SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 20, 1996--Leasing Solutions, Inc. (NASDAQ: LSSI), announced today that it has filed a registration statement with the Securities and Exchange Commission for the issuance of $50 million of convertible subordinated notes due October, 2003. In addition, the underwriters have been granted an over-allotment option with respect to an additional $7.5 million of convertible subordinated notes.

The offering will be made through an underwriting group led by Prudential Securities Incorporated and Smith Barney Inc. Proceeds from the offering are anticipated to be used primarily to fund the Company's equity investment in equipment it leases to its customers and for general corporate purposes.

The registration statement filed with the Securities and Exchange Commission has not yet become effective. The securities subject to the registration statement may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, such convertible subordinated notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification of such notes under the securities laws of such state. The offering of such notes may be made only by a written prospectus meeting the requirements of Section 10 of the Securities Act of 1933. A copy of the preliminary prospectus relating to the offering may be obtained, when available, from the offices of Prudential Securities Incorporated, 111 8th Avenue, 5th Floor, New York, NY 10011, or Smith Barney Inc., Brooklyn Army Terminal, 140 58th Street, Brooklyn, NY 11220.

Leasing Solutions, founded in 1986, is a full-service vendor leasing company that specializes in leasing information processing and communications equipment, principally to large, creditworthy customers. Most leases written by the Company qualify as operating leases. Leasing Solutions has purchased over $750 million of equipment, representing over 275,000 assets, and currently services over 400 customers. Based in San Jose, the Company maintains regional leasing offices in the Atlanta, Boston, Chicago, Dallas, Los Angeles, New York City, San Jose metropolitan areas and the United Kingdom.