L.J. Melody & Company and GE Capital Real Estate Announce Loan Servicing Partnership -- GEMSA Loan Services, L.P.


HOUSTON, Aug. 3, 2001 (PRIMEZONE) -- L.J. Melody & Company, a CB Richard Ellis company, and GE Capital Real Estate, a division of GE Capital, have consolidated their loan servicing operations into a single limited partnership, to be called GEMSA Loan Services, L.P. The powerful combination of these respected leaders in the commercial mortgage lending industry will result in more efficient and effective solutions for clients of both L.J. Melody and GE Capital. GEMSA began operations Aug. 1, 2001.

Managing daily operations will be GEMSA's chief executive officer, Joseph Beggins, formerly CEO of GE Capital Loan Services, Inc., which has been merged into the new partnership. Robert Vestewig, managing director of Melody's Loan Servicing group, has been named chief operating officer of GEMSA. No significant staffing changes are anticipated as a result of this transaction. L.J. Melody's six regional servicing offices will continue operations as part of GEMSA.

GEMSA Loan Services starts out as the third largest commercial mortgage loan servicer in the country, based on the Mortgage Bankers Association's year-end 2000 figures. The partnership's servicing portfolio will include 7,000 loans, with a balance of more than $50 billion. GEMSA will continue to be a rated CMBS Master Servicer and Primary Servicer.

"We are enthusiastic about this partnership with GE Capital Real Estate," commented Larry Melody, founder and chairman of L.J. Melody & Company, whose clients include life insurance companies, banks, pension funds, agencies and CMBS issuers. "This is a great fit of industry expertise, which we plan to leverage and expand upon for the benefit of our customers," he added. "GE Capital's advanced technology and servicing processes, combined with our 'high touch' focus on client and borrower relationships, will provide our customers with an unparalleled level of service."

"The formation of GEMSA is a tremendous plus for our customers," said Joseph Beggins, GEMSA's new CEO. "GE's efficiencies as a CMBS Master Servicer, together with L.J. Melody's exceptional customer focus as a large Mortgage Banking Servicer, add up to an outstanding platform for enhanced service. This partnership will enable us to deliver the industry's most efficient, personalized servicing, combined with strict confidentiality and data security."

One of the service enhancements GE Capital Real Estate brings to GEMSA is its sophisticated Web-based Borrower and Investor Information System, providing customers with secure, 24/7 access to a broad range of valuable information. Advanced technology will always be balanced with a personal touch, delivered by the experienced staff both companies' customers have relied upon for years.

The immediate focus of GEMSA's management is the customer -- not only maintaining the continuity and quality of service, but enhancing it. "This is not a start-up, but rather the combination of two seasoned partners," reiterated CEO Beggins. "From day one, we plan to deliver a consistently high standard of service -- and implement quality processes which will continuously improve our speed and delivery."

Both GE Capital Real Estate and L.J. Melody will continue to market and conduct new loan origination business separately. The new GEMSA structure will allow GE Capital Real Estate to focus on expanding its third party servicing contracts, both internationally and domestically -- and will enable L.J. Melody to offer expanded services to new and existing clients.

About GE Capital Real Estate

GE Capital Real Estate (www.gecapitalrealestate.com), headquartered in Stamford, Conn., is one of the industry's leading global sources for commercial real estate capital through structured finance, equity and capital markets products, with a portfolio of more than $21 billion. Its parent, GE Capital, with assets of more than $370 billion, is a global, diversified financial services company comprised of 24 businesses. A wholly owned subsidiary of General Electric Company, GE Capital provides a variety of consumer services, such as credit cards and life and auto insurance; mid-market financing; specialized financing; specialty insurance; equipment management, and specialized services to businesses and individuals around the world. GE is a diversified services, technology and manufacturing company with operations worldwide.

About L.J. Melody & Company

L.J. Melody & Company, a CB Richard Ellis company, is one of the largest real estate investment banking firms in the U.S. During the past 18 months, the firm arranged more than $10 billion in commercial real estate transactions nationwide and currently manages a servicing portfolio exceeding $17 billion. The company is headquartered in Houston and operates offices in 32 major metropolitan markets in the United States. For more information, visit the company's Website at www.ljmelody.com.

About CB Richard Ellis

CB Richard Ellis is one of the world's leading real estate services companies. Headquartered in Los Angeles with 10,000 employees worldwide, the company serves real estate owners, investors and occupiers through nearly 250 offices in 44 countries. Services include property sales and leasing, property management, corporate services, facilities management, commercial mortgage services, investment management, appraisal/valuation, research and consulting. CB Richard Ellis had 2000 revenues of $1.3 billion. For more information, visit the company's Website at www.cbre.com.

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CONTACT: GE Capital Real Estate Communications
         Dan Whitney 
         (203) 961-5932

         Barbara Burnside 
         (203) 744-3435
        
         L.J. Melody & Company
         Myra Moren 
         (713) 787-1972