UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                               -------------------
                                    FORM 10-K


[X]       Annual  Report  Pursuant  to  Section  13 or 15(d)  of the  Securities
          Exchange Act of 1934 For the fiscal year ended December 31, 2001.

[x]       Transition  Report  Pursuant to Section 13 or 15(d) of the  Securities
          Exchange Act of 1934 For the transition period from     to

                         Commission file number 0-18789
                             -----------------------


                          PLM EQUIPMENT GROWTH FUND IV
             (Exact name of registrant as specified in its charter)


                     California                                94-3090127
           (State or other jurisdiction of                  (I.R.S. Employer
           incorporation or organization)                  Identification No.)

          120 Montgomery Street, Suite 1350
                  San Francisco, CA                               94104
                (Address of principal                          (Zip code)
                 executive offices)


        Registrant's telephone number, including area code (415) 445-3201
                             -----------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X No ______

Aggregate market value of voting stock:  N/A

An index of exhibits filed with this Form 10-K is located on page 22.

Total number of pages in this report: 65.



<PAGE>


                                     PART I

ITEM 1. BUSINESS

(A) Background

In March 1989,  PLM Financial  Services,  Inc. (FSI or the General  Partner),  a
wholly owned subsidiary of PLM International,  Inc. (PLM International or PLMI),
filed a  Registration  Statement  on Form S-1 with the  Securities  and Exchange
Commission with respect to a proposed offering of 8,750,000 limited  partnership
units  (including  1,250,000  option units) (the units) in PLM Equipment  Growth
Fund IV, a California limited partnership (the Partnership,  the Registrant,  or
EGF IV). The  Partnership's  offering became  effective on May 23, 1989. FSI, as
General Partner, owns a 5% interest in the Partnership.  The Partnership engages
in the business of investing in a  diversified  equipment  portfolio  consisting
primarily of used, long-lived, low-obsolescence capital equipment that is easily
transportable by and among prospective users.

The Partnership's primary objectives are:

     (1) to maintain a diversified  portfolio of  long-lived,  low-obsolescence,
high  residual-value  equipment with the net proceeds of the initial partnership
offering,  supplemented by debt financing and  reinvestment of cash generated by
operations.  All  transactions  of over $1.0 million must be approved by the PLM
International  Credit  Review  Committee  (the  Committee),  which is made up of
members  of PLM  International  Senior  Management.  In  determining  a lessee's
creditworthiness,   the  Committee  will  consider,  among  other  factors,  its
financial  statements,  internal and  external  credit  ratings,  and letters of
credit;

     (2) to generate sufficient net operating cash flow from lease operations to
meet liquidity  requirements  and to generate cash  distributions to the limited
partners  until  such  time  as  the  General  Partner   commences  the  orderly
liquidation of the  Partnership  assets or unless the  Partnership is terminated
earlier upon sale of all Partnership property or by certain other events;

     (3) to selectively  sell equipment when the General Partner  believes that,
due to market conditions,  market prices for equipment exceed inherent equipment
values or that expected future benefits from continued ownership of a particular
asset will have an adverse affect on the  Partnership.  As the Partnership is in
the  liquidation  phase,  proceeds  from these sales,  together  with excess net
operating cash flows from operations (net cash provided by operating  activities
plus distributions from unconsolidated  special-purpose  entities (USPEs)),  are
used to pay distributions to the partners; and

     (4) to  preserve  and protect the value of the  portfolio  through  quality
management,  maintaining the portfolio's  diversity,  and constantly  monitoring
equipment markets.

The offering of the units of the  Partnership  closed on March 28,  1990.  As of
December 31, 2001, there were 8,628,420 limited  partnership units  outstanding.
The General Partner  contributed $100 for its 5% general partner interest in the
Partnership.

The  Partnership  has entered its  liquidation  phase and the General Partner is
actively  pursuing  the  sale of all of the  Partnership's  equipment  with  the
intention of winding up the Partnership and  distributing  all available cash to
the Partners.  The liquidation  phase will end on December 31, 2009,  unless the
Partnership  is  terminated  earlier  upon  sale of all of the  equipment  or by
certain other events.



<PAGE>


Table 1, below,  lists the  equipment  and the original cost of equipment in the
Partnership's  portfolio and the Partnership's  proportional  share of equipment
owned by an unconsolidated  special-purpose  entity, as of December 31, 2001 (in
thousands of dollars):
<TABLE>
<CAPTION>

                                     TABLE 1

 Units                              Type                                    Manufacturer                     Cost
---------------------------------------------------------------------------------------------------------------------

Owned equipment held for operating leases:

<S> <C>                                                                                                  <C>
    273      Pressurized tank railcars                               Various                             $    8,244
     98      Woodchip gondola railcars                               General Electric                         2,341
    110      Bulkhead flat railcars                                  Marine Industries Ltd.                   2,153
     24      Nonpressurized tank railcars                            Various                                    501
     81      Refrigerated marine containers                          Various                                  2,158
    119      Various marine containers                               Various                                    414

                                                                                                         -----------
             Total owned equipment held for operating leases                                             $   15,811 (1)
                                                                                                         ===========
</TABLE>


Equipment owned by an unconsolidated special-purpose entity:

<TABLE>
<CAPTION>


<S>                                                                                                      <C>
  0.35      Equipment on direct finance lease:
               Two DC-9 stage III commercial aircraft                McDonnell-Douglas                   $    4,025 (1,2)



(1)  Includes equipment and investments purchased with the proceeds from capital
     contributions,  undistributed  cash flow from  operations,  and Partnership
     borrowings.   Includes  costs   capitalized   subsequent  to  the  date  of
     acquisition  and  equipment  acquisition  fees  paid to PLM  Transportation
     Equipment Corporation,  a wholly owned subsidiary of FSI. All equipment was
     used equipment at the time of purchase.

(2)  Jointly Owned: EGF IV and two affiliated partnerships.
</TABLE>

Rents for railcars  are based on fixed rate with terms of one to six years.  The
Partnership's  marine  containers  are leased to operators  of  utilization-type
leasing pools,  which include equipment owned by unaffiliated  parties.  In such
instances,   revenues  received  by  the  Partnership  consist  of  a  specified
percentage of revenues  generated by leasing the pooled equipment to sublessees,
after deducting certain direct operating expenses of the pooled equipment.

The lessees of the equipment  include,  but are not limited to: Aero  California
Airline, Canadian Pacific Railways, and Trans Ocean LTD.

(B) Management of Partnership Equipment

The  Partnership  has entered into an equipment  management  agreement  with PLM
Investment  Management,  Inc.  (IMI), a wholly owned  subsidiary of FSI, for the
management  of  the  Partnership's   equipment.   The  Partnership's  management
agreement with IMI is to co-terminate  with the dissolution of the  Partnership,
unless the limited  partners vote to terminate the agreement  prior to that date
or at the  discretion  of the  General  Partner.  IMI has agreed to perform  all
services  necessary to manage the equipment on behalf of the  Partnership and to
perform or contract for the  performance of all  obligations of the lessor under
the Partnership's  leases. In consideration for its services and pursuant to the
partnership agreement,  IMI is entitled to a monthly management fee (see Notes 1
and 2 to the audited financial statements).



                      (This space intentionally left blank)







<PAGE>



(C) Competition

(1) Operating Leases versus Full Payout Leases

Generally,  the equipment  owned by or invested in the Partnership is leased out
on an  operating  lease  basis  wherein  the rents  received  during the initial
noncancelable  term of the lease are  insufficient to recover the  Partnership's
purchase  price of the  equipment.  The short- to mid-term  nature of  operating
leases generally commands a higher rental rate than the longer-term, full payout
leases and offers lessees relative flexibility in their equipment commitment. In
addition, the rental obligation under an operating lease need not be capitalized
on the lessee's balance sheet.

The Partnership  encounters  considerable  competition from lessors that utilize
full payout leases on new  equipment,  i.e.  leases that have terms equal to the
expected  economic  life  of  the  equipment.  While  some  lessees  prefer  the
flexibility offered by a shorter-term  operating lease, other lessees prefer the
rate  advantages  possible with a full payout lease.  Competitors may write full
payout  leases  at  considerably  lower  rates  and for  longer  terms  than the
Partnership offers, or larger competitors with a lower cost of capital may offer
operating leases at lower rates,  which may put the Partnership at a competitive
disadvantage.

(2) Manufacturers and Equipment Lessors

The Partnership competes with equipment manufacturers who offer operating leases
and full payout leases.  Manufacturers may provide  ancillary  services that the
Partnership cannot offer, such as specialized  maintenance  services  (including
possible substitution of equipment),  training,  warranty services, and trade-in
privileges.

The  Partnership  also  competes  with many  equipment  lessors,  including  ACF
Industries, Inc. (Shippers Car Line Division), General Electric Railcar Services
Corporation,  General Electric Capital Aviation Services Corporation,  and other
investments programs that lease the same types of equipment.

(D) Demand

The Partnership currently operates in three primary operating segments:  railcar
leasing,  marine container leasing, and aircraft leasing. Each equipment leasing
segment  engages in  short-term  to  mid-term  operating  leases to a variety of
customers  except for the  Partnership's  investment in two aircraft on a direct
finance lease. The Partnership's equipment and investments are primarily used to
transport materials and commodities, except for aircraft leased to passenger air
carriers.

The following  section describes the international and national markets in which
the Partnership's capital equipment operates:

(1) Railcars

(a) Pressurized Tank Railcars

Pressurized tank railcars are used to transport liquefied petroleum gas (natural
gas) and anhydrous  ammonia  (fertilizer).  The United States ("US") markets for
natural gas are industrial applications, residential use, electrical generation,
commercial applications, and transportation. Natural gas consumption is expected
to grow  over the next few  years as most new  electricity  generation  capacity
planned for is expected to be natural gas fired. Within the fertilizer industry,
demand is a function of several  factors,  including  the level of grain prices,
status of government farm subsidy programs, amount of farming acreage and mix of
crops planted,  weather  patterns,  farming  practices,  and the value of the US
dollar. Population growth and dietary trends also play an indirect role.

On an  industry-wide  basis,  North American  carloadings of the commodity group
that  includes  petroleum and  chemicals  decreased  over 5% in 2001 compared to
2000. Even with this decrease in industry-wide  demand,  the utilization of this
type of railcar within the Partnership  continued to be in the 98% range through
2001.


<PAGE>


(b) Woodchip Gondolas Railcars

These  railcars are used to  transport  woodchips  from  sawmills to pulp mills,
where the woodchips are converted into pulp.  Thus,  demand for woodchip cars is
directly  related  to demand  for  paper,  paper  products,  particleboard,  and
plywood.  In Canada,  where the Partnership's  woodchip  railcars operate,  2001
carloadings of forest products decreased  approximately 5% when compared to 2000
levels.  Utilization of the Partnership's  woodchip gondolas railcars  decreased
from 73% at the beginning of 2001 to 59% at year-end.

(c) Bulkhead Flat Railcars

Bulkhead  flatcars are used to transport  pulpwood  from sawmills to pulp mills.
High-grade  pulpwood is used to make paper,  while low-grade pulpwood is used to
make  particleboard and plywood.  In Canada,  where the  Partnership's  bulkhead
flatcars operate, 2001 carloadings of forest products increased by approximately
1% over 2000 levels.  Utilization  of the  Partnership's  bulkhead flat railcars
remain at 100%.

(d) Nonpressurized, General Purpose Tank Railcars

These cars are used to  transport  bulk liquid  commodities  and  chemicals  not
requiring pressurization, such as certain petroleum products, liquefied asphalt,
lubricating  oils,  molten sulfur,  vegetable oils, and corn syrup.  The overall
health of the market for these types of  commodities is closely tied to both the
US and  global  economies,  as  reflected  in  movements  in the Gross  Domestic
Product, personal consumption expenditures,  retail sales, and currency exchange
rates.  The  manufacturing,  automobile,  and  housing  sectors  are the largest
consumers of chemicals.  Within North America, 2001 carloadings of the commodity
group that  includes  chemicals  and  petroleum  products fell over 5% from 2000
levels. Utilization of the Partnership's nonpressurized tank cars decreased from
90% at the beginning of 2001 to 85% at year-end.

(2) Marine Containers

The  Partnership's  fleet of both standard dry and specialized  containers is in
excess  of 12 years of age,  and is  generally  no  longer  suitable  for use in
international  commerce,  either due to its specific physical condition,  or the
lessees' preferences for newer equipment.  As individual containers are returned
from their  specific  lessees,  they are being  marketed  for sale on an "as is,
where is" basis.  The market for such sales,  although highly dependent upon the
specific location and type of container,  has softened somewhat in the last year
primarily due to the worldwide  recession.  In addition to this overall softness
in residual values, the Partnership has continued to experience reduced residual
values on the sale of refrigerated  containers,  due primarily to  technological
obsolescence associated with this equipment's refrigeration machinery.

(3) Commercial Aircraft

Prior to September 11, 2001,  Boeing and Airbus  Industries  predicted  that the
rate of growth in the demand for air transportation services would be relatively
robust  for the next 20  years.  Boeing's  prediction  was that the  demand  for
passenger  services  would grow at an average  rate of about 5% per year and the
demand for cargo  traffic  would grow at about 6% per year during  such  period.
Airbus'  numbers  were  largely  the  same at 5% and 6%,  respectively.  Neither
manufacturer  has  released  new  long-term  predictions;   however,  both  have
confirmed lower production rates as well as substantial reductions in their work
forces. Both manufacturers  experienced significant reductions in the numbers of
new  orders  for the  year  2001  (through  the end of  November),  with  Boeing
reporting  294 (as compared to 611 the previous  year) and Airbus  reporting 352
(as compared to 520 for the previous year.)

Current  Market:  It is to be noted that,  even prior to the events on September
11, 2001, the worldwide  airline industry  experienced  negative traffic growth,
which in itself is  unprecedented  in peace  time (it also  happened  during and
after the Gulf War). The tragic events of September 11, 2001 have resulted in an
unprecedented market situation for used commercial aircraft.  The major carriers
in the  United  States  have  grounded  (or  are in the  process  of  grounding)
approximately  20% of their  fleets,  causing the imbalance  between  supply and
demand  for  aircraft  seats to be  exacerbated.  In short,  the market for used
commercial aircraft is more negatively impacted than ever and is in un-chartered
territory. The portfolio in the Partnership has been severely impacted.

The Partnership owns 35% of two DC-9 aircraft,  which are on lease. These leases
have been  re-negotiated  and the resulting  incoming cash flow will be severely
reduced.

(E) Government Regulations

The use,  maintenance,  and  ownership  of equipment  are  regulated by federal,
state, local, or foreign governmental  authorities.  Such regulations may impose
restrictions and financial burdens on the Partnership's  ownership and operation
of  equipment.  Changes  in  government  regulations,   industry  standards,  or
deregulation  may also  affect  the  ownership,  operation,  and  resale  of the
equipment.  Substantial  portions of the Partnership's  equipment  portfolio are
either registered or operated internationally.  Such equipment may be subject to
adverse  political,   government,  or  legal  actions,  including  the  risk  of
expropriation  or loss arising from  hostilities.  Certain of the  Partnership's
equipment is subject to extensive  safety and operating  regulations,  which may
require its removal from service or extensive  modification of such equipment to
meet  these  regulations,   at  considerable  cost  to  the  Partnership.   Such
regulations include but are not limited to:

     (1) the Montreal  Protocol on  Substances  that Deplete the Ozone Layer and
     the US Clean Air Act  Amendments  of 1990,  which call for the  control and
     eventual  replacement  of  substances  that  have  been  found  to cause or
     contribute  significantly  to harmful  effects on the  stratospheric  ozone
     layer and that are used extensively as refrigerants in refrigerated  marine
     cargo containers; and

     (2) the US Department of Transportation's  Hazardous Materials  Regulations
     regulates  the  classification  and  packaging  requirements  of  hazardous
     materials which apply particularly to the Partnership's tank railcars.  The
     Federal  Railroad  Administration  has mandated that effective July 1, 2000
     all tank railcars must be  re-qualified  every ten years from the last test
     date stenciled on each railcar to insure tank shell  integrity.  Tank shell
     thickness,  weld seams, and weld attachments must be inspected and repaired
     if necessary to re-qualify  the tank railcar for service.  The average cost
     of this  inspection  is $3,600 for  jacketed  tank  railcars and $1,800 for
     non-jacketed  tank  railcars,  not including any  necessary  repairs.  This
     inspection is to be performed at the next scheduled tank test and every ten
     years thereafter. The Partnership currently owns 241 jacketed tank railcars
     and 54 non-jacketed tank railcars that will need re-qualification. To date,
     a  total  of 40 tank  railcars  have  been  inspected  with no  significant
     defects.

As of December  31,  2001,  the  Partnership  was in  compliance  with the above
government  regulations.   Typically,   costs  related  to  extensive  equipment
modifications to meet government regulations are passed on to the lessee of that
equipment.

ITEM 2. PROPERTIES

The Partnership  neither owns nor leases any properties other than the equipment
it has purchased  and its interest in an entity that owns  equipment for leasing
purposes.  As of  December  31,  2001,  the  Partnership  owned a  portfolio  of
transportation  and related equipment and an investment in equipment owned by an
unconsolidated  special-purpose  entity  (USPE) as described in Item I, Table 1.
The Partnership acquired equipment with the proceeds of the Partnership offering
of  $174.8  million  through  the  first  half of 1990,  proceeds  from the debt
financing of $33.0  million,  and by reinvesting a portion of its operating cash
flow in additional equipment.

The Partnership  maintains its principal office at 120 Montgomery Street,  Suite
1350, San Francisco, California 94104. All office facilities are provided by FSI
without reimbursement by the Partnership.

ITEM 3. LEGAL PROCEEDINGS

Two class action lawsuits which were filed against PLM International and various
of its wholly owned  subsidiaries  in January 1997 in the United States District
Court for the Southern District of Alabama, Southern Division (the court), Civil
Action No.  97-0177-BH-C  (the Koch action),  and June 1997 in the San Francisco
Superior Court, San Francisco,  California,  Case No. 987062 (the Romei action),
were fully resolved during the fourth quarter of 2001.

The named plaintiffs were individuals who invested in the Partnership (Fund IV),
PLM Equipment  Growth Fund V (Fund V), PLM  Equipment  Growth Fund VI (Fund VI),
and PLM  Equipment  Growth & Income  Fund VII  (Fund VII and  collectively,  the
Funds),  each a California  limited  partnership  for which PLMI's  wholly owned
subsidiary,  FSI, acts as the General Partner. The complaints asserted causes of
action  against  all  defendants  for fraud and deceit,  suppression,  negligent
misrepresentation,  negligent and intentional breaches of fiduciary duty, unjust
enrichment,   conversion,   conspiracy,  unfair  and  deceptive  practices,  and
violations of state securities law.  Plaintiffs alleged that each defendant owed
plaintiffs  and the class  certain  duties due to their  status as  fiduciaries,
financial  advisors,  agents,  and  control  persons.  Based  on  these  duties,
plaintiffs   asserted  liability  against  defendants  for  improper  sales  and
marketing   practices,   mismanagement   of  the  Funds,   and  concealing  such
mismanagement  from  investors  in  the  Funds.  Plaintiffs  sought  unspecified
compensatory damages, as well as punitive damages.

In February  1999,  the parties to the Koch and Romei actions agreed to monetary
and equitable settlements of the lawsuits, with no admission of liability by any
defendant,  and filed a  Stipulation  of  Settlement  with the court.  The court
preliminarily  approved the settlement in August 2000, and information regarding
the  settlement  was sent to class members in September  2000. A final  fairness
hearing  was held on  November  29,  2000,  and on April 25,  2001,  the federal
magistrate  judge  assigned  to the case  entered  a Report  and  Recommendation
recommending  final  approval of the monetary and equitable  settlements  to the
federal district court judge. On July 24, 2001, the federal district court judge
adopted the Report and  Recommendation,  and entered a final judgment  approving
the settlements.  No appeal has been filed and the time for filing an appeal has
expired.

The monetary  settlement  provides  for a  settlement  and release of all claims
against defendants in exchange for payment for the benefit of the class of up to
$6.6  million,  consisting  of $0.3 million  deposited by PLMI and the remainder
funded by an insurance  policy.  The final settlement amount of $4.9 million (of
which PLMI's share was approximately $0.3 million) was accrued in 1999, paid out
in the fourth quarter of 2001 and was determined based upon the number of claims
filed by class  members,  the amount of attorneys'  fees awarded by the court to
plaintiffs'  attorneys,  and the amount of the administrative  costs incurred in
connection with the settlement.

The equitable  settlement  provides,  among other things, for: (a) the extension
(until  January 1, 2007) of the date by which FSI must complete  liquidation  of
the Funds' equipment,  except for Fund IV; (b) the extension (until December 31,
2004) of the period during which FSI can reinvest the Funds' funds in additional
equipment,  except  for Fund IV; (c) an  increase  of up to 20% in the amount of
front-end fees (including  acquisition and lease  negotiation  fees) that FSI is
entitled  to earn in excess  of the  compensatory  limitations  set forth in the
North American  Securities  Administrator's  Association's  Statement of Policy;
except for Fund IV; (d) a one-time purchase by each of Funds V, VI and VII of up
to 10% of that  partnership's  outstanding  units for 80% of net asset value per
unit as of  September  30,  2000;  and  (e) the  deferral  of a  portion  of the
management fees paid, except for Fund IV, to an affiliate of FSI until, if ever,
certain  performance  thresholds  have  been  met by the  Funds.  The  equitable
settlement  also  provides  for  payment of  additional  attorneys'  fees to the
plaintiffs'  attorneys  from Fund  funds in the  event,  if ever,  that  certain
performance  thresholds have been met by the Funds.  Following a vote of limited
partners  resulting in less than 50% of the limited partners of each of Funds V,
VI, and VII voting  against  such  amendments  and after  final  approval of the
settlement,  each of the Funds'  limited  partnership  agreements was amended to
reflect these changes.  During the fourth quarter of 2001, the respective  Funds
purchased  limited  partnership  units from those  equitable  class  members who
submitted timely requests for purchase.

The Partnership,  together with affiliates,  has initiated litigation in various
official  forums in the United  States  and India  against a  defaulting  Indian
airline  lessee to repossess  Partnership  property  and to recover  damages for
failure to pay rent and failure to maintain  such  property in  accordance  with
relevant lease  contracts.  The  Partnership has repossessed all of its property
previously  leased to such airline,  and the airline has ceased  operations.  In
response to the  Partnership's  collection  efforts,  the airline  lessees filed
counterclaims  against the  Partnership  in excess of the  Partnership's  claims
against  the  airline.   The  General   Partner   believes  that  the  airline's
counterclaims are completely  without merit, and the General Partner will defend
against such counterclaims.

During 2001, the General Partner decided to minimize its collection efforts from
the India lessee in order to save the Partnership  from  additional  expenses of
trying to collect from a lessee that has no apparent ability to pay.

The  Partnership  is involved as plaintiff  or defendant in various  other legal
actions  incidental  to its  business.  Management  does not believe that any of
these  actions  will be  material  to the  financial  condition  or  results  of
operations of the Partnership.


<PAGE>



ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matters were submitted to a vote of the Partnership's limited partners during
the fourth quarter of its fiscal year ended December 31, 2001.




















                      (This space intentionally left blank)



<PAGE>


                                     PART II

ITEM 5. MARKET FOR THE PARTNERSHIP'S EQUITY AND RELATED UNITHOLDER MATTERS

Pursuant  to the terms of the  partnership  agreement,  the  General  Partner is
generally entitled to a 5% interest in the profits,  losses and distributions of
the  Partnership.  The  General  Partner  is the sole  holder of such  interest.
Special  allocations  of income  are made to the  General  Partner  equal to the
deficit  balance,  if any, in the capital  account of the General  Partner.  The
General Partner's annual allocation of net income will generally be equal to the
General Partner's cash distributions paid during the current year. The remaining
interests in the profits, losses and distributions of the Partnership are owned,
as of December 31, 2001, by 9,305 holders of units in the Partnership.

There are several  secondary markets that will facilitate sales and purchases of
units.  Secondary  markets  are  characterized  as having few buyers for limited
partnership  interests and, therefore are viewed as inefficient vehicles for the
sale of units.  Presently,  there is no public  market for the units and none is
likely to develop.

To prevent the units from being considered  publicly traded and thereby to avoid
taxation of the Partnership as an association treated as a corporation under the
Internal Revenue Code, the units will not be transferable without the consent of
the  General  Partner,  which may be withheld at its  absolute  discretion.  The
General  Partner  intends to monitor  transfers  of units in an effort to ensure
that they do not exceed  the  percentage  or number  permitted  by certain  safe
harbors  promulgated  by  the  Internal  Revenue  Service.  A  transfer  may  be
prohibited  if the intended  transferee  is not an US citizen or if the transfer
would  cause any  portion of the units of a  "Qualified  Plan" as defined by the
Employee  Retirement  Income  Security  Act of 1974 and  Independent  Retirement
Accounts to exceed the limit  allowable.  The  Partnership  may redeem a certain
number of units  each  year.  As of  December  31,  2001,  the  Partnership  had
purchased a cumulative  total of 121,580  units at a cost of $1.6  million.  The
General  Partner does not intend to purchase any  additional  units on behalf of
the Partnership in the future.
















                      (This space intentionally left blank)



<PAGE>


ITEM 6. SELECTED FINANCIAL DATA

Table 2, below, lists selected financial data for the Partnership:
<TABLE>
<CAPTION>

                                     TABLE 2

                        For the Years Ended December 31,
         (In thousands of dollars, except weighted-average unit amounts)

                                                2001            2000           1999            1998            1997
                                             ---------------------------------------------------------------------------

Operating results:
<S>                                          <C>             <C>            <C>             <C>             <C>
  Total revenues                             $   6,816       $   4,847      $  14,651       $  10,768       $  16,378
  Net gain (loss) on disposition of
    equipment                                    3,547             303          6,357            (464)          2,830
  Loss on revaluation of equipment                  --             106             --              --              --
  Equity in net income (loss) of uncon-
    solidated special-purpose entities          (1,049)            673          2,224             348           2,952
  Net income (loss)                              3,247             897          6,408          (1,127)          2,098

At year-end:
  Total assets                               $  14,072       $  12,863      $  20,185       $  31,250       $  46,089
  Total liabilities                                461             729            843          14,683          24,862
  Notes payable                                     --              --             --          12,750          21,000

Cash distribution                            $   1,770       $   3,564      $   3,633       $   3,533       $   5,780
Special cash distribution                           --           4,541             --              --              --

                                             -------------------------------------------------------------------------
Total cash distribution                      $   1,770       $    8,105      $   3,633       $   3,533       $   5,780
                                             =========================================================================

Total cash distribution representing a
    return of capital to the limited
    partners                                 $      --       $   7,208      $      --       $   3,351       $   3,682

Per weighted-average limited partnership unit:

Net income (loss)                            $    0.37 1     $    0.06 1    $    0.72 1     $   (0.15 )1    $    0.21 (1)

Cash distribution                            $    0.19       $    0.39      $    0.40       $    0.39       $    0.64
Special cash distribution                           --            0.50             --              --              --

                                             -------------------------------------------------------------------------
Total cash distribution                      $    0.19       $    0.89      $    0.40       $    0.39       $    0.64
                                             =========================================================================

Total cash distribution representing a
    return of capital to the limited
    partners                                 $      --       $    0.84      $      --       $    0.39       $    0.43



1    After the  increase  of income  necessary  to cause the  General  Partner's
     capital  account to equal zero of $0.1 million ($0.01 per  weighted-average
     limited  partnership  unit) in 2001,  and  after  the  reduction  of income
     necessary to cause the General  Partner's  capital account to equal zero of
     $0.4 million ($0.04 per weighted-average limited partnership unit) in 2000,
     $0.1 million ($0.02 per weighted-average limited partnership unit) in 1999,
     $0.2 million ($0.03 per weighted-average limited partnership unit) in 1998,
     and $0.2 million ($0.02 per  weighted-average  limited partnership unit) in
     1997  representing  allocations  to the General  Partner (see Note 1 to the
     financial statements).
</TABLE>

<PAGE>


ITEM 7. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

(A) Introduction

Management's  discussion  and  analysis of  financial  condition  and results of
operations  relates to the financial  statements of PLM Equipment Growth Fund IV
(the Partnership).  The following  discussion and analysis of operations focuses
on the  performance of the  Partnership's  equipment in the various  segments in
which  it  operates  and  its  effect  on the  Partnership's  overall  financial
condition.

(B) Results of Operations - Factors Affecting Performance

(1) Re-leasing Activity and Repricing Exposure to Current Economic Conditions

The exposure of the Partnership's  equipment  portfolio to repricing risk occurs
whenever the leases for the equipment expire or are otherwise terminated and the
equipment must be remarketed.  Major factors influencing the current market rate
for the  Partnership's  equipment  include  supply  and  demand  for  similar or
comparable  types of transport  capacity,  desirability  of the equipment in the
leasing market,  market conditions for the particular  industry segment in which
the  equipment  is  to be  leased,  overall  economic  conditions,  and  various
regulations  concerning the use of the equipment.  Equipment that is idle or out
of  service  between  the  expiration  of one  lease  and  the  assumption  of a
subsequent  lease can result in a reduction of contribution to the  Partnership.
The  Partnership  experienced  re-leasing or repricing  activity in 2001 for its
marine container, railcar, and aircraft portfolios:

     (a) The  Partnership's  remaining  marine container  portfolio  operates in
utilization-based  leasing  pools  and,  as such,  is  exposed  to  considerable
repricing activity.  The Partnership's marine container  contributions  declined
from 2000 to 2001 due to equipment sales.

     (b) Railcars:  The Partnership's railcar portfolio  contributions  declined
from 2000 to 2001,  due to lower lease  revenues  earned on railcars whose lease
expired during 2001.

     (c) Aircraft:  The Partnership's  investment in a trust owning two aircraft
on a direct  finance lease will also see a decrease in revenues  during 2002 due
to the lease being renegotiated in 2001 at a much lower rate than was previously
in place.

(2) Equipment Liquidations

Liquidation  of  Partnership  equipment  and of  investments  in  unconsolidated
special-purpose  entities  (USPEs)  represents  a  reduction  in the size of the
equipment  portfolio,  and may  result  in  reduction  of  contributions  to the
Partnership.   During  2001,  the  Partnership  disposed  of  aircraft,   marine
containers, and railcars for proceeds of $5.5 million.

(3) Equipment Valuation

In accordance  with Financial  Accounting  Standards  Board (FASB)  Statement of
Financial Accounting Standards (SFAS) No. 121, "Accounting for the Impairment of
Long-Lived  Assets and for Long-Lived  Assets to Be Disposed Of" (SFAS No. 121),
the General Partner reviews the carrying values of the  Partnership's  equipment
portfolio  at least  quarterly  and  whenever  circumstances  indicate  that the
carrying value of an asset may not be recoverable  due to expected future market
conditions.  If the projected  undiscounted cash flows and the fair market value
of the equipment are less than the carrying  value of the  equipment,  a loss on
revaluation  is  recorded.  During  2001,  a USPE  trust  owning  two  Stage III
commercial  aircraft on a direct finance lease reduced its net investment in the
finance lease receivable due to a series of lease amendments.  The Partnership's
proportionate share of this writedown, which is included in equity in net income
(loss) of the USPE in the accompanying  statement of income, was $1.4 million. A
$0.1 million loss on revaluation  to the carrying  value of owned  equipment was
recorded during 2000. No reduction to the equipment carrying values was required
in the year ended December 31, 1999.

In October 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets" (SFAS No. 144), 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.

(C) Financial Condition -- Capital Resources and Liquidity

The General Partner purchased the Partnership's initial equipment portfolio with
capital raised from its initial equity offering and permanent debt financing. No
further capital  contributions from the limited partners are permitted under the
terms of the Partnership's  limited  partnership  agreement.  As of December 31,
2001, the Partnership had no outstanding indebtedness. The Partnership relies on
operating  cash flow and proceeds  from sale of equipment to meet its  operating
obligations and make cash distributions to the limited partners.

For the year ended December 31, 2001, the Partnership  generated $2.5 million in
operating cash (net cash provided by operating  activities plus  non-liquidating
distributions   from  USPEs)  to  meet  its  operating   obligations   and  make
distributions (total of $1.8 million in 2001) to the partners.

During the year ended December 31, 2001, the  Partnership  disposed of aircraft,
marine  containers,  and  railcars  for  aggregate  proceeds  of  $5.5  million,
including $0.1 million of unused marine container repair reserves.

Accounts  receivable  decreased  $0.1 million during the year ended December 31,
2001 due to the timing of cash receipts.

Investment in an  unconsolidated  special-purpose  entity (USPE)  decreased $1.9
million.  The decrease was due to a $0.9 million distribution to the Partnership
and by a net loss of $1.0 million from the USPE during 2001.

Accounts payable and accrued  expenses  increased $0.1 million due to the due to
the timing of payments to vendors.

Lessee  deposits and reserve for repairs  decreased $0.4 million during the year
ended 2001. A decrease of $0.2 million was due to the reclassification of a $0.1
million  lessee  deposit  and $0.1  million in unused  marine  container  repair
reserves to equipment sales proceeds  resulting from the sale of an aircraft and
certain marine  containers.  An additional  reclassification  of $0.1 million in
marine container repair reserves to other income resulted from the determination
that repairs would no longer be made to these marine containers. Lessee deposits
decreased $0.1 million due to the timing of payments to certain lessees.

Pursuant to the terms of the limited partnership agreement, beginning January 1,
1993, if the number of units made available for purchase by limited  partners in
any calendar  year exceeds the number that can be  purchased  with  reinvestment
plan proceeds during any calendar year, then the Partnership may redeem up to 2%
of the outstanding units each year, subject to certain terms and conditions. The
purchase  price  to be  offered  for  such  units  is to be equal to 110% of the
unrecovered principal attributed to the units.  Unrecovered principal is defined
as the  excess  of the  capital  contribution  attributable  to a unit  over the
distributions  from any source paid with respect to that unit.  The  Partnership
does not intend to purchase any units in the future.

The General  Partner has not  planned any  expenditures,  nor is it aware of any
contingencies  that would  cause it to require  any  additional  capital to that
mentioned above.

The Partnership is in its active liquidation phase. As a result, the size of the
Partnership's remaining equipment portfolio and, in turn, the amount of net cash
flows from  operations will continue to become  progressively  smaller as assets
are sold.  Significant  asset sales may result in special  distributions  to the
partners.

The amounts  reflected for assets and  liabilities of the  Partnership  have not
been adjusted to reflect  liquidation  values.  The equipment  portfolio that is
actively being marketed for sale by the General Partner  continues to be carried
at the lower of depreciated  cost or fair value less cost of disposal.  Although
the  General  Partner   estimates  that  there  will  be  distributions  to  the
Partnership  after final disposal of assets and settlement of  liabilities,  the
amounts  cannot  be  accurately  determined  prior  to  actual  disposal  of the
equipment.

(D) Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires the General Partner
to make estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent  assets and liabilities at the date
of the financial  statements  and the reported  amounts of revenues and expenses
during the reporting  period.  On a regular basis,  the General  Partner reviews
these estimates including those related to asset lives and depreciation methods,
impairment of long-lived  assets including  intangibles,  allowance for doubtful
accounts,   reserves   related  to  legally  mandated   equipment   repairs  and
contingencies and litigation. These estimates are based on the General Partner's
historical experience and on various other assumptions believed to be reasonable
under the  circumstances.  Actual results may differ from these  estimates under
different assumptions or conditions. The General Partner believes, however, that
the estimates,  including those for the  above-listed  items, are reasonable and
that actual results will not vary significantly from the estimated amounts.

The General Partner believes the following critical  accounting  policies affect
the more  significant  judgments and estimates  used in the  preparation  of the
Partnership's financial statements:

Asset  lives  and  depreciation  methods:  The  Partnership's  primary  business
involves the purchase and  subsequent  lease of  long-lived  transportation  and
related  equipment.  The General Partner has chosen asset lives that it believes
correspond to the economic life of the related  asset.  The General  Partner has
chosen  a  deprecation  method  that it  believes  matches  the  benefit  to the
Partnership from the asset with the associated costs.  These judgments have been
made based on the General Partner's expertise in each equipment segment that the
Partnership  operates. If the asset life and depreciation method chosen does not
reduce the book value of the asset to at least the  potential  future cash flows
from the asset to the Partnership, the Partnership would be required to record a
loss on revaluation. Likewise, if the net book value of the asset was reduced by
an amount greater than the economic value has deteriorated,  the Partnership may
record a gain on sale upon final disposition of the asset.

Impairment of long-lived assets: On a regular basis, the General Partner reviews
the carrying value of its equipment, investment in a USPE, and intangible assets
to  determine  if the  carrying  value of the  asset may not be  recoverable  in
consideration of current economic conditions.  This requires the General Partner
to make  estimates  related to future  cash flows from each asset as well as the
determination if the deterioration is temporary or permanent. If these estimates
or the related assumptions change in the future, the Partnership may be required
to record additional impairment charges.

Allowance  for doubtful  accounts:  The  Partnership  maintains  allowances  for
doubtful  accounts for  estimated  losses  resulting  from the  inability of the
lessees to make the lease  payments.  These estimates are primarily based on the
amount of time that has lapsed  since the related  payments  were due as well as
specific  knowledge  related to the ability of the lessees to make the  required
payments.  If the  financial  condition  of the  Partnership's  lessees  were to
deteriorate,  additional  allowances could be required that would reduce income.
Conversely,  if the  financial  condition  of the lessees  were to improve or if
legal  remedies to collect past due amounts were  successful,  the allowance for
doubtful accounts may need to be reduced and income would be increased.

Reserves for repairs:  The Partnership  accrues for legally  required repairs to
equipment  such as dry  docking  for  marine  vessels  and engine  overhauls  to
aircraft engines over the period prior to the required repairs.  The amount that
is reserved for is based on the General  Partner's  expertise in each  equipment
segment,  the past history of such costs for that  specific  piece of equipment,
and discussions with independent,  third party equipment brokers.  If the amount
reserved for is not adequate to cover the cost of such repairs or if the repairs
must be performed  earlier than the General Partner  estimated,  the Partnership
would incur additional repair and maintenance or equipment operating expenses.

Contingencies  and litigation:  The Partnership is subject to legal  proceedings
involving  ordinary and routine  claims  related to its  business.  The ultimate
legal and financial  liability  with respect to such matters cannot be estimated
with  certainty and requires the use of estimates in recording  liabilities  for
potential litigation settlements.  Estimates for losses from litigation are made
after  consultation  with outside  counsel.  If  estimates  of potential  losses
increase  or the  related  facts and  circumstances  change in the  future,  the
Partnership may be required to record additional litigation expense.

(E) Results of Operations - Year-to-Year Detailed Comparison

(1) Comparison of Partnership's  Operating  Results for the Years Ended December
31, 2001 and 2000

(a) Owned Equipment Operations

Lease  revenues  less  direct  expenses  (defined  as repairs  and  maintenance,
equipment  operating and asset-specific  insurance  expenses) on owned equipment
decreased during the year ended December 31, 2001 compared to the same period of
2000. Gains or losses from the sale of equipment,  and interest and other income
and  certain  expenses  such as  depreciation  and  general  and  administrative
expenses relating to the operating segments (see Note 5 to the audited financial
statements),  are not  included  in the  owned  equipment  operation  discussion
because  they are  indirect  in nature  and not a result of  operations  but the
result of owning a portfolio of equipment.  The following  table  presents lease
revenues less direct expenses by segment (in thousands of dollars):
<TABLE>
<CAPTION>

                                                          For the Years
                                                       Ended December 31,
                                                     2001              2000
                                                   ----------------------------
<S>                                                <C>              <C>
        Railcars                                   $ 2,001          $  2,202
        Marine containers                               33                72
        Aircraft                                        23               648
        Trailers                                        --               428
        Other                                          (27)              --
</TABLE>

Railcars:  Railcar lease revenues and direct expenses were $2.6 million and $0.6
million,  respectively,  for 2001,  compared to $2.9  million and $0.7  million,
respectively,  during 2000.  Lease revenues  decreased $0.2 million due to lower
re-lease rates earned on railcars whose leases expired during 2001 and decreased
$0.1 million due to the increase in the number of railcars off-lease during 2001
compared to 2000.  Direct  expenses  decreased $0.1 million due to fewer repairs
during the year of 2001 compared to 2000.

Marine  containers:  Marine  container  lease revenues and direct  expenses were
$33,000 and $-0-,  respectively,  for the year ended December 31, 2001, compared
to $0.1 million and $6,000,  respectively,  during 2000.  The decrease in marine
container  contribution in the year ended December 31, 2001 compared to the same
period of 2000 was due to the sale of marine containers in 2001 and 2000.

Aircraft: Aircraft lease revenues and direct expenses were $0.2 million and $0.2
million,  respectively,  for 2001,  compared to $0.8  million and $0.1  million,
respectively, during 2000. The decrease in aircraft contribution in 2001 was due
to the sale of the Partnership's aircraft in 2001 and 2000.

Trailers:  Trailer  lease  revenues and direct  expenses  were $-0- for the year
ended   December  31,  2001,   compared  to  $0.6  million  and  $0.2   million,
respectively,  during 2000. The decrease in trailer contribution in 2001 was due
to the sale of all of the Partnership's trailers in 2000.

(b) Indirect Expenses Related to Owned Equipment Operations

Total  indirect  expenses of $1.6  million for the year ended  December 31, 2001
decreased from $3.5 million for the same period in 2000.  Significant  variances
are explained as follows:

     (i) A $1.7  million  decrease  in  depreciation  expense  from 2000  levels
resulted from a $1.5 million  decrease due to the sale of certain  assets during
2001  and  2000  and a $0.1  million  decrease  resulting  from  the  use of the
double-declining   balance   depreciation   method  which   results  in  greater
depreciation the first years an asset is owned.

     (ii)A decrease of $0.3 million in general and  administrative  expenses was
due to  lower  costs  of  $0.2  million  resulting  from  the  sale  of all  the
Partnership's  trailers  during  2000  and  lower  administrative  costs of $0.1
million  due to  the  reduction  of the  size  of  the  Partnership's  equipment
portfolio.

     (iii)Loss on  revaluation  of equipment  decreased $0.1 million during 2001
compared to the same period in 2000.  During 2000, the  Partnership  reduced the
carrying  value of its trailers to their  estimated  net  realizable  value.  No
revaluation of owned equipment was required during 2001.

     (iv)A $0.1 million  decrease in management fees to affiliate  resulted from
the lower levels of lease revenues on owned equipment  during 2001,  compared to
2000.

     (v) The  $0.2  million  increase  in the bad debt  expenses  was due to the
collection of $0.2 million  receivable in 2000 that had previously been reserved
for as bad debts. A similar recovery did not occur in 2001.

(c) Net Gain on Disposition of Owned Equipment

The net gain on  disposition  of equipment for the year ended  December 31, 2001
totaled  $3.5  million,  which  resulted  from  the  sale  of  aircraft,  marine
containers,  and railcars with an aggregate net book value of $1.9 million,  for
proceeds  of $5.5  million.  Included  in the  gain on sale  are  unused  marine
container  repair  reserves  of $0.1  million.  The net gain on  disposition  of
equipment  in 2000  totaled  $0.3  million,  which  resulted  from  the  sale of
railcars,  trailers and marine  containers  with an aggregate  net book value of
$1.6 million, for proceeds of $1.9 million.

(d)  Equity in Net  Income  (Loss) of  Unconsolidated  Special-Purpose  Entities
(USPEs)

Equity in net income (loss) of USPEs  represent the  Partnership's  share of the
net income (loss) generated from the operation of jointly owned assets accounted
for under the equity method of accounting. These entities are single purpose and
have no debt or other  financial  encumbrances.  The  following  table  presents
equity in net income (loss) by equipment type (in thousands of dollars):
<TABLE>
<CAPTION>

                                                                               For the Years
                                                                            Ended December 31,
                                                                           2001             2000
                                                                        ----------------------------
<S>                                                                     <C>              <C>
        Aircraft                                                        $ (1,014)        $    538
        Marine vessel                                                        (35)             135
                                                                        ----------------------------
                Equity in net income (loss) of USPEs                    $ (1,049)        $    673
                                                                        ============================
</TABLE>

Aircraft: As of December 31, 2001 and 2000, the Partnership had an interest in a
trust  that owns two  commercial  aircraft  on direct  finance  lease.  Aircraft
revenues and expenses were $0.5 million and $1.5 million,  respectively, for the
year  ended   December  31,  2001,   compared  to  $0.5  million  and  $(3,000),
respectively,  during the same period in 2000.  The increase in expenses of $1.4
million  during 2001 was due to the reduction of the carrying value of the trust
owning two aircraft to their estimated net realizable value. A similar event did
not occur during 2000.

Marine  vessel:  As of  December  31,  2001 and  2000,  the  Partnership  had no
remaining  interests  in  entities  that owned  marine  vessels.  Marine  vessel
revenues and expenses  were $-0- and $35,000,  respectively,  for the year ended
December 31, 2001 compared to $0.1 million and ($17,000),  respectively,  during
2000.  Revenues  decreased  $0.1 million during the year ended December 31, 2001
due to the sale of the marine  vessel entity in which the  Partnership  owned an
interest  during 1999 from which the  Partnership  received  $0.1 million for an
insurance claim during the year ended 2000. A similar event did not occur during
the same period of 2001.  Expenses  increased  $52,000 in 2001 due to payment of
additional marine vessel operating expenses.

(e) Net Income

As a result of the foregoing,  the Partnership's net income was $3.2 million for
the year ended December 31, 2001,  compared to net income of $0.9 million during
2000. The Partnership's  ability to operate and liquidate assets, secure leases,
and re-lease  those assets whose leases expire is subject to many  factors,  and
the  Partnership's  performance  in the  year  ended  December  31,  2001 is not
necessarily  indicative of future periods.  In the year ended December 31, 2001,
the Partnership  distributed $1.7 million to the limited partners,  or $0.19 per
weighted-average limited partnership unit.


<PAGE>



(2) Comparison of Partnership's  Operating  Results for the Years Ended December
31, 2000 and 1999

(a) Owned Equipment Operations

Lease  revenues  less  direct  expenses  (defined  as  repair  and  maintenance,
equipment operating,  and asset-specific  insurance expenses) on owned equipment
decreased  during the year ended December 31, 2000,  compared to the same period
of 1999. The following  table  presents  lease revenues less direct  expenses by
segment (in thousands of dollars):
<TABLE>
<CAPTION>

                                                       For the Years Ended
                                                           December 31,
                                                      2000             1999
                                                    ---------------------------
<S>                                                 <C>              <C>
        Railcars                                    $ 2,202          $ 2,448
        Aircraft                                        648            1,061
        Trailers                                        428              786
        Marine containers                                72              138
        Marine vessel                                    --              (81)
</TABLE>

Railcars:  Railcar lease revenues and direct expenses were $2.9 million and $0.7
million,  respectively,  in 2000,  compared to $3.1  million  and $0.7  million,
respectively,  during 1999. The decrease in railcar contribution in 2000 was due
to the sale of railcars during 2000 and 1999.

Aircraft: Aircraft lease revenues and direct expenses were $0.8 million and $0.1
million,  respectively,  for 2000,  compared to $2.6  million and $1.5  million,
respectively, during 1999. The decrease in aircraft contribution in 2000 was due
to the sale of aircraft during 1999.

Trailers:  Trailer lease revenues and direct expenses were $0.6 million and $0.2
million,  respectively,  for 2000,  compared to $1.1  million and $0.3  million,
respectively,  during 1999. The decrease in trailer contribution in 2000 was due
to the sale of all of the Partnership's trailers during 2000.

Marine containers: Marine container lease revenues and direct expenses were $0.1
million and $6,000, respectively,  in 2000, compared to $0.1 million and $5,000,
respectively,  during 1999. The decrease in marine  containers  contribution  in
2000 was due to the sale of marine containers during 1999 and 2000.

Marine  vessel:  Marine vessel lease  revenues and direct  expenses were zero in
2000,  compared to $1.1 million and $1.1  million,  respectively,  in 1999.  The
decrease in lease  revenues and direct  expenses in 2000,  compared to 1999, was
due to the sale of the  remaining  marine  vessel  during the fourth  quarter of
1999.

(b) Indirect Expenses Related to Owned Equipment Operations

Total indirect expenses of $3.5 million for the year ended December 31, 2000,
decreased from $6.7 million during 1999. The significant variances are explained
as follows:

     (i) A $2.0 million decrease in depreciation and amortization  expenses from
1999 levels resulted from the sale of certain assets during 2000 and 1999.

     (ii)A $1.0 million decrease in interest expense was due to the repayment of
the Partnership's debt in 1999.

     (iii) A $0.2 million decrease in general and  administrative  expenses from
1999 levels was due to the reduction of the size of the Partnership's  equipment
portfolio.

     (iv)A $0.2 million  decrease in management fees to affiliate  resulted from
the lower levels of lease revenues on owned equipment  during 2000,  compared to
1999.

     (v) A $0.1 million  increase in bad debt  expenses in 2000 compared to 1999
was due to fewer  recoveries  of  doubtful  accounts  in 2000  compared to 1999.
During 2000, $0.2 million was collected from unpaid invoices that had previously
been  reserved for as bad debts  compared to the  collection  of $0.3 million in
1999.

     (vi)An  increase of $0.1 million in revaluation of equipment was due to the
loss on  revaluation  of trailer  equipment in 2000. No revaluation of equipment
was required during 1999.

(c) Net Gain on Disposition of Owned Equipment

The net gain on  disposition  of equipment in 2000 totaled $0.3  million,  which
resulted  from the sale of  railcars,  trailers  and marine  containers  with an
aggregate net book value of $1.6 million,  for proceeds of $1.9 million. The net
gain on disposition of equipment in 1999 totaled $6.4 million that resulted from
the sale of a marine vessel, aircraft,  railcars, trailers and marine containers
with an aggregate net book value of $8.8 million, for proceeds of $15.2 million

(d) Equity in Net Income of Unconsolidated Special Purpose Entities (USPEs)

Equity in net income (loss) of USPEs  represent the  Partnership's  share of the
net income (loss) generated from the operation of jointly owned assets accounted
for under the equity method of  accounting.  These  entities were single purpose
and had no debt or other  financial  encumbrances.  The following table presents
equity in net income (loss) by equipment type (in thousands of dollars):
<TABLE>
<CAPTION>

                                                              For the Years Ended
                                                                  December 31,
                                                             2000             1999
                                                           ---------------------------
<S>                                                        <C>              <C>
        Aircraft                                           $   538          $   470
        Marine vessels                                         135            1,754
                                                           ---------------------------
                Equity in Net Income of USPEs              $   673          $ 2,224
                                                           ===========================
</TABLE>

Aircraft: As of December 31, 2000 and 1999, the Partnership had an interest in a
trust  that owns two  commercial  aircraft  on direct  finance  lease.  Aircraft
revenues  and expenses  were $0.5 million and a credit of $3,000,  respectively,
for 2000, compared to $0.6 million and $0.1 million, respectively,  during 1999.
The aircraft  revenues  decreased  $0.1 million due to decreasing  finance lease
receivable  based  on  lease  payments  schedules.  The  Partnership's  share of
expenses  decreased  $0.1  million due to the  increase  in bad debt  expense to
reflect the General  Partner's  evaluation of the  collectibility of receivables
due from the aircraft's lessee.

Marine  vessel:  As of December  31,  2000,  the  Partnership  had no  remaining
interests in entities  that owned marine  vessels.  During 2000,  marine  vessel
revenues of $0.1 million  resulted  from an insurance  settlement.  During 1999,
lease revenues of $1.1 million and the gain of $1.9 million from the sale of the
Partnership's  interest in an entity  that owned a marine  vessel were offset by
depreciation,  direct and administrative  expenses of $1.2 million. The decrease
in income  from an entity that owned  marine  vessels was due to the sale of the
Partnership's interest in an entity that owned a marine vessel during 1999.

(e) Net Income

As a result of the foregoing,  the Partnership's net income was $0.9 million for
the year ended  December 31, 2000,  compared to $6.4  million  during 1999.  The
Partnership's  ability to operate  and  liquidate  assets,  secure  leases,  and
re-lease  those assets whose leases expire is subject to many  factors,  and the
Partnership's performance in the year ended December 31, 2000 is not necessarily
indicative  of  future  periods.  In the  year  ended  December  31,  2000,  the
Partnership  distributed  $7.7  million to the  limited  partners,  or $0.89 per
weighted-average limited partnership unit.

(F) Geographic Information

Certain  of  the  Partnership's  equipment  operate  in  international  markets.
Although these operations expose the Partnership to certain currency, political,
credit, and economic risks, the General Partner believes these risks are minimal
or has  implemented  strategies  to control the risks.  Currency  risks are at a
minimum because all invoicing,  with the exception of a small number of railcars
operating in Canada, is conducted in United States (US) dollars. Political risks
are minimized generally through the avoidance of operations in countries that do
not have a stable  judicial  system and  established  commercial  business laws.
Credit support  strategies for lessees range from letters of credit supported by
US banks to cash deposits.  Although these credit support  mechanisms  generally
allow the  Partnership to maintain its lease yield,  there are risks  associated
with slow-to-respond judicial systems when legal remedies are required to secure
payment or repossess equipment. Economic risks are inherent in all international
markets,  and the  General  Partner  strives to  minimize  this risk with market
analysis prior to committing equipment to a particular geographic area. Refer to
Note 6 to the audited financial statements for information on the revenues,  net
income (loss), and net book value of equipment in various geographic regions.

Revenues and net operating  income  (loss) by geographic  region are impacted by
the time period the asset is owned and the useful life ascribed to the asset for
depreciation  purposes.  Net  income  (loss)  from  equipment  is  significantly
impacted  by  depreciation  charges,  which are  greatest  in the early years of
ownership due to the use of the double-declining balance method of depreciation.
The relationships of geographic revenues,  net income (loss), and net book value
of equipment are expected to  significantly  change in the future as assets come
off  lease and  decisions  are made to either  redeploy  the  assets in the most
advantageous geographic location, or sell the assets.

The  Partnership's  owned equipment on lease to US domiciled lessees consists of
railcars.  During 2001, US lease  revenues  accounted for 28% of the total lease
revenues  from owned  equipment.  US  operations  resulted in net income of $0.3
million.

The  Partnership's  owned  equipment  on  lease  to  Canadian-domiciled  lessees
consists of railcars.  During 2001, Canadian lease revenues accounted for 71% of
the total lease revenues from owned equipment. Canadian operations generated net
income of $2.5  million  including  a gain of $1.7  million  from the sale of an
aircraft.

The  Partnership's  owned  equipment  located  in  South  Asia  consisted  of an
aircraft.  No lease  revenues  were  reported in this  region  while this region
reported net income of $1.6 million. The net income of $1.6 million was due to a
gain from the sale of a commercial aircraft.

The  Partnership's  ownership  share in a USPE on  lease to a  Mexican-domiciled
lessee  consisted of two aircraft on a direct finance  lease.  No lease revenues
were  reported  in this  region  while  this  region  reported  net loss of $1.0
million.  The primary  reason for the net loss was due to the $1.4  million loss
recorded  on the  revaluation  of the  direct  finance  lease to it's  estimated
realizable value.

The  Partnership's  owned equipment on lease to lessees in the rest of the world
consists of marine  containers.  During 2001,  lease  revenues for these lessees
accounted for 1% of the total lease  revenues from owned  equipment.  Net income
from this region was $0.1 million.

(G) Inflation

Inflation had no significant impact on the Partnership's operations during 2001,
2000, or 1999.

(H) Forward-Looking Information

Except for historical  information contained herein, the discussion in this Form
10-K contains  forward-looking  statements that involve risks and uncertainties,
such as statements of the Partnership's  plans,  objectives,  expectations,  and
intentions.  The cautionary  statements made in this Form 10-K should be read as
being applicable to all related forward-looking  statements wherever they appear
in this Form 10-K. The Partnership's actual results could differ materially from
those discussed here.

(I) Outlook for the Future

Since the Partnership is in its active  liquidation  phase,  the General Partner
will be seeking to  selectively  re-lease or sell assets as the existing  leases
expire.  Sale decisions will cause the operating  performance of the Partnership
to decline over the remainder of its life.  Throughout the remaining life of the
Partnership,  the Partnership may periodically make special distributions to the
partners as asset sales are completed.

Liquidation  of the  Partnership's  equipment and its  investment in a USPE will
cause a reduction  in the size of the  equipment  portfolio  and may result in a
reduction of  contribution  to the  Partnership.  Other  factors  affecting  the
Partnership's contribution in the year 2002 include:

1. The Partnership's  fleet of marine containers is in excess of 12 years of age
and is no longer suitable for use in international  commerce either due to their
specific physical condition, or lessee's preferences for newer equipment. Demand
for the  Partnership's  marine  containers will continue to be weak due to their
age.

2. Railcar  loadings in North America have  weakened over the past year.  During
2001,  utilization and lease rates decreased.  Railcar contribution may decrease
in 2002 as existing leases expire and renewal leases are negotiated.

The  ability  of the  Partnership  to  realize  acceptable  lease  rates  on its
equipment in the different equipment markets is contingent on many factors, such
as specific market conditions and economic activity, technological obsolescence,
and government or other regulations.  The General Partner  continually  monitors
both the equipment markets and the performance of the Partnership's equipment in
these  markets.  The  General  Partner  may make an  evaluation  to  reduce  the
Partnership's  exposure  to  equipment  markets in which it  determines  that it
cannot operate equipment and achieve acceptable rates of return.

Several other factors may affect the Partnership's  operating performance in the
year 2002, including changes in the markets for the Partnership's  equipment and
changes in the regulatory environment in which that equipment operates.

(1) Repricing Risk

Certain of the  Partnership's  marine containers and railcars will be remarketed
in 2002 as  existing  leases  expire,  exposing  the  Partnership  to  repricing
risk/opportunity. Additionally, the Partnership entered its liquidation phase on
January 1, 1999 and has commenced an orderly  liquidation  of the  Partnership's
assets.  The General Partner intends to re-lease or sell equipment at prevailing
market rates;  however,  the General  Partner  cannot predict these future rates
with any certainty at this time, and cannot accurately assess the effect of such
activity on future Partnership performance.

(2) Impact of Government Regulations on Future Operations

The General  Partner  operates the  Partnership's  equipment in accordance  with
current applicable regulations (see Item 1, Section E, Government  Regulations).
However, the continuing implementation of new or modified regulations by some of
the  authorities  mentioned  previously,  or others,  may  adversely  affect the
Partnership's  ability to continue to own or operate equipment in its portfolio.
Additionally,  regulatory  systems  vary  from  country  to  country,  which may
increase the burden to the Partnership of meeting regulatory  compliance for the
same equipment  operated  between  countries.  Ongoing changes in the regulatory
environment,  both in the US and  internationally,  cannot be predicted with any
accuracy and preclude the General  Partner from  determining  the impact of such
changes on Partnership operations, or sale of equipment.

The US Department of Transportation's  Hazardous Materials Regulations regulates
the classification and packaging  requirements of hazardous  materials and apply
particularly  to  the   Partnership's   tank  railcars.   The  Federal  Railroad
Administration  has mandated that  effective July 1, 2000 all tank railcars must
be  re-qualified  every ten years  from the last  test  date  stenciled  on each
railcar to insure tank shell integrity.  Tank shell  thickness,  weld seams, and
weld  attachments  must be inspected and repaired if necessary to re-qualify the
tank railcar for  service.  The average  cost of this  inspection  is $3,600 for
jacketed tank railcars and $1,800 for non-jacketed tank railcars,  not including
any necessary repairs.  This inspection is to be performed at the next scheduled
tank test and every ten years  thereafter.  The  Partnership  currently owns 241
jacketed  tank  railcars  and 54  non-jacketed  tank  railcars  that  will  need
re-qualification.  To date, a total of 40 tank railcars have been inspected with
no significant defects.

(3) Distributions

During the active  liquidation  phase,  the Partnership  will use operating cash
flow and proceeds from the sale of equipment to meet its  operating  obligations
and to the extent  available,  make  distributions to the partners.  In the long
term,  changing market conditions and used equipment values preclude the General
Partner from accurately determining the impact of future re-leasing activity and
equipment sales on Partnership performance and liquidity.


<PAGE>


(4) Liquidation

Liquidation of the Partnership's equipment represents a reduction in the size of
the  equipment  portfolio and may result in a reduction on  contribution  to the
Partnership.

Since the Partnership has entered the active  liquidation phase, the size of the
Partnership's remaining equipment portfolio and, in turn, the amount of net cash
flows from  operations will continue to become  progressively  smaller as assets
are sold.  Significant  asset  sales  may  result in  special  distributions  to
unitholders.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Partnership's  primary market risk exposure is that of currency  devaluation
risk.  During 2001, 72% of the  Partnership's  total lease revenues from wholly-
and jointly owned  equipment  came from non-US  domiciled  lessees.  Most of the
leases  require  payment in US currency.  If these  lessees'  currency  devalues
against the US dollar,  the lessees could  potentially  encounter  difficulty in
making the US dollar denominated lease payment.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The  financial  statements  for the  Partnership  are  listed  in the  Index  to
Financial Statements included in Item 14(a) of this Annual Report on Form 10-K.

ITEM 9.  CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
         FINANCIAL DISCLOSURE

     (A)  Disagreements with Accountants on Accounting and Financial Disclosures

          None

     (B)  Changes in Accountants

          In September 2001, the General Partner  announced that the Partnership
          had engaged  Deloitte & Touche LLP as the  Partnership's  auditors and
          had dismissed  KPMG LLP. KPMG LLP issued  unqualified  opinions on the
          1999  and  2000  financial  statements.  During  1999,  2000  and  the
          subsequent  interim  period  preceding such  dismissal,  there were no
          disagreements with KPMG LLP on any matter of accounting  principles or
          practices,  financial  statement  disclosure,  or  auditing  scope  or
          procedure.










                      (This space intentionally left blank)



<PAGE>


                                    PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF PLM FINANCIAL SERVICES, INC.

As of the date of this annual  report,  the directors and executive  officers of
PLM Financial  Services,  Inc. (and key executive  officers of its subsidiaries)
are as follows:
<TABLE>
<CAPTION>

Name                                     Age     Position
---------------------------------------- ------- ------------------------------------------------------------------


<S>                                      <C>
Gary D. Engle                            52      Director, PLM Financial Services, Inc., PLM Investment
                                                 Management Inc., and PLM Transportation Equipment Corp.

James A. Coyne                           41      Director and Secretary, PLM Financial Services Inc., PLM
                                                 Investment Management, Inc., and PLM Transportation Equipment
                                                 Corp.

Stephen M. Bess                          55      President and Director, PLM Financial Services, Inc., PLM
                                                 Investment Management Inc., and PLM Transportation Equipment
                                                 Corp.
</TABLE>

Gary D. Engle was  appointed  a Director  of PLM  Financial  Services,  Inc.  in
January 2002. He was appointed a director of PLM International, Inc. in February
2001. He is a director and President of MILPI.  Since  November  1997, Mr. Engle
has been Chairman and Chief Executive Officer of Semele Group Inc. ("Semele"), a
publicly traded company.  Mr. Engle is President and Chief Executive  Officer of
Equis  Financial  Group  (EFG),  which  he  joined  in  1990 as  Executive  Vice
President.  Mr. Engle purchased a controlling  interest in EFG in December 1994.
He is also President of AFG Realty, Inc.

James A. Coyne was appointed a Director and Secretary of PLM Financial  Services
Inc. in April 2001.  He was  appointed a director of PLM  International,  Inc in
February  2001. He is a director,  Vice  President  and Secretary of MILPI.  Mr.
Coyne has been a director, President and Chief Operating Officer of Semele since
1997. Mr. Coyne is Executive Vice  President of Equis  Corporation,  the general
partner of EFG. Mr. Coyne joined EFG in 1989,  remained until 1993, and rejoined
in November 1994.

Stephen M. Bess was appointed a Director of PLM Financial Services, Inc. in July
1997.  Mr. Bess was  appointed  President  of PLM  Financial  Services,  Inc. in
October  2000. He was appointed  President  and Chief  Executive  Officer of PLM
International,  Inc. in October 2000.  Mr. Bess was  appointed  President of PLM
Investment  Management,  Inc.  in August  1989,  having  served  as Senior  Vice
President of PLM Investment  Management,  Inc. beginning in February 1984 and as
Corporate Controller of PLM Financial Services,  Inc. beginning in October 1983.
He served as Corporate  Controller of PLM, Inc.  beginning in December 1982. Mr.
Bess was  Vice  President-Controller  of  Trans  Ocean  Leasing  Corporation,  a
container  leasing  company,  from  November  1978 to November  1982,  and Group
Finance  Manager  with the Field  Operations  Group of  Memorex  Corporation,  a
manufacturer  of computer  peripheral  equipment,  from October 1975 to November
1978.

The directors of PLM Financial Services, Inc. are elected for a one-year term or
until their successors are elected and qualified.  No family relationships exist
between any director or executive officer of PLM Financial  Services,  Inc., PLM
Transportation Equipment Corp., or PLM Investment Management, Inc.

ITEM 11. EXECUTIVE COMPENSATION

The Partnership has no directors, officers, or employees. The Partnership has no
pension,  profit  sharing,  retirement,  or similar benefit plan in effect as of
December 31, 2001.


<PAGE>



ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     (A)  Security Ownership of Certain Beneficial Owners

          The  General  Partner is  generally  entitled  to a 5% interest in the
          profits and losses and  distributions  of the  Partnership  subject to
          certain  allocations  of income.  As of December 31, 2001, no investor
          was known by the General Partner to  beneficially  own more than 5% of
          the limited partnership units.

     (B)  Security Ownership of Management

          Neither  the  General  Partner and its  affiliates  nor any  executive
          officer or director of the General  Partner and its affiliates own any
          limited partnership units of the Partnership as of December 31, 2001.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     Transactions with Management and Others

     During 2001, the  Partnership  paid or accrued the following fees to FSI or
     its affiliates:. management fees, $0.2 million; and administrative and data
     processing services performed on behalf of the Partnership, $0.2 million.

     During 2001,  the  Partnership's  proportional  share of ownership in USPEs
     paid or accrued management fees of $15,000 to FSI or its affiliates.


















                      (This space intentionally left blank)



<PAGE>


                                     PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

     (A)  1. Financial Statements

             The  financial  statements  listed  in the  accompanying  Index  to
             Financial  Statements  are filed as part of this  Annual  Report on
             Form 10-K.

         2.  Financial Statements required under Regulation S-X Rule 3-09

             The following  financial  statements  are filed as Exhibits of this
             Annual Report on Form 10-K:

             a. Aero California Trust
             b. Montgomery Partnership

     (B)  Financial Statement Schedules

             Schedule II Valuation and Qualifying Accounts

             All other financial  statement  schedules have been omitted, as the
             required  information  is not pertinent to the registrant or is not
             material,  or because the  information  required is included in the
             financial statements and notes thereto.

     (C)  Reports on Form 8-K

             None.

     (D)  Exhibits

             4.  Limited  Partnership  Agreement of Registrant,  incorporated by
                 reference to the Partnership's  Registration  Statement on Form
                 S-1  (Reg.  No.  33-27746),  which  became  effective  with the
                 Securities and Exchange Commission on May 23, 1989.

          10.1   Management  Agreement  between  Partnership  and PLM Investment
                 Management,    Inc.,   incorporated   by   reference   to   the
                 Partnership's  Registration  Statement  on Form S-1  (Reg.  No.
                 33-27746),  which  became  effective  with the  Securities  and
                 Exchange Commission on May 23, 1989.

     Financial Statements required under Regulation S-X Rule 3-09:

     99.1 Aero California Trust.

     99.2 Montgomery Partnership.










                      (This space intentionally left blank)



<PAGE>



                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Partnership  has duly  caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

The Partnership has no directors or officers.  The General Partner has signed on
behalf of the Partnership by duly authorized officers.



Date:  March 25, 2002            PLM EQUIPMENT GROWTH FUND IV
                                 PARTNERSHIP

                                 By:  PLM Financial Services, Inc.
                                      General Partner


                                 By:  /s/ Stephen M. Bess
                                      -----------------------------------
                                      Stephen M. Bess
                                      President and Current Chief Accounting
                                      Officer



Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  directors of the  Partnership's  General
Partner on the dates indicated.

Name                                     Capacity                   Date




/s/ Gary D. Engle
----------------------------
Gary D. Engle                           Director, FSI           March 25, 2002




/s/ James A. Coyne
----------------------------
James A. Coyne                          Director, FSI           March 25, 2002




/s/ Stephen M. Bess
----------------------------
Stephen M. Bess                         Director, FSI           March 25, 2002





<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                          INDEX TO FINANCIAL STATEMENTS


                                  (Item 14(a))


                                                                         Page

Independent auditors' reports                                             25-26

Balance sheets as of December 31, 2001 and 2000                           27

Statements of income for the years ended
     December 31, 2001, 2000, and 1999                                    28

Statements of changes in partners' capital for the years
     ended December 31, 2001, 2000, and 1999                              29

Statements of cash flows for the years ended
     December 31, 2001, 2000, and 1999                                    30

Notes to financial statements                                             31-42

Independent auditors' reports on financial statement schedule             43-44

Schedule II Valuation and Qualifying Accounts                             45


<PAGE>










INDEPENDENT AUDITORS' REPORT


The Partners
PLM Equipment Growth Fund IV:

We have audited the  accompanying  balance sheet of PLM Equipment Growth Fund IV
(the  "Partnership")  as of December 31,  2001,  and the related  statements  of
income,  changes in partners'  capital,  and cash flows for the year then ended.
These  financial   statements  are  the   responsibility  of  the  Partnership's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audit.

We have  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 Partnership 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.

As  described  in  Note 1 to  the  financial  statements,  the  Partnership,  in
accordance with the limited partnership agreement, entered its liquidation phase
on January 1, 1999 and has commenced an orderly  liquidation of the  Partnership
assets.  The Partnership will terminate on December 31, 2009,  unless terminated
earlier  upon sale of all  equipment  or by certain  other  events.  The General
Partner anticipates that the liquidation of Partnership assets will be completed
by the end of the year 2006.






/s/ Deloitte & Touche LLP


Certified Public Accountants

Tampa, Florida
March 8, 2002




<PAGE>










INDEPENDENT AUDITORS' REPORT



The Partners
PLM Equipment Growth Fund IV:

We have audited the  accompanying  balance sheet of PLM Equipment Growth Fund IV
("the  Partnership")  as of  December  31, 2000 and the  related  statements  of
income, changes in partners' capital and cash flows for each of the years in the
two-year  period ended  December 31, 2000.  These  financial  statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.

We conducted our audits 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  audits  provide  a
reasonable basis for our opinion.

As described in Note 1 to the financial  statements,  PLM Equipment  Growth Fund
IV,  in  accordance  with  the  limited  partnership   agreement,   entered  its
liquidation phase on January 1, 1999 and has commenced an orderly liquidation of
the Partnership  assets.  The  Partnership  will terminate on December 31, 2009,
unless terminated earlier upon sale of all equipment or by certain other events.
The General Partner  anticipates that the liquidation of Partnership assets will
be completed by the end of the year 2006.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of PLM Equipment Growth Fund IV as
of December  31, 2000 and the results of its  operations  and its cash flows for
each of the years in the two-year  period ended December 31, 2000, in conformity
with accounting principles generally accepted in the United States of America.




/s/ KPMG LLP


SAN FRANCISCO, CALIFORNIA
March 2, 2001


<PAGE>



                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                                 BALANCE SHEETS
                                  December 31,
                 (in thousands of dollars, except unit amounts)
<TABLE>
<CAPTION>



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

<S>                                                                     <C>                 <C>
Equipment held for operating leases, at cost                            $   15,811          $   18,003
Less accumulated depreciation                                              (11,918)            (13,436)
                                                                        ---------------------------------
                                                                             3,893               4,567
Equipment held for sale                                                         --               1,931
                                                                        ---------------------------------
    Net equipment                                                            3,893               6,498

Cash and cash equivalents                                                    8,879               2,742
Restricted cash                                                                 --                 272
Accounts receivable, less allowance for doubtful
    accounts of $45 in 2001 and $5 in 2000                                      82                 171
Investment in unconsolidated special-purpose entity                          1,197               3,143
Prepaid expenses and other assets                                               21                  37
                                                                        ---------------------------------

      Total assets                                                      $   14,072          $   12,863
                                                                        =================================

LIABILITIES AND PARTNERS' CAPITAL

Liabilities
Accounts payable and accrued expenses                                   $      289          $      186
Due to affiliates                                                              168                 174
Lessee deposits and reserve for repairs                                          4                 369
                                                                        ---------------------------------
  Total liabilities                                                            461                 729
                                                                        ---------------------------------

Commitments and contingencies

Partners' capital
Limited partners (8,628,420 limited partnership units
    as of December 31, 2001 and 2000)                                       13,611              12,134
General Partner                                                                 --                  --
                                                                        ---------------------------------
  Total partners' capital                                                   13,611              12,134
                                                                        ---------------------------------

      Total liabilities and partners' capital                           $   14,072          $   12,863
                                                                        =================================

</TABLE>














                 See accompanying notes to financial statements.


<PAGE>



                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                              STATEMENTS OF INCOME
                        For the Years Ended December 31,
         (in thousands of dollars except weighted-average unit amounts)
<TABLE>
<CAPTION>


                                                                           2001            2000           1999
                                                                        -------------------------------------------
REVENUES

<S>                                                                     <C>            <C>             <C>
Lease revenue                                                           $   2,837      $    4,385      $   8,054
Interest and other income                                                     432             159            240
Net gain on disposition of equipment                                        3,547             303          6,357
                                                                        -------------------------------------------
  Total revenues                                                            6,816           4,847         14,651
                                                                        -------------------------------------------

EXPENSES

Depreciation and amortization                                                 663           2,320          4,291
Repairs and maintenance                                                       753             982          2,838
Equipment operating expenses                                                   28              34            797
Insurance expenses                                                            135              85            102
Management fees to affiliate                                                  187             274            475
Interest expense                                                               --              --          1,016
General and administrative expenses to affiliates                             241             395            530
Other general and administrative expenses                                     472             609            691
Provision for (recovery of) bad debts                                          41            (182)          (273)
Loss on revaluation of equipment                                               --             106             --
                                                                        -------------------------------------------
      Total expenses                                                        2,520           4,623         10,467
                                                                        -------------------------------------------

Equity in net income (loss) of unconsolidated
    special-purpose entities                                               (1,049)            673          2,224
                                                                        -------------------------------------------

      Net income                                                        $   3,247      $      897      $   6,408
                                                                        ===========================================

PARTNERS' SHARE OF NET INCOME

Limited partners                                                        $   3,157      $      492      $   6,226
General Partner                                                                90             405            182
                                                                        -------------------------------------------

      Total                                                             $   3,247      $      897      $   6,408
                                                                        ===========================================

Limited partners' net income per weighted-average
  partnership unit                                                      $    0.37      $     0.06      $    0.72
                                                                        ===========================================

Cash distribution                                                       $   1,770      $    3,564      $   3,633
Special cash distribution                                                      --           4,541             --
                                                                        -------------------------------------------
Total distribution                                                      $   1,770      $    8,105      $   3,633
                                                                        ===========================================

Per weighted-average partnership unit:
Cash distribution                                                       $    0.19      $     0.39      $    0.40
Special cash distribution                                                      --            0.50             --
                                                                        -------------------------------------------
Total distribution per weighted-average partnership unit                $    0.19      $     0.89      $    0.40
                                                                        ===========================================

</TABLE>




                 See accompanying notes to financial statements.


<PAGE>



                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                   STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
              For the years ended December 31, 2001, 2000, and 1999
                            (in thousands of dollars)


<TABLE>
<CAPTION>

                                                        Limited           General
                                                       Partners           Partner             Total
                                                      -------------------------------------------------

<S>                                                   <C>                <C>               <C>
  Partners' capital as of December 31, 1998           $  16,567          $     --          $  16,567
Net income                                                6,226               182              6,408

Cash distribution                                        (3,451)             (182)            (3,633)
                                                      -------------------------------------------------

  Partners' capital as of December 31, 1999              19,342                --             19,342

Net income                                                  492               405                897

Cash distribution                                        (3,386)             (178)            (3,564)

Special cash distribution                                (4,314)             (227)            (4,541)

                                                      -------------------------------------------------
  Partners' capital as of December 31, 2000              12,134                --             12,134

Net income                                                3,157                90              3,247

Cash distribution                                        (1,680)              (90)            (1,770)
                                                      -------------------------------------------------

  Partners' capital as of December 31, 2001           $  13,611          $     --          $  13,611


</TABLE>
























                 See accompanying notes to financial statements.


<PAGE>



                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                            STATEMENTS OF CASH FLOWS
                        For the Years Ended December 31,
                            (in thousands of dollars)
<TABLE>
<CAPTION>

                                                                           2001            2000            1999
                                                                        --------------------------------------------
OPERATING ACTIVITIES
<S>                                                                     <C>             <C>              <C>
Net income                                                              $   3,247       $     897        $   6,408
Adjustments to reconcile net income to net cash
    provided by (used in) operating activities:
  Depreciation and amortization                                               663           2,320            4,291
  Net gain on disposition of equipment                                     (3,547)           (303)          (6,357)
  Loss on revaluation of equipment                                             --             106               --
  Equity in net (income) loss of unconsolidated special-
    purpose entities                                                        1,049            (673)          (2,224)
  Changes in operating assets and liabilities:
    Restricted cash                                                           272            (125)              --
    Accounts receivable, net                                                   90             269              458
    Prepaid expenses and other assets                                          16              11                2
    Accounts payable and accrued expenses                                     103            (106)            (271)
    Due to affiliates                                                          (6)            (37)             (33)
    Lessee deposits and reserve for repairs                                  (305)             29             (786)
                                                                        --------------------------------------------
      Net cash provided by operating activities                             1,582           2,388            1,488
                                                                        --------------------------------------------

INVESTING ACTIVITIES
Purchase of capital repairs                                                    (1)             (7)              (9)
Proceeds from disposition of equipment                                      5,429           1,934           15,165
Distribution from liquidation of unconsolidated
    special-purpose entities                                                   --              --            3,807
Distribution from unconsolidated special-purpose entities                     897             945              741
                                                                        --------------------------------------------
      Net cash provided by investing activities                             6,325           2,872           19,704
                                                                        --------------------------------------------

FINANCING ACTIVITIES
Payment of notes payable                                                       --              --          (12,750)
Cash distribution paid to limited partners                                 (1,680)         (7,700)          (3,451)
Cash distribution paid to General Partner                                     (90)           (405)            (182)
                                                                        --------------------------------------------
      Net cash used in financing activities                                (1,770)         (8,105)         (16,383)
                                                                        --------------------------------------------

Net increase (decrease) in cash and cash equivalents                        6,137          (2,845)           4,809

Cash and cash equivalents at beginning of year                              2,742           5,587              778
                                                                        --------------------------------------------

Cash and cash equivalents at end of year                                $   8,879       $   2,742        $   5,587
                                                                        ============================================

Supplemental information
Interest paid                                                           $      --       $      --        $   1,016
                                                                        ============================================


</TABLE>






                 See accompanying notes to financial statements.


<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION

ORGANIZATION

PLM  Equipment   Growth  Fund  IV,  a  California   limited   partnership   (the
Partnership), was formed on March 25, 1989. The Partnership engages primarily in
the business of owning,  leasing or otherwise  investing in  predominately  used
transportation  and related  equipment.  The Partnership  commenced  significant
operations in September 1989. PLM Financial Services,  Inc. (FSI) is the General
Partner  of  the   Partnership.   FSI  is  a  wholly  owned  subsidiary  of  PLM
International, Inc. (PLM International or PLMI).

On January 1, 1999,  the  General  Partner  began the  liquidation  phase of the
Partnership  with  the  intent  to  commence  an  orderly   liquidation  of  the
Partnership  assets.  The General  Partner  anticipates  that the liquidation of
Partnership  assets will be completed by the end of the year 2006 (see Note 10).
The Partnership will terminate on December 31, 2009, unless  terminated  earlier
upon sale of all equipment or by certain other  events.  During the  liquidation
phase,  the General  Partner is  prohibited  to reinvest  cash flows and surplus
funds into additional  equipment.  All future cash flows and surplus funds after
payment of operating expenses,  if any, are to be used for cash distributions to
the partners, except to the extent used to maintain reasonable working reserves.
During the  liquidation  phase,  the  Partnership's  assets will  continue to be
recorded at the lower of carrying amount or fair value less cost to sell.

FSI  manages  the  affairs of the  Partnership.  The cash  distributions  of the
Partnership  are generally  allocated 95% to the limited  partners and 5% to the
General Partner (see Net Income and Distribution per Limited  Partnership  Unit,
below).  Net income is allocated to the General Partner to the extent  necessary
to cause the  General  Partner's  capital  account to equal  zero.  The  General
Partner  is also  entitled  to a  subordinated  incentive  fee  equal to 7.5% of
surplus  distributions,   as  defined  in  the  limited  partnership  agreement,
remaining  after the limited  partners have  received a certain  minimum rate of
return on, and a return of, their invested capital. The General Partner does not
anticipate that this fee will be earned.

ESTIMATES

The 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.

OPERATIONS

The  equipment of the  Partnership  is 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 Partnership for managing
the equipment (see Note 2). FSI, in  conjunction  with its  subsidiaries,  sells
equipment to investor  programs and third  parties,  manages  pools of equipment
under agreements with the investor  programs,  and is a general partner of other
programs.

ACCOUNTING FOR LEASES

The  Partnership's  leasing  operations  generally  consist of operating leases.
Under the operating lease method of accounting,  the leased asset is recorded at
cost and  depreciated  over its  estimated  useful  life.  Rental  payments  are
recorded as revenue over the lease term as earned in accordance  with  Statement
of Financial  Accounting  Standards (SFAS) No. 13, "Accounting for Leases" (SFAS
No. 13). Lease  origination costs are capitalized and amortized over the term of
the lease. Periodically,  the Partnership leases equipment with lease terms that
qualify for direct finance lease classification, as required by SFAS No. 13.


<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

1.   BASIS OF PRESENTATION (continued)

DEPRECIATION AND AMORTIZATION

Depreciation of  transportation  equipment held for operating leases is computed
on the  double-declining  balance method,  taking a full month's depreciation in
the month of  acquisition,  based upon  estimated  useful  lives of 15 years for
railcars and 12 years for most other types of equipment. The depreciation method
changes  to  straight-line  when  the  annual  depreciation  expense  using  the
straight-line  method exceeds that  calculated by the  double-declining  balance
method.  Acquisition  fees  have  been  capitalized  as part of the  cost of the
equipment.  Major  expenditures  that are expected to extend the useful lives or
reduce future operating expenses of equipment are capitalized and amortized over
the estimated remaining life of the equipment.  Debt placement fees and issuance
costs were amortized over the term of the related loan.

TRANSPORTATION EQUIPMENT

Equipment held for operating leases is stated at cost less any reductions to the
carrying  value as required by SFAS No. 121,  "Accounting  for the Impairment of
Long-Lived  Assets and for Long-Lived  Assets to Be Disposed Of" (SFAS No. 121).
Equipment  held for sale is stated at the lower of the  equipment's  depreciated
cost or fair value,  less cost to sell, and is subject to a pending contract for
sale.

In accordance with SFAS No. 121, the General Partner reviews the carrying values
of the  Partnership's  equipment  portfolio  at  least  quarterly  and  whenever
circumstances  indicate  that  the  carrying  value  of  an  asset  may  not  be
recoverable  due  to  expected  future  market  conditions.   If  the  projected
undiscounted cash flows and the fair market value of the equipment are less than
the carrying value of the equipment,  a loss on revaluation is recorded.  During
2001, a unconsolidated  special-purpose entity (USPE) trust owning two Stage III
commercial  aircraft on a direct finance lease reduced its net investment in the
finance lease receivable due to a series of lease amendments.  The Partnership's
proportionate share of this writedown, which is included in equity in net income
(loss) of the USPE in the accompanying  statement of income, was $1.4 million. A
$0.1 million loss on revaluation  to the carrying  value of owned  equipment was
recorded  during 2000. No  revaluations to owned equipment were required in 2001
and 1999 or to partially owned equipment in 2000 and 1999.

In October 2001, the Financial  Accounting  Standards Board issued SFAS No. 144,
"Accounting for the Impairment or Disposal of Long-Lived Assets" (SFAS No. 144),
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.

INVESTMENT IN A UNCONSOLIDATED SPECIAL-PURPOSE ENTITY

The  Partnership has an interest in a USPE that owns  transportation  equipment.
This is a single purpose  entity that does not have any debt or other  financial
encumbrances and is accounted for using the equity method.

The  Partnership's   investment  in  a  USPE  includes   acquisition  and  lease
negotiation  fees paid by the Partnership to PLM Worldwide  Management  Services
(WMS),  a  wholly  owned  subsidiary  of PLM  International.  The  Partnership's
interest in the USPE is managed by IMI. The Partnership's equity interest in the
net  income  (loss)  of the USPE is  reflected  net of  management  fees paid or
payable to IMI and the  amortization of acquisition and lease  negotiation  fees
paid to WMS.


<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION (continued)

REPAIRS AND MAINTENANCE

Repairs and maintenance  costs related to railcars are usually the obligation of
the Partnership.  Maintenance  costs of marine  containers are the obligation of
the lessee.  If the repair is not covered by the lessee, it is generally charged
against  operations  as  incurred.  To meet the repair  requirements  of certain
marine containers, reserve accounts were prefunded by the lessee. If an asset is
sold and there is a balance in the  reserve  account  for repairs to that asset,
the balance in the reserve account is reclassified as additional sales proceeds.
During  2001,  the  General  Partner  determined  that there  would be no future
repairs made to certain marine containers and reclassified the remaining balance
of $0.1  million in marine  container  repair  reserves  to  interest  and other
income.

NET INCOME AND DISTRIBUTION PER LIMITED PARTNERSHIP UNIT

Cash  distributions  are  allocated  95% to the limited  partners  and 5% to the
General  Partner  and may  include  amounts  in  excess of net  income.  Special
allocations  of income  are made to the  General  Partner  equal to the  deficit
balance,  if any, in the capital  account of the  General  Partner.  The limited
partners' net income is allocated among the limited partners based on the number
of limited  partnership units owned by each limited partner and on the number of
days of the year each limited partner is in the Partnership.

Cash  distributions  are recorded when paid. Cash  distributions of $4.0 million
for 2001 and $0.9 million for 2000 and 1999,  relating to the fourth  quarter of
that  year,  were  paid  during  the  first  quarter  of 2002,  2001,  and 2000,
respectively.

Cash  distributions to investors in excess of net income are considered a return
of capital.  Cash  distributions to the limited partners of $7.2 million in 2000
were deemed to be a return of  capital.  None of the cash  distributions  during
2001 and 1999 were deemed a return of capital.

The  Partnership  made a special  distribution  of $4.3  million to the  limited
partners during 2000. No special distributions were made during 2001 or 1999.

NET INCOME PER WEIGHTED-AVERAGE PARTNERSHIP UNIT

Net income per  weighted-average  Partnership  unit was computed by dividing net
income  attributable  to  limited  partners  by the  weighted-average  number of
Partnership units deemed  outstanding  during the period.  The  weighted-average
number of Partnership units deemed  outstanding  during the years ended December
31, 2001, 2000, and 1999 was 8,628,420.

CASH AND CASH EQUIVALENTS

The Partnership considers highly liquid investments that are readily convertible
to known  amounts of cash with  original  maturities  of three months or less as
cash equivalents.  The carrying amount of cash and cash equivalents approximates
fair market value due to the short-term nature of the investments.

COMPREHENSIVE INCOME

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


<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION (continued)

RESTRICTED CASH

As of December 31, 2000,  restricted cash represented  lessee security  deposits
held by the Partnership. There was no restricted cash as of December 31, 2001.

2. GENERAL PARTNER AND TRANSACTIONS WITH AFFILIATES

An officer of FSI contributed $100 of the Partnership's  initial capital.  Under
the equipment management agreement, IMI, subject to certain reductions, receives
a monthly  management fee attributable to either owned equipment or interests in
equipment  owned by a USPE  equal to the  lesser of (a) the fees  that  would be
charged by an independent third party for similar services for similar equipment
or (b) the sum of (i) 5% of the gross lease revenues  attributable  to equipment
that is  subject  to  operating  leases,  (ii) 2% of the  gross  lease  revenues
attributable  to equipment that is subject to full payout net leases,  and (iii)
7% of the gross lease revenues  attributable to equipment for which IMI provides
both  management  and additional  services  relating to the continued and active
operation of program  equipment,  such as on-going  marketing and  re-leasing of
equipment, hiring or arranging for the hiring of crew or operating personnel for
equipment,  and  similar  services.  The  Partnership  reimbursed  FSI  and  its
affiliates $0.2 million,  $0.4 million,  and $0.5 million during 2001, 2000, and
1999,  respectively,  for data processing  expenses and administrative  services
performed on behalf of the Partnership.

The Partnership's  proportional share of USPEs management fees to affiliate were
$15,000,  $17,000,  and $0.1 million during 2001, 2000, and 1999,  respectively,
and the Partnership's  proportional  share of administrative and data processing
expenses to affiliate  were $-0-,  $5,000,  and $11,000  during 2001,  2000, and
1999,  respectively.  Both of these affiliate expenses reduced the Partnership's
proportional share of the equity interest in income in USPEs.

The  Partnership  had an  interest  in certain  equipment  in  conjunction  with
affiliated programs during 2001, 2000, and 1999 (see Note 4).

The balance due to affiliates as of December 31, 2001 and 2000 includes  $21,000
and $27,000, respectively, due to FSI and its affiliates for management fees and
$0.1 million due to an affiliated USPE.

3. EQUIPMENT

The components of owned equipment as of December 31 are as follows (in thousands
of dollars):
<TABLE>
<CAPTION>

                                                                     2001                2000
                                                                ----------------------------------

<S>                                                             <C>                   <C>
        Equipment held for operating leases
        Railcars                                                $   13,239            $  13,336
        Marine containers                                            2,572                4,667
                                                                ----------------------------------
                                                                    15,811               18,003
        Less accumulated depreciation                              (11,918)             (13,436)
                                                                ----------------------------------
                                                                     3,893                4,567
        Equipment held for sale                                         --                1,931
                                                                ----------------------------------
          Net equipment                                         $    3,893            $   6,498
                                                                ==================================
</TABLE>

Revenues are earned under operating leases. The Partnership's  marine containers
are leased to operators of utilization-type leasing pools that include equipment
owned by  unaffiliated  parties.  In such  instances,  revenues  received by the
Partnership  consist of a specified  percentage of revenues generated by leasing
the equipment to sub lessees,  after deducting certain direct operating expenses
of the pooled equipment. Rents for railcars are based on a fixed rate.


<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

3. EQUIPMENT (continued)

As of December 31, 2001,  all equipment was on lease except for 47 railcars with
a net book value of $0.3 million.  As of December 31, 2000, all owned  equipment
in the Partnership portfolio was on lease except for an aircraft and 34 railcars
with a net book value of $0.7 million.

As of December 31, 2000, a Boeing 737-200 stage II commercial  aircraft and Dash
8-300 commuter  aircraft,  subject to pending  contract for sale,  were held for
sale at the lower of the equipment's  depreciated cost or fair value,  less cost
to sell. No equipment was held for sale as of December 31, 2001.

During 2001,  the  Partnership  disposed of  aircraft,  marine  containers,  and
railcars with an aggregate net book value of $1.9 million,  for proceeds of $5.5
million.  Included  in the  gain on sale  are  unused  marine  container  repair
reserves of $0.1 million.  The aircraft were reported as equipment held for sale
as of  December  31,  2000.  During  2000,  the  Partnership  disposed of marine
containers,  railcars,  and  trailers,  with an aggregate net book value of $1.6
million, for proceeds of $1.9 million.

All owned equipment on lease is being accounted for as operating leases.  Future
minimum rentals receivable under noncancelable  operating leases, as of December
31,  2001,  for  owned  equipment  during  each  of the  next  five  years,  are
approximately  $1.5 million in 2002; $0.6 million in 2003; $0.2 million in 2004;
$0.1  million in 2005;  and  $11,000 in 2006.  Per diem and  short-term  rentals
consisting of utilization  rate lease payments  included in revenue  amounted to
approximately  $33,000,  $0.7 million, and $1.2 million in 2001, 2000, and 1999,
respectively.

4. INVESTMENT IN UNCONSOLIDATED SPECIAL-PURPOSE ENTITIES

The  Partnership's  net  investment  in a USPE  consisted of a 35% interest in a
trust owning two Stage III  commercial  aircraft on a direct  finance lease (the
"Trust")  totaling  $1.2  million and $3.1  million as of December  31, 2001 and
2000, respectively. This is a single purpose entity that does not have any debt.

As  of  December  31,  2001  and  2000,  the  jointly  owned  equipment  in  the
Partnership's USPE portfolio was on lease.

During  2001,  the  Trust  reduced  its  net  investment  in the  finance  lease
receivable due to a series of lease amendments. The Partnership's  proportionate
share of this writedown, which is included in equity in net income (loss) of the
USPE in the accompanying statement of income, was $1.4 million.

The following  summarizes  the  financial  information  for the  special-purpose
entities and the  Partnership's  interests therein as of and for the years ended
December 31, (in thousands of dollars):
<TABLE>
<CAPTION>

                                  2001                         2000                         1999
                                ----------                   ----------                   ---------
                                         Net                          Net                         Net
                          Total      Interest of      Total        Interest of       Total      Interest of
                          USPE       Partnership       USPE        Partnership       USPEs      Partnership
                         -------------------------   -------------------------    ---------------------------

<S>                    <C>         <C>              <C>         <C>             <C>         <C>
Net investments        $   3,420   $        1,197   $   8,981   $       3,143   $    9,489  $        3,415
Lease revenues                --               --          (3)             --        2,106           1,053
Net income (loss)         (2,967)          (1,049)      1,838             673        4,881           2,224
</TABLE>



<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

5. OPERATING SEGMENTS

The  Partnership  operates  or  operated  in five  primary  operating  segments:
aircraft  leasing,  marine  container  leasing,  marine vessel leasing,  trailer
leasing,  and  railcar  leasing.  Each  equipment  leasing  segment  engages  in
short-term to mid-term operating leases to a variety of customers.

The General Partner evaluates the performance of each segment based on profit or
loss from operations  before  allocation of certain  general and  administrative
expenses,  interest expense and certain other expenses. The segments are managed
separately due to different business strategies for each operation.

The following  tables present a summary of the operating  segments (in thousands
of dollars):
<TABLE>
<CAPTION>

                                                     Marine      Marine
                                          Aircraft  Container    Vessel   Railcar
    For the Year Ended December 31, 2001  Leasing    Leasing    Leasing   Leasing     Other (1)  Total
    ------------------------------------  -------    -------    -------   -------     -----      -----

    Revenues
<S>                                        <C>       <C>        <C>       <C>        <C>       <C>
      Lease revenue                        $   185   $     33   $     --  $  2,619   $     --  $  2,837
      Interest and other income                 39        126         --         4        263       432
      Gain (loss) on disposition of          3,350        207         --       (13)         3     3,547
    equipment
                                          --------------------------------------------------------------
        Total revenues                       3,574        366         --     2,610        266     6,816
                                          --------------------------------------------------------------

    Costs and expenses
      Operations support                       162         --         27       618        109       916
      Depreciation and amortization            145        198         --       320         --       663
      Management fees to affiliate               2          2         --       183         --       187
      General and administrative expenses      130         --         --       100        483       713
      Provision for (recovery of) bad           --         --         --        42         (1)       41
    debts
                                          --------------------------------------------------------------
        Total costs and expenses               439        200         27     1,263        591     2,520
                                          --------------------------------------------------------------
    Equity in net loss of USPE               (1,014)       --        (35)       --         --    (1,049)
                                          --------------------------------------------------------------
    Net income (loss)                      $ 2,121   $    166   $    (62) $  1,347   $   (325) $  3,247
                                          ==============================================================

    Total assets as of December 31, 2001   $ 1,197   $     84   $     --  $  3,891   $  8,900  $ 14,072
                                          ==============================================================

(1)  Includes certain assets not identifiable to a specific segment such as cash
     and prepaid  expenses.  Also  includes net gain from trailer  sales and the
     recovery  of  certain  bad  debts,  certain  interest  income and costs not
     identifiable  to a particular  segment  such as interest  and  amortization
     expense and  certain  operations  support  and  general and  administrative
     expenses.

</TABLE>







                      (This space intentionally left blank)












<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

5.   OPERATING SEGMENTS (continued)
<TABLE>
<CAPTION>

                                                     Marine
                                          Aircraft  Container   Trailer   Railcar
    For the Year Ended December 31, 2000  Leasing    Leasing    Leasing   Leasing    All Other (2) Total
    ------------------------------------  -------    -------    -------   -------    ---------     -----

    REVENUES
<S>                                        <C>       <C>        <C>       <C>        <C>       <C>
      Lease revenue                        $   784   $     78   $    635  $  2,888   $     --  $  4,385
      Interest and other income                  3         --         --        --        156       159
      Gain (loss) on disposition of             --        229         87       (13)        --       303
    equipment
                                          --------------------------------------------------------------
        Total revenues                         787        307        722     2,875        156     4,847
                                          --------------------------------------------------------------

    COSTS AND EXPENSES
      Operations support                       136          6        207       686         66     1,101
      Depreciation and amortization          1,343        364        186       427         --     2,320
      Management fees to affiliate              16          4         49       205         --       274
      General and administrative expenses      138          1        165       133        567     1,004
      Recovery of bad debts                     (9)        --       (143)      (30)        --      (182)
      Loss on revaluation of equipment          --         --        106        --         --       106
                                          --------------------------------------------------------------
        Total costs and expenses             1,624        375        570     1,421        633     4,623
                                          --------------------------------------------------------------
    Equity in net income of USPEs              538         --         --        --        135       673
                                          --------------------------------------------------------------
    Net income (loss)                      $  (299)  $    (68)  $    152  $  1,454   $   (342) $    897
                                          ==============================================================

    Total assets as of December 31, 2000   $ 5,356   $    421   $     --  $  4,302   $  2,784  $ 12,863
                                          ==============================================================
</TABLE>
<TABLE>
<CAPTION>


                                                     Marine      Marine
                                          Aircraft Container    Vessel    Trailer    Railcar
    For the Year Ended December 31, 1999  Leasing    Leasing    Leasing   Leasing    Leasing   All Other (2) Total
    ------------------------------------  -------    -------    -------   -------    -------   ---------     -----

    REVENUES
<S>                                        <C>       <C>        <C>       <C>        <C>       <C>        <C>
      Lease revenue                        $ 2,590   $    143   $  1,067  $  1,122   $  3,132  $     --   $  8,054
      Interest and other income                 37         --         --        --         26       177        240
      Gain (loss) on disposition of          6,312        167        167      (159)      (130)       --      6,357
    equipment
                                          -------------------------------------------------------------------------
        Total revenues                       8,939        310      1,234       963      3,028       177     14,651
                                          -------------------------------------------------------------------------

    COSTS AND EXPENSES
      Operations support                     1,529          5      1,148       336        684        35      3,737
      Depreciation and amortization          2,409        565        296       326        636        59      4,291
      Interest expense                          --         --         --        --         --     1,016      1,016
      Management fees to affiliate             104          7         53        89        222        --        475
      General and administrative expenses      253          7         88       282        113       478      1,221
      (Recovery of) provision for bad         (278)        --         --         1          4        --       (273)
    debts
                                          -------------------------------------------------------------------------
        Total costs and expenses             4,017        584      1,585     1,034      1,659     1,588     10,467
                                          -------------------------------------------------------------------------
    Equity in net income of USPEs              470         --      1,754        --         --        --      2,224
                                          -------------------------------------------------------------------------
    Net income (loss)                      $ 5,392   $   (274)  $  1,403  $    (71)  $  1,369  $ (1,411)  $  6,408
                                          =========================================================================


(2)  Includes certain assets not identifiable to a specific segment such as cash
     and prepaid  expenses.  Also includes certain interest income and costs not
     identifiable  to a particular  segment  such as interest  and  amortization
     expense and  certain  operations  support  and  general and  administrative
     expenses.

</TABLE>













<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

6.   GEOGRAPHIC INFORMATION

The   Partnership   owns   certain   equipment   that  is  leased  and  operated
internationally.   A  limited  number  of  the  Partnership's  transactions  are
denominated  in a foreign  currency.  Gains or  losses  resulting  from  foreign
currency  transactions  are  included in the results of  operations  and are not
material.

The Partnership leases or leased its aircraft, railcars, and trailers to lessees
domiciled in four geographic regions: the United States,  Canada, South America,
and Mexico.  Marine vessels and marine containers are leased to multiple lessees
in  different  regions  that  operate the marine  vessels and marine  containers
worldwide.

The  table  below  sets  forth  lease  revenues  by  geographic  region  for the
Partnership's  owned equipment and investments in USPEs,  grouped by domicile of
the lessee as of and for the years ended December 31 (in thousands of dollars):
<TABLE>
<CAPTION>

          Region                         Owned Equipment                        Investments in USPEs
----------------------------  ---------------------------------------   --------------------------------------
                                 2001         2000          1999           2001          2000        1999
                              ---------------------------------------   --------------------------------------

<S>                           <C>          <C>           <C>            <C>           <C>         <C>
Canada                        $   2,002    $   3,394     $   2,298      $      --     $      --   $      --
United States                       802          913         3,683             --            --          --
South America                        --           --           863             --            --          --
Rest of the world                    33           78         1,210             --            --       1,053
                              ---------------------------------------   --------------------------------------
    Lease revenues            $   2,837    $   4,385     $   8,054      $      --     $      --   $   1,053
                              =======================================   ======================================
</TABLE>

The following  table sets forth net income (loss)  information by region for the
owned  equipment and  investments  in USPEs for the years ended  December 31 (in
thousands of dollars):
<TABLE>
<CAPTION>

             Region                            Owned Equipment                     Investments in USPEs
----------------------------------  -------------------------------------- -------------------------------------
                                       2001         2000         1999          2001         2000        1999
                                    -------------------------------------- -------------------------------------

<S>                                 <C>          <C>          <C>          <C>           <C>          <C>
Canada                              $  2,533     $   1,267    $   1,129    $       --    $     --     $    --
United States                            339          (498)       2,584            --          --          --
South Asia                             1,614            --         (502)           --          --          --
South America                             --            --        3,009            --          --          --
Mexico                                    --            --           --        (1,014)        538         470
Rest of the world                        139           (68)        (625)          (35)        135       1,754
                                    ------------------------------------   -------------------------------------
  Regional net income                  4,625           701        5,595        (1,049)        673       2,224
Administrative and other                (329)         (477)      (1,411)           --          --          --
                                    -------------------------------------- -------------------------------------
    Net income (loss)               $  4,296     $     224    $   4,184    $   (1,049)   $    673     $ 2,224
                                    ====================================== =====================================
</TABLE>

The net  book  value  of these  assets  as of  December  31 are as  follows  (in
thousands of dollars):
<TABLE>
<CAPTION>

                   Region                       Owned Equipment              Investments in USPEs
        ------------------------------      -------------------------     ---------------------------

                                               2001         2000               2001         2000
                                            -------------------------       ------------------------

<S>                                         <C>          <C>                <C>          <C>
        Canada                              $  2,868     $   4,176          $      --    $     --
        United States                            955         1,555                 --          --
        South Asia                                --           378                 --          --
        Mexico                                    --            --              1,197       3,143
        Rest of the world                         70           389                 --          --
                                            -------------------------       ------------------------
         Total net book value                 $  3,893     $   6,498        $     1,197  $  3,143
                                            =========================       ========================
</TABLE>



<PAGE>



                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

7. CONCENTRATIONS OF CREDIT RISK

No single lessee  accounted for more than 10% of the  consolidated  revenues for
the year ended December 31, 2001. In 2001,  however,  the  Partnership  sold two
aircraft.  The following is a list of the buyers and the  percentage of the gain
from the sale of the total  consolidated  revenues:  Aergo Capital Limited (24%)
and Cypress Equipment Fund III, LLC (22%).  Time Air, Inc.  accounted for 14% of
the consolidated  revenues for the year ended December 31, 2000. No other lessee
accounted for more than 10% of  consolidated  lease  revenues in 2000. No single
lessee  accounted  for more than 10% of the  consolidated  revenues for the year
ended December 31, 1999. In 1999,  however,  the Partnership sold three aircraft
and a marine vessel that the Partnership  owned an interest in. The following is
a list of the buyers and the  percentage  of the gain from the sale of the total
consolidated  revenues:  Aircraft Lease Finance IV, Inc. (14%), Fuerza Aerea Del
Peru (11%),  Triton  Aviation  Services (10%),  and Lisa Navigation  Company LLC
(10%).

As of December 31, 2001 and 2000, the General  Partner  believes the Partnership
had no other  significant  concentrations  of  credit  risk  that  could  have a
material adverse effect on the Partnership.

8. INCOME TAXES

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

As of December 31, 2001, the financial  statement  carrying amount of assets and
liabilities  was  approximately  $19.8 million lower than the federal income tax
basis  of  such  assets  and  liabilities,   primarily  due  to  differences  in
depreciation  methods,  equipment reserves,  provisions for bad debts,  lessees'
prepaid  deposits,  and  the  tax  treatment  of  underwriting  commissions  and
syndication costs.

9. CONTINGENCIES

Two class action lawsuits which were filed against PLM International and various
of its wholly owned  subsidiaries  in January 1997 in the United States District
Court for the Southern District of Alabama, Southern Division (the court), Civil
Action No.  97-0177-BH-C  (the Koch action),  and June 1997 in the San Francisco
Superior Court, San Francisco,  California,  Case No. 987062 (the Romei action),
were fully resolved during the fourth quarter of 2001.

The named plaintiffs were individuals who invested in the Partnership (Fund IV),
PLM Equipment  Growth Fund V (Fund V), PLM  Equipment  Growth Fund VI (Fund VI),
and PLM  Equipment  Growth & Income  Fund VII  (Fund VII and  collectively,  the
Funds),  each a California  limited  partnership  for which PLMI's  wholly owned
subsidiary,  FSI, acts as the General Partner. The complaints asserted causes of
action  against  all  defendants  for fraud and deceit,  suppression,  negligent
misrepresentation,  negligent and intentional breaches of fiduciary duty, unjust
enrichment,   conversion,   conspiracy,   unfair  and  deceptive  practices  and
violations of state securities law.  Plaintiffs alleged that each defendant owed
plaintiffs  and the class  certain  duties due to their  status as  fiduciaries,
financial  advisors,  agents,  and  control  persons.  Based  on  these  duties,
plaintiffs   asserted  liability  against  defendants  for  improper  sales  and
marketing   practices,   mismanagement   of  the  Funds,   and  concealing  such
mismanagement  from  investors  in  the  Funds.  Plaintiffs  sought  unspecified
compensatory damages, as well as punitive damages.

In February  1999 the parties to the Koch and Romei  actions  agreed to monetary
and equitable settlements of the lawsuits, with no admission of liability by any
defendant,  and filed a  Stipulation  of  Settlement  with the court.  The court
preliminarily  approved the settlement in August 2000, and information regarding
the  settlement  was sent to class members in September  2000. A final  fairness
hearing  was held on  November  29,  2000,  and on April 25,  2001,  the federal
magistrate  judge  assigned  to the case  entered  a Report  and  Recommendation
recommending final approval of the monetary and


<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

9. CONTINGENCIES (continued)

equitable settlements to the federal district court judge. On July 24, 2001, the
federal district court judge adopted the Report and Recommendation, and entered
a final judgment approving the settlements. No appeal has been filed and the
time for filing an appeal has expired.

The monetary  settlement  provides  for a  settlement  and release of all claims
against defendants in exchange for payment for the benefit of the class of up to
$6.6  million,  consisting  of $0.3 million  deposited by PLMI and the remainder
funded by an insurance  policy.  The final settlement amount of $4.9 million (of
which PLMI's share was approximately $0.3 million) was accrued in 1999, paid out
in the fourth quarter of 2001 and was determined based upon the number of claims
filed by class  members,  the amount of attorneys'  fees awarded by the court to
plaintiffs'  attorneys,  and the amount of the administrative  costs incurred in
connection with the settlement.

The equitable  settlement  provides,  among other things, for: (a) the extension
(until  January 1, 2007) of the date by which FSI must complete  liquidation  of
the Funds' equipment,  except for Fund IV; (b) the extension (until December 31,
2004) of the period during which FSI can reinvest the Funds' funds in additional
equipment,  except  for Fund IV; (c) an  increase  of up to 20% in the amount of
front-end fees (including  acquisition and lease  negotiation  fees) that FSI is
entitled  to earn in excess  of the  compensatory  limitations  set forth in the
North American  Securities  Administrator's  Association's  Statement of Policy;
except for Fund IV; (d) a one-time  purchase  by each of Funds V, VI, and VII of
up to 10% of that partnership's outstanding units for 80% of net asset value per
unit as of  September  30,  2000;  and  (e) the  deferral  of a  portion  of the
management fees paid, except for Fund IV, to an affiliate of FSI until, if ever,
certain  performance  thresholds  have  been  met by the  Funds.  The  equitable
settlement  also  provides  for  payment of  additional  attorneys'  fees to the
plaintiffs'  attorneys  from Fund  funds in the  event,  if ever,  that  certain
performance  thresholds have been met by the Funds.  Following a vote of limited
partners  resulting in less than 50% of the limited partners of each of Funds V,
VI, and VII voting  against  such  amendments  and after  final  approval of the
settlement,  each of the Funds'  limited  partnership  agreements was amended to
reflect these changes.  During the fourth  quarter of 2001 the respective  Funds
purchased  limited  partnership  units from those  equitable  class  members who
submitted timely requests for purchase.

The Partnership,  together with affiliates,  has initiated litigation in various
official  forums in the United  States  and India  against a  defaulting  Indian
airline  lessee to repossess  Partnership  property  and to recover  damages for
failure to pay rent and failure to maintain  such  property in  accordance  with
relevant lease  contracts.  The  Partnership has repossessed all of its property
previously  leased to such airline,  and the airline has ceased  operations.  In
response  to  the   Partnership's   collection   efforts,   the  airline   filed
counterclaims  against the  Partnership  in excess of the  Partnership's  claims
against  the  airline.   The  General   Partner   believes  that  the  airline's
counterclaims are completely  without merit, and the General Partner will defend
against such counterclaims.

During 2001, the General Partner decided to minimize its collection efforts from
the India lessee in order to save the Partnership  from  additional  expenses of
trying to collect from a lessee that has no apparent ability to pay.

The  Partnership  is involved as plaintiff  or defendant in various  other legal
actions  incidental  to its  business.  Management  does not believe that any of
these  actions  will be  material  to the  financial  condition  or  results  of
operations of the Partnership.


<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

10. LIQUIDATION AND SPECIAL DISTRIBUTIONS

On January 1, 1999,  the  General  Partner  began the  liquidation  phase of the
Partnership  with  the  intent  to  commence  an  orderly   liquidation  of  the
Partnership  assets.  The General  Partner is actively  marketing  the remaining
equipment  portfolio  with the  intent  of  maximizing  sale  proceeds.  As sale
proceeds  are  received  the General  Partner  intends to  periodically  declare
special  distributions  to distribute the sale proceeds to the partners.  During
the  liquidation  phase of the  Partnership  the  equipment  will continue to be
leased under  operating  leases until sold.  Operating cash flows, to the extent
they exceed  Partnership  expenses,  may continue to be distributed from time to
time to the partners.  The amounts  reflected for assets and  liabilities of the
Partnership have not been adjusted to reflect  liquidation values. The equipment
portfolio continues to be carried at the lower of depreciated cost or fair value
less cost to dispose.  Although the General Partner estimates that there will be
distributions after liquidation of assets and liabilities, the amounts cannot be
accurately  determined prior to actual liquidation of the equipment.  Any excess
proceeds  over  expected  Partnership  obligations  will be  distributed  to the
Partners. Upon final liquidation, the Partnership will be dissolved.

Special   distributions   totaling  $4.5  million  ($0.50  per  weighted-average
partnership unit) were paid in 2000. No special  distributions were paid in 2001
or 1999.  The  Partnership  is not permitted to reinvest  proceeds from sales or
liquidations  of  equipment.  These  proceeds,  in  excess of  operational  cash
requirements,  are  periodically  paid out to  limited  partners  in the form of
special  distributions.   The  sales  and  liquidations  occur  because  of  the
determination by the General Partner that it is the appropriate time to maximize
the return on an asset  through  sale of that asset,  and, in some  leases,  the
ability of the lessee to exercise purchase options.

11. QUARTERLY RESULTS OF OPERATIONS (unaudited)

The following is a summary of the quarterly  results of operations  for the year
ended December 31, 2001 (in thousands of dollars, except per share amounts):
<TABLE>
<CAPTION>

                                March            June            September         December
                                 31,              30,               30,               31,               Total
                          ------------------------------------------------------------------------------------------

Operating results:
<S>                       <C>                   <C>          <C>               <C>                <C>
  Total revenues          $         4,403       $      781   $           722   $           910    $         6,816
  Net income (loss)                 3,512              418               162              (845)             3,247

Per weighted-average limited partnership unit:

    Net income (loss)     $          0.40       $     0.04   $          0.02   $         (0.09)   $          0.37
</TABLE>

The  following  is a list of the major events that  affected  the  Partnership's
performance during 2001:

     (i) In the first quarter of 2001, the Partnership  sold aircraft and marine
containers for a total gain of $3.4 million;

     (ii)In the second quarter of 2001,  lease  revenues  decreased $0.3 million
and expenses decreased $0.5 million due to equipment sales;

     (iii)In the third quarter of 2001, the Partnership incurred $0.2 million in
higher repair expenses; and

     (iv)In the fourth quarter of 2001, the Partnership  recorded a $1.4 million
loss on revaluation on the trust that owned two commercial  aircraft on a direct
finance lease.




<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS

11. QUARTERLY RESULTS OF OPERATIONS (unaudited) (continued)

The following is a summary of the quarterly  results of operations  for the year
ended December 31, 2000 (in thousands of dollars, except per share amounts):
<TABLE>
<CAPTION>

                                March            June            September         December
                                 31,              30,               30,               31,               Total
                          ------------------------------------------------------------------------------------------

Operating results:
<S>                       <C>                  <C>           <C>               <C>                <C>
  Total revenues          $         1,313      $     1,238   $         1,292   $         1,004    $         4,847
  Net income                          518              166                85               128                897

Per weighted-average limited partnership unit:

    Net income            $          0.03      $      0.01   $          0.01   $          0.01    $          0.06
</TABLE>

The  following  is a list of the major events that  affected  the  Partnership's
performance during 2000:

     (i) In the first quarter of 2001, the Partnership  sold marine  containers,
railcars, and trailers for a total gain of $0.1 million;

     (ii)In the second quarter of 2000, net income decreased $0.1 million due to
equipment sales;

     (iii)In the third quarter of 2000, the Partnership sold trailers and
railcars for a total gain of $0.2 million, recorded a loss on revaluation of
trailers for $0.1 million; and

     (iv)In the fourth quarter of 2000, the Partnership  revenues decreased $0.2
million due to equipment sales during the third quarter 2000.








                      (This space intentionally left blank)




<PAGE>










INDEPENDENT AUDITORS' REPORT




The Partners
PLM Equipment Growth Fund IV:


We have audited the financial  statements  of PLM Equipment  Growth Fund IV (the
"Partnership")  as of December 31, 2001,  and for the year then ended,  and have
issued our report thereon dated March 8, 2002; such report is included elsewhere
in this Form 10-K. Our audit also included the financial  statement  schedule of
PLM  Equipment  Growth  Fund IV,  listed in Item 14.  This  financial  statement
schedule  is  the   responsibility   of  the   Partnership's   management.   Our
responsibility is to express an opinion based on our audit. In our opinion, such
financial statement schedule, when considered in relation to the basic financial
statements  taken as a whole,  presents  fairly  in all  material  respects  the
information set forth therein.






/s/ Deloitte & Touche LLP


Certified Public Accountants

Tampa, Florida
March 8, 2002



<PAGE>










INDEPENDENT AUDITORS' REPORT




The Partners
PLM Equipment Growth Fund IV:


Under date of March 2, 2001,  we reported on the balance  sheet of PLM Equipment
Growth Fund IV as of December 31, 2000,  and the related  statements  of income,
changes  in  partners'  capital,  and cash  flows  for each of the  years in the
two-year  period ended December 31, 2000, as contained in the 2001 annual report
to the partners.  These financial statements and our report thereon are included
in the  annual  report on Form 10-K for the year ended  December  31,  2001.  In
connection with our audits of the aforementioned  financial statements,  we also
audited the related  financial  statement  schedule for each of the years in the
two-year  ended  December 31, 2000.  This  financial  statement  schedule is the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on this financial statement schedule based on our audits.

In our opinion,  such financial statement schedule,  when considered in relation
to the basic financial  statements  taken as a whole,  presents  fairly,  in all
material  respects,  the  information set forth therein for each of the years in
the two-year period ended December 31, 2000.




/s/ KPMG LLP

SAN FRANCISCO, CALIFORNIA
March 2, 2001


<PAGE>


                                   SCHEDULE II


                          PLM EQUIPMENT GROWTH FUND IV
                             (A Limited Partnership)
                        Valuation and Qualifying Accounts

                  Years Ended December 31, 2001, 2000, and 1999
                            (in thousands of dollars)

<TABLE>
<CAPTION>

                                                                  Additions
                                             Balance at          Charged to                          Balance at
                                            Beginning of          Cost and                            Close of
                                                Year               Expense           Deductions         Year
                                           ----------------    ----------------     --------------  -------------

<S>                                        <C>                <C>                   <C>             <C>
  Year Ended December 31, 2001
       Allowance for Doubtful Accounts     $          5       $           41        $        (1)    $       45
                                           ======================================================================

  Year Ended December 31, 2000
       Allowance for Doubtful Accounts     $      2,843       $           --        $    (2,838)    $        5
                                           ======================================================================

  Year Ended December 31, 1999
       Allowance for Doubtful Accounts     $      3,126       $            5        $      (288)    $    2,843
                                           ======================================================================
</TABLE>





<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV

                                INDEX OF EXHIBITS



Exhibit                                                                 Page

    4.   Limited Partnership Agreement of Registrant                      *

 10.1    Management Agreement between Registrant and                      *
         PLM Investment Management, Inc.

         Financial Statements required under Regulation S-X Rule 3-09:

 99.1    Aero California Trust.                                          47-56

 99.2    Montgomery Partnership.                                         57-65







* Incorporated by reference. See page 22 of this report.