According to BACK Aviation Solutions, the current active worldwide commercial aircraft fleet consists of more than 17,000 aircraft. Approximately 13,000 of these aircraft are Western-built. Of the Western-built fleet, approximately 11,000 aircraft were manufactured by Boeing and Airbus, the two largest aircraft manufacturers. These aircraft are typically compliant with noise and other environmental standards, relatively fuel efficient and technologically advanced. The remaining aircraft in the global fleet tend to be older, have higher direct operating costs (driven largely by less fuel efficient engines) and a smaller installed base of users.

According to The Airline Monitor, the world fleet is expected to increase to approximately 23,000 aircraft by 2015. Over this period, Boeing and Airbus are expected to increase annual new aircraft deliveries from 785 units in 2006 to 1,100 units in 2015, with an expected average annual value of $76 billion.

According to SH&E, the current fleet of 17,000 aircraft has an aggregate value of approximately $330 billion and is expected to grow to approximately $580 billion in 2015, representing a compound annual growth rate of 6.1%.

The conversion market has become very active with the launch of a number of original equipment manufacturer, or OEM, and third-party PTF programs for such Boeing aircraft as the 737-300, 737-400, 757-200, 767-200, 747-400 and MD-11. Current OEM Airbus programs gaining momentum include those targeting A310-300 and A300-600 aircraft. The increased market activity, combined with competition surrounding conversion slots and sourcing of aircraft conversion candidates, indicates a growing market that will help maintain certain aircraft values.

1,040 aircraft or approximately 60% of the existing global freighter fleet is expected to be scrapped within the next 20 years and replaced by an estimated 1,050 new production freighters and 2,000 PTF conversions. The bulk of these replacement freighters will be mid-body and wide-body aircraft types.

As of March 31, 2006, all of the aircraft in the Company’s portfolio were subject to operating leases. Under the Company’s leases, the lessees agree to lease the aircraft for a fixed term, although in some cases the lessees may have purchase options, termination rights and extension rights. As at March 31, 2006, the weighted average (by net book value) remaining term of the Company’s leases was 4.2 years with scheduled expirations ranging from 2006 through 2014.

Each of the Company’s leases require the lessee to pay periodic rentals during the lease term. Rentals on three of the Company’s leases are payable on a floating interest-rate basis and rentals on its remaining leases are fixed for the base lease term. All lease rentals are payable either monthly or quarterly in advance. Under some of the Company’s leases, maintenance payments are due monthly in arrears and additional amounts based on excess hours of operation or cycles may be payable either monthly or annually in arrears.

Under the Company’s leases, the lessee must pay operating expenses accrued or payable during the term of the lease, which would normally include maintenance, operating, overhaul, airport and navigation charges, certain taxes, licenses, consents and approvals, aircraft registration and aircraft hull and public liability insurance premiums. The lessees are obliged to remove liens on the aircraft other than liens permitted under the leases.

The Company’s leases generally provide that the lessees’ payment obligations are absolute and unconditional under any and all circumstances and require lessees to make payments without withholding payment on account of any amounts the lessor may owe the lessee or any claims the lessee may have against the lessor for any reason, except that under certain of the leases a breach of quiet enjoyment by the lessor may permit a lessee to withhold payment.

For the year ended December 31, 2005, the contribution margin of Debt Investments segment was $2.9 million on $3.0 million of revenue.

For the year ended December 31, 2005, selling, general and administrative expenses of $12.6 million.

For the year ended December 31, 2005, earnings from discontinued operations, net of taxes, totaled $1.1 million.