AERO CALIFORNIA TRUST
                                    (A TRUST)

                              FINANCIAL STATEMENTS




<PAGE>



INDEPENDENT AUDITORS' REPORT






The Owners
Aero California Trust :

We have audited the accompanying balance sheet of the Aero California Trust (the
"Trust") as of December  31, 2001,  and the related  statements  of  operations,
changes  in  owners'  equity,  and cash  flows  for the year then  ended.  These
financial  statements  are the  responsibility  of the Trust's  management.  Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

We conducted our audit in accordance with auditing standards  generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

In our  opinion,  such  financial  statements  present  fairly,  in all material
respects,  the financial  position of the Trust as of December 31, 2001, and the
results  of its  operations  and its  cash  flows  for the  year  then  ended in
conformity with accounting principles generally accepted in the United States of
America.



/s/ Deloitte & Touche LLP

Certified Public Accountants

Tampa, Florida
March 8, 2002






<PAGE>


INDEPENDENT AUDITORS' REPORT






The Owners
Aero California Trust

We have audited the  accompanying  balance sheet of the Aero California Trust as
of December 31,  2000,  and the related  statements  of  operations,  changes in
owners'  equity,  and  cash  flows  for the year  then  ended.  These  financial
statements are the responsibility of the owner's management.  Our responsibility
is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards  generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of the Aero California Trust as of
December 31, 2000,  and the results of its operations and cash flows of the year
then ended in conformity with accounting  principles  generally  accepted in the
United States of America.  The accompanying  2001 and 1999 financial  statements
were not audited by us, and accordingly, we express no opinion or any other form
of assurance on them.




/s/ KPMG LLP

SAN FRANCISCO, CALIFORNIA
March 2, 2001



<PAGE>



                              AERO CALIFORNIA TRUST
                                    (A TRUST)
                                 BALANCE SHEETS
                                  DECEMBER 31,
                            (IN THOUSANDS OF DOLLARS)




<TABLE>
<CAPTION>


                                                                              2001              2000
                                                                       --------------------------------------
ASSETS

<S>                                                                     <C>                <C>
Accounts receivable                                                     $             --   $            524
Receivable from affiliates                                                           420                420
Finance lease receivable                                                           3,234              8,182
Deferred charges and other assets, less accumulated
      amortization of $417 in 2001 and $333 in 2000                                  225                301
                                                                        -------------------------------------
      Total assets                                                      $          3,879   $          9,427
                                                                        =====================================


LIABILITIES AND OWNERS' EQUITY

Liabilities:
Due to affiliates                                                       $             39  $              25
Lessee deposits                                                                      420                420
                                                                        -------------------------------------
  Total liabilities                                                                  459                445

Owners' equity                                                                     3,420              8,982
                                                                        -------------------------------------

      Total liabilities and owners' equity                              $          3,879  $           9,427
                                                                        =====================================

</TABLE>





















                 See accompanying notes to financial statements.


<PAGE>







                              AERO CALIFORNIA TRUST
                                    (A TRUST)
                            STATEMENTS OF OPERATIONS
                        FOR THE YEARS ENDED DECEMBER 31,
                            (IN THOUSANDS OF DOLLARS)

<TABLE>
<CAPTION>

                                                                      2001                2000               1999
                                                                                                          (unaudited)
                                                                --------------------------------------------------------
REVENUES

<S>                                                              <C>                 <C>                 <C>
Finance lease income                                             $        1,335      $        1,527      $      1,685
Interest income                                                               1                   1                19
                                                                 -------------------------------------------------------
  Total revenues                                                          1,336               1,528             1,704
                                                                 -------------------------------------------------------

EXPENSES

Amortization expense                                                         83                  83                83
Management fees to affiliate                                                 44                  50                50
Insurance expense                                                            16                  19                12
Administrative expenses to affiliates                                        --                   1                 1
Administrative expenses                                                      22                  29                25
(Recovery of) provision for bad debt                                         --                  (5)                5
Loss on revaluation                                                       4,069                  --                --
                                                                 -------------------------------------------------------
  Total expenses                                                          4,234                 177               176
                                                                 -------------------------------------------------------

      Net (loss) income                                          $       (2,898 )    $        1,351      $      1,528
                                                                 =======================================================

</TABLE>






















                 See accompanying notes to financial statements.


<PAGE>



                              AERO CALIFORNIA TRUST
                                    (A TRUST)
                     STATEMENTS OF CHANGES IN OWNERS' EQUITY
              FOR THE YEARS ENDED DECEMBER 31, 2001, 2000, AND 1999
                            (IN THOUSANDS OF DOLLARS)




<TABLE>
<CAPTION>



<S>                                                        <C>
  Owners' equity at December 31, 1998 (unaudited)          $       11,086

 Net income (unaudited)                                             1,528

 Distributions paid (unaudited)                                    (2,290)
                                                           -----------------

  Owners' equity at December 31, 1999 (unaudited)                  10,324

 Net income                                                         1,351

 Distributions paid                                                (2,693)
                                                           -----------------

   Owners' equity at December 31, 2000                              8,982

 Net loss                                                          (2,898)

 Distributions paid                                                (2,664)
                                                           -----------------

 Owners' equity at December 31, 2001                       $        3,420
                                                           =================


</TABLE>






















                See accompanying notes to financial statements.


<PAGE>



                              AERO CALIFORNIA TRUST
                                    (A TRUST)
                            STATEMENTS OF CASH FLOWS
                        FOR THE YEARS ENDED DECEMBER 31,
                            (IN THOUSANDS OF DOLLARS)

<TABLE>
<CAPTION>

                                                                     2001               2000              1999
                                                                                                      (unaudited)
                                                              ---------------------------------------------------------

OPERATING ACTIVITIES

<S>                                                            <C>                <C>              <C>
Net (loss) income                                              $        (2,898)   $        1,351   $          1,528
Adjustments to reconcile net (loss) income to net cash
    provided by (used in) operating activities:
  Amortization expense                                                      83                83                 83
  Loss on revaluation                                                    4,069                --                 --
  Changes in operating assets and liabilities:
    Accounts receivable                                                    524
    Other assets                                                            (7 )              --                 --
    Due to affiliates                                                       14               (37)                46
                                                               -------------------------------------------------------
      Net cash provided by operating activities                          1,785             1,397              1,657
                                                               -------------------------------------------------------

INVESTING ACTIVITIES

Principal payments received on direct finance lease                        879             1,296                633
                                                               -------------------------------------------------------
      Net cash provided by investing activities                            879             1,296                633
                                                               -------------------------------------------------------

FINANCING ACTIVITIES

Distributions paid                                                      (2,664)           (2,693)            (2,290)
                                                               -------------------------------------------------------
      Net cash used in financing activities                             (2,664)           (2,693)            (2,290)
                                                               -------------------------------------------------------

Net change in cash and cash equivalents                                     --                --                 --
Cash and cash equivalents at beginning of year                              --                --                 --
                                                               -------------------------------------------------------
Cash and cash equivalents at end of year                       $            --    $           --   $             --
                                                               =======================================================

</TABLE>















                 See accompanying notes to financial statements.


<PAGE>


                              AERO CALIFORNIA TRUST
                                    (A Trust)
                          NOTES TO FINANCIAL STATEMENTS


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     ORGANIZATION

In December  1996, PLM Equipment  Growth Fund IV (EGF IV), a California  limited
partnership,  PLM  Equipment  Growth  Fund  V  (EGF  V),  a  California  limited
partnership,  and PLM  Equipment  Growth Fund VI (EGF VI), a California  limited
partnership (collectively the Owners or Partnerships), and Aero California Trust
(the  Trust)  entered  into a Trust  Agreement  under  which PLM  Transportation
Equipment Corp.  (TEC), a wholly-owned  subsidiary of PLM  International,  Inc.,
acts as trustee  for the  benefit of the Owners as equal  co-beneficiaries.  The
Trust  was  established  for the  purpose  of  purchasing  two  DC-9  Stage  III
commercial  aircraft.  The Trust has no employees nor operations  other than the
operation of the two DC-9's. The Trust is owned 35% by EGF IV, 25% by EGF V, and
40% by EGF VI.

PLM Financial  Services Inc., (FSI) is the General Partner of EGF IV, EGF V, and
EGF VI. FSI is a wholly-owned subsidiary of PLM International, Inc.

The two aircraft were purchased in December 1996 for $11.5  million.  The Owners
paid  acquisition  and lease  negotiation  fees of $0.6 million to PLM Worldwide
Management Services (WMS), a wholly-owned subsidiary of PLM International, Inc.,
based on the pro-rata  share of the cost of the aircraft  purchased.  A 91 month
lease was signed upon the acquisition of the aircraft,  which is being accounted
for as a finance  lease,  expiring  July  2004.  In 2001 and 2002,  the  General
Partner  entered  into a  series  of  lease  amendments  to the  original  lease
agreement that extended the lease to November 2004 (see Note 3).

     ESTIMATES

These accompanying  financial statements have been prepared on the accrual basis
of accounting in accordance with accounting principles generally accepted in the
United  States of  America.  This  requires  management  to make  estimates  and
assumptions  that  affect  the  reported  amounts  of  assets  and  liabilities,
disclosures  of contingent  assets and  liabilities at the date of the financial
statements,  and the  reported  amounts  of  revenues  and  expenses  during the
reporting period. Actual results could differ from those estimates.  All amounts
as of and for the year ended December 31, 1999 are unaudited.

     OPERATIONS

The aircraft in the Trust are managed under a continuing management agreement by
PLM Investment  Management,  Inc.  (IMI), a wholly owned  subsidiary of FSI. IMI
receives a monthly management fee from the Trust for managing the aircraft (Note
2). FSI, in conjunction with its subsidiaries, sells transportation equipment to
investor programs and third parties,  manages pools of transportation  equipment
under agreements with the investor programs, and is a general partner in limited
partnerships.

     ACCOUNTING FOR LEASES

In December  1996,  PLM  Worldwide  Leasing  entered  into a sale and  leaseback
transaction for two DC-9 aircraft with TEC as trustee for the Owners.  The lease
qualifies  as  a  finance  lease  in  accordance  with  Statement  of  Financial
Accounting Standards (SFAS) No. 13, "Accounting for Leases".

Under the  direct  finance  lease  method of  accounting,  the  leased  asset is
recorded as an investment in a direct  finance lease and  represents the minimum
net lease payments receivable,  including the unguaranteed residual value of the
equipment,  less  unearned  income.  Rental  payments  consist of principal  and
interest on the lease,  principal  payments reduce the investment in the finance
lease, and the interest is recorded as revenue over the lease term.


<PAGE>



                              AERO CALIFORNIA TRUST
                                    (A Trust)
                          NOTES TO FINANCIAL STATEMENTS

     ACCOUNTING FOR LEASES - continued

In accordance  with SFAS No, 121,  "Accounting  for the Impairment of Long-Lived
Assets and for  Long-Lived  Assets to Be Disposed  Of", FSI reviews the carrying
value  of the  assets  held  by the  Trust  at  least  quarterly,  and  whenever
circumstances  indicate  that  the  carrying  value  of an  asset  will  not  be
recoverable due to expected future market conditions.  If projected undiscounted
future cash flows and fair value are less than the carrying  value of the asset,
a loss on  revaluation  is recorded.  The Trust  recorded a $4.1 million loss on
revaluation of assets in 2001 (see Note 3). There were no revaluations of assets
required in 2000 or 1999.

In October 2001,  FASB issued SFAS No. 144,  "Accounting  for the  Impairment or
Disposal of  Long-Lived  Assets",  which  replaces  SFAS No.  121.  SFAS No. 144
provides  updated  guidance  concerning the  recognition  and  measurement of an
impairment loss for certain types of long-lived  assets,  expands the scope of a
discontinued  operation to include a component of an entity and  eliminates  the
current  exemption to consolidation  when control over a subsidiary is likely to
be  temporary.  SFAS No. 144 is  effective  for  fiscal  years  beginning  after
December 15, 2001.

The  Partnership  will apply the new rules on accounting  for the  impairment or
disposal of long-lived assets beginning in the first quarter of 2002, and they
are not anticipated to have an impact on the Partnership's earnings or financial
position.

EGF VI's 40% interest in the Trust is used as collateral against the senior loan
of EGF VI.

     CASH AND CASH EQUIVALENTS

All cash  generated from  operations is distributed to the owners.  Accordingly,
the Trust has no cash balance at December 31, 2001 and 2000.

     REPAIRS AND MAINTENANCE

Repairs and  maintenance  for the  aircraft  are usually the  obligation  of the
lessee.

     NET INCOME (LOSS) AND CASH DISTRIBUTIONS TO OWNERS

The net income (loss) and cash  distributions  of the Trust are allocated to the
Owners based on their percentage of ownership in the Trust.

     COMPREHENSIVE INCOME (LOSS)

The Trust's net income  (loss) is equal to  comprehensive  income (loss) for the
years ended December 31, 2001, 2000, and 1999.

2.   GENERAL PARTNER AND TRANSACTIONS WITH AFFILIATES

Under  the  equipment  management  agreement,  the  Trust  pays  IMI  a  monthly
management  fee equal to 2% of the lease  payments.  The Trust's  management fee
expense to affiliate was $44,000,  $0.1 million,  and $0.1 million  during 2001,
2000, and 1999, respectively.

The Trust  reimbursed FSI -0-,  $1,000,  and $1,000 during 2001, 2000, and 1999,
respectively,   for  data  processing  and   administrative   expenses  directly
attributable to the Trust.

The balance due to  affiliates  as of December 31, 2001 and 2000 was $39,000 and
$25,000, respectively, for management fees to IMI.



<PAGE>


3.   NET INVESTMENT IN A DIRECT FINANCE LEASE

During 1996,  the Trust entered into a direct finance lease for the two aircraft
owned by the Trust.  Gross lease  payments  were to be received  over 91 months,
which commenced in December 31, 1996. In 2001 and 2002, the Partnership  entered
into a series of lease  amendments to the original lease agreement that extended
the lease to November 2004.

The  components  of the net  investment  in the finance  lease  receivable as of
December 31, are as follows (in thousands in dollars):

<TABLE>
<CAPTION>

                                                                2001                2000
                                                           ---------------    ----------------
<S>                                                        <C>                <C>
Total minimum lease payments                               $       3,799      $         8,820
Estimated unguaranteed residual values                               482                3,000
Less unearned income                                              (1,047)              (3,638)
                                                           --------------      ---------------
                                                           $       3,234      $         8,182
                                                           ==============      ===============
</TABLE>

In 2001 and 2002,  the aircraft  lease  agreements for the aircraft in the Trust
were amended to extend the lease four months to November  2004.  The  amendments
allowed five interest only payments from  September  2001 through  January 2002.
Additionally,  the amendments  lowered the required  monthly lease payments from
February 2002 until lease expiration from $105,000 to $50,000 per aircraft.  The
General  Partner  believed it was in the Trust's best interest to enter into the
amendments in order that the lessee would be able to continue  operations.  As a
result of these  amendments,  a $4.1 million loss on revaluation was recorded in
2001.

Future minimum rentals  receivable under the direct finance lease as of December
31, 2001 are  approximately  $1.3 million in 2002,  $1.2  million in 2003,  $1.1
million in 2004, and $-0- thereafter.

4.   GEOGRAPHIC INFORMATION

The aircraft are leased and operating in Mexico.

5. INCOME TAXES

The Trust is not subject to income  taxes,  as any income or loss is included in
the tax return of the individual partners owning the Partnerships.  Accordingly,
no provision for income taxes has been made in the  financial  statements of the
Trust.

As of  December  31,  2001,  there were no  differences  between  the  financial
statement  carrying amounts of assets and liabilities and the federal income tax
basis of such assets and liabilities.

6.   CONCENTRATIONS OF CREDIT RISK

Financial instruments,  which potentially subject the Trust to concentrations of
credit risk, consist principally of lease receivables. The aircraft in the Trust
were on finance lease to only one customer during 2001, 2000, and 1999.

As of December 31, 2001, the manager believes the Trust had no other significant
concentrations  of credit risk that could have a material  adverse effect on the
Trust.