for the prior year. For the fourth quarter 2000, revenues were $58 million, compared to $57 million for the fourth quarter of 1999. Including after-tax gains on whole loan sales, revenues for the fourth quarter rose 12%.

In its financial filing, the company also reported a lack of large transaction activity in 2000 as compared to 1999, which contributed to a 33% decline of investment activity. In 2000, Franchise Finance Corp. of America completed two financing transactions that were over $100 million each that comprised approximately 27% of the company's financings for the year. In 1999, four transactions of more than $100 million each accounted for more than 45% of the company's annual financings.