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, 1999.

[ ]      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.)

ONE MARKET, STEUART STREET TOWER
  SUITE 800, SAN FRANCISCO, CA                                 94105-1301
    (Address of principal                                      (Zip code)
    executive offices)


        Registrant's telephone number, including area code (415) 974-1399
                             -----------------------

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 23.

Total number of pages in this report:  48.



<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 PLM),
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.

     (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, 1999, 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.  The General Partner  anticipates  that the liquidation of
Partnership assets will be completed by the end of the year 2000.



<PAGE>


Table  1,  below,  lists  the  equipment  and  the  cost  of  equipment  in  the
Partnership's  portfolio,  and the cost of an  investment  in an  unconsolidated
special-purpose entity, as of December 31, 1999 (in thousands of dollars):
<TABLE>
<CAPTION>

                                                      TABLE 1

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

Owned equipment held for operating leases:
    <S>      <C>                                                     <C>                                 <C>
      1      737-200 stage II commercial aircraft                    Boeing                              $   14,692
      1      Dash 8-300 commuter aircraft                            Dehavilland                              5,748
    283      Pressurized tank railcars                               Various                                  8,459
     98      Woodchip gondola railcars                               General Electric                         2,341
    110      Bulkhead flat railcars                                  Marine Industries Ltd.                   2,153
     24      Nonpressurized tank railcars                            Various                                    501
    276      Refrigerated marine containers                          Various                                  7,316
    222      Dry marine containers                                   Various                                    757
     91      Refrigerated trailers                                   Various                                  2,065
    106      Dry trailers                                            Various                                  1,436
                                                                                                         -----------

             Total owned equipment held for operating leases                                             $   45,468<F1>1
                                                                                                         ===========


Investment in an unconsolidated special-purpose entity:

   0.35      Equipment on direct finance lease:
               Two DC-9 stage III commercial aircraft                McDonnell-Douglas                   $    3,901<F2>2
                                                                                                         ===========
<FN>
<F1>
1   Includes equipment and investment purchased with the proceeds from capital
contributions, undistributed cashflow from operations, and Partnership borrow-
ings.  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.

<F2>
2   Jointly owned:  EGF IV and two affiliated programs.

</FN>
</TABLE>

The equipment is generally  leased under  operating  leases 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.  Rents for  railcars  are based on mileage  traveled or a fixed rate;
rents for all other equipment are based on fixed rates.

As of  December  31,  1999,  approximately  98%  of  the  Partnership's  trailer
equipment operated in rental yards owned and maintained by PLM Rental, Inc., the
short-term trailer rental subsidiary of PLM International  doing business as PLM
Trailer  Leasing.  Rents are reported as revenue in  accordance  with  Financial
Accounting  Standards  Board  Statement No. 13 "Accounting  for Leases".  Direct
expenses  associated with the equipment are charged directly to the Partnership.
An  allocation  of other  indirect  expenses  of the rental yard  operations  is
charged to the Partnership monthly.

The lessees of the equipment  include,  but are not limited to: Aero California,
Transamerica Leasing, and Canadian Pacific Railways.

(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 financial statements).

(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),  GATX  Corporation,  General
Electric  Railcar  Services  Corporation,   General  Electric  Capital  Aviation
Services Corporation, Xtra Corporation and other investments programs that lease
the same types of equipment.

(D)  Demand

The Partnership currently operates in four 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.  Except for those aircraft
leased to passenger air carriers,  the  Partnership's  equipment and investments
are used to transport materials and commodities, rather than people.

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

(1)  Aircraft

(a)  Commercial Aircraft

After  experiencing  relatively robust growth over the prior four years,  demand
for commercial  aircraft softened  somewhat in 1999. Boeing and Airbus,  the two
primary manufacturers of new commercial aircraft, saw a decrease in their volume
of orders,  which  totaled 368 and 417 during  1999,  compared to 656 and 556 in
1998.  The slowdown in aircraft  orders can be partially  attributed to the full
implementation  of US Stage III environmental  restrictions,  which became fully
effective on December 31, 1999. Since these  restrictions  effectively  prohibit
the operation of noncompliant aircraft in the United States after 1999, carriers
operating  within or into the United States  either  replaced or modified all of
their  noncompliant  aircraft before the end of the year. The continued weakness
of the Asian economy has also served to slow the volume of new aircraft  orders.
However,  with the Asian economy now showing signs of recovery,  air carriers in
this region are beginning to resume their fleet building efforts.

Demand for, and values of, used commercial aircraft have been adversely affected
by the Stage III environmental  restrictions and an oversupply of older aircraft
as  manufacturers  delivered more new aircraft than the overall market required.
Boeing predicts that the worldwide fleet of jet-powered commercial aircraft will
increase  from  approximately  12,600  airplanes  as of the end of 1998 to about
13,700  aircraft by the end of 2003, an average  increase of 220 units per year.
However,  actual  deliveries  for the first two years of this  period,  1998 and
1999,  already  averaged  839 units  annually.  Although  some of the  resultant
surplus  used  aircraft  have been  retired,  the net effect has been an overall
increase  in the  number of used  aircraft  available.  This has  resulted  in a
decrease in both market  prices and lease rates for used  aircraft.  Weakness in
the  used  commercial  aircraft  market  may  be  mitigated  in  the  future  as
manufacturers  bring their new production more in line with demand and given the
anticipated continued growth in air traffic. Worldwide, demand for air passenger
services is expected  to increase at about 5% annually  and freight  services at
about 6% per year, for the foreseeable future.

The Partnership owns a 35% interest in an entity owning two  Stage-III-compliant
aircraft,  all of which were on lease  throughout  1999 and were not affected by
changes  in  market  conditions.  The  Partnership  also owns 100% of a Stage II
aircraft,  which  remained off lease,  and has been  impacted by the soft market
conditions described above.

(b)  Commuter Aircraft

The Partnership owns commuter turboprops with 36 to 50 seats. These aircraft fly
in North America, which continues to be the largest market in the world for this
type aircraft.  However,  the introduction of regional jet aircraft continues to
have  adverse  impact  on the  turboprop  market.  Regional  jets have been well
received in the commuter market and their growing use has been at the expense of
turboprops.  Due to this trend,  the turboprop market has experienced a decrease
in aircraft values and lease rates.

The Partnership's  turboprop  remained on lease throughout 1999 and thus was not
impacted by the change in market conditions noted above.

(2)  Railcars

(a)  Pressurized Tank Railcars

Pressurized tank cars are used to transport  primarily  liquefied  petroleum gas
(natural  gas) and  anhydrous  ammonia  (fertilizer).  The major US markets  for
natural  gas are  industrial  applications  (40% of  estimated  demand in 1998),
residential use (21%),  electrical generation (15%), and commercial applications
(14%). Within the fertilizer industry,  demand is a function of several factors,
including  the level of grain  prices,  the 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  increased 2.5% in 1999, compared to 1998.
Correspondingly,  demand for  pressurized  tank cars remained solid during 1999,
with utilization of this type of railcar within the Partnership  remaining above
98%. While renewals of existing leases continue at similar rates, some cars have
been renewed for "winter only" terms of approximately  six months.  As a result,
it is  anticipated  that  there  will be more  pressurized  tank cars than usual
coming up for renewal in the spring.

(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,  1999
carloadings of forest products increased 4.3% over 1998 levels.

Future prospects for the wood products  industry are somewhat mixed. This sector
is expected to have  relatively  good  performance in 2000,  although not at the
peaks seen during the second  quarter of 1999.  The greatest  potential  for the
wood products  industry is the anticipated  strength in housing  demand,  as the
homebuilding market is expected to continue to post health gains.

The Partnership's woodchip gondola cars continued to operate on long-term leases
during 1999.

(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,  1999 carloadings of forest products  increased 4.3% over 1998
levels.

All of the bulkhead  flatcars owned by the  Partnership  continued to operate on
lease throughout 1999.

(d)  Nonpressurized, General Purpose Tank Railcars

These cars,  which are used to transport bulk liquid  commodities  and chemicals
not requiring  pressurization,  such as certain  petroleum  products,  liquefied
asphalt,  lubricating  and  vegetable  oils,  molten  sulfur,  and  corn  syrup,
continued to be in high demand during 1999. 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,  1999 carloadings of the commodity group that includes  chemicals
and  petroleum  products  rose  2.5%  over  1998  levels.   Utilization  of  the
Partnership's nonpressurized tank cars was above 98% again during 1999.

(3)  Marine Containers

The marine container leasing market started 1999 with industry-wide  utilization
in the mid 70% range,  down  somewhat  from the  beginning  of 1998.  The market
strengthened  throughout  the year such that most  container  leasing  companies
reported  utilization  of  80%  by  the  end  of  1999.  Overall,  industry-wide
utilization for marine  containers  decreased  during 1999 compared to 1998. The
Partnership  owns older  marine  containers,  and the General  Partner  plans to
dispose of these older  refrigerated  marine  containers which are currently off
lease.

In addition,  a continuation  of  historically  low  acquisition  prices for new
containers  manufactured in the Far East,  predominantly China. These low prices
put pressure on fleetwide per diem leasing rates.

Industry consolidation continued in 1999 as the parent of one of the world's top
ten  container  lessors  finalized  the  outsourcing  of the  management  of its
container fleet to a competitor. However, the General Partner believes that such
consolidation is a positive trend for the overall  container  leasing  industry,
and ultimately will lead to higher  industry-wide  utilization and increased per
diem rates.

(4)  Trailers

(a)  Dry Trailers

The U.S. dry trailer  market  continued its recovery  during 1999, as the strong
domestic  economy  resulted in heavy freight  volumes.  With  unemployment  low,
consumer  confidence  high, and  industrial  production  sound,  the outlook for
leasing this type of trailer  remains  positive,  particularly  as the equipment
surpluses of recent years are being absorbed by the buoyant market.  In addition
to  high  freight  volumes,  improvements  in  inventory  turnover  and  tighter
turnaround times have lead to a stronger overall trucking industry and increased
equipment demand.

During  1999,  some of the  Partnership's  dry  trailers  were in the process of
transitioning to a new PLM-affiliated short-term rental facility specializing in
this type of trailer causing utilization for this group of trailers to decrease.

(b)  Refrigerated Trailers

The  temperature-controlled  trailer  market  continued  to expand  during 1999,
although  not as  quickly  as in 1998 when the market  experienced  very  strong
growth. The leveling off in 1999 occurred as equipment users began to absorb the
increases in supply created over the prior two years. Refrigerated trailer users
have been actively retiring their older units and consolidating  their fleets in
response to improved refrigerated trailer technology.  Concurrently,  there is a
backlog of six to nine months on orders for new equipment.

As a  result  of  these  changes  in  the  refrigerated  trailer  market,  it is
anticipated that trucking companies and shippers will utilize short-term trailer
leases more frequently to supplement their existing fleets.  Such a trend should
benefit the  Partnership,  whose  trailers are typically  leased on a short-term
basis.

(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 U.S. Department of Transportation's  Aircraft Capacity Act of 1990,
     which limits or  eliminates  the  operation of  commercial  aircraft in the
     United  States  that  do not  meet  certain  noise,  aging,  and  corrosion
     criteria.  In addition,  under U.S.  Federal  Aviation  Regulations,  after
     December  31,  1999,  no person  shall  operate an  aircraft to or from any
     airport in the contiguous United States unless that airplane has been shown
     to comply  with  Stage  III  noise  levels.  The  Partnership  has Stage II
     aircraft that do not meet Stage III requirements.  As of December 31, 1999,
     this aircraft is located overseas where it is expected to be sold. The cost
     to  install  a  hushkit  to  meet  quieter   Stage  III   requirements   is
     approximately $1.5 million, depending on the type of aircraft.

     (2) the Montreal  Protocol on  Substances  that Deplete the Ozone Layer and
     the United  States  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 refrigerated trailers.

     (3) the Federal Railroad Administration has mandated that effective July 1,
     2000, all jacketed and  non-jacketed  tank railcars must be re-qualified to
     insure tank shell  integrity.  Tank shell  thickness,  weld seams, and weld
     attachments  must be inspected  and  repaired if necessary to  re-qualify a
     tank railcar for service. The average cost of this inspection is $1,800 for
     non-jacketed  tank  railcars and $3,600 for  jacketed  tank  railcars,  not
     including any necessary repairs.  This inspection is to be performed at the
     next scheduled tank test.

As of December  31,  1999,  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  interests in entities that own equipment for leasing
purposes.  As of  December  31,  1999,  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 One Market,  Steuart Street
Tower, Suite 800, San Francisco,  California  94105-1301.  All office facilities
are provided by FSI without reimbursement by the Partnership.

ITEM 3.  LEGAL PROCEEDINGS

PLM International (the Company) and various of its wholly-owned subsidiaries are
named as defendants  in a lawsuit  filed as a purported  class action in January
1997 in the Circuit Court of Mobile County, Mobile,  Alabama, Case No. CV-97-251
(the Koch action).  The named plaintiffs are six individuals who invested in PLM
Equipment  Growth Fund IV (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) (the Funds),  each a  California  limited  partnership  for which the
Company's  wholly-owned  subsidiary,  FSI,  acts  as the  general  partner.  The
complaint  asserts causes of action against all defendants for fraud and deceit,
suppression, negligent misrepresentation,  negligent and intentional breaches of
fiduciary duty, unjust enrichment, conversion, and conspiracy. Plaintiffs allege
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 assert liability against defendants for improper sales
and  marketing  practices,  mismanagement  of the  Funds,  and  concealing  such
mismanagement   from  investors  in  the  Funds.   Plaintiffs  seek  unspecified
compensatory  damages,  as well as punitive damages,  and have offered to tender
their limited partnership units back to the defendants.

In March 1997,  the  defendants  removed the Koch action from the state court to
the United States District Court for the Southern District of Alabama,  Southern
Division  (Civil  Action No.  97-0177-BH-C)  (the  court)  based on the  court's
diversity jurisdiction. In December 1997, the court granted defendants motion to
compel  arbitration of the named  plaintiffs'  claims,  based on an agreement to
arbitrate  contained in the limited  partnership  agreement of each Partnership.
Plaintiffs appealed this decision,  but in June 1998 voluntarily dismissed their
appeal pending settlement of the Koch action, as discussed below.

In June 1997, the Company and the affiliates who are also defendants in the Koch
action were named as defendants in another  purported  class action filed in the
San Francisco  Superior Court, San Francisco,  California,  Case No. 987062 (the
Romei  action).  The plaintiff is an investor in Fund V, and filed the complaint
on her own  behalf and on behalf of all class  members  similarly  situated  who
invested in the Partnerships.  The complaint alleges the same facts and the same
causes of action as in the Koch action, plus additional causes of action against
all of the  defendants,  including  alleged  unfair and deceptive  practices and
violations of state  securities law. In July 1997,  defendants  filed a petition
(the  petition)  in federal  district  court under the Federal  Arbitration  Act
seeking to compel  arbitration  of  plaintiff's  claims.  In October  1997,  the
district court denied the Company's  petition,  but in November 1997,  agreed to
hear the Company's motion for reconsideration. Prior to reconsidering its order,
the district  court  dismissed  the  petition  pending  settlement  of the Romei
action,  as  discussed  below.  The state court  action  continues  to be stayed
pending such resolution.

In February 1999 the parties to the Koch and Romei actions  agreed to settle the
lawsuits,  with  no  admission  of  liability  by any  defendant,  and  filed  a
Stipulation  of Settlement  with the court.  The  settlement is divided into two
parts,  a  monetary  settlement  and  an  equitable  settlement.   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.  The final settlement  amount will depend on the number of claims filed
by class members,  the amount of the administrative costs incurred in connection
with the  settlement,  and the amount of attorneys' fees awarded by the court to
plaintiffs'  attorneys.  The Company will pay up to $0.3 million of the monetary
settlement,  with  the  remainder  being  funded  by an  insurance  policy.  For
settlement  purposes,  the monetary  settlement class consists of all investors,
limited partners, assignees, or unit holders who purchased or received by way of
transfer or assignment  any units in the  Partnerships  between May 23, 1989 and
June 29, 1999. The monetary settlement,  if approved, will go forward regardless
of whether the equitable settlement is approved or not.

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 Partnerships'  equipment, (b) the extension (until December 31, 2004) of the
period  during  which FSI can  reinvest the  Partnerships'  funds in  additional
equipment,  (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;  (d) a one-time
repurchase  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; and (e) the deferral of a
portion of the  management  fees paid to an  affiliate  of FSI  until,  if ever,
certain  performance  thresholds have been met by the  Partnerships.  Subject to
final court approval, these proposed changes would be made as amendments to each
Partnership's  limited  partnership  agreement  if less than 50% of the  limited
partners of each Partnership vote against such amendments.  The limited partners
will be provided the opportunity to vote against the amendments by following the
instructions  contained in  solicitation  statements that will be mailed to them
after being filed with the  Securities  and Exchange  Commission.  The equitable
settlement  also  provides  for  payment of  additional  attorneys'  fees to the
plaintiffs' attorneys from Partnership funds in the event, if ever, that certain
performance  thresholds  have  been  met  by  the  Partnerships.  The  equitable
settlement class consists of all investors,  limited partners, assignees or unit
holders who on June 29,  1999 held any units in Funds V, VI, and VII,  and their
assigns and successors in interest.

The court preliminarily  approved the monetary and equitable settlements in June
1999. The monetary settlement remains subject to certain  conditions,  including
notice to the monetary class and final  approval by the court  following a final
fairness  hearing.   The  equitable   settlement   remains  subject  to  certain
conditions, including: (a) notice to the equitable class, (b) disapproval of the
proposed  amendments  to the  partnership  agreements  by less  than  50% of the
limited  partners  in one or more of  Funds V, VI,  and  VII,  and (c)  judicial
approval  of the  proposed  amendments  and  final  approval  of  the  equitable
settlement by the court following a final fairness  hearing.  No hearing date is
currently  scheduled for the final fairness  hearing.  The Company  continues to
believe  that the  allegations  of the Koch and  Romei  actions  are  completely
without  merit and intends to continue to defend this matter  vigorously  if the
monetary settlement is not consummated.

The Partnership,  together with affiliates,  has initiated litigation in various
official  forums in India against each of two defaulting  Indian airline lessees
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 airlines,  and the airlines have ceased  operations.  In response to the
Partnership's  collection  efforts,  the two airlines each filed  counter-claims
against  the  Partnership  in excess of the  Partnership's  claims  against  the
airlines.  The General  Partner  believes that the airlines'  counterclaims  are
completely without merit, and the General Partner will vigorously defend against
such counterclaims. The General Partner believes an unfavorable outcome from the
counterclaims is remote.

The Company 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 of the Partnership.

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, 1999.

                                     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, 1999, by the 9,266 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  generally  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 U.S.
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,  1999,  the
Partnership  had  repurchased  a cumulative  total of 121,580 units at a cost of
$1.6 million.  The General  Partner does not intend to repurchase any additional
units on behalf of the Partnership during 2000.

ITEM 6.  SELECTED FINANCIAL DATA

Table 2, below, lists selected financial data for the Partnership:



                                     TABLE 2

                        For the Years Ended December 31,
         (In thousands of dollars, except weighted-everage unit amounts)
<TABLE>
<CAPTION>

                                                  1999           1998           1997           1996            1995
                                               -------------------------------------------------------------------------

  Operating results:
    <S>                                        <C>            <C>            <C>            <C>             <C>
    Total revenues                             $  14,651      $  10,768      $  16,378      $  22,120       $  21,410
    Net gain (loss) on disposition of
      equipment                                    6,357           (464)        2,830           3,179             530
    Loss on revaluation of equipment                  --             --             --             --            (417 )
    Equity in net income (loss) of uncon-
      solidated special-purpose entities           2,224            348          2,952           (331)            --
    Net income (loss)                              6,408         (1,127)         2,098         (4,119)        (3,611 )

  At year-end:
    Total assets                               $  20,185      $  31,250      $  46,089      $  59,009       $  71,924
    Total liabilities                                843         14,683         24,862         34,100          35,449
    Notes payable                                     --         12,750         21,000         29,250          30,800

  Cash distribution                            $   3,633      $   3,533      $   5,780      $   7,271       $   6,443

  Cash distribution representing a
      return of capital to the limited
      partners                                 $       0      $   3,351      $   3,682      $   6,908       $   6,124

  Per weighted-average limited partnership unit:

  Net income (loss)                            $    0.72<F1>1 $   (0.15)<F1>1$    0.2<F1>1  $   (0.52)<F1>1 $   (0.45)<F1>1

  Cash distribution                            $    0.40      $    0.39      $    0.64      $    0.80       $    0.71

  Cash distribution representing a
      return of capital to the limited
      partners                                 $     N/A      $    0.39      $    0.43      $    0.80       $    0.71

<FN>
<F1>
1 After reduction of income of $138 ($0.02 per weighted-average depositary unit)
in 1999, $238 ($0.03 per weighted-average depositary unit) in 1998, $190 ($0.02
per weighted-average depositary unit) in 1997, $569 ($0.07 per weighted-average
depositary unit)in 1996, and $500 ($0.06 per weighted-average depositary unit)
in 1995, representing allocations to the General Partner (see Note 1 to the
financial statements).
</FN>
</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,  but are not limited to,  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 1999  primarily  in its  aircraft,  trailer,  marine  container  and railcars
portfolios.

     (a) Aircraft:  The Partnership owns a Boeing 737-200 Stage II aircraft that
has been off-lease  throughout  1998 and 1999.  This aircraft is currently being
marketed for sale.

     (b) Trailers:  The Partnership's  trailer portfolio  operates in short-term
rental facilities.  The relatively short duration of most of the leases in these
operations  exposes  the  trailers  to  considerable  re-leasing  and  repricing
activity. During 1999, certain dry trailers were in the process of transitioning
to a new PLM-affiliated  short-term rental facility specializing in this type of
trailer  causing  lease  revenues  for this group of trailers  to decrease  $0.1
million when  compared to the same period of 1998.  In addition,  lease  revenue
decreased $0.4 million due to sales and dispositions during 1999 and 1998.

     (c) Marine  containers:  221 Partnership  marine  containers came off lease
during  1999 and are  currently  being  marketed  for  sale.  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 approximately $0.4 million from 1998 to
1999 due to the group of marine  containers  coming off lease during  1999,  and
decreased  approximately  $0.2  million due to  equipment  sales during 1998 and
1999.

     (d) Railcars: The Partnership's railcar contributions declined from 1998 to
1999, due to equipment sales during 1998 and 1999.

(2)  Equipment Liquidations and Nonperforming Lessees

Liquidation  of  Partnership   equipment  and   investments  in   unconsolidated
special-purpose  entities  (USPEs)  represents  a  reduction  in the size of the
equipment  portfolio,  and will  result in  reduction  of  contributions  to the
Partnership.  Lessees not performing under the terms of their leases,  either by
not paying rent, not  maintaining or operating the equipment in accordance  with
the conditions of the leases, or other possible departures from the lease terms,
can result not only in reductions in net contribution,  but also may require the
Partnership  to assume  additional  costs to  protect  its  interests  under the
leases,  such as  repossession  or legal fees. The  Partnership  experienced the
following in 1999:

     (a) Liquidations: During 1999, the Partnership disposed of a marine vessel,
aircraft, marine containers, railcars, trailers, and an interest in a USPE trust
that owned a marine vessel for proceeds of $19.0 million.  The Partnership  used
these proceeds to fund a required  principal  payment of $8.3 million and prepay
the remaining $4.5 million of the notes payable.

     (b)  Nonperforming  lessees:  In  1997,  the  Partnership  repossessed  one
aircraft  from a  lessee  that  did not  comply  with  the  terms  of the  lease
agreement.  The Partnership incurred legal fees,  repossession costs, and repair
costs associated with this aircraft. In addition,  the Partnership wrote off all
outstanding  receivables  from this  lessee.  This  aircraft  remained off lease
throughout 1998 and 1999 and is currently being marketed for sale.

(3)  Equipment Valuation

In accordance  with  Financial  Accounting  Standards  Board  statement No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be  Disposed  Of",  the  General  Partner  reviews  the  carrying  value  of the
Partnership's equipment portfolio at least quarterly, and whenever circumstances
indicate that the carrying  value of an asset may not be recoverable in relation
to  expected  future  market  conditions,  for  the  purpose  of  assessing  the
recoverability of the recorded amounts.  If projected  undiscounted  future cash
flows and fair value are lower than the carrying value of the equipment,  a loss
on revaluation is recorded.  No reductions to the equipment carrying values were
required for the years ended December 31, 1999, 1998, or 1997.

As of December 31, 1999, the General  Partner  estimated the current fair market
value of the  Partnership's  equipment  portfolio,  including the  Partnership's
interest in equipment  owned by a USPE,  to be $25.0  million.  This estimate is
based on recent market  transactions for equipment  similar to the Partnership's
equipment  portfolio and the  Partnership's  interest in equipment  owned by the
USPE.  Ultimate  realization of fair market value by the  Partnership may differ
substantially from the estimate due to specific market conditions, technological
obsolescence,  and government regulations,  among other factors that the General
Partner cannot accurately predict.

(C)  Financial Condition -- Capital Resources, Liquidity, and Unit Redemption
Plan

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,
1999, 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, 1999, the Partnership  generated $2.2 million in
operating cash (net cash provided by operating  activities plus  non-liquidating
distributions  from USPEs) to meet its  operating  obligations  and maintain the
current level of distributions  (total of $3.6 million in 1999) to the partners,
but also used undistributed  available cash from prior periods and proceeds from
the sale of equipment of approximately $1.4 million.

During the year ended December 31, 1999, the  Partnership  sold or disposed of a
marine vessel, aircraft, marine containers, railcars, and trailers for aggregate
proceeds of $15.2 million. The Partnership also received liquidating proceeds of
$3.8 million from the sale of its interest in an entity owning a marine vessel.

During the year ended  December 31, 1999 the  Partnership  paid the third annual
principal  payment of $8.3 million of the outstanding  notes payable and prepaid
the remaining $4.5 million of notes payable.

Lessee  deposits and reserve for repairs  decreased $0.8 million during the year
ended  December  31, 1999  compared to the same period in 1998.  Lessee  prepaid
deposits  decreased  $0.1 million due to fewer lessee's  prepaying  future lease
revenue and marine vessel drydocking  reserves decreased $0.3 million due to the
drydocking of the  Partnership's  remaining  marine vessel in 1999.  This marine
vessel  was sold in  December  of 1999.  In  addition,  aircraft  engine  repair
reserves  decreased  $0.3 million due to the payment for repairs on an off-lease
aircraft during 1999 and container repair reserve  decreased $0.1 million due to
the payment for repairs on certain marine containers.

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. Although  distribution levels may be reduced,  significant asset sales
may result in potential special distributions to the partners.

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 repurchase any units in 2000.

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.

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

(1) Comparison of Partnership's  Operating  Results for the Years Ended December
31, 1999 and 1998

(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, 1999,  compared to the same period
of 1998. Gains or losses from the sale of equipment and certain expenses such as
depreciation and amortization 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 more
indirect in nature,  not a result of operations  but more 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,
                                                                            1999             1998
                                                                         ----------------------------
  <S>                                                                    <C>              <C>
  Railcars                                                               $  2,448         $  2,607
  Aircraft                                                                  1,061            3,038
  Trailers                                                                    786            1,132
  Marine containers                                                           138              712
  Marine vessel                                                               (81)             623
</TABLE>


Railcars:  Railcar lease revenues and direct expenses were $3.1 million and $0.7
million,  respectively,  in 1999,  compared to $3.5  million  and $0.9  million,
respectively,  during 1998. The decrease in railcar contribution in 1999 was due
to the sale or disposition of railcars in 1998 and 1999.

Aircraft: Aircraft lease revenues and direct expenses were $2.6 million and $1.5
million,  respectively,  for the year ended December 31, 1999,  compared to $3.5
million and $0.4 million,  respectively,  during the same period of 1998.  Lease
revenue  decreased in 1999,  compared to the same period in 1998 due to the sale
of aircraft in 1999. Direct expenses  increased due to higher costs incurred for
repairs on an off-lease  aircraft in 1999,  when  compared to the same period in
1998.

Trailers:  Trailer lease revenues and direct expenses were $1.1 million and $0.3
million,  respectively,  for the year ended December 31, 1999,  compared to $1.6
million and $0.4 million,  respectively,  during the same period of 1998. During
the year ended  December 31, 1999,  certain dry trailers  were in the process of
transitioning to a new PLM-affiliated short-term rental facility specializing in
this type of  trailer  causing  lease  revenues  for this group of  trailers  to
decrease  $0.1  million when  compared to the same period of 1998.  In addition,
lease revenue  decreased $0.4 million due to sales and  dispositions of trailers
during 1999 and 1998.  Trailer  repairs and  maintenance  decreased $0.1 million
primarily  due to required  repairs  during 1998 that were not needed during the
same period of 1999.

Marine containers: Marine container lease revenues and direct expenses were $0.1
million and $5,000, respectively,  in 1999, compared to $0.7 million and $8,000,
respectively, during 1998. Marine container contributions decreased $0.2 million
due to the  disposition  of  containers  in 1998 and 1999.  In addition,  marine
container  contributions  decreased  $0.4  million due to a group of  containers
being off lease during 1999 which were on-lease for all of 1998.

Marine  vessel:  Marine  vessel  lease  revenues and direct  expenses  were $1.1
million and $1.1 million,  respectively,  in 1999,  compared to $1.7 million and
$1.0 million,  respectively,  in 1998. Marine vessel  contribution  decreased in
1999,  compared to 1998,  due to the sale of the remaining  marine vessel in the
fourth  quarter  of  1999.  Direct  expenses  increased  in 1999  due to  higher
operating expenses compared to the same period in 1998.

(b)  Indirect Expenses Related to Owned Equipment Operations

Total  indirect  expenses of $6.7 million for the year ended  December 31, 1999,
decreased  from  $9.3  million  for the same  period  in 1998.  The  significant
variances are explained as follows:

     (i) A $1.5 million decrease in depreciation and amortization  expenses from
1998 levels resulted from an approximately $0.6 million decrease due to the sale
of  certain  assets  during  1999  and 1998 and an  approximately  $0.9  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 $0.6  million  decrease in interest  expense was due to a decrease of
$0.7 million resulting from lower average  borrowings  outstanding  during 1999,
compared to 1998. This decrease was offset by an increase in interest expense of
$0.1  million as a result of the  prepayment  penalty.  In the third  quarter of
1999, the Partnership paid the regularly  scheduled annual principal  payment of
$8.3  million  of the  outstanding  debt.  In  addition,  in  December  1999 the
Partnership prepaid the remaining principal balance of $4.5 million.

     (iii) A $0.3 million decrease in bad debt expenses in 1999 compared to 1998
was primarily due to the collection of $0.3 million from unpaid invoices in 1999
that had previously been reserved for as bad debts.

     (iv)A  $0.1  million  decrease  in  management  fees to an  affiliate  that
reflects the lower  levels of lease  revenues on owned  equipment in 1999,  when
compared to 1998.

(c)  Net Gain (Loss) on Disposition of Owned Equipment

The net gain on  disposition  of equipment in 1999 totaled $6.4  million,  which
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
aggregate  proceeds  of $15.2  million.  In 1998,  the  loss on  disposition  of
equipment totaled $0.5 million,  which resulted from the sale of trailers with a
net book value of $1.4 million,  for proceeds of $0.9 million. In addition,  the
Partnership sold or disposed of marine containers and railcars with an aggregate
net book value of $0.6 million, for aggregate proceeds of $0.6 million.

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

Net income (loss) generated from the operation of jointly-owned assets accounted
for under the equity  method is shown in the following  table by equipment  type
(in thousands of dollars):

                                                       For the Years Ended
                                                          December 31,
                                                       1999             1998
                                                    ----------------------------
  Marine vessels                                    $  1,754             (306)
  Aircraft                                               470              654
                                                    ----------------------------
    Equity in Net Income of USPEs                   $  2,224              348
                                                    ============================


Marine vessel:  As of December 31, 1998, the  Partnership  had an interest in an
entity owning a marine vessel.  During the year ended  December 31, 1999,  lease
revenues  of $1.1  million  and the  gain  from  the  sale of the  Partnership's
interest in an entity  owning a marine vessel of $1.9 million sold in the fourth
quarter of 1999 were offset by depreciation,  direct and administrative expenses
of $1.2  million.  During the year ended  December  31,  1998,  revenues of $1.2
million were offset by depreciation,  direct and administrative expenses of $1.5
million.  Direct expenses decreased $0.1 million due to lower required scheduled
drydock  expenses  in 1999  compared  to  1998.  In  addition,  direct  expenses
decreased  $0.1  million due to certain  repairs  required in 1998 that were not
necessary  in 1999.  Also,  expenses  decreased  $0.1 million for the year ended
December 31, 1999 compared to the same period in 1998, due to lower depreciation
expense as a result of the double declining-balance method of depreciation which
results in greater depreciation in the first years an asset is owned.

Aircraft: As of December 31, 1999 and 1998, the Partnership had an interest in a
trust  that owns two  commercial  aircraft  on direct  finance  lease.  Aircraft
revenues and expenses  were $0.6  million and $0.1,  respectively,  for the year
ended December 31, 1999, compared to $0.6 million and $0,  respectively,  during
the same period in 1998.  The  Partnership's  share of expenses  increased  $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.

(e)  Net Income (Loss)

As a result of the foregoing,  the Partnership's net income was $6.4 million for
the year ended December 31, 1999,  compared to a net loss of $1.1 million during
the same period of 1998.  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, 1999 is not  necessarily  indicative  of future  periods.  In the year ended
December  31,  1999,  the  Partnership  distributed  $3.5 million to the limited
partners, or $0.40 per weighted-average limited partnership unit.

(2) Comparison of Partnership's  Operating  Results for the Years Ended December
31, 1998 and 1997

(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, 1998,  compared to the same period
of 1997. Gains or losses from the sale of equipment and certain expenses such as
depreciation and amortization 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 more
indirect in nature,  not a result of operations  but more 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,
                                                                            1998             1997
                                                                         ----------------------------
  <S>                                                                      <C>            <C>
  Aircraft                                                               $  3,038         $   3,938
  Trailers                                                                  1,132            1,244
  Marine containers                                                           712              935
  Marine vessel                                                               623              445
</TABLE>


Aircraft: Aircraft lease revenues and direct expenses were $3.5 million and $0.4
million,  respectively,  for the year ended December 31, 1998,  compared to $4.2
million and $0.2 million,  respectively,  during the same period of 1997.  Lease
revenues  decreased $0.9 million in 1998 due to an aircraft being  off-lease for
the entire year,  when compared to 1997 when the aircraft was on lease for eight
months. The decrease caused by this off-lease aircraft was offset, in part, by a
$0.2  million  increase  in lease  revenue due to the higher  re-lease  rate for
another aircraft.  Direct expenses increased due to repairs done in 1998, on two
off-lease aircraft to meet airworthiness conditions prior to being sold.

Railcars:  Railcar lease revenues and direct expenses were $3.5 million and $0.9
million,  respectively,  in 1998,  compared to $3.6  million  and $1.1  million,
respectively,  during 1997.  The decrease was  primarily  due to lower  re-lease
rates for certain railcars, when compared to 1997. Direct expenses decreased due
to running repairs  required on certain railcars in the fleet during 1997, which
were not needed during 1998.

Trailers:  Trailer lease revenues and direct expenses were $1.6 million and $0.4
million,  respectively,  for the year ended December 31, 1998,  compared to $2.0
million and $0.7 million, respectively,  during the same period of 1997. Trailer
contribution decreased due to sales and dispositions during 1998 and 1997.

Marine containers: Marine container lease revenues and direct expenses were $0.7
million and $8,000, respectively, in 1998, compared to $0.9 million and $13,000,
respectively, during 1997. Marine container contributions decreased due to sales
and dispositions over the past two years.

Marine  vessel:  Marine  vessel  lease  revenues and direct  expenses  were $1.7
million and $1.1 million,  respectively,  in 1998,  compared to $2.0 million and
$1.5 million,  respectively,  in 1997. Marine vessel contributions increased due
to a $0.1  million  loss-of-hire  insurance  refund  received  during the second
quarter of 1998 from  Transportation  Equipment Indemnity Company Ltd. (TEI) due
to lower  claims  from the  insured  Partnership  and other  insured  affiliated
partnerships.  The decrease in marine vessel lease  revenues of $0.2 million and
direct expenses of $0.4 million was due to the sale of one of the  Partnership's
marine vessel in the first quarter of 1997. In addition, lease revenue decreased
$0.1 million in 1998 due to lower re-lease rates for the remaining marine vessel
as a result of a softer bulk carrier vessel market.

(b)  Indirect Expenses Related to Owned Equipment Operations

Total  indirect  expenses of $9.3 million for the year ended  December 31, 1998,
decreased  from  $13.6  million  for the same  period in 1997.  The  significant
variances are explained as follows:

     (i) A $1.5 million decrease in depreciation and amortization  expenses from
1997 levels resulted from an approximately $0.3 million decrease due to the sale
of  certain  assets  during  1998  and 1997 and an  approximately  $1.2  million
decrease  resulting from the use of the  double-declining  balance  depreciation
method,  which  results in greater  depreciation  in the first years an asset is
owned.

     (ii)A  $1.0  million  decrease  in bad  debt  expenses  due to the  General
Partner's  evaluation  of the  collectibility  of  receivables  due from certain
lessees.

     (iii) A $0.9 million decrease in  administrative  expenses from 1997 levels
resulted  primarily from reduced legal fees to collect  outstanding  receivables
due from aircraft lessees.

     (iv)A $0.8 million  decrease in interest  expense was due to lower  average
borrowings  outstanding  during  1998,  compared  to  1997.  In July  1998,  the
Partnership  paid the second  annual  principal  payment of $8.3  million of the
outstanding debt.

(c)   Interest and Other Income

Interest and other income decreased $0.6 million in 1998,  compared to 1997, due
to the following:

     (i) The  recognition  in 1997 of $0.5  million in loss of hire and  general
claims insurance  recovery relating to generator repairs on one marine vessel. A
similar recovery did not occur in 1998.

     (ii)A decrease of $0.1  million in interest  income due to lower  average
cash  balances in 1998  compared to 1997.

(d)  Net Gain (Loss) on Disposition of Owned Equipment

The net loss on  disposition  of equipment in 1998 totaled $0.5  million,  which
resulted from the sale of trailers  with a net book value of $1.4  million,  for
proceeds of $0.9  million.  In  addition,  the  Partnership  sold or disposed of
marine containers and railcars with an aggregate net book value of $0.6 million,
for aggregate  proceeds of $0.6 million.  In 1997,  the gain on  disposition  of
equipment  totaled $2.8  million,  which  resulted  from the sale or disposal of
marine containers,  trailers, railcars, an aircraft engine, and a marine vessel,
with an aggregate net book value of $6.7 million, and unused drydock reserves of
$1.0 million, for aggregate proceeds of $8.5 million.



<PAGE>


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

Net income (loss) generated from the operation of jointly-owned assets accounted
for under the equity  method is shown in the following  table by equipment  type
(in thousands of dollars):
<TABLE>
<CAPTION>

                                                                             For the Years Ended
                                                                                December 31,
                                                                            1998             1997
                                                                         ----------------------------
  <S>                                                                    <C>              <C>
  Aircraft                                                               $    654         $  3,924
  Marine vessels                                                             (306)            (972)
                                                                         --------------------------
    Equity in Net Income of USPEs                                        $    348         $  2,952
                                                                         ==========================
</TABLE>

Aircraft: As of December 31, 1998 and 1997, the Partnership had an interest in a
trust that owns two commercial aircraft on direct finance lease. During the year
ended December 31, 1998,  revenues of $0.6 million were offset by administrative
expenses of $0 million.  During the same period of 1997,  lease revenues of $1.5
million and the gain from the sale of the Partnership's interest in a trust that
owned six commercial  aircraft of $3.4 million sold during  December were offset
by  depreciation,  direct  and  administrative  expenses  of $1.0  million.  The
decrease in lease revenues and depreciation,  direct and administrative expenses
during the year ended December 31, 1998 was due to the sale of the Partnership's
interest  in the trust  that  owned six  commercial  aircraft  during the fourth
quarter of 1997.

Marine vessel: As of December 31, 1998 and 1997, the Partnership had an interest
in an entity owning a marine  vessel.  Marine vessel  revenues and expenses were
$1.2 million and $1.5  million,  respectively,  for the year ended  December 31,
1998, compared to $1.1 million and $2.1 million,  respectively,  during the same
period in 1997.  Lease  revenue  increased  in the year ended  December 31, 1998
primarily due to the marine vessel being  off-hire for 19 days in the year ended
December  31, 1997  compared to 4 days in the same period of 1998.  Depreciation
expense   decreased  $0.1  million  during  the  year  ended  1998  due  to  the
double-declining  balance  method of  depreciation,  which  results  in  greater
depreciation in the first years an asset is owned. Direct expense decreased $0.5
million during the year ended 1998 due to lower required repairs and maintenance
when compared to the same period of 1997.

(f)  Net Income (Loss)

As a result of the foregoing,  the  Partnership's  net loss was $1.1 million for
the year ended December 31, 1998,  compared to net income of $2.1 million during
the same period of 1997.  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, 1998 is not  necessarily  indicative  of future  periods.  In the year ended
December  31,  1998,  the  Partnership  distributed  $3.4 million to the limited
partners, or $0.39 per weighted-average limited partnership unit.

(E)  Geographic Information

Certain  of the  Partnership's  equipment  operates  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 U.S. 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 U.S. 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 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.  An  explanation of the
current relationships is presented below.

The  Partnership's  owned  equipment on lease to United States  (U.S.)-domiciled
lessees consists of trailers,  railcars,  and aircraft.  During 1999, U.S. lease
revenues accounted for 40% of the total lease revenues from wholly and partially
owned   equipment,   while  net  income   accounted  for  $2.6  million  of  the
Partnership's  net  income  of $6.4  million.  The  Partnership  sold  aircraft,
trailers and  railcars in this region for an aggregate  net gain of $1.6 million
in 1999.

The  Partnership's  owned  equipment  on  lease  to  Canadian-domiciled  lessees
consists  of  railcars  and  aircraft.  During  1999,  Canadian  lease  revenues
accounted for 25% of the total lease  revenues  from wholly and partially  owned
equipment,  while net income accounted for $1.1 million of the Partnership's net
income of $6.4 million.

The  Partnership's  owned  equipment  on lease to South  Asia-domiciled  lessees
accounted for none of the 1999 lease  revenues  from wholly and partially  owned
equipment while equipment in this region resulted in a loss of $0.5 million. The
equipment was off-lease in 1999.

The Partnership's  owned equipment on lease to South  American-domiciled  lessee
consisted of an aircraft.  During 1999, South American lease revenues  accounted
for 9% of the total lease  revenues from wholly and partially  owned  equipment,
while net income accounted for $3.0 million of the  Partnership's  net income of
$6.4 million.  The Partnership sold the aircraft operated in South America for a
net gain of $2.5 million in 1999.

The Partnership's owned equipment and investments in equipment owned by USPEs on
lease to lessees in the rest of the world  consisted of marine  containers and a
marine vessel.  During 1999, lease revenues for these lessees  accounted for 25%
of the total lease revenues from wholly and partially owned equipment, while the
net income in this region  accounted for $1.1 million of the  Partnership's  net
income of $6.4 million.  The Partnership sold its remaining  marine vessel,  its
interest in an entity owning a marine vessel in a USPE and marine  containers in
this region for an aggregate net gain of $2.2 million in 1999.

(F) Effects of Year 2000

As of March 17, 2000, the Partnership has not experienced any material Year 2000
(Y2K)  issues  with  either  its  internally  developed  software  or  purchased
software.  In addition, to date the Partnership has not been impacted by any Y2K
problems that may have impacted our customers and suppliers. The General Partner
continues to monitor its systems for any potential Y2K issues.

(G)  Inflation

Inflation had no significant impact on the Partnership's operations during 1999,
1998, or 1997.

(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

The  Partnership  is in its active  liquidation  phase.  The General  Partner is
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. The General Partner anticipates that the
liquidation of Partnership assets will be completed by the end of the year 2000.

Several factors may affect the Partnership's  operating  performance in the year
2000,  including  changes in the markets  for the  Partnership's  equipment  and
changes in the regulatory environment in which that equipment operates.

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 2000 include:

1. One of the Partnership's  aircraft has been off-lease for approximately three
years. This Stage II aircraft required extensive repairs and maintenance and the
Partnership has had difficulty  selling the aircraft.  This aircraft will remain
off-lease until it is sold.

2. Demand for the Partnership's refrigerated marine containers has been weak, as
they are older  containers.  Additionally,  these  containers have experienced a
roof delimination problem which has limited their re-lease opportunities.  These
marine  containers  are  currently  off lease and the General  Partner  plans to
dispose of these containers.

3.  Railcar  loading  in North  America  have  continued  to be high,  however a
softening in the market is expected in 2000, which may lead to lower utilization
and lower  contribution to the Partnership 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.

The  Partnership  intends to use cash flow from  operations  and  proceeds  from
disposition of equipment to satisfy its operating requirements, maintain working
capital reserves, and pay cash distributions to the investors.

(1)  Repricing Risk

Certain of the Partnership's aircraft, marine containers,  railcars and trailers
will be remarketed in 2000 as existing  leases expire,  exposing the Partnership
to some 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.  In either case, the General Partner intends to 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 United States 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.  Under U.S.
Federal Aviation  Regulations,  after December 31, 1999, no person shall operate
an aircraft to or from any airport in the  contiguous  United States unless that
airplane has been shown to comply with Stage III noise levels.  The  Partnership
plans on selling the Stage II  aircraft  during  2000 in  countries  that do not
require this regulation.  Furthermore,  the Federal Railroad  Administration has
mandated  that  effective  July 1, 2000,  all  jacketed  and  non-jacketed  tank
railcars  must be  re-qualified  to insure  tank  shell  integrity.  Tank  shell
thickness,  weld seams,  and weld  attachments must be inspected and repaired if
necessary to  re-qualify  a tank  railcar for service.  The average cost of this
inspection is $1,800 for non-jacketed tank railcars and $3,600 for jacketed tank
railcars,  not  including  any  necessary  repairs.  This  inspection  is  to be
performed at the next scheduled tank test.

(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 make distributions to the partners.  Although the General Partner intends to
maintain a sustainable level of distributions  prior to final liquidation of the
Partnership, actual Partnership performance and other considerations may require
adjustments to then-existing  distribution  levels.  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.

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. Although  distribution levels may be reduced,  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 1999, 60% of the  Partnership's  total lease revenues from wholly-
and  partially-owned  equipment came from non-United  States domiciled  lessees.
Most of the leases require  payment in United States (U.S.)  currency.  If these
lessees currency devalues against the U.S. dollar, the lessees could potentially
encounter difficulty in making the U.S.
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

None.









                     (This space intentionally left blank.)


<PAGE>


                                    PART III

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

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

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

<S>                                      <C>     <C>
Robert N. Tidball                        61      Chairman of the Board, Director, President, and Chief Executive
                                                 Officer, PLM International, Inc.;
                                                 Director, PLM Financial Services, Inc.;
                                                 Vice President, PLM Railcar Management Services, Inc.;
                                                 President, PLM Worldwide Management Services Ltd.

Randall L.-W. Caudill                    52      Director, PLM International, Inc.

Douglas P. Goodrich                      53      Director and Senior Vice President, PLM International, Inc.;
                                                 Director and President, PLM Financial Services, Inc.; President,
                                                 PLM Transportation Equipment Corporation; President, PLM Railcar
                                                 Management Services, Inc.

Warren G. Lichtenstein                   34      Director, PLM International, Inc.

Howard M. Lorber                         51      Director, PLM International, Inc.

Harold R. Somerset                       64      Director, PLM International, Inc.

Robert L. Witt                           59      Director, PLM International, Inc.

Robin L. Austin                          53      Vice President, Human Resources, PLM International, Inc. and PLM
                                                 Financial Services, Inc.

Stephen M. Bess                          53      President, PLM Investment Management, Inc.; Vice President and
                                                 Director, PLM Financial Services, Inc.

Richard K Brock                          37      Vice President and Chief Financial Officer, PLM International,
                                                 Inc. and PLM Financial Services, Inc.

Susan C. Santo                           37      Vice President, Secretary, and General Counsel, PLM
                                                 International, Inc. and PLM Financial Services, Inc.

</TABLE>

Robert N.  Tidball  was  appointed  Chairman  of the  Board in  August  1997 and
President and Chief Executive Officer of PLM International in March 1989. At the
time of his  appointment  as  President  and  Chief  Executive  Officer,  he was
Executive Vice President of PLM International.  Mr. Tidball became a director of
PLM  International  in April 1989.  Mr.  Tidball was appointed a Director of PLM
Financial Services, Inc. in July 1997 and was elected President of PLM Worldwide
Management Services Limited in February 1998. He has served as an officer of PLM
Railcar  Management  Services,  Inc.  since June 1987. Mr. Tidball was Executive
Vice President of Hunter Keith,  Inc., a  Minneapolis-based  investment  banking
firm,  from March  1984 to  January  1986.  Prior to Hunter  Keith,  he was Vice
President, General Manager, and Director of North American Car Corporation and a
director of the American Railcar Institute and the Railway Supply Association.

Randall L.-W.  Caudill was elected to the Board of Directors in September  1997.
He is  President  of  Dunsford  Hill  Capital  Partners,  a San  Francisco-based
financial  consulting firm serving emerging growth companies.  Prior to founding
Dunsford  Hill Capital  Partners,  Mr.  Caudill held senior  investment  banking
positions at Prudential  Securities,  Morgan Grenfell Inc., and The First Boston
Corporation. Mr. Caudill also serves as a director of Northwest Biotherapeutics,
Inc., VaxGen, Inc., SBE, Inc., and RamGen, Inc.

Douglas  P.  Goodrich  was  elected  to the  Board of  Directors  in July  1996,
appointed  Senior  Vice  President  of PLM  International  in  March  1994,  and
appointed Director and President of PLM Financial  Services,  Inc. in June 1996.
Mr.  Goodrich  has also served as Senior Vice  President  of PLM  Transportation
Equipment Corporation since July 1989 and as President of PLM Railcar Management
Services,  Inc. since September 1992,  having been a Senior Vice President since
June 1987.  Mr.  Goodrich was an executive  vice  president of G.I.C.  Financial
Services  Corporation of Chicago,  Illinois, a subsidiary of Guardian Industries
Corporation, from December 1980 to September 1985.

Warren G.  Lichtenstein  was elected to the Board of Directors in December 1998.
Mr.  Lichtenstein  is the Chief  Executive  Officer of Steel  Partners II, L.P.,
which is PLM International's  largest  shareholder,  currently owning 16% of the
Company's common stock. Additionally,  Mr. Lichtenstein is Chairman of the Board
of Aydin Corporation,  a NYSE-listed defense  electronics  concern, as well as a
director of Gateway  Industries,  Rose's Holdings,  Inc., and Saratoga  Beverage
Group,  Inc. Mr.  Lichtenstein is a graduate of the University of  Pennsylvania,
where he received a Bachelor of Arts degree in economics.

Howard M.  Lorber was elected to the Board of  Directors  in January  1999.  Mr.
Lorber is President and Chief Operating  Officer of New Valley  Corporation,  an
investment banking and real estate concern. He is also Chairman of the Board and
Chief  Executive  Officer  of  Nathan's  Famous,  Inc.,  a  fast  food  company.
Additionally,  Mr. Lorber is a director of United Capital  Corporation and Prime
Hospitality  Corporation and serves on the boards of several  community  service
organizations.  He is a graduate of Long Island University,  where he received a
Bachelor  of Arts  degree and a Masters  degree in  taxation.  Mr.  Lorber  also
received charter life  underwriter and chartered  financial  consultant  degrees
from the American  College in Bryn Mawr,  Pennsylvania.  He is a trustee of Long
Island University and a member of the Corporation of Babson College.

Harold R. Somerset was elected to the Board of Directors of PLM International in
July 1994.  From February 1988 to December 1993, Mr.  Somerset was President and
Chief Executive  Officer of California & Hawaiian Sugar Corporation (C&H Sugar),
a subsidiary of Alexander & Baldwin,  Inc. Mr. Somerset joined C&H Sugar in 1984
as Executive Vice President and Chief  Operating  Officer,  having served on its
Board of Directors  since 1978.  Between 1972 and 1984, Mr.  Somerset  served in
various  capacities  with  Alexander & Baldwin,  Inc., a publicly  held land and
agriculture company headquartered in Honolulu,  Hawaii, including Executive Vice
President of Agriculture  and Vice President and General  Counsel.  Mr. Somerset
holds a law  degree  from  Harvard  Law  School  as well as a  degree  in  civil
engineering  from the  Rensselaer  Polytechnic  Institute and a degree in marine
engineering from the U.S. Naval Academy.  Mr. Somerset also serves on the boards
of directors for various other companies and organizations, including Longs Drug
Stores, Inc., a publicly held company.

Robert L. Witt was elected to the Board of Directors  in June 1997.  Since 1993,
Mr. Witt has been a principal with WWS  Associates,  a consulting and investment
group specializing in start-up situations and private  organizations about to go
public.  Prior to that, he was Chief Executive Officer and Chairman of the Board
of Hexcel  Corporation,  an international  advanced materials company with sales
primarily in the aerospace,  transportation, and general industrial markets. Mr.
Witt also serves on the boards of  directors  for various  other  companies  and
organizations.

Robin  L.  Austin  became  Vice  President,  Human  Resources  of PLM  Financial
Services,  Inc. in 1984, having served in various capacities with PLM Investment
Management,  Inc., including Director of Operations, from February 1980 to March
1984.  From June 1970 to September 1978, Ms. Austin served on active duty in the
United  States Marine Corps and served in the United States Marine Corp Reserves
from 1978 to 1998.  She retired as a Colonel of the United  States  Marine Corps
Reserves  in 1998.  Ms.  Austin  has  served  on the Board of  Directors  of the
Marines'  Memorial  Club  and is  currently  on the  Board of  Directors  of the
International Diplomacy Council.

Stephen M. Bess was appointed a Director of PLM Financial Services, Inc. in July
1997.  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. Mr. Bess 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.

Richard K Brock was appointed Vice President and Chief Financial  Officer of PLM
International  and PLM Financial  Services,  Inc. in January 2000,  after having
served as Acting CFO since June 1999.  Mr. Brock served as Corporate  Controller
of PLM International and PLM Financial Services, Inc. beginning in June 1997, as
Director of Planning and General  Accounting  beginning in February 1994, and as
an  accounting  manager  beginning in September  1991.  Mr. Brock was a division
controller of Learning Tree International,  a technical education company,  from
February 1988 through July 1991.

Susan C. Santo  became Vice  President,  Secretary,  and General  Counsel of PLM
International and PLM Financial Services,  Inc. in November 1997. She has worked
as an  attorney  for PLM  International  since  1990 and  served  as its  Senior
Attorney since 1994.  Previously,  Ms. Santo was engaged in the private practice
of law in San  Francisco.  Ms. Santo  received her J.D.  from the  University of
California, Hastings College of the Law.

The directors of PLM  International,  Inc. are elected for a three-year term and
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  International  Inc. or 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, 1999.

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, 1999, 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, 1999.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

         Transactions with Management and Others

         During 1999,  management fees to IMI were $0.5 million. The Partnership
         reimbursed FSI and its affiliates $0.5 million for  administrative  and
         data  processing  services  performed on behalf of the  Partnership  in
         1999.

         During 1999, the USPEs paid or accrued the following fees to FSI or its
         affiliates   (based  on  the   Partnership's   proportional   share  of
         ownership):  management fees, $0.1 million, and administrative and data
         processing services, $11,000.



<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.

     (B) Financial Statement Schedules

              Schedule II  Valuation 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.

       10.2   Note Agreement,  dated as of July 1, 1990, regarding $33.0 million
              in 9.75% senior notes due July 1, 2000,  incorporated by reference
              to the  Partnership's  Annual  Report on Form 10-K  filed with the
              Securities and Exchange Commission on March 30, 1991.

       24.    Powers of Attorney.





                     (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 17, 2000                 PLM EQUIPMENT GROWTH FUND IV
                                      PARTNERSHIP

                                      By:   PLM Financial Services, Inc.
                                            General Partner


                                      By:   /s/ Douglas P. Goodrich
                                            Douglas P. Goodrich
                                            President and Director


                                      By:   /s/ Richard K Brock
                                            Richard K Brock
                                            Chief Financial 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


*
Robert N. Tidball         Director, FSI                 March 17, 2000


*
Douglas P. Goodrich       Director, FSI                 March 17, 2000


*
Stephen M. Bess           Director, FSI                 March 17, 2000

*Susan Santo,  by signing her name hereto,  does sign this document on behalf of
the persons indicated above pursuant to powers of attorney duly executed by such
persons and filed with the Securities and Exchange Commission.



/s/ Susan C. Santo
Susan C. Santo
Attorney-in-Fact



<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                          INDEX TO FINANCIAL STATEMENTS


                                  (Item 14(a))


                                                                    Page

Independent auditors' report                                         26

Balance sheets as of December 31, 1999 and 1998                      27

Statements of operations for the years ended
     December 31, 1999, 1998, and 1997                               28

Statements of changes in partners' capital for the years
     ended December 31, 1999, 1998, and 1997                         29

Statements of cash flows for the years ended
     December 31, 1999, 1998, and 1997                               30

Notes to financial statements                                     31-42





<PAGE>


                          INDEPENDENT AUDITORS' REPORT


The Partners
PLM Equipment Growth Fund IV:

We have audited the  accompanying  financial  statements of PLM Equipment Growth
Fund IV (the  Partnership) as listed in the accompanying  index to the financial
statements.   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 have  conducted our audits in accordance  with  generally  accepted  auditing
standards.  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 2000.

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, 1999 and 1998 and the  results of its  operations  and its cash
flows for each of the years in the three-year period ended December 31, 1999, in
conformity with generally accepted accounting principles.



/s/KPMG LLP
SAN FRANCISCO, CALIFORNIA
March 17, 2000


<PAGE>



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

<TABLE>
<CAPTION>


                                                                             1999                1998
                                                                         ---------------------------------
  ASSETS

  <S>                                                                    <C>                <C>
  Equipment held for operating leases, at cost                           $   45,468         $     82,278
  Less accumulated depreciation                                             (34,920)             (58,674)
                                                                         ---------------------------------
      Net equipment                                                          10,548               23,604

  Cash and Cash Equivalents                                                   5,587                  778
  Restricted cash                                                               147                  147
  Accounts receivable, less allowance for doubtful
      accounts of $2,843 in 1999 and $3,126 in 1998                             440                  874
  Investments in unconsolidated special-purpose entities                      3,415                5,739
  Debt placement fees to affiliate, less accumulated
      amortization of $321 in 1998                                               --                   58
  Prepaid expenses and other assets                                              48                   50
                                                                         ---------------------------------

        Total assets                                                     $   20,185         $     31,250
                                                                         =================================

  LIABILITIES AND PARTNERS' CAPITAL

  Liabilities
  Accounts payable and accrued expenses                                  $      292         $        563
  Due to affiliates                                                             211                  244
  Lessee deposits and reserve for repairs                                       340                1,126
  Notes payable                                                                  --               12,750
                                                                         ---------------------------------
    Total liabilities                                                           843               14,683

  Partners' capital
  Limited partners (8,628,420 limited partnership units
      as of December 31, 1999 and 1998)                                      19,342               16,567
  General Partner                                                                --                   --
                                                                         ---------------------------------
    Total partners' capital                                                  19,342               16,567
                                                                         ---------------------------------

        Total liabilities and partners' capital                          $   20,185         $     31,250
                                                                         =================================


</TABLE>














                 See accompanying notes to financial statements.


<PAGE>



                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                            STATEMENTS OF OPERATIONS
                        FOR THE YEARS ENDED DECEMBER 31,
         (In Thousands of Dollars Except Weighted-average Unit Amounts)
<TABLE>
<CAPTION>


                                                                            1999            1998           1997
                                                                         -------------------------------------------
  REVENUES

  <S>                                                                      <C>         <C>              <C>
  Lease revenue                                                          $   8,054     $    10,981      $  12,684
  Interest and other income                                                    240             251            864
  Net gain (loss) on disposition of equipment                                6,357            (464)         2,830
                                                                         -------------------------------------------
    Total revenues                                                          14,651          10,768         16,378

  Expenses

  Depreciation and amortization                                              4,291           5,802          7,268
  Repairs and maintenance                                                    2,838           1,905          2,219
  Equipment operating expenses                                                 797             805            795
  Insurance expense to affiliate                                                --             (88)            70
  Other insurance expenses                                                     102             285            566
  Management fees to affiliate                                                 475             622            649
  Interest expense                                                           1,016           1,652          2,450
  General and administrative expenses to affiliates                            530             584            519
  Other general and administrative expenses                                    691             667          1,669
  (Recovery of) provision for bad debts                                       (273)              9          1,027
                                                                           -------------------------------------------
        Total expenses                                                      10,467          12,243         17,232

  Equity in net income of unconsolidated
      special-purpose entities                                               2,224             348          2,952
                                                                         -------------------------------------------

        Net income (loss)                                                $   6,408     $    (1,127)    $    2,098
                                                                         ===========================================

  Partners' share of net income (loss)

  Limited partners                                                       $   6,226     $    (1,309)     $   1,803
  General Partner                                                              182             182            295
                                                                         -------------------------------------------

        Total                                                            $   6,408     $    (1,127)     $   2,098
                                                                         ===========================================

  Net income (loss) per weighted-average limited partnership unit        $    0.72     $     (0.15)     $    0.21
                                                                         ===========================================

  Cash distribution                                                      $   3,633     $     3,533      $   5,780
                                                                         ===========================================

  Cash distribution per weighted-average limited partnership unit        $    0.40     $      0.39      $    0.64
                                                                         ===========================================
</TABLE>












                 See accompanying notes to financia statements.


<PAGE>



                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                   STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
              FOR THE YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
                            (in thousands of dollars)

<TABLE>
<CAPTION>


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

  <S>                                                  <C>                 <C>              <C>
    Partners' capital as of December 31, 1996          $   24,909          $    --          $  24,909

  Net income                                                1,803              295              2,098

  Cash distribution                                        (5,485)            (295)            (5,780)
                                                       ------------------------------------------------
    Partners' capital as of December 31, 1997              21,227               --             21,227

  Net income (loss)                                        (1,309)             182             (1,127)

  Cash distribution                                        (3,351)            (182)            (3,533)
                                                       ------------------------------------------------

    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
                                                       =================================================




</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>



                                                                             1999            1998           1997
                                                                         --------------------------------------------
  OPERATING ACTIVITIES
  <S>                                                                    <C>             <C>             <C>
  Net income (loss)                                                      $    6,408      $   (1,127 )    $   2,098
  Adjustments to reconcile net income (loss) to net cash
      provided by (used in) operating activities:
    Depreciation and amortization                                             4,291           5,802          7,268
    Net (gain) loss on disposition of equipment                              (6,357)            464         (2,830)
    Equity in net income of unconsolidated special-
      purpose entities                                                       (2,224)           (348)        (2,952)
    Changes in operating assets and liabilities:
      Restricted cash                                                            --             100            305
      Accounts and notes receivable, net                                        458             127            523
      Prepaid expenses and other assets                                           2               8             82
      Due from affiliates                                                        --              --            357
      Accounts payable and accrued expenses                                    (271)           (534)            70
      Due to affiliates                                                         (33)            (12)           (48)
      Lessee deposits and reserve for repairs                                  (786)         (1,383)           (19)
                                                                         ------------------------------------------
        Net cash provided by operating activities                             1,488           3,097          4,854
                                                                         --------------------------------------------

  Investing activities
  Purchase of equipment and capital repairs                                      (9)             --           (621)
  Proceeds from disposition of equipment                                     15,165           1,449          8,493
  Distribution from liquidation of unconsolidated
      special-purpose entities                                                3,807           3,470          1,736
  Distribution from unconsolidated special-purpose entities                     741             895          1,076
                                                                         --------------------------------------------
        Net cash provided by investing activities                            19,704           5,814         10,684
                                                                         ---------------------------------------------

  Financing activities
  Repayment of notes payable                                                (12,750)         (8,250)        (8,250)
  Cash distribution paid to limited partners                                 (3,451)         (3,351)        (5,485)
  Cash distribution paid to General Partner                                    (182            (182)          (295)
                                                                         -------------------------------------------
        Net cash used in financing activities                               (16,383)        (11,783)       (14,030)
                                                                         --------------------------------------------

  Net increase (decrease)  in cash and cash equivalents                       4,809          (2,872)         1,508

  Cash and cash equivalents at beginning of year                                778           3,650          2,142
                                                                         --------------------------------------------

  Cash and cash equivalents at end of year                               $    5,587      $      778      $   3,650
                                                                         ============================================

  Supplemental information
  Interest paid                                                          $    1,016      $    1,652      $   2,450
                                                                         ============================================
</TABLE>











                 See accompanying notes to financial statements.


<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1999

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).

     The  Partnership  will  terminate on December 31, 2009,  unless  terminated
     earlier upon sale of all equipment or by certain  other events.  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.  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.  The General  Partner  anticipates  that the  liquidation  of
     Partnership assets will be completed by the end of the year 2000.

     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  (Loss) 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  accompanying  financial  statements  have been prepared on the accrual
     basis of  accounting  in  accordance  with  generally  accepted  accounting
     principles. 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.  Lease  origination
     costs were capitalized and amortized over the term of the lease.

     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 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. Lease negotiation fees were

<PAGE>



                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1999

1.   BASIS OF PRESENTATION (CONTINUED)

     DEPRECIATION AND AMORTIZATION (CONTINUED)

     amortized over the initial  equipment  lease term.  Debt placement fees and
     issuance  costs were  amortized over the term of the related loan (see Note
     7).

     TRANSPORTATION EQUIPMENT

     In accordance with the Financial Accounting Standards Board's Statement No.
     121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
     Assets to Be Disposed Of", the General  Partner  reviews the carrying value
     of  the   Partnership's   equipment  at  least   quarterly,   and  whenever
     circumstances   indicate  the  carrying  value  of  an  asset  may  not  be
     recoverable  in relation  to  expected  future  market  conditions  for the
     purpose of assessing  recoverability of the recorded amounts.  If projected
     undiscounted  future  cash flows and fair value are less than the  carrying
     value of the equipment, a loss on revaluation is recorded. No reductions to
     the equipment  carrying  values were required for the years ended  December
     31, 1999, 1998, or 1997.

     Equipment held for operating leases is stated at cost.

     INVESTMENTS IN UNCONSOLIDATED SPECIAL-PURPOSE ENTITIES

     The Partnership has interests in  unconsolidated  special-purpose  entities
     (USPEs) that own  transportation  equipment.  These interests are accounted
     for using the equity method.

     The  Partnership's  investment  in USPEs  includes  acquisition  and  lease
     negotiation  fees paid by the Partnership to PLM  Transportation  Equipment
     Corporation  (TEC),  a  wholly-owned  subsidiary  of FSI, and PLM Worldwide
     Management Services (WMS), a wholly-owned  subsidiary of PLM International.
     The Partnership's  interests in USPEs are managed by IMI. The Partnership's
     equity  interest in the net income of USPEs is reflected  net of management
     fees paid or payable to IMI and the  amortization  of acquisition and lease
     negotiation fees paid to TEC or WMS.

     REPAIRS AND MAINTENANCE

     Repair and  maintenance  costs  related to marine  vessels,  railcars,  and
     trailers are usually the obligation of the Partnership.  Maintenance  costs
     of most of the other  equipment are the  obligation of the lessee.  If they
     are  not  covered  by  the  lessee,  they  are  generally  charged  against
     operations  as incurred.  Estimated  costs  associated  with marine  vessel
     drydockings are accrued and charged to income ratably over the period prior
     to such drydocking.  The reserve accounts for these repairs are included in
     the balance sheet as lessee deposits and reserve for repairs.

     NET INCOME (LOSS) AND DISTRIBUTION PER LIMITED PARTNERSHIP UNIT

     Cash  Distributions are allocated 95% to the limited partners and 5% to the
     General  Partner.  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.  Cash  distributions  of the  Partnership  are  generally
     allocated 95% to the limited partners and 5% to the General Partner and may
     include amounts in excess of net income.  The limited  partners' net income
     (loss) 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. Monthly  unitholders  receive a
     distribution check 15 days after the close of the previous month's business
     and quarterly  unitholders  receive a distribution  check 45 days after the
     close of the quarter.



<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1999

1.   BASIS OF PRESENTATION  (CONTINUED)

     NET INCOME (LOSS) AND DISTRIBUTION PER LIMITED PARTNERSHIP UNIT (CONTINUED)

     Cash  distributions  to investors in excess of net income are  considered a
     return of capital.  Cash  distributions to the limited partners of $0, $3.4
     million,  and $3.7  million in 1999,  1998,  and 1997,  respectively,  were
     deemed to be a return of capital.

     Cash  distributions  of $0.9 million,  $0.9  million,  and $0.8 million for
     1999, 1998, and 1997, respectively,  relating to the fourth quarter of that
     year,  were  paid  during  the  first  quarter  of  2000,  1999,  or  1998,
     respectively.  In addition,  the Partnership made a special distribution of
     $4.5 million during February 2000.

     NET INCOME (LOSS) PER WEIGHTED-AVERAGE PARTNERSHIP UNIT

     Net income  (loss) per  weighted-average  Partnership  unit was computed by
     dividing  net  income  (loss)  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, 1999, 1998 and 1997 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  net income (loss) is equal to comprehensive  income for
     the years ended December 31, 1999, 1998, and 1997.

     RESTRICTED CASH

     As of  December  31,  1999 and 1998,  restricted  cash  represented  lessee
     security deposits held by the Partnership.

2.   GENERAL PARTNER AND TRANSACTIONS WITH AFFILIATES

     An  officer of PLM  Securities  Corp.,  a  wholly-owned  subsidiary  of the
     General  Partner,  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 the USPEs 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.  Partnership  management  fees  of $0.1
     million  was payable as of December  31, 1999 and 1998.  The  Partnership's
     proportional  share of the USPE  management fees of $25,000 and $9,000 were
     payable as of December 31, 1999 and 1998,  respectively.  The Partnership's
     proportional  share of USPE  management  fees was $0.1 million during 1999,
     1998, and 1997.  The  Partnership  reimbursed  FSI and its affiliates  $0.5
     million,  $0.6  million,  and $0.5  million  during 1999,  1998,  and 1997,
     respectively,  for data  processing  expenses and  administrative  services
     performed on behalf of the Partnership. The Partnership's proportional

<PAGE>



                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1999

2.   GENERAL PARTNER AND TRANSACTIONS WITH AFFILIATES (CONTINUED)

     share of USPE  administrative  and data  processing  expenses  was $11,000,
     $18,000 and $35,000 during 1999, 1998 and 1997, respectively.

     The   Partnership   paid  $2,000  and  $0.1   million  in  1998  and  1997,
     respectively,  to Transportation Equipment Indemnity Company Ltd. (TEI), an
     affiliate of the General Partner,  which provides marine insurance coverage
     and other insurance  brokerage  services.  The  Partnership's  proportional
     share of USPE marine  insurance  coverage  paid to TEI was $17,000 and $0.1
     million during 1998 and 1997,  respectively.  A substantial portion of this
     amount was paid to third-party  reinsurance  underwriters or placed in risk
     pools   managed  by  TEI  on  behalf  of   affiliated   programs   and  PLM
     International,  which provide threshold  coverages on marine vessel loss of
     hire and hull and  machinery  damage.  All  pooling  arrangement  funds are
     either paid out to cover  applicable  losses or  refunded  pro rata by TEI.
     Also,  during 1998, the  Partnership  and the USPEs received a $0.1 million
     loss-of-hire insurance refund from TEI due to lower claims from the insured
     Partnership  and other insured  affiliated  programs.  In 1999, TEI did not
     provide insurance coverage to the Partnership. These services were provided
     by an unaffiliated  third party.  PLM  International  liquidated TEI in the
     first quarter of 2000.

     As of December  31,  1999,  approximately  98% of the of the  Partnership's
     trailer equipment was in rental facilities operated by PLM Rental, Inc., an
     affiliate of the General  Partner,  doing business as PLM Trailer  Leasing.
     Rents are  reported  as revenue in  accordance  with  Financial  Accounting
     Standards Board  Statement No. 13 "Accounting for Leases".  Direct expenses
     associated  with the  equipment  are charged  directly to the  Partnership.
     Direct expenses  associated with the equipment are charged  directly to the
     Partnership.  An  allocation  of  indirect  expenses  of  the  rental  yard
     operations is charged to the Partnership monthly.

     The  Partnership had an interest in certain  equipment in conjunction  with
     affiliated programs during 1999, 1998 and 1997 (see Note 4).

     The balance due to  affiliates  as of December  31, 1999 and 1998  includes
     $0.1 million due to FSI and its  affiliates  for  management  fees and $0.1
     million due to affiliated USPEs.

3.   Equipment

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

Equipment held for operating leases                         1999                1998
                                                        ----------------------------------

<S>                                                     <C>                <C>
Aircraft                                                $   20,440         $     42,734
Railcars                                                    13,454               14,752
Marine containers                                            8,073               11,012
Trailers                                                     3,501                4,061
Marine vessels                                                  --                9,719
                                                        ----------------------------------
                                                            45,468               82,278
Less accumulated depreciation                              (34,920)             (58,674)
                                                        --------------------------------
    Net equipment                                       $   10,548         $     23,604
                                                        ==================================
</TABLE>


     Revenues are earned under operating  leases. A portion of 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 sublessees,  after deducting
     certain  direct  operating  expenses  of the  pooled  equipment.  Rents for
     railcars are based on mileage traveled or a fixed rate; rents for all other
     equipment are based on fixed rates.



<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1999

3.   EQUIPMENT (CONTINUED)

     As of December 31, 1999, all owned equipment in the  Partnership  portfolio
     was  either on lease or  operating  in  PLM-affiliated  short-term  trailer
     rental  facilities,   except  for  one  commercial  aircraft,   221  marine
     containers, and seven railcars with a net book value of $2.1 million. As of
     December 31, 1998,  all owned  equipment in the  Partnership  portfolio was
     either on lease or operating in  PLM-affiliated  short-term  trailer rental
     facilities,  except for two commercial aircraft, 46 marine containers,  and
     five railcars with a net book value of $4.6 million

     During 1999, the  Partnership  sold or disposed of a marine vessel,  marine
     containers,  railcars,  aircraft and  trailers,  with an aggregate net book
     value of $8.8  million,  for proceeds of $15.2  million.  During 1998,  the
     Partnership sold or disposed of marine containers,  railcars, and trailers,
     with an  aggregate  net book value of $2.0  million,  for  proceeds of $1.5
     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,  1999,  for owned  equipment  during each of the next five
     years, are  approximately  $3.0 million in 2000, $1.9 million in 2001, $1.3
     million in 2002,  $1.0 million in 2003,  $0.4  million in 2004,  and $7,000
     thereafter.  Per diem and short-term rentals consisting of utilization rate
     lease payments included in revenue amounted to approximately  $1.2 million,
     $2.2 million, and $2.3 million in 1999, 1998, and 1997, respectively.

4.   INVESTMENTS IN UNCONSOLIDATED SPECIAL-PURPOSE ENTITIES

     The net investments in USPEs include the following  jointly-owned equipment
     (and related  assets and  liabilities)  as of December 31, (in thousands of
     dollars):
<TABLE>
<CAPTION>

                                                                                  1999           1998
                                                                               ---------------------------

       <S>                                                                     <C>            <C>
       35% interest in two Stage II commercial aircraft on a direct
           finance lease                                                       $   3,548      $   3,880
       50% interest in an entity owning a bulk carrier                              (133)         1,859
                                                                               -------------------------
           Net investments                                                     $   3,415      $   5,739
                                                                               ==========================
</TABLE>


     As of  December  31,  1999 and 1998,  all  jointly-owned  equipment  in the
     Partnership's USPE portfolio was on lease.

     During 1999, the General Partner sold the  Partnership's 50% interest in an
     entity owning a marine vessel.  The  Partnership's  interest in this entity
     was  sold for  proceeds  of $3.8  million  for its net  investment  of $1.9
     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>
                             1999                        1998                         1997
                           ---------                   ----------                   ----------
                                    Net                          Net                          Net
                      Total      Interest of       Total      Interest of      Total       Interest of
                      USPEs      Partnership       USPEs      Partnership      USPEs       Partnership
                      -------------------------    -------------------------------------------------------

<S>                <C>           <C>          <C>            <C>           <C>           <C>
Net investments    $    9,489    $    3,415   $  14,339      $    5,739    $    32,310   $       9,756
Lease revenues          2,106         1,053       4,066           1,233          7,995           1,961
Net income              4,881         2,224       9,921             348          6,819           2,952

</TABLE>

<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1999

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  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   Trailer    Railcar  All
    For the Year Ended December 31, 1999  Leasing    Leasing    Leasing   Leasing    Leasing  Other<F1>1   Total
    ------------------------------------  -------    -------    -------   -------    -------   ----         -----

    REVENUES
      <S>                                  <C>       <C>        <C>       <C>        <C>       <C>        <C>
      Lease revenue                        $ 2,590   $    143   $  1,067  $  1,122   $  3,132  $     --   $  8,054
      Interest income and other                 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 fee                           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
                                          =========================================================================

    As of December 31, 1999
    Total assets (liabilities)             $ 6,873   $  1,202   $   (133) $  1,682   $  4,781  $  5,780   $ 20,185
                                          =========================================================================
<FN>
<F1>
1 Includes  costs not  identifiable  to a  particular  segment  such as interest
expenses,  and  amortization  expense,  and certain  interest  income and other,
operations support expenses and general and administrative expenses. /
</FN>
</TABLE>

<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1999

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


                                                     Marine      Marine
                                          Aircraft  Container    Vessel   Trailer    Railcar   All
    For the Year Ended December 31, 1998  Leasing    Leasing    Leasing   Leasing    Leasing   Other<F1>1   Total
    ------------------------------------  -------    -------    -------   -------    -------   ----         -----

    REVENUES
      <S>                                  <C>       <C>        <C>       <C>        <C>       <C>        <C>
      Lease revenue                        $ 3,484   $    720   $  1,666  $  1,578   $  3,533  $     --   $ 10,981
      Interest income and other                 15         --         --        --         21       215        251
      Gain (loss) on disposition of             (2)        77         --      (530)        (9)       --       (464)
    equipment
                                          -------------------------------------------------------------------------
        Total revenues                       3,497        797      1,666     1,048      3,545       215     10,768

    COSTS AND EXPENSES
      Operations support                       446          8      1,043       446        926        38      2,907
      Depreciation and amortization          3,314        699        383       498        846        62      5,802
      Interest expense                           6         --         --        --         --     1,646      1,652
      Management fee                           156         36         83        96        251        --        622
      General and administrative expenses      336         20         26       368        139       362      1,251
      (Recovery of) provision for bad          (95)        --         --       154        (50)       --          9
    debts
                                          -------------------------------------------------------------------------
        Total costs and expenses             4,163        763      1,535     1,562      2,112     2,108     12,243
                                          -------------------------------------------------------------------------
    Equity in net income (loss) of USPEs       654         --       (306)       --         --        --        348
                                          -------------------------------------------------------------------------
                                          =========================================================================
    Net income (loss)                      $   (12)  $     34   $   (175) $   (514)  $  1,433  $ (1,893)  $ (1,127)
                                          =========================================================================

    As of December 31, 1998
    Total assets                           $ 15,434  $  2,169   $  3,727  $  2,035   $  5,978  $  1,907   $ 31,250
                                          =========================================================================

                                                     Marine      Marine
                                          Aircraft  Container    Vessel   Trailer    Railcar   All
    For the Year Ended December 31, 1997  Leasing    Leasing    Leasing   Leasing    Leasing   Other<F1>1   Total
    ------------------------------------  -------    -------    -------   -------    -------   ----         -----

    REVENUES
      Lease Revenue                        $ 4,154   $    948   $  1,978  $  1,980   $  3,624  $     --   $ 12,684
      Interest income and other                 13          8        574        --          4       265        864
      Gain (loss) on disposition of            559        (86 )    2,337        17          3        --      2,830
    equipment
                                          -------------------------------------------------------------------------
        Total revenues                       4,726        870      4,889     1,997      3,631       265     16,378

    COSTS AND EXPENSES
      Operations support                       216         13      1,533       736      1,097        55      3,650
      Depreciation and amortization          3,993        850        455       812      1,057       101      7,268
      Interest expense                          --         --         --        --         --     2,450      2,450
      Management fee                           126         45         99       126        253        --        649
      General and administrative expenses      972         25         84       286        116       705      2,188
      Provision for bad debts                  855         55         --        94         23        --      1,027
                                          -------------------------------------------------------------------------
        Total costs and expenses             6,162        988      2,171     2,054      2,546     3,311     17,232
                                          -------------------------------------------------------------------------
    Equity in net income (loss) of USPEs     3,924         --       (972)       --         --        --      2,952
                                          -------------------------------------------------------------------------
                                          =========================================================================
    Net income (loss)                      $ 2,488   $   (118 ) $  1,746  $    (57 ) $  1,085  $ (3,046 ) $  2,098
                                          =========================================================================

    As of December 31, 1997
    Total assets                           $ 22,360  $  3,362   $  4,515  $  3,968   $  6,857  $  5,027   $ 46,089
                                          =========================================================================

<FN>
<F1>
1 Includes  costs not  identifiable  to a  particular  segment  such as interest
expenses,  and  amortization  expense,  and certain  interest  income and other,
operations support expenses and general and administrative expenses. /
</FN>
</TABLE>



<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1999

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,  mobile  offshore  drilling
     unit,  railcars,  and  trailers  to lessees  domiciled  in five  geographic
     regions: the United States,  Canada, South Asia, 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
                                ---------------------------------------    -------------------------------------
                                   1999          1998         1997            1999         1998        1997
                                ---------------------------------------    -------------------------------------

   <S>                          <C>          <C>           <C>              <C>         <C>         <C>
   United States                $   3,683    $    4,516    $   5,369        $     --    $      --   $      --
   Canada                           2,298         2,698        2,339              --           --         846
   South Asia                          --            --          850              --           --          --
   South America                      863         1,380        1,200              --           --          --
   Rest of the world                1,210         2,387        2,926           1,053        1,233       1,115
                                =======================================    =====================================
       Lease revenues           $   8,054    $   10,981    $  12,684        $  1,053    $   1,233   $   1,961
                                =======================================    =====================================
</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
                                        -------------------------------------- -------------------------------------
                                           1999         1998         1997         1999          1998        1997
                                        -------------------------------------- -------------------------------------

   <S>                                 <C>          <C>          <C>          <C>           <C>          <C>
   United States                       $  2,584     $     847    $   1,131    $       --     $     --    $     --
   Canada                                 1,129           622           14            --           84       3,305
   South Asia                              (502)       (2,021)      (2,034)           --           --          --
   South America                          3,009           805          532            --           --          --
   Mexico                                    --            --           --           470          570         618
   Rest of the world                       (625)          164        2,594         1,754         (306)       (971)
                                        ------------------------------------   ------------------------------------
     Regional net income                  5,595           417        2,237         2,224          348       2,952
   Administrative and other              (1,411)       (1,892)      (3,091)           --           --          --
                                       ====================================== =====================================
     Net income (loss)                 $  4,184     $  (1,475)    $    (854)    $  2,224     $    348    $  2,952
                                       ====================================== =====================================

</TABLE>

<PAGE>


                                              PLM EQUIPMENT GROWTH FUND IV
                                                (A Limited Partnership)
                                             NOTES TO FINANCIAL STATEMENTS
                                                   December 31, 1999

6.   Geographic Information (continued)

     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 USP
                                ---------------------------------      ---------------------------------
                                   1999        1998       1997           1999        1998        1997
                                ---------------------------------      --------------------------------

   <S>                           <C>       <C>         <C>           <C>        <C>         <C>
   United States                 $  3,401  $    6,550  $  12,848     $     --   $      --   $      --
   Canada                           4,799       5,728      6,580           --          --       3,484
   South Asia                       1,202       4,519      2,989           --          --          --
   South America                       --       2,770      3,275           --          --          --
   Mexico                              --          --          -        3,548       3,880       4,008
   Rest of the world                1,146       4,037      5,613         (133)      1,859       2,264
                                ---------------------------------     --------------------------------
                                =================================     =================================
       Net book value            $ 10,548  $   23,604  $  31,305      $ 3,415   $   5,739   $   9,756
                                =================================     =================================
</TABLE>


7.   NOTES PAYABLE

     On July 1, 1990, the  Partnership  entered into an agreement to issue notes
     totaling $33.0 million to two institutional investors.

     The Partnership had a scheduled loan payment of $8.3 million due on July 1,
     1999. On this date, the  Partnership  paid $4.0 million of the $8.3 million
     scheduled principal payment.  The Partnership amended the Note Agreement to
     delay the date of the remaining $4.3 million principal payment on its notes
     payable from July 1, 1999 to August 1, 1999.  The  amendment  increased the
     interest rate on the deferred  principal payment of $4.3 million from 9.75%
     per annum to 11.75% per annum.  On July 30, 1999, the  Partnership  further
     amended  the note  agreement  to delay the  scheduled  remaining  principal
     payment of $4.3  million  from  August 1, 1999 to  September  1, 1999.  The
     Partnership  paid $1.0  million of the  remaining  $4.3  million  principal
     payment in August of 1999,  and paid the remaining  balance of $3.3 million
     in  September  of 1999.  In December of 1999,  the  Partnership  used sales
     proceeds to prepay the  remaining  principal  payment of $4.5  million.  In
     addition, the Partnership paid $0.1 million in prepayment penalty interest.
     Under the Note  Agreement,  if the  Partnership  elects to make an optional
     prepayment of the outstanding notes payable, the Partnership is required to
     pay additional interest.

     The notes were fully paid on December 30, 1999. The notes accrued  interest
     at a rate  equal to 9.75% per  annum.  Interest  on the  notes was  payable
     monthly.

8.   CONCENTRATIONS OF CREDIT RISK

     No single lessee accounted for more than 10% of the  consolidated  revenues
     for the year ended December 31, 1999, 1998 and 1997. 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%).  In 1997,
     Noblesse  Maritime  Limited  purchased a marine vessel from the Partnership
     and the gain from the sale accounted for 10% of total consolidated revenues
     from wholly and partially owned equipment.

     As of  December  31,  1999 and  1998,  the  General  Partner  believes  the
     Partnership  had no other  significant  concentrations  of credit risk that
     could have a material adverse effect on the Partnership.


<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1999

9.   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, 1999,  the federal  income tax basis was higher than the
     financial  statement  carrying  values of certain assets and liabilities by
     $20.0 million,  primarily due to differences  in  depreciation  methods and
     equipment  reserves and the tax treatment of  underwriting  commissions and
     syndication costs.

10.  CONTINGENCIES

     PLM   International   (the   Company)  and  various  of  its   wholly-owned
     subsidiaries  are named as  defendants  in a lawsuit  filed as a  purported
     class action in January 1997 in the Circuit Court of Mobile County, Mobile,
     Alabama, Case No. CV-97-251 (the Koch action). The named plaintiffs are six
     individuals  who  invested in PLM  Equipment  Growth Fund IV (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) (the Funds),  each a
     California  limited  partnership  for  which  the  Company's   wholly-owned
     subsidiary,  FSI, acts as the general partner. The complaint asserts causes
     of  action  against  all  defendants  for fraud  and  deceit,  suppression,
     negligent   misrepresentation,   negligent  and  intentional   breaches  of
     fiduciary duty, unjust enrichment,  conversion, and conspiracy.  Plaintiffs
     allege 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  assert  liability  against
     defendants for improper sales and marketing practices, mismanagement of the
     Funds,  and  concealing  such  mismanagement  from  investors in the Funds.
     Plaintiffs  seek  unspecified  compensatory  damages,  as well as  punitive
     damages, and have offered to tender their limited partnership units back to
     the defendants.

     In March 1997, the defendants  removed the Koch action from the state court
     to the United States  District Court for the Southern  District of Alabama,
     Southern Division (Civil Action No.  97-0177-BH-C) (the court) based on the
     court's  diversity  jurisdiction.  In  December  1997,  the  court  granted
     defendants motion to compel  arbitration of the named  plaintiffs'  claims,
     based on an  agreement to  arbitrate  contained in the limited  partnership
     agreement of each Partnership.  Plaintiffs  appealed this decision,  but in
     June 1998 voluntarily dismissed their appeal pending settlement of the Koch
     action, as discussed below.

     In June 1997, the Company and the affiliates who are also defendants in the
     Koch action were named as  defendants  in another  purported  class  action
     filed in the San Francisco Superior Court, San Francisco,  California, Case
     No. 987062 (the Romei action).  The plaintiff is an investor in Fund V, and
     filed the  complaint  on her own behalf and on behalf of all class  members
     similarly situated who invested in the Partnerships.  The complaint alleges
     the same facts and the same  causes of action as in the Koch  action,  plus
     additional  causes  of  action  against  all of the  defendants,  including
     alleged unfair and deceptive  practices and violations of state  securities
     law. In July 1997,  defendants  filed a petition (the  petition) in federal
     district  court  under  the  Federal  Arbitration  Act  seeking  to  compel
     arbitration  of  plaintiff's  claims.  In October 1997,  the district court
     denied the Company's  petition,  but in November  1997,  agreed to hear the
     Company's motion for reconsideration. Prior to reconsidering its order, the
     district  court  dismissed  the petition  pending  settlement  of the Romei
     action,  as discussed  below. The state court action continues to be stayed
     pending such resolution.



<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1999

10.  CONTINGENCIES (CONTINUED)

     In February 1999 the parties to the Koch and Romei actions agreed to settle
     the lawsuits, with no admission of liability by any defendant,  and filed a
     Stipulation  of Settlement  with the court.  The settlement is divided into
     two parts, a monetary settlement and an equitable settlement.  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.  The final  settlement  amount  will depend on the number of
     claims  filed by class  members,  the  amount of the  administrative  costs
     incurred in connection  with the  settlement,  and the amount of attorneys'
     fees awarded by the court to plaintiffs' attorneys. The Company will pay up
     to $0.3 million of the monetary settlement, with the remainder being funded
     by an insurance policy. For settlement  purposes,  the monetary  settlement
     class  consists of all  investors,  limited  partners,  assignees,  or unit
     holders who  purchased  or received  by way of transfer or  assignment  any
     units in the  Partnerships  between  May 23,  1989 and June 29,  1999.  The
     monetary settlement, if approved, will go forward regardless of whether the
     equitable settlement is approved or not.

     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  Partnerships'  equipment,  (b)  the  extension  (until
     December  31,  2004)  of the  period  during  which  FSI can  reinvest  the
     Partnerships' funds in additional  equipment,  (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;   (d)  a  one-time
     repurchase  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;  and
     (e) the deferral of a portion of the  management  fees paid to an affiliate
     of FSI until, if ever, certain performance  thresholds have been met by the
     Partnerships. Subject to final court approval, these proposed changes would
     be made as amendments to each Partnership's  limited partnership  agreement
     if less than 50% of the limited  partners of each  Partnership vote against
     such  amendments.  The limited partners will be provided the opportunity to
     vote against the  amendments  by following  the  instructions  contained in
     solicitation  statements that will be mailed to them after being filed with
     the  Securities  and Exchange  Commission.  The equitable  settlement  also
     provides  for  payment of  additional  attorneys'  fees to the  plaintiffs'
     attorneys  from  Partnership  funds in the  event,  if ever,  that  certain
     performance  thresholds  have been met by the  Partnerships.  The equitable
     settlement class consists of all investors,  limited partners, assignees or
     unit  holders  who on June 29, 1999 held any units in Funds V, VI, and VII,
     and their assigns and successors in interest.

     The court preliminarily  approved the monetary and equitable settlements in
     June 1999. The monetary  settlement remains subject to certain  conditions,
     including  notice to the  monetary  class and final  approval  by the court
     following  a final  fairness  hearing.  The  equitable  settlement  remains
     subject  to certain  conditions,  including:  (a)  notice to the  equitable
     class,  (b)  disapproval  of the  proposed  amendments  to the  partnership
     agreements by less than 50% of the limited partners in one or more of Funds
     V, VI, and VII, and (c) judicial  approval of the proposed  amendments  and
     final approval of the equitable  settlement by the court  following a final
     fairness  hearing.  No hearing  date is currently  scheduled  for the final
     fairness hearing.  The Company continues to believe that the allegations of
     the Koch and Romei  actions  are  completely  without  merit and intends to
     continue to defend this matter vigorously if the monetary settlement is not
     consummated.

     The  Partnership,  together with  affiliates,  has initiated  litigation in
     various  official  forums in India  against each of two  defaulting  Indian
     airline  lessees 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 airlines,  and the airlines have ceased
     operations.  In response to the Partnership's  collection efforts,  the two
     airlines each filed counter-claims against the Partnership in excess of the
     Partnership's  claims against the airlines.  The General  Partner  believes
     that the airlines'  counterclaims  are completely  without  merit,  and the
     General  Partner will  vigorously  defend against such  counterclaims.  The
     General Partner believes an unfavorable  outcome from the  counterclaims is
     remote.


<PAGE>


                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1999

10.  CONTINGENCIES (CONTINUED)

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

11.  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,   will  continue  to  be
     distributed  on a quarterly  basis to 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  throughout the liquidation  period.  Upon final liquidation,  the
     Partnership will be dissolved.

     No special  distibutions  were paid in 1999, 1998 and 1997. 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 certain damaged
     equipment,  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.




<PAGE>


                                                                     SCHEDULE II


                          PLM EQUIPMENT GROWTH FUND IV
                             (A LIMITED PARTNERSHIP)
                        VALUATION AND QUALIFYING ACCOUNTS

                   YEAR ENDED DECEMBER 31, 1999, 1998 AND 1997
                            (in thousands of dollars)

<TABLE>
<CAPTION>

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

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

  Year Ended December 31, 1998
       Allowance for Doubtful Accounts     $      3,332       $            9        $      (215 )   $    3,126
                                           ======================================================================

  Year Ended December 31, 1997
       Allowance for Doubtful Accounts     $      2,329       $        1,027        $       (24 )   $    3,332
                                           ======================================================================
</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.

   10.2    Note Agreement, dated as of July 1, 1990,
           regarding $33.0 million in 9.75% senior notes
           due July 1, 2000                                          *

   23.1    Independent Auditors' Report                             45

   24.     Powers of Attorney                                    46 - 48












------------------------
* Incorporated by reference.  See page 23 of this report.