Chase to Exit Auto Leasing Business in New York and Connecticut Effective July 1

    NEW YORK--April 21, 2003--Chase Manhattan Automotive Finance Corporation, a subsidiary of JPMorgan Chase Bank, which together with its affiliates has the largest non-captive auto loan and leasing portfolio in the country, today announced it plans to exit the auto leasing business in New York and Connecticut effective July 1, 2003. Chase's decision was made solely in response to an outdated law, known as "vicarious liability," that holds leasing companies responsible for accidents involving their leasing customers.
    "We are being held financially responsible for a negligent driver over whom we have absolutely no control," said Jeffrey Levine, general counsel for Chase Manhattan Automotive Finance Corporation. The Vicarious Liability laws say that no matter who was driving, an accident victim can sue the owner of the vehicle for damages. The owner is defined legally as the person or business whose name is on the title. For a loan, the customer's name is on the title. For a lease, the leasing company's name is on the title. "Leasing enables consumers to drive newer, safer cars more often because the monthly payments are usually lower than on a traditional car loan. Because of this archaic law, millions of consumers in New York and Connecticut will lose an option for leasing a car and will be faced with fewer and more costly financing alternatives," said Mr. Levine.
    Chase sent a notice to all Chase-affiliated dealers in New York and Connecticut notifying them that effective July 1, 2003, Chase will no longer purchase lease contracts from them. Chase will honor New York and Connecticut lease contracts dated on or prior to July 1, 2003, as long as funding is completed by July 15, 2003. Additionally, Chase will no longer purchase lease contracts if the lessees are residents of New York, Connecticut or Rhode Island, regardless of the state in which the leases were originated. New York, Connecticut and Rhode Island are the only three states that give unlimited potential exposure to leasing companies even though lessors have absolutely no control over the vehicle or the driver. Chase already exited the auto leasing business in Rhode Island last October following a court case awarding a $28 million judgment against Chase.
    "We have made a promise that the minute these laws are repealed, Chase will re-introduce its lease programs to dealers and residents in New York, Connecticut and Rhode Island," said Mr. Levine. Chase remains fully committed to the leasing business in the other 47 states.
    Chase Manhattan Automotive Finance Corporation (CAF), together with its affiliates, is the largest bank purchaser of automotive retail installment contracts and leases in the U.S. With a network of more than 12,000 affiliated car dealers and two million customers nationwide, Chase Auto Finance has a portfolio in excess of $40 billion. Headquartered in Garden City, Long Island, Chase Manhattan Automotive Finance Corporation is a wholly owned subsidiary of JPMorgan Chase Bank. JPMorgan Chase Bank is a subsidiary of J.P. Morgan Chase & Co. .
    J.P. Morgan Chase & Co. is a leading global financial services firm with assets of $755 billion and operations in more than 50 countries. The firm is a leader in investment banking, asset management, private banking, private equity, custody and transaction services, and retail and middle market financial services. A component of the Dow Jones Industrial Average, JPMorgan Chase is headquartered in New York and serves more than 30 million consumer customers and the world's most prominent corporate, institutional and government clients. Information about JPMorgan Chase is available on the internet at www.jpmorganchase.com.