<PAGE>   1
                                    FORM 10-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

              ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
                   For the fiscal year ended December 31, 1997

Commission File Number 0-21276

                      DATRONIC FINANCE INCOME FUND I, L.P.
                  --------------------------------------------
             (Exact name of Registrant as specified in its charter)

    Delaware                                                36-3744792
 -------------------                                ----------------------
   State or other                                     (I.R.S. Employer
   jurisdiction of                                    Identification No.)
   incorporation or
   organization

1300 E. Woodfield Road, Suite 312, Schaumburg, Illinois    60173
--------------------------------------------------------------------
(Address of principal executive offices)                 (Zip Code)

Registrant's telephone number, including area code: (847) 240-6200
                                                    ---------------

Securities registered pursuant to Section 12(b) of the Act:


Title of each class            Name of each exchange on which registered
       NONE                                  NONE
-------------------                    ----------------

Securities registered pursuant to Section 12(g) of the Act:

                      Units of Limited Partnership Interest
                      -------------------------------------
                                (Title of class)

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 report(s)), and (2) has been subject to such filing
requirements for the past 90 days.   Yes  x     No
                                         ---        ---

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. /x/
<PAGE>   2
                                     PART I
ITEM 1 - BUSINESS

Datronic Finance Income Fund I, L.P. (the "Partnership"), a Delaware Limited
Partnership, was formed on November 21, 1990. The Partnership offered Units of
Limited Partnership Interests (the "Units") during 1991 and early 1992 raising
$29,117,000 of limited partner funds.

As more fully described in Part II, Item 8, Notes 1, 4 and 7(a) during the
second calendar quarter of 1992, it was learned that Edmund J. Lopinski, Jr.,
the president, director and majority stockholder of Datronic Rental Corp.
("DRC"), the then general partner, in conjunction with certain other parties,
may have diverted approximately $13.3 million of assets from the Datronic
Partnerships and Transamerica Equipment Leasing Income Fund, L.P.("TELIF") for
his/their direct or indirect benefit. During 1992, a class action lawsuit was
filed and subsequently certified on behalf of the limited partners in the
Datronic Partnerships against DRC, various officers of DRC and various other
parties. On March 4, 1993, a settlement was approved to resolve certain portions
of the suit to enable the operations of the Datronic Partnerships to continue
while permitting the ongoing pursuit of claims against alleged wrongdoers (the
"Settlement"). In connection with the Settlement, DRC was replaced by Lease
Resolution Corporation ("LRC") as the general partner of the Partnership.

The Partnership was formed to acquire finance leases for a variety of
low-technology, high-technology and other equipment. The cash generated during
the Partnership's Operating Phase from such investments was used to pay the
operating costs of the Partnership, make distributions to the limited partners
and the general partner (subject to certain limitations) and reinvest in
additional finance leases. During the Partnership's Liquidating Phase, which
began October 1, 1996, the cash generated from such investments is used to pay
the liquidating costs of the Partnership and make cash distributions to the
limited partners and the general partner (subject to certain limitations).
Concurrent with the commencement of the Liquidating Phase, the Partnership began
the orderly liquidation of the Partnership's assets.

A presentation of information about industry segments, geographic regions, raw
materials or seasonality is not applicable and would not be material to an
understanding of the Partnership's business taken as a whole. Since the
Partnership ceased investing in leases effective October 1995, a discussion of
sources and availability of leases, backlog and competition is not material to
an understanding of the Partnership's future activity.

The Partnership has no employees. LRC, the General Partner, employed 34 persons
at December 31, 1997 all of whom attend to the operations of the Datronic
Partnerships.



                                        2
<PAGE>   3
ITEM 2 - PROPERTIES

The Partnership's operations are located in leased premises of approximately
15,000 square feet in Schaumburg, Illinois.

LRC occupies approximately 3,800 square feet of office space in Schaumburg,
Illinois in a real estate property that is a Recovered Asset (see Part II, Item
8, Note 4) held for the benefit of the Datronic Partnerships.

ITEM 3 - LEGAL PROCEEDINGS

Reference is made to Part II, Item 8, Note 7 for a discussion of material legal
proceedings involving the Partnership.

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

No matters were submitted to a vote of limited partners during the fourth
quarter of the fiscal year covered by this report through the solicitation of
proxies or otherwise.




                                        3
<PAGE>   4
                                     PART II

ITEM 5 - MARKET FOR THE REGISTRANT'S LIMITED PARTNERSHIP UNITS AND
RELATED LIMITED PARTNER AND GENERAL PARTNER MATTERS

             Market Information

The Units are not listed on any exchange or national market system, and there is
no established public trading market for the Units. To the best of LRC's
knowledge, no trading market exists for the Units that would jeopardize the
Partnership's status for federal income tax purposes.

As of December 31, 1997, the Partnership estimates that there were approximately
1,765 record owners of Units.

             Distributions

Reference is made to Part II, Item 8, Notes 6 and 9 for a discussion of Classes
of Limited Partners and distributions paid to limited partners and the general
partner.

ITEM 6 - SELECTED FINANCIAL DATA

The following table sets forth selected financial data as of December 31, 1997,
1996, 1995, 1994, and 1993 and for the five years then ended. The amounts
presented are aggregated for all Classes (A, B, and C) of Limited Partners,
unless otherwise noted. This information should be read in conjunction with the
financial statements included in Item 8 which also reflects amounts for each of
the classes of limited partners.



                                        4
<PAGE>   5
Statement of Revenue and
 Expenses Data
 (in thousands, except for
  Unit amounts)
<TABLE>
<CAPTION>
                                                For the years ended December 31,
                                                --------------------------------
                               1997           1996           1995            1994         1993
                               ----           ----           ----            ----         ----
<S>                         <C>            <C>            <C>            <C>            <C>
Total revenue               $      381     $      659     $    1,177     $    1,367     $    2,362

Total expenses                     761          2,067          2,000          2,278          2,644
                            ----------     ----------     ----------     ----------     ----------

Net earnings (loss)               (380)    $   (1,408)    $     (823)    $     (911)    $     (282)
                            ==========     ==========     ==========     ==========     ==========

Net earnings (loss)
 per Unit

 Class A                         (9.37)    $   (25.07)    $   (13.64)    $   (15.21)    $     1.74
                            ==========     ==========     ==========     ==========     ==========
 Class B                         (6.03)    $   (23.76)    $   (14.05)    $   (15.53)    $    (5.78)
                            ==========     ==========     ==========     ==========     ==========
 Class C                         (6.03)    $   (23.76)    $   (14.05)    $   (15.53)    $    (5.78)
                            ==========     ==========     ==========     ==========     ==========


Distributions per Unit
 (per year)

 Class A                          --       $     --       $     4.20     $   114.44     $   134.42
                            ==========     ==========     ==========     ==========     ==========
 Class B                         15.44     $    30.26     $    56.00     $    62.49     $    62.45
                            ==========     ==========     ==========     ==========     ==========
 Class C                         12.21     $    28.78     $    56.00     $    62.49     $    62.45
                            ==========     ==========     ==========     ==========     ==========

Weighted average number
 of Units outstanding

 Class A                         7,699          7,699          7,699          7,699          7,699
                            ==========     ==========     ==========     ==========     ==========
 Class B                        50,475         50,475         50,475         50,475         50,475
                            ==========     ==========     ==========     ==========     ==========
 Class C                            60             60             60             60             60
                            ==========     ==========     ==========     ==========     ==========
</TABLE>


Balance Sheet Data
 (in thousands, except)
  for unit amounts
<TABLE>
<CAPTION>
                                                 As of December 31,
                        ----------------------------------------------------------------------
                           1997           1996           1995           1994           1993
                           ----           ----           ----           ----           ----
<S>                     <C>            <C>            <C>            <C>            <C>
Total assets            $    4,516     $    5,857     $    9,003     $   12,870     $   17,840
                        ==========     ==========     ==========     ==========     ==========

Total liabilities       $       84     $      262     $      450     $      552     $      504
                        ==========     ==========     ==========     ==========     ==========

Partners' equity        $    4,432     $    5,595     $    8,553     $   12,318     $   17,336
                        ==========     ==========     ==========     ==========     ==========

Book value per Unit

  Class A               $    60.86     $    70.23     $    95.30     $   112.15     $   242.91
                        ==========     ==========     ==========     ==========     ==========
  Class B               $    83.72     $   105.18     $   159.18     $   228.04     $   307.32
                        ==========     ==========     ==========     ==========     ==========
  Class C               $    92.44     $   113.90     $   167.90     $   236.76     $   316.04
                        ==========     ==========     ==========     ==========     ==========
</TABLE>



                                        5
<PAGE>   6
ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

The following discussion and analysis presents information pertaining to the
Partnership's operating results and financial condition.

Results of Operations

The Partnership had a net loss of $381,000 in 1997 in the aggregate for all
classes of partners. This compares to aggregate net losses in 1996 and 1995 of
$1,408,000 and $823,000, respectively. Differences in operating results between
Liquidating and Continuing Limited Partners are attributable to lease income,
acquisition costs, and expenses associated with new lease investments made since
the March 4, 1993 Settlement. Liquidating Limited Partners do not participate in
these post Settlement activities. Significant factors affecting overall
operating results for the three years ended December 31, 1997 include the
following:

Lease income:
Since October 1996, the Partnership has been in its Liquidation Phase which
prohibits investing in any new leases. Accordingly, the lease portfolio has
continued to decrease as collections are made, resulting in a continued decline
in lease income over the three years ended December 31, 1997. This trend will
continue as the Partnership liquidates its remaining leases. An additional
factor affecting year-to-year comparisons was a $85,000 reduction of lease
income in 1996 due to the return of lease overpayments that were recognized as
revenue in earlier periods.

Settlement proceeds:
Settlement proceeds in 1995 reflect the settlement with the Datronic
Partnerships' former attorneys (see Note 7(a)(i) to the Partnership's financial
statements included in Item 8).

Interest income:
Interest income for all three years includes earnings on invested cash balances.
In addition, 1996 includes interest of $54,000 previously earned on restricted
cash balances.

Amortization expense:
Amortization of organization and equipment acquisition costs ended as of
September 1996 when these costs became fully amortized.

Management fees - New Era:
These fees were paid to New Era Funding for managing the day-to-day operations
of the Partnership under a Management Agreement that was terminated effective
June 30, 1996. Accordingly, 1997 reflects no New Era management fees and 1996
results reflect only six months of such fees plus $550,000 in termination and
non-compete fees. Effective July 1, 1996, LRC assumed responsibility for the
day-to-day management



                                        6
<PAGE>   7
of the Partnership and the related expenses are included
in General Partner's expense reimbursement (see Note 8 to the Partnership's
financial statements included in Item 8).

General Partner's expense reimbursement:
General Partner's expense reimbursement includes payments to LRC for expenses it
incurred as general partner in excess of those covered by its partner
distributions. Effective July 1, 1996, these expenses include additional
expenses incurred by LRC in its management of the day-to-day operations of the
Partnership. As a result of these additional expenses, the General Partner's
expense reimbursement shows a year-to-year increase for the three years ended
December 31, 1997. Partially offsetting these increases are the effects of staff
reductions and other cost savings realized during 1997 and the second half of
1996. 1997 expenses also include $35,000 of insurance premiums for coverage that
extends through the ultimate liquidation of the Partnership and $19,000 of
one-time charges for relocating the former New Era staff to reduced office
space. See Note 9 to the Partnership's financial statements included in Item 8.

Professional fees - Litigation:
This represents fees paid in connection with the Partnership's litigation which
is described in Note 7 to the Partnership's financial statements included in
Item 8. The 1997 increase reflects fees paid in connection with the ongoing
litigation against the Partnership's former accountants which is presently
scheduled for trial in May of 1998. The 1995 expense includes fees paid in
connection with a settlement with the Partnership's former attorneys.

Professional fees - Other:
These fees, generally, show a year-to-year decrease for the three years ended
December 31, 1997 because of the decreasing level of professional services
required in such areas as collections, consulting, accounting and auditing.
These decreases are the result of the decrease in the Partnership's lease
portfolio and related activities.

Other operating expenses:
This represents general administrative expenses which are decreasing with the
declining size of the lease portfolio.

Provision for lease loss:
This provision reflects Management's ongoing assessment of the potential losses
inherent in the lease portfolio.

Provision (credit) for loss on Diverted and other assets:
This provision (credit) reflects Management's ongoing assessment of the net     
realizable value of various assets held for the benefit of this and the other
Datronic Partnerships. The credit in 1997 reflects a recovery of amounts
previously reserved for loss in 1995 in connection with a decrease in the
estimated net realizable value of



                                        7
<PAGE>   8
one of the Diverted and other assets. Because of the fluctuating nature of real
estate values and the inherent difficulty of estimating the affects of future
events, the amounts ultimately realized from these assets could differ
significantly from their recorded amounts.


Liquidity and Capital Resources

During 1997, Partnership assets continued to be converted to cash in order to
pay Partnership operating expenses, liquidate Partnership liabilities, and
increase cash balances to provide cash reserves for the ultimate liquidation of
the Partnership.

The Partnership's sources of liquidity on both a long-term and short-term basis
are expected to come principally from cash-on-hand and cash receipts from leases
owned by the Partnership. The lease portfolio is scheduled to be run out by the
end of 2000, unless it is determined that it is in the Partnership's best
interest to dispose of the remaining portfolio earlier through a bulk sale. In
addition, the Partnership's sources of liquidity on a long-term basis include
proceeds from the sale of Diverted and other assets. Management believes that
its sources of liquidity in the short and long-term are sufficient to meet its
operating cash requirements, provide for ongoing pursuit of litigation, and an
orderly liquidation of the Partnership.

During 1997, the Partnership's cash and cash equivalents increased by $258,000
to $1,879,000 at December 31, 1997 from $1,621,000 at December 31, 1996. This
increase is primarily due to cash receipts from collections on leases of
$1,663,000, partially offset by cash used in operations of $622,000 and
distributions to partners of $783,000.

The continued operation and eventual liquidation of the Partnership involves
numerous complex issues which have to be resolved. These issues relate to the
timing and realizability of lease-related assets, Diverted and other assets,
Datronic Assets, litigation and the liquidation of the other Datronic
Partnerships. These issues make it difficult to predict the time and cost
necessary to operate and liquidate the Partnership in an orderly manner. As a
result of these uncertainties, it is unlikely that any additional distributions
will be made until all remaining assets are liquidated and the pending
litigation is resolved. The amount of future distributions, if any, to the
Limited Partners, in all likelihood, will be significantly less than the amount
of partners' equity reflected in the December 31, 1997 balance sheets (see
Partnership's financial statements included in Item 8).



                                        8
<PAGE>   9
Impact of Inflation and Changing Prices

Inflation is not expected to have any significant direct, determinable effect on
the Partnership's business or financial condition.

Impact of Year 2000 Issue

LRC has conducted a comprehensive review of the computer systems used to support
the Partnership's operations to determine whether any systems could be affected
by the Year 2000 Issue. The Year 2000 Issue relates to computer programs that
use two digits rather than four to define the year. This could cause
date-sensitive software to recognize the digits "00" as the year 1900 rather
than 2000. LRC does not expect the Partnership to be affected by the Year 2000
Issue because the systems used to support the Partnership's operations are
already substantially able to meet the reduced operating requirements, if any,
of the Partnership in the Year 2000.


                                        9
<PAGE>   10
ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
                                                                            Page(s)
                                                                            -------
<S>                                                                          <C>
Audited Financial Statements:

         Independent Auditors' Report                                        11-12

         Balance Sheets
             In Total for All Classes
             of Limited Partners at December 31,
             1997 and 1996                                                      13

             By Class of Limited Partner
               December 31, 1997                                                14

               December 31, 1996                                                15

         Statements of Revenue and Expenses
             In Total for All Classes of Limited Partners
             for the years ended December 31,
             1997, 1996 and 1995                                                16

             By Class of Limited Partner for the years ended
               December 31, 1997                                                17

               December 31, 1996                                                18

               December 31, 1995                                                19

         Statements of Changes in Partners' Equity
             for the years ended December 31,
             1997, 1996, and 1995                                               20

         Statements of Cash Flows
             In Total for All Classes of Limited Partners
             for the years ended December 31,
             1997, 1996 and 1995                                                21

             By Class of Limited Partner for the years ended
               December 31, 1997                                                22

               December 31, 1996                                                23

               December 31, 1995                                                24

         Notes to Financial Statements                                       25-38
</TABLE>


                                       10
<PAGE>   11
                          INDEPENDENT AUDITORS' REPORT



The Partners of Datronic
Finance Income Fund I, L.P.

We have audited the accompanying balance sheets in total for all classes of
limited partners of DATRONIC FINANCE INCOME FUND I, L.P. ("the Partnership") as
of December 31, 1997 and 1996 and the related statements of revenue and expenses
in total for all classes of limited partners, of changes in partners' equity and
of cash flows in total for all classes of limited partners for each of the three
years in the period ended December 31, 1997. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.

We conducted our audits in accordance with 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.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the Partnership as of December
31, 1997 and 1996, and the results of its operations in total for all classes of
limited partners and its cash flows in total for all classes of limited partners
for each of the three years in the period ended December 31, 1997 in conformity
with generally accepted accounting principles.

Our audits were made for the purpose of forming an opinion on the Partnership's
financial statements taken as a whole. As described in Note 2, the accounting
records of the Partnership are maintained to reflect the interests of each of
the classes of limited partners. Additional information consisting of the
balance sheets by class of limited partner as of December 31, 1997 and 1996, the
statements of revenue and expenses by class of limited partner and the
statements of cash flows by class of limited partner for the three years in the
period ended December 31, 1997 have been prepared by management solely for the
information of the limited partners and are not a required part of the financial
statements. This additional information has been subjected to the auditing
procedures applied in the audit of the Partnership's financial statements and,
in our opinion, has been allocated to the respective classes of limited partners
in accordance with the terms of the Amended Partnership Agreement described in
Note


                                       11
<PAGE>   12
9 and is fairly stated in all material respects in relation to the Partnership's
financial statements taken as a whole.

As explained more fully in Notes 1 and 4, the former President and Majority
Stockholder of Datronic Rental Corporation ("DRC"), the general partner of the
Partnership until March 4, 1993, and others are alleged to have diverted, for
their benefit, approximately $13 million from the Partnership and related
entities--Datronic Equipment Income Funds XVI, XVII, XVIII, XIX, XX, L.P., and
Transamerica Equipment Leasing Income Fund, L.P. (collectively "the
Partnerships"). Substantially all of the assets known to have been improperly
acquired with the diverted funds have been recovered for the benefit of the
Partnerships.




Altschuler, Melvoin and Glasser LLP

Chicago, Illinois
March 6, 1998

                                       12
<PAGE>   13
                      DATRONIC FINANCE INCOME FUND I, L.P.
                                 BALANCE SHEETS
                  IN TOTAL FOR ALL CLASSES OF LIMITED PARTNERS

<TABLE>
<CAPTION>
                                            December 31,
                                     -------------------------
                                        1997            1996
                                     ----------     ----------
<S>                                  <C>            <C>
ASSETS

Cash and cash equivalents            $1,879,490     $1,621,229
Due from management company                --           37,353
Net investment in direct
  financing leases                    1,440,939      3,103,928
Diverted and other assets, net        1,195,081      1,094,533
Datronic assets, net                       --             --
                                     ----------     ----------

                                     $4,515,510     $5,857,043
                                     ==========     ==========


LIABILITIES AND PARTNERS' EQUITY

Accounts payable and
  accrued expenses                   $   18,455     $   63,423
Lessee rental deposits                   65,035        198,095
                                     ----------     ----------

     Total liabilities                   83,490        261,518

Total Partners' equity                4,432,020      5,595,525
                                     ----------     ----------

                                     $4,515,510     $5,857,043
                                     ==========     ==========
</TABLE>


                See accompanying notes to financial statements.

                                       13
<PAGE>   14
                      DATRONIC FINANCE INCOME FUND I, L.P.
                                 BALANCE SHEETS
                           By Class of Limited Partner

<TABLE>
<CAPTION>
                                                   December 31, 1997
                                       --------------------------------------------
                                       Liquidating      Continuing
                                         Limited         Limited
                                        Partners         Partners          Total
                                       ----------       ----------       ----------
<S>                                    <C>              <C>              <C>
ASSETS

Cash and cash equivalents              $  294,408       $1,585,082       $1,879,490
Net investment in direct
  financing leases                          3,412        1,437,527        1,440,939
Diverted and other assets, net            157,990        1,037,091        1,195,081
Datronic assets, net                         --               --               --
                                       ----------       ----------       ----------

                                       $  455,810       $4,059,700       $4,515,510
                                       ==========       ==========       ==========

LIABILITIES AND PARTNERS' EQUITY

Accounts payable and
  accrued expenses                     $    1,197       $   17,258       $   18,455
Lessee rental deposits                      6,069           58,966           65,035
                                       ----------       ----------       ----------

    Total liabilities                       7,266           76,224           83,490

Total Partners' equity                    448,544        3,983,476        4,432,020
                                       ----------       ----------       ----------

                                       $  455,810       $4,059,700       $4,515,510
                                       ==========       ==========       ==========
</TABLE>


                See accompanying notes to financial statements.

                                       14
<PAGE>   15
                      DATRONIC FINANCE INCOME FUND I, L.P.
                                 BALANCE SHEETS
                           By Class of Limited Partner

<TABLE>
<CAPTION>
                                                   December 31, 1996
                                       ---------------------------------------------
                                       Liquidating     Continuing
                                          Limited         Limited
                                         Partners        Partners          Total
                                       ----------       ----------       ----------
<S>                                    <C>              <C>              <C>

ASSETS

Cash and cash equivalents              $  388,154       $1,233,075       $1,621,229
Due from management company                 3,725           33,628           37,353
Net investment in direct
  financing leases                         12,084        3,091,844        3,103,928
Diverted and other assets, net            144,697          949,836        1,094,533
Datronic assets, net                         --               --               --
                                       ----------       ----------       ----------

                                       $  548,660       $5,308,383       $5,857,043
                                       ==========       ==========       ==========

LIABILITIES AND PARTNERS' EQUITY

Accounts payable and
  accrued expenses                     $    7,019       $   56,404       $   63,423
Lessee rental deposits                     20,240          177,855          198,095
                                       ----------       ----------       ----------

     Total liabilities                     27,259          234,259          261,518

Total Partners' equity                    521,401        5,074,124        5,595,525
                                       ----------       ----------       ----------

                                       $  548,660       $5,308,383       $5,857,043
                                       ==========       ==========       ==========
</TABLE>



                See accompanying notes to financial statements.

                                       15
<PAGE>   16
                      DATRONIC FINANCE INCOME FUND I, L.P.
                       STATEMENTS OF REVENUE AND EXPENSES
                  IN TOTAL FOR ALL CLASSES OF LIMITED PARTNERS

<TABLE>
<CAPTION>
                                                For the years ended December 31,
                                             1997               1996              1995
                                         -----------        -----------        -----------
<S>                                      <C>                <C>                <C>

Revenue:
  Lease income                           $   311,239        $   525,104        $ 1,013,201
  Settlement proceeds                           --                 --              124,035
  Interest income                             69,525            133,505             39,299
                                         -----------        -----------        -----------

                                             380,764            658,609          1,176,535
                                         -----------        -----------        -----------

Expenses:
  Amortization of organization and
    lease acquisition costs                     --              179,532            239,378
  Management fees-New Era                       --              955,112          1,123,632
  General Partner's
    expense reimbursement                    597,112            315,864             43,699
  Professional fees-Litigation               109,850             77,894            117,599
  Professional fees-Other                    132,837            188,782            186,496
  Other operating expenses                    22,124             27,414             41,593
  Provision for lease losses                    --              250,000             14,034
  Provision (credit) for loss on
    Diverted and other assets               (100,548)            71,820            233,415
                                         -----------        -----------        -----------

                                             761,375          2,066,418          1,999,846
                                         -----------        -----------        -----------

Net loss                                 $  (380,611)       $(1,407,809)       $  (823,311)
                                         ===========        ===========        ===========

Net loss-General Partner                 $    (3,807)       $   (14,078)       $    (8,233)
                                         ===========        ===========        ===========

Net loss-Limited Partners                $  (376,804)       $(1,393,731)       $  (815,078)
                                         ===========        ===========        ===========
</TABLE>


                See accompanying notes to financial statements.

                                       16
<PAGE>   17
                      DATRONIC FINANCE INCOME FUND I, L.P.
                       STATEMENTS OF REVENUE AND EXPENSES
                           BY CLASS OF LIMITED PARTNER
                      For the year ended December 31, 1997

<TABLE>
<CAPTION>

                                        Liquidating      Continuing
                                          Limited         Limited
                                          Partners        Partners           Total
                                         ---------        ---------        ---------
<S>                                      <C>              <C>              <C>
Revenue:
  Lease income                           $   1,100        $ 310,139        $ 311,239
  Interest income                            6,961           62,564           69,525
                                         ---------        ---------        ---------

                                             8,061          372,703          380,764
                                         ---------        ---------        ---------

Expenses:
  General Partner's
    expense reimbursement                   61,792          535,320          597,112
  Professional fees-Litigation              14,522           95,328          109,850
  Professional fees-Other                   15,128          117,709          132,837
  Other operating expenses                   2,769           19,355           22,124
  Credit for loss on Diverted
    and other assets                       (13,293)         (87,255)        (100,548)
                                         ---------        ---------        ---------

                                            80,918          680,457          761,375
                                         ---------        ---------        ---------

Net loss                                 $ (72,857)       $(307,754)       $(380,611)
                                         =========        =========        =========

Net loss-General Partner                 $    (729)       $  (3,078)       $  (3,807)
                                         =========        =========        =========

Net loss-Limited Partners                $ (72,128)       $(304,676)       $(376,804)
                                         =========        =========        =========

Net loss per Limited Partnership
  unit                                   $   (9.37)       $   (6.03)
                                         =========        =========

Weighted average number of limited
  partnership units outstanding              7,699           50,535
                                         =========        =========
</TABLE>



                See accompanying notes to financial statements.

                                       17
<PAGE>   18
                      DATRONIC FINANCE INCOME FUND I, L.P.
                       STATEMENTS OF REVENUE AND EXPENSES
                           BY CLASS OF LIMITED PARTNER
                      For the year ended December 31, 1996

<TABLE>
<CAPTION>
                                                            Liquidating       Continuing
                                                             Limited           Limited
                                                             Partners          Partners            Total
                                                            -----------       -----------        -----------
<S>                                                          <C>              <C>                <C>
Revenue:
  Lease income                                               $  (5,123)       $   530,227        $   525,104
  Interest income                                               10,211            123,294            133,505
                                                             ---------        -----------        -----------

                                                                 5,088            653,521            658,609
                                                             ---------        -----------        -----------

Expenses:
  Amortization of organization
    and lease acquisition costs                                 23,734            155,798            179,532
  Management fees-New Era                                       96,922            858,190            955,112
  General Partner's
    expense reimbursement                                       34,044            281,820            315,864
  Professional fees-Litigation                                  10,298             67,596             77,894
  Professional fees-Other                                       22,538            166,244            188,782
  Other operating expenses                                       3,024             24,390             27,414
  Provision for lease losses                                      -               250,000            250,000
  Provision for loss on Diverted
    and other assets                                             9,494             62,326             71,820
                                                             ---------        -----------        -----------

                                                               200,054          1,866,364          2,066,418
                                                             ---------        -----------        -----------

Net loss                                                     $(194,966)       $(1,212,843)       $(1,407,809)
                                                             =========        ===========        ===========

Net loss-General Partner                                     $  (1,950)       $   (12,128)       $   (14,078)
                                                             =========        ===========        ===========

Net loss-Limited Partners                                    $(193,016)       $(1,200,715)       $(1,393,731)
                                                             =========        ===========        ===========

Net loss per Limited Partnership
  unit                                                         $(25.07)           $(23.76)
                                                               =======            =======

Weighted average number of limited
  partnership units outstanding                                  7,699             50,535
                                                               =======            =======
</TABLE>



                See accompanying notes to financial statements.

                                       18
<PAGE>   19
                      DATRONIC FINANCE INCOME FUND I, L.P.
                       STATEMENTS OF REVENUE AND EXPENSES
                           BY CLASS OF LIMITED PARTNER
                      For the year ended December 31, 1995

<TABLE>
<CAPTION>
                                            Liquidating        Continuing
                                             Limited            Limited
                                             Partners           Partners            Total
                                            -----------        -----------        -----------
<S>                                         <C>                <C>                <C>

Revenue:
  Lease income                              $    23,052        $   990,149        $ 1,013,201
  Settlement proceeds                            16,397            107,638            124,035
  Interest income                                 3,089             36,210             39,299
                                            -----------        -----------        -----------

                                                 42,538          1,133,997          1,176,535
                                            -----------        -----------        -----------
Expenses:
  Amortization of organization
    and lease acquisition costs                  31,645            207,733            239,378
  Management fees-New Era                        77,692          1,045,940          1,123,632
  General Partner's
    expense reimbursement                         5,777             37,922             43,699
  Professional fees-Litigation                   15,547            102,052            117,599
  Professional fees-Other                        22,466            164,030            186,496
  Other operating expenses                        2,654             38,939             41,593
  Provision (credit) for lease losses           (38,002)            52,036             14,034
  Provision for loss on Diverted
    and other assets                             30,858            202,557            233,415
                                            -----------        -----------        -----------

                                                148,637          1,851,209          1,999,846
                                            -----------        -----------        -----------

Net loss                                    $  (106,099)       $  (717,212)       $  (823,311)
                                            ===========        ===========        ===========

Net loss-General Partner                    $    (1,061)       $    (7,172)       $    (8,233)
                                            ===========        ===========        ===========

Net loss-Limited Partners                   $  (105,038)       $  (710,040)       $  (815,078)
                                            ===========        ===========        ===========

Net loss per Limited Partnership
  unit                                      $    (13.64)       $    (14.05)
                                            ===========        ===========

Weighted average number of limited
  partnership units outstanding                   7,699             50,535
                                            ===========        ===========
</TABLE>



                See accompanying notes to financial statements.

                                       19
<PAGE>   20
                      DATRONIC FINANCE INCOME FUND I, L.P.
                    STATEMENTS OF CHANGES IN PARTNERS' EQUITY
                   For the three years ended December 31, 1997

<TABLE>
<CAPTION>
                                                 Liquidating        Continuing
                                   General        Limited            Limited             Total
                                  Partner's       Partners'          Partners'          Partners'
                                   Equity          Equity             Equity             Equity
                                  ---------      -----------        -----------        ----------

<S>                               <C>             <C>              <C>                 <C>
Balance, December 31, 1994        $   --          $ 856,572        $ 11,461,129        $ 12,317,701

  Distributions to partners        (79,749)         (32,336)         (2,829,845)         (2,941,930)
  Net loss                          (8,233)        (105,038)           (710,040)           (823,311)
  Allocation of General
    Partner's Equity                87,982           (2,831)            (85,151)               --
                                  --------        ---------        ------------        ------------

Balance, December 31, 1995            --            716,367           7,836,093           8,552,460
                                  --------        ---------        ------------        ------------

  Distributions to partners        (21,028)            --            (1,528,098)         (1,549,126)
  Net loss                         (14,078)        (193,016)         (1,200,715)         (1,407,809)
  Allocation of General
    Partner's Equity                35,106           (1,950)            (33,156)               --
                                  --------        ---------        ------------        ------------

Balance, December 31, 1996            --            521,401           5,074,124           5,595,525
                                  --------        ---------        ------------        ------------

  Distributions to partners         (2,895)            --              (779,999)           (782,894)
  Net loss                          (3,807)         (72,128)           (304,676)           (380,611)
  Allocation of General
    Partner's Equity                 6,702             (729)             (5,973)               --
                                  --------        ---------        ------------        ------------


Balance, December 31, 1997        $   --          $ 448,544        $  3,983,476        $  4,432,020
                                  ========        =========        ============        ============
</TABLE>


                See accompanying notes to financial statements.

                                       20
<PAGE>   21
                      DATRONIC FINANCE INCOME FUND I, L.P.
                            STATEMENTS OF CASH FLOWS
                  IN TOTAL FOR ALL CLASSES OF LIMITED PARTNERS

<TABLE>
<CAPTION>
                                                    For the years ended December 31,
                                            -------------------------------------------------
                                                1997               1996              1995
                                            -----------        -----------        -----------
<S>                                         <C>                <C>                <C>
Cash flows from operating activities:
  Net loss                                  $  (380,611)       $(1,407,809)       $  (823,311)
  Adjustments to reconcile net
    loss to net cash used in
      operating activities:
      Amortization expense                         --              179,532            239,378
      Provision for lease losses                   --              250,000             14,034
      Provision (credit) for loss on
        Diverted and other assets              (100,548)            71,820            233,415
      Changes in assets and
          liabilities:
        Accounts payable and
          accrued expenses                      (44,968)            (7,833)            (5,709)
        Lessee rental deposits                 (133,060)          (180,498)           (94,433)
        Due to/from management
          company                                37,353            (37,633)            (2,173)
                                            -----------        -----------        -----------

                                               (621,834)        (1,132,421)          (438,799)
                                            -----------        -----------        -----------

Cash flows from investing activities:
  Purchases of lease receivables                   --                 --           (5,076,374)
  Principal collections on leases             1,662,989          2,417,946          3,680,778
  Sales of leases                                  --                 --            3,732,404
  Distribution of Diverted and
     other assets                                  --                 --              431,402
  Distribution of Datronic assets                  --                 --               40,088
  Release of restricted cash                       --              335,572               --
                                            -----------        -----------        -----------

                                              1,662,989          2,753,518          2,808,298
                                            -----------        -----------        -----------

Cash flows from financing activities:
  Distributions to Limited Partners            (779,999)        (1,528,098)        (2,862,181)
  Distributions to General Partner               (2,895)           (21,028)           (79,749)
                                            -----------        -----------        -----------

                                               (782,894)        (1,549,126)        (2,941,930)
                                            -----------        -----------        -----------

Net increase (decrease) in
   cash and cash equivalents                    258,261             71,971           (572,431)
Cash and cash equivalents:
  Beginning of year                           1,621,229          1,549,258          2,121,689
                                            -----------        -----------        -----------

  End of year                               $ 1,879,490        $ 1,621,229        $ 1,549,258
                                            ===========        ===========        ===========
</TABLE>


                See accompanying notes to financial statements.

                                       21
<PAGE>   22
                      DATRONIC FINANCE INCOME FUND I, L.P.
                            STATEMENTS OF CASH FLOWS
                           BY CLASS OF LIMITED PARTNER
                      For the year ended December 31, 1997

<TABLE>
<CAPTION>
                                            Liquidating        Continuing
                                              Limited            Limited
                                              Partners           Partners            Total
                                            -----------        -----------        -----------
<S>                                         <C>                <C>                <C>
Cash flows from operating activities:
  Net loss                                  $   (72,857)       $  (307,754)       $  (380,611)
  Adjustments to reconcile
    net loss to net cash used
    in operating activities:
      Credit for loss on
        Diverted and other assets               (13,293)           (87,255)          (100,548)
      Changes in assets and
        liabilities:
        Accounts payable and
          accrued expenses                       (5,822)           (39,146)           (44,968)
        Lessee rental deposits                  (14,171)          (118,889)          (133,060)
        Due to/from management
          company                                 3,725             33,628             37,353
                                            -----------        -----------        -----------

                                               (102,418)          (519,416)          (621,834)
                                            -----------        -----------        -----------

Cash flows from investing activities:
  Principal collections on leases                 8,672          1,654,317          1,662,989
                                            -----------        -----------        -----------

                                                  8,672          1,654,317          1,662,989
                                            -----------        -----------        -----------

Cash flows from financing activities:
  Distributions to Limited Partners                --             (779,999)          (779,999)
  Distributions to General Partner                 --               (2,895)            (2,895)
                                            -----------        -----------        -----------

                                                   --             (782,894)          (782,894)
                                            -----------        -----------        -----------

Net increase (decrease) in cash
  and cash equivalents                          (93,746)           352,007            258,261
Cash and cash equivalents:
  Beginning of year                             388,154          1,233,075          1,621,229
                                            -----------        -----------        -----------

  End of year                               $   294,408        $ 1,585,082        $ 1,879,490
                                            ===========        ===========        ===========
</TABLE>



                See accompanying notes to financial statements.

                                       22
<PAGE>   23
                      DATRONIC FINANCE INCOME FUND I, L.P.
                            STATEMENTS OF CASH FLOWS
                           BY CLASS OF LIMITED PARTNER
                      For the year ended December 31, 1996

<TABLE>
<CAPTION>
                                            Liquidating        Continuing
                                              Limited            Limited
                                             Partners            Partners            Total
                                            -----------        -----------        -----------
<S>                                         <C>                <C>                <C>
Cash flows from operating activities:
  Net loss                                  $  (194,966)       $(1,212,843)       $(1,407,809)
  Adjustments to reconcile
    net loss to net cash used
    in operating activities:
      Amortization expense                       23,734            155,798            179,532
      Provision for lease
        losses                                     --              250,000            250,000
      Provision for loss on
        Diverted and other assets                 9,494             62,326             71,820
      Changes in assets and
        liabilities:
        Accounts payable and
          accrued expenses                         (915)            (6,918)            (7,833)
        Lessee rental deposits                  (20,246)          (160,252)          (180,498)
        Due to/from management
          company                                (3,762)           (33,871)           (37,633)
                                            -----------        -----------        -----------

                                               (186,661)          (945,760)        (1,132,421)
                                            -----------        -----------        -----------

Cash flows from investing activities:
  Principal collections on leases                60,555          2,357,391          2,417,946
  Release of restricted cash                     44,363            291,209            335,572
                                            -----------        -----------        -----------

                                                104,918          2,648,600          2,753,518
                                            -----------        -----------        -----------

Cash flows from financing activities:
  Distributions to Limited Partners                --           (1,528,098)        (1,528,098)
  Distributions to General Partner                 --              (21,028)           (21,028)
                                            -----------        -----------        -----------

                                                   --           (1,549,126)        (1,549,126)
                                            -----------        -----------        -----------

Net increase (decrease) in
  cash and cash equivalents                     (81,743)           153,714             71,971
Cash and cash equivalents:
  Beginning of year                             469,897          1,079,361          1,549,258
                                            -----------        -----------        -----------

  End of year                               $   388,154        $ 1,233,075        $ 1,621,229
                                            ===========        ===========        ===========
</TABLE>



                See accompanying notes to financial statements.

                                       23
<PAGE>   24
                      DATRONIC FINANCE INCOME FUND I, L.P.
                            STATEMENTS OF CASH FLOWS
                           BY CLASS OF LIMITED PARTNER
                      For the year ended December 31, 1995

<TABLE>
<CAPTION>
                                             Liquidating       Continuing
                                               Limited           Limited
                                              Partners           Partners            Total
                                            -----------        -----------        -----------
<S>                                         <C>                <C>                <C>
Cash flows from operating activities:
  Net loss                                  $  (106,099)       $  (717,212)       $  (823,311)
  Adjustments to reconcile
    net loss to net cash used
    in operating activities:
      Amortization expense                       31,645            207,733            239,378
      Provision (credit) for
        lease losses                            (38,002)            52,036             14,034
      Provision for loss on
        Diverted and other assets                30,858            202,557            233,415
      Changes in assets and
        liabilities:
        Accounts payable and
          accrued expenses                         (267)            (5,442)            (5,709)
        Lessee rental deposits                  (12,162)           (82,271)           (94,433)
        Due to/from management
          company                                   (80)            (2,093)            (2,173)
                                            -----------        -----------        -----------

                                                (94,107)          (344,692)          (438,799)
                                            -----------        -----------        -----------

Cash flows from investing activities:
  Purchases of lease receivables                   --           (5,076,374)        (5,076,374)
  Principal collections on leases               197,486          3,483,292          3,680,778
  Sales of leases                                18,025          3,714,379          3,732,404
  Distribution of Diverted and
    other assets                                 57,031            374,371            431,402
  Distribution of Datronic assets                 5,300             34,788             40,088
                                            -----------        -----------        -----------

                                                277,842          2,530,456          2,808,298
                                            -----------        -----------        -----------

Cash flows from financing activities:
  Distributions to Limited Partners             (32,336)        (2,829,845)        (2,862,181)
  Distributions to General Partner               (1,770)           (77,979)           (79,749)
                                            -----------        -----------        -----------

                                                (34,106)        (2,907,824)        (2,941,930)
                                            -----------        -----------        -----------

Net increase (decrease) in
  cash and cash equivalents                     149,629           (722,060)          (572,431)
Cash and cash equivalents:
  Beginning of year                             320,268          1,801,421          2,121,689
                                            -----------        -----------        -----------

  End of year                               $   469,897        $ 1,079,361        $ 1,549,258
                                            ===========        ===========        ===========
</TABLE>



                See accompanying notes to financial statements.

                                       24
<PAGE>   25
                      DATRONIC FINANCE INCOME FUND I, L.P.
                        NOTES TO THE FINANCIAL STATEMENTS
                        DECEMBER 31, 1997, 1996, AND 1995

NOTE 1 - ORGANIZATION:

Datronic Finance Income Fund I, L.P., a Delaware Limited Partnership (the
"Partnership"), was formed on November 21, 1990 for the purpose of acquiring and
leasing both high- and low-technology equipment. Through March 4, 1993, Datronic
Rental Corporation ("DRC") was the general partner of the Partnership and
Datronic Equipment Income Funds XVI, XVII, XVIII, XIX, and XX, (collectively,
the "Datronic Partnerships") and was co-general partner of Transamerica
Equipment Leasing Income Fund, L.P. ("TELIF").

In 1992, it was alleged that the chairman of DRC (who was also its president and
majority stockholder), in conjunction with various other parties, had
misappropriated and commingled $13.3 million of funds belonging to this and the
other Datronic Partnerships and TELIF. The Partnership's portion of these funds
was $1.9 million. In connection with a partial settlement of a class action
lawsuit arising from these allegations, Lease Resolution Corporation ("LRC")
replaced DRC as general partner of this and the other Datronic Partnerships on
March 4, 1993. LRC is a Delaware non-stock corporation formed for the sole
purpose of acting as general partner of the Datronic Partnerships.

On October 1, 1996, the Partnership began its Liquidation Phase under which it
has ceased investing in new leases and began the orderly liquidation of its
assets.


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

  BASIS OF FINANCIAL STATEMENTS - The accounting records of the Partnership are
being maintained to reflect the interests of each of the classes of limited
partners (see Note 9). Each class of limited partner is not a separate legal
entity holding title to individual assets nor the obligor of individual
liabilities. Accordingly, assets allocated to a specific class of limited
partner are available to settle claims of the Partnership as a whole. Additional
information consisting of the balance sheets by class of limited partner as of
December 31, 1997 and 1996, the statements of revenue and expenses by class of
limited partner and the statements of cash flows by class of limited partner for
the three years ended December 31, 1997 have been prepared to present
allocations of the various categories of assets, liabilities, revenue, expenses
and cash flows of the Partnership to each of the classes of limited partners in
accordance with the Amended Partnership Agreement. In addition, the general
partner's equity has been allocated to each class of limited partner for
purposes of additional information because the equity attributable to the
general


                                       25
<PAGE>   26
                      DATRONIC FINANCE INCOME FUND I , L.P.
                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

partner will be allocated to the limited partners upon final dissolution of the
Partnership. For purposes of this additional information, the interests of the
Class B and Class C Limited Partners have been combined as "Continuing Limited
Partners." At December 31, 1997, the amounts per Unit relating to these two
classes are identical with the exception that the per Unit value of Class C
Limited Partners is $8.72 per Unit higher than the Class B Limited Partners
because, in accordance with the 1993 Settlement, Class Counsel fees and expenses
related to the Settlement, net of Datronic Assets, were not allocated to the
Class C Limited Partners (see Note 5).

  CASH AND CASH EQUIVALENTS - Cash and cash equivalents consist principally of
overnight investments in high quality, short-term corporate demand notes
(commercial paper). Amounts due (to) from the general partner (LRC) and other
Datronic Partnerships are also included.

  NET INVESTMENT IN DIRECT FINANCING LEASES - Net investment in direct financing
leases consists of the present value of future minimum lease payments and
residuals under non-cancelable lease agreements. Residuals are valued at the
estimated fair market value of the underlying equipment at lease termination.

Leases are classified as non-performing when it is determined that the only
remaining course of collection is litigation. All balances relating to the lease
are netted together and no further income is accrued when a lease is classified
as non-performing.

Lease income includes interest earned on the present value of lease payments and
residuals (recognized over the term of the lease to yield a constant periodic
rate of return), late fees, and other lease related items.

  ALLOWANCE FOR LEASE LOSSES - An allowance is recorded to reflect estimated
losses inherent in the existing portfolio of leases. Additions to the allowance
are made by means of a provision for lease losses, which is charged to expense.
Recoveries of amounts previously reserved are reflected as credits to the
provision for lease loss. The amounts shown in the accompanying Statements of
Revenue and Expenses reflect the net effect of provisions and recoveries.
Write-offs are deducted from the allowance.

 DUE (TO) FROM GENERAL PARTNER AND OTHER DATRONIC PARTNERSHIPS - In the ordinary
course of the Partnership's day-to-day operations, there are occasions when the
general partner and/or other Datronic Partnerships owe amounts to, and are owed
amounts from, the Partnership. It is the Partnership's policy not to charge
(credit)


                                       26
<PAGE>   27
                      DATRONIC FINANCE INCOME FUND I , L.P.
                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

interest on these payable (receivable) balances and to include them as
cash equivalents.

  NET EARNINGS (LOSS) PER LIMITED PARTNERSHIP UNIT - Net earnings (loss) per
unit is based on net earnings (loss) after giving effect to a 1% allocation to
the general partner. The remaining 99% of net earnings (loss) for each of the
Liquidating and Continuing Limited Partners is divided by the weighted-average
number of units outstanding to arrive at net earnings (loss) per limited
partnership unit for each class of limited partner.

  USE OF ESTIMATES - In preparing financial statements in conformity with
generally accepted accounting principles, Management makes estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial
statements, as well as the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.


NOTE 3 - NET INVESTMENT IN DIRECT FINANCING LEASES:

The components of the net investment in direct financing leases at December 31,
1997 and 1996 are as follows:

<TABLE>
<CAPTION>
                                                       December 31, 1997
                                        -------------------------------------------------
                                        Liquidating        Continuing
                                          Limited            Limited
                                          Partners           Partners            Total
                                        -----------        -----------        -----------
<S>                                       <C>             <C>                <C>

Performing leases
  Minimum lease payments
    receivable                            $   --          $ 1,509,542        $ 1,509,542
  Unearned income                             --             (159,590)          (159,590)
                                          --------        -----------        -----------
Total performing leases                       --            1,349,952          1,349,952
Non-performing leases                       13,654          1,296,847          1,310,501
                                          --------        -----------        -----------
Net investment in direct
  financing leases before allowance         13,654          2,646,799          2,660,453
Allowance for lease losses                 (10,242)        (1,209,272)        (1,219,514)
                                          --------        -----------        -----------
Net investment in direct
  financing leases                        $  3,412        $ 1,437,527        $ 1,440,939
                                          ========        ===========        ===========

Amounts currently due
  included in net investment
  in direct financing leases:             $   --          $    22,844        $    22,844
                                          ========        ===========        ===========
</TABLE>


                                       27
<PAGE>   28
                      DATRONIC FINANCE INCOME FUND I , L.P.
                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
                                                      December 31, 1996
                                         -----------------------------------------------
                                         Liquidating      Continuing
                                          Limited          Limited
                                          Partners         Partners            Total
                                         -----------      -----------        -----------
<S>                                       <C>             <C>                <C>
Performing leases
  Minimum lease payments
    receivable                            $  1,073        $ 3,488,846        $ 3,489,919
  Unearned income                              (20)          (465,771)          (465,791)
                                          --------        -----------        -----------
Total performing leases                      1,053          3,023,075          3,024,128
Non-performing leases                       23,499          1,341,122          1,364,621
                                          --------        -----------        -----------
Net investment in direct
  financing leases before allowance         24,552          4,364,197          4,388,749
Allowance for lease losses                 (12,468)        (1,272,353)        (1,284,821)
                                          --------        -----------        -----------
Net investment in direct
  financing leases                        $ 12,084        $ 3,091,844        $ 3,103,928
                                          ========        ===========        ===========

Amounts currently due
  included in net investment
  in direct financing leases              $   --          $    50,796        $    50,796
                                          ========        ===========        ===========
</TABLE>


An analysis of the changes in the allowance for lease losses by Class of Limited
Partner for 1995, 1996 and 1997 follows:

<TABLE>
<CAPTION>
                            Liquidating        Continuing
                             Limited            Limited
                             Partners           Partners            Total
                            -----------        -----------      -----------
<S>                          <C>             <C>                <C>
Balance, beginning
  of 1995                    $ 64,041        $ 1,072,422        $ 1,136,463
Additions (Recoveries)        (38,002)            52,036             14,034
Write-offs                    (11,931)           (75,240)           (87,171)
                             --------        -----------        -----------

Balance, beginning
  of 1996                      14,108          1,049,218          1,063,326
Additions                        --              250,000            250,000
Write-offs                     (1,640)           (26,865)           (28,505)
                             --------        -----------        -----------

Balance beginning
  of 1997                      12,468          1,272,353          1,284,821
Write-offs                     (2,226)           (63,081)           (65,307)
                             --------        -----------        -----------

Balance, end of 1997         $ 10,242        $ 1,209,272        $ 1,219,514
                             ========        ===========        ===========
</TABLE>



                                       28
<PAGE>   29
                      DATRONIC FINANCE INCOME FUND I , L.P.
                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

The Partnership leases equipment with lease terms generally ranging from two to
five years. Minimum payments scheduled to be received on performing leases for
each of the succeeding five years ending after December 31, 1997 by Class of
Limited Partner are as follows:
<TABLE>
<CAPTION>
           Liquidating      Continuing
            Limited           Limited
            Partners          Partners          Total
           -----------      -----------       ----------
<S>        <C>              <C>              <C>
1998       $     --         $  905,717       $  905,717
1999             --            461,513          461,513
2000             --            142,312          142,312
2001             --               --               --
2002             --               --               --
           ----------       ----------       ----------

           $     --         $1,509,542       $1,509,542
           ==========       ==========       ==========
</TABLE>


NOTE 4 - DIVERTED AND OTHER ASSETS:

The $13.3 million of funds allegedly misappropriated from the Datronic
Partnerships and TELIF (collectively the "Partnerships") (see Notes 1 and 7)
were commingled by the alleged wrongdoers with $10.3 million of other funds and
used to acquire various assets. $20.7 million of such assets (collectively,
"Diverted and other assets" or "Recovered Assets") were subsequently recovered
for the benefit of the Partnerships and each Partnership was assigned an
undivided pro-rata interest in them.

Since 1993, LRC has been liquidating these assets and distributing available
funds to the Partnerships. The Partnership's undivided interest in the Diverted
and other assets, and related distributions, is approximately 14.4% of the
total. The Partnership's remaining interest in the Diverted and other assets is
reflected in the accompanying Balance Sheets at estimated net realizable value
which is equal to cost, less allowances to reflect Management's estimates of
current market value and future costs to be incurred. At December 31, 1997,
these assets consisted primarily of real estate and cash.


                                       29
<PAGE>   30
                      DATRONIC FINANCE INCOME FUND I , L.P.
                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED


The following tables summarize the activity related to Diverted and other
assets, both in total and for the Partnership's interest therein, for the three
years ended December 31, 1997.

<TABLE>
<CAPTION>
                                         Diverted and other assets
                                       --------------------------------
                                                          Partnership's
                                          Total               Share
                                       ------------       -------------
<S>                                    <C>                 <C>
Balance at December 31, 1994           $ 12,747,945        $ 1,831,170
Distribution to the Partnerships         (3,000,000)          (431,402)
Provision for loss                       (1,625,000)          (233,415)
                                       ------------        -----------

Balance at December 31, 1995              8,122,945          1,166,353
Provision for loss                         (500,000)           (71,820)
                                       ------------        -----------

Balance at December 31, 1996              7,622,945          1,094,533
Credit for recovery
  of assets                                 700,000            100,548
                                       ------------        -----------

Balance at December 31, 1997           $  8,322,945        $ 1,195,081
                                       ============        ===========
</TABLE>


Total Diverted and other assets at December 31, 1997 consist of the following:

<TABLE>
<S>                                                       <C>
Office building (at adjusted cost)                        $ 4,178,666
Cash                                                        3,693,607
Amount due from settlement                                    700,000
Allowance for carrying and
  disposition costs                                          (249,328)
                                                          -----------
                                                           $8,322,945
                                                          ===========
</TABLE>


The 1995 loss provision of $1,625,000 (Partnership's share was $233,415)
primarily represents the write-off of the Datronic Partnerships' interest in a
real estate development limited partnership. $700,000 (Partnership's share was
$100,548) of this was recovered in 1997 and is reflected as a credit for
recovery of assets. The 1996 loss provision of $500,000 (Partnership's share was
$71,820) primarily reflects a settlement of claims against Diverted and other
assets.

LRC is continuing its efforts to liquidate the remaining Diverted and other
assets and will make additional distributions to the Partnerships as funds
become available. Due to the fluctuating nature of real estate values, the
ultimate net realizable value of the office building cannot be predicted.


                                       30
<PAGE>   31
                      DATRONIC FINANCE INCOME FUND I , L.P.
                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED


NOTE 5 - DATRONIC ASSETS:

In accordance with a 1993 Court approved Settlement, substantially all of DRC's
assets, net of related debt, were transferred to LRC as nominee and agent for
the Datronic Partnerships for the benefit of the Class A and B Limited Partners.
The Partnership was assigned an undivided, pro-rata interest in the Datronic
Assets equal to 10.2% of the total. Proceeds from the liquidation of these
assets have been and will be, if additional amounts are realized, used to
reimburse the Class A and Class B Limited Partners for legal fees paid in
connection with the 1993 partial settlement of class action litigation (see
Notes 2 and 7(a)(i)). During 1995, $393,013 was distributed to the Datronic
Partnerships (the Partnership's share was $40,088).

At December 31, 1996 and 1997, the remaining Datronic Assets consisted of
$800,892 of cash, less a corresponding reserve for claims against Datronic
assets including a claim made by a former DRC creditor (see Note 7(b)).

NOTE 6 - PARTNERS' EQUITY:

Distributions per Unit to the Limited Partners for the years 1995, 1996 and 1997
were:
<TABLE>
<CAPTION>
                              Class A             Class B            Class C
                              -------             -------            -------
<S>                           <C>                 <C>                <C>
        1995                  $  4.20             $ 56.00            $ 56.00
        1996                  $   -               $ 30.26            $ 28.78
        1997                  $   -               $ 15.44            $ 12.21
</TABLE>

The Partnership began its Liquidation Phase on October 1, 1996. Pursuant to the
Amended Partnership Agreement, all distributions made before that date were paid
on a per-unit basis and all subsequent distributions were based on the positive
Capital Account balances of each limited partner within each Class. See Note 9.

At December 31, 1997, 1996 and 1995, there were 7,699 Class A Units, 50,475
Class B Units, 60 Class C Units, and one General Partner Unit outstanding.

Funds raised by each Class and cumulative distributions to limited partners by
class from the Partnership's formation through December 31, 1997 are:


                                       31
<PAGE>   32
                      DATRONIC FINANCE INCOME FUND I , L.P.
                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

<TABLE>
<CAPTION>
                                   Funds           Cumulative
                                   Raised        Distributions
                                -----------      -------------
<S>                             <C>               <C>
                  Class A       $ 3,849,500       $ 2,478,192
                  Class B        25,237,500        14,913,681
                  Class C            30,000            17,295
                                -----------       -----------

                  Total         $29,117,000       $17,409,168
                                ===========       ===========
</TABLE>


NOTE 7 - LITIGATION:

(a) At December 31, 1997, the Partnerships and/or the limited partners of the
Datronic Partnerships were plaintiffs in the following matters:

(i) Claims against professionals

During 1992, a class action lawsuit ("Class Action") was certified on behalf of
the limited partners in the Datronic Partnerships ("the Class") against DRC,
various officers of DRC and various other parties. The Class Action was
subsequently amended to add, as defendants, Siegan, Barbakoff, Gomberg & Kane
(the Datronic Partnerships' former securities counsel) ("Siegan"), Weiss and
Company, (the Datronic Partnerships' independent accountants prior to 1990)
("Weiss") and Price Waterhouse (the Datronic Partnerships' independent
accountants during 1990 and 1991). During 1993, the Datronic Partnerships filed
cross-claims against Siegan, Weiss and Price Waterhouse (collectively
"Defendants") alleging professional negligence, breach of contract, violations
of Section 11 of the Securities Act of 1933 (as to Weiss and Price Waterhouse
only) and breach of fiduciary duty (as to Siegan).

During 1995, the Court dismissed all Class claims against Price Waterhouse.
Class Counsel intends to appeal the dismissal order in accordance with Court
rules at the appropriate time. The Court also ruled it did not have jurisdiction
with respect to the Datronic Partnerships' cross-claims against Price Waterhouse
and Weiss. As a result, the cross-claims, excluding those alleging violations of
the Securities Act of 1933, were refiled and are pending in the Circuit Court of
Cook County, Illinois.

As plaintiffs in the above claims against Price Waterhouse and Weiss, the
Datronic Partnerships allege, among other things, that the actions of the
Defendants contributed to the improper payment of fees and expense
reimbursements to DRC. If fees and expenses were inappropriately paid, the
Datronic Partnerships might be deemed to have had a receivable from DRC for any
such payments. Since all of


                                       32
<PAGE>   33
                      DATRONIC FINANCE INCOME FUND I , L.P.
                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

the assets of DRC were transferred to LRC for the benefit of the Datronic
Partnerships in connection with the Settlement (see Note 5) and DRC had
subsequently ceased operations, such receivables would be uncollectible.

During 1995, the Court approved a settlement of all Class claims and all
cross-claims against Siegan, whereby Siegan paid an aggregate amount of
$1,775,000 ($124,035 for the Partnership).

(ii) Other Claims

During 1996, the Court entered an order removing any claim that one of the
defendants of the class action had against the Partnership's Recovered Assets
and certain cash accounts. Pursuant to the terms of the order, approximately
$725,000 of Recovered Assets (the Partnership's interest therein is
approximately $104,000 and is included in Diverted and other assets at a net
amount of $0) will be held in escrow for the potential benefit of the defendant
pending the outcome of certain litigation to which the Partnership is not a
direct party.

(iii) Litigation Costs, Expenses and Fees

Future costs, expenses and fees of the Class Action and any subsequent Class
litigation will be paid in such amounts and from such sources as the Court shall
determine. Future fees and costs relating to the cross-claims and other
litigation undertaken on behalf of the Partnership will be paid by the
Partnership subject to the approval of LRC. It is anticipated that the Datronic
Partnerships will continue to expend funds in the future in pursuit of claims
described herein. Counsel for the Datronic Partnerships (same as Class Counsel)
is charging rates which are less than their normal rates and have a right to
receive a contingent fee equal to a percentage of the proceeds, if any,
resulting from the cross-claims against professionals.

(b) At December 31, 1997, the Partnership's General Partner, LRC, was a
defendant in the following matter:

Secured Lender Litigation

During 1993, in connection with the liquidation of a Recovered Asset, a secured
lender filed suit against LRC for an approximate $175,000 loss incurred by the
secured lender (see Note 5). The suit was dismissed by the Court during 1995 for
failure to state a claim. Upon appeal, a portion of the suit was remanded to the
lower court for trial. LRC believes the suit is without merit and is vigorously
contesting it.


                                       33
<PAGE>   34
                      DATRONIC FINANCE INCOME FUND I , L.P.
                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

Due to the uncertainty of the outcome of the pending litigation, no assets have
been recorded in the Partnership's financial statements relating to the pending
litigation discussed above.

NOTE 8 - PARTNERSHIP MANAGEMENT:

Since July 1, 1996, LRC has directly managed the day-to-day operations of the
Datronic Partnerships. The cost of the day-to-day management services is
allocated to each partnership based on the level of services performed for each
partnership. These expenses are reimbursed to LRC pursuant to the terms of the
Amended Partnership Agreement (see Note 9).

Prior to July 1, 1996, the Datronic Partnerships were managed by New Era Funding
under the direction of LRC pursuant to a Management Agreement. Effective June
30, 1996, this agreement was terminated and, pursuant to the Management
Termination Agreement, New Era was paid a $3.2 million dollar termination fee
(plus accrued interest) and the three principals of New Era were paid a total of
$1.0 million (plus accrued interest) for their agreement not to compete with the
business of the Datronic Partnerships for two years. The Partnership's share of
these payments was $549,996, which is included in the 1996 Statement of Revenue
and Expenses as part of the Management fees - New Era. Under the terms of the
Management Agreement, New Era and its principals were entitled to minimum
aggregate annual compensation of $2 million plus all operating expenses incurred
in connection with the management of all Partnerships.

As part of the Management Termination Agreement, two of New Era's principals
have been retained as consultants to the Datronic Partnerships through March 31,
1999 for an annual fee of $200,000 each. These payments are allocated to each of
the Datronic Partnerships based on the services performed for each Partnership
and are included in the accompanying Statement of Revenue and Expenses as part
of General Partner's expense reimbursement.

NOTE 9 - PARTNERSHIP AGREEMENT:

As part of the 1993 Settlement each limited partner elected to become a Class A,
B or C Limited Partner.

Class A Limited Partners
This class elected to begin liquidating their interest in the Partnership as of
the Settlement date. Accordingly, each Class A Limited Partner is entitled to
receive cash distributions equal to their pro rata share of the net proceeds
from the disposition of assets owned by the Partnership on the Settlement Date,
plus their pro

                                       34
<PAGE>   35
                      DATRONIC FINANCE INCOME FUND I , L.P.
                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

rata interest in the net proceeds from the disposition of Datronic Assets,
Diverted and other assets, and temporary investments. In addition, Class A
Limited Partners participate in the Class Action.

Class B Limited Partners
This class elected not to begin liquidation of their interest in the Partnership
as of the Settlement Date. Until the Liquidating Phase of the Partnership began
on October 1, 1996, each Class B Limited Partner received cash distributions
equal to 12.5% annually of their Adjusted Capital Contributions (as that term is
defined in the amended Partnership Agreement). Available cash in excess of that
required to pay these distributions was invested in equipment and equipment
leases ("New Investments") and temporary investments on behalf of the Class B
Limited Partners. In addition, Class B Limited Partners participate in the Class
Action.

Class C Limited Partners
This class elected not to participate in the Class Action. Therefore, each Class
C Limited Partner: (i) preserved their individual claims against DRC and the
other defendants, (ii) does not participate in the Class Action, and (iii) did
not participate in the Settlement. In all other respects, including
distributions from the Partnership, Class C Limited Partners are the same as
Class B Limited Partners.

Distributions to Class A Limited Partners were suspended after payment of the
April 1, 1995 distribution and to Class B and C Limited Partners after payment
of the April 1, 1997 distribution. If the Partnership obtains funds from pending
litigation or cash is otherwise available after providing for the orderly
liquidation of the Partnership, additional distributions will be made at the
appropriate time.

Concurrent with the beginning of the Liquidating Phase on October 1, 1996, the
Partnership ceased making New Investments and the General Partner (LRC) began
the orderly liquidation of Partnership assets. Pursuant to this, cash reserves
are to be maintained sufficient to satisfy all liabilities of the Partnership
and provide for future contingencies. Cash available after satisfying such
requirements ("Cash Flow Available for Distribution") will be distributed to the
General and Limited Partners as described below.

During the Liquidating Phase, net Partnership proceeds from all sources, less
cash reserves needed to satisfy Partnership liabilities and provide for future
contingencies will be apportioned among the Class A, B and C Limited Partners,
each class as a group, in accordance with each class' interest in each type of
asset. Then, Liquidating Distributions will be made to the Limited Partners
within each class in accordance with the positive Capital Account balance of


                                       35
<PAGE>   36
                      DATRONIC FINANCE INCOME FUND I , L.P.
                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED


each Limited Partner until all Limited Partners' Capital Account balances are
zero, and thereafter, pro rata based on the number of units outstanding.

The amended Partnership Agreement provides for the General Partner (LRC) to
receive quarterly distributions equal to 1% of the Cash Flow Available for
Distribution. In addition, LRC receives reimbursement for expenses incurred in
excess of those covered by the 1% distribution. These expense reimbursements are
paid one quarter in advance and are adjusted based on LRC's actual expenses. LRC
allocates its expenses to each of the Datronic Partnerships based on its
activities performed for each Partnership. Beginning July 1, 1996, LRC's expense
reimbursement includes expenses incurred in managing the day-to-day operations
of this and the other Datronic Partnerships. LRC is entitled to no other fees or
reimbursements from the Partnership.

The following summarizes the total of all payments to LRC during the three years
ended December 31, 1997:
<TABLE>
<CAPTION>
                                                Year ended December 31,
                                      --------------------------------------------
                                         1997             1996             1995
                                      ----------       ----------       ----------
<S>                                   <C>              <C>              <C>
1% Distribution                       $   21,233       $  104,304       $  600,440
Expense Reimbursement in excess
   of the 1% Distribution              5,369,846        2,955,260        1,261,078
                                      ----------       ----------       ----------

Total                                 $5,391,079       $3,059,564       $1,861,518
                                      ==========       ==========       ==========
</TABLE>


The Partnership's share of these payments were:

<TABLE>
<CAPTION>
                                              Year ended December 31,
                                      --------------------------------------
                                        1997           1996           1995
                                      --------       --------       --------
<S>                                   <C>            <C>            <C>
1% Distribution                       $  2,895       $ 21,028       $ 79,749
Expense Reimbursement in excess
   of the 1% Distribution              597,112        315,864         43,699
                                      --------       --------       --------

Total                                 $600,007       $336,892       $123,448
                                      ========       ========       ========
</TABLE>


NOTE 10 - CONCENTRATION OF CREDIT RISK:

Leasing activity is conducted throughout the United States, with emphasis in
certain states such as California, and New York. The cost of equipment under
lease typically ranges from $15,000 to $30,000. Such equipment includes, but is
not limited to: general purpose plant/office equipment, telecommunications
equipment, machine tool and manufacturing equipment, computers and terminals for
management information systems, photocopying equipment, medical equipment, and



                                       36
<PAGE>   37
                      DATRONIC FINANCE INCOME FUND I , L.P.
                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

transportation equipment. At December 31, 1997, there are no significant
concentrations of business activity in any industry or with any one lessee. The
Partnership maintains a security interest in all equipment until the lessee's
obligations are fulfilled.


NOTE 11 - INCOME TAXES:

The Partnership is not subject to Federal income taxes and, accordingly, no
provision or credit for such taxes is reflected in the accompanying financial
statements. Instead, the tax effects of the Partnership's activities are
includable in the individual tax returns of its partners. The following table
reconciles the Partnership's net operating results determined in accordance with
generally accepted accounting principles with those reported for Federal income
tax purposes in total for all Partners and by Class of Partner for the year
ended December 31, 1997.

<TABLE>
<CAPTION>
                                                   Liquidating       Continuing
                                     General         Limited           Limited
                                     Partner         Partner           Partner          Total
                                     -------       -----------       ----------        ---------
<S>                                  <C>            <C>              <C>              <C>

Net loss per accompanying
  statements                         $(3,807)       $ (72,128)       $(304,676)       $(380,611)

Effect of principal repayments
  treated as income for
  tax purposes                          (114)          (1,466)          (9,805)         (11,385)
Provision for recovery of
  Diverted and other assets           (4,391)         (57,462)        (377,198)        (439,051)
Provision for Class Counsel
  fees and expenses, net                --            (13,131)         (86,095)         (99,226)

Other, net                              (275)          (2,024)         (25,276)         (27,575)
                                     -------        ---------        ---------        ---------

Loss for Federal income tax
   purposes in total                 $(8,587)       $(146,211)       $(803,050)       $(957,848)
                                     =======        =========        =========        =========
</TABLE>


                                       37
<PAGE>   38
ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE

There have been no changes in accountants or disagreements with accountants on
accounting and financial disclosure.


                                    PART III

ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The Partnership has no employees or directors. LRC was formed in December 1992
in contemplation of the Settlement for the sole purpose of acting as the general
partner for each of the Datronic Partnerships. LRC became general partner in
1993. LRC has a nominal net worth. The directors and executive officers of LRC,
together with pertinent information concerning each of them are as follows:

       Directors and Executive Officers of Lease Resolution Corp.

LRC, as a non-stock, not-for-profit corporation, does not have stockholders. The
executive officers of LRC are also the members of the Board of Directors of LRC.
None of the executive officers of LRC were previously affiliated with Datronic.
While LRC's duration is perpetual, it is anticipated that it will liquidate and
dissolve following the liquidation and dissolution of the last remaining
Datronic Partnership.

LRC's Board of Directors and executive officers, together with certain pertinent
information regarding their background, are set forth below:

<TABLE>
<CAPTION>
                                                 Director
      Name                                  Position and Office                        Since
      ----                                  -------------------                        -----

<S>                                      <C>                                           <C>
Donald D. Torisky                        Chairman of the Board and
                                         Chief Executive Officer                       12/92

Robert P. Schaen                         Vice-Chairman of the Board and
                                         Chief Financial Officer                       12/92

Arthur M. Mintz                          Vice-Chairman of the Board and
                                         General Counsel                               12/92
</TABLE>

Donald D. Torisky, age 59, has been associated with LRC since its
inception in 1992.  Mr. Torisky is also President of Barrington
Management and Consulting, Inc. where, prior to March 1993, he
coordinated management consulting opportunities for national and
international Fortune 500 finance companies.  From 1987 to 1990, Mr.
Torisky worked with the TransAmerica Corporation as an Executive Vice-
President and board member of the TransAmerica Finance Group.  Mr.


                                       38
<PAGE>   39
Torisky also served as the President and Chief Executive Officer of TransAmerica
Commercial Finance Corporation. With TransAmerica, Mr. Torisky managed and
directed a diversified financial service portfolio of $4.6 billion with branches
in the United States, Canada, the United Kingdom and Australia. From 1962 to
1987, Mr. Torisky was with the Borg-Warner Corporation. In 1983 he became
President and Chief Executive Officer of Borg-Warner Financial Services and an
officer of Borg-Warner Corp. Mr. Torisky has completed the Advanced Management
Program at the Harvard Graduate School of Business Administration. Mr. Torisky
served honorably in the United States Marine Corps, and holds a license in life,
accident, and health insurance and a Series 6 NASD license.

Robert P. Schaen, age 71, has been associated with LRC since its inception in
1992. Prior to his association with LRC, Mr. Schaen retired from Ameritech in
1991 after 39 years of service with the Bell System and Ameritech. At his
retirement he was the Vice-President and Comptroller of Ameritech. He started
his Bell System career with New York Telephone Company in 1952, was promoted and
transferred to AT&T in 1962, and thereafter, promoted and transferred to
Illinois Bell Telephone Company in 1965 where he managed personnel, accounting,
data systems and general operations prior to being elected Comptroller and
Assistant Secretary. In 1983, Mr. Schaen was named Vice-President and
Comptroller of Ameritech. Mr. Schaen served as a naval officer in the Pacific
Theater during World War II and retired from the Naval Reserve Intelligence
Service in 1968 with the rank of Commander. He graduated from Hobart College in
Geneva, New York in 1948 and after graduation remained there as a mathematics
and statistics instructor. In 1967 Mr. Schaen completed the Advanced Management
Program at the Harvard Graduate School of Business Administration.

Arthur M. Mintz, age 61, has been associated with LRC since its inception in
1992. Mr. Mintz is also Chairman of the Board of Olicon Imaging Systems, Inc.,
which was founded in 1991. Olicon Imaging Systems, Inc. is a teleradiology
company serving approximately 800 hospitals nationwide. Since 1987, he has also
served as President of AMRR Leasing Corporation and Vice President and General
Counsel of Mobile M.R. Venture, Ltd. In 1983, Mr. Mintz was a founder of
Diasonics, Incorporated and served as its Corporate Counsel. Diasonics was
listed on the New York Stock Exchange prior to its acquisition by Elsinth in
1995. In 1957, Mr. Mintz obtained a Bachelor of Arts Degree from Northwestern
University and in 1959, obtained his J.D. from Northwestern University School of
Law. Thereafter, Mr. Mintz served in the United States Army and was honorably
discharged. From 1965 to 1982, Mr. Mintz was a principal with the law firms of
Mintz, Raskin, Rosenberg, Lewis & Cohen (1965-1975), Mintz, Raskin and Lewis
(1975-1979), and Arthur M. Mintz, Ltd., P.C. (1979-1982).

Any change in the compensation of a director of LRC must be approved by the
other two non-interested members of the Board of Directors.

                                       39
<PAGE>   40
ITEM 11 - MANAGEMENT REMUNERATION

The Partnership has no officers or directors and instead is managed by the
general partner, LRC.

The Partnership Agreement, as amended, provides for LRC to receive reimbursement
for its operating expenses incurred in relation to its functions as General
Partner of the Datronic Partnerships. These reimbursements are detailed in Note
9 to the Partnership's financial statements included in Item 8.

Compensation paid to the Chief Executive Officer of LRC during 1997 was as
follows:
<TABLE>
<CAPTION>
     Chairman of the
     Board and Chief                                             All Other
     Executive Officer                 Salary                  Compensation(b)
     -----------------                 ------                  ---------------
<S>                                   <C>                        <C>
     Donald D. Torisky                $458,644                   $3,200(a)
</TABLE>

(a)      Represents the value of LRC's contribution to LRC's Savings and
         Retirement Plan allocable to Mr. Torisky for services rendered during
         1997.

(b)      Information concerning Bonus, Other Annual Compensation, Restricted
         Stock Award, Option/SARs and LTIP Payouts is Not Applicable.

This compensation was included in LRC's operating expenses reimbursed by all
Datronic Partnerships. The Partnership's share of such expense reimbursements,
including the 1% of Cash Flow Available for Distribution, was 11.13%.


ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

None.


ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS


The Partnership has no officers or directors and instead is managed by the
general partner, LRC.

The Partnership Agreement, as amended, provides for LRC to receive reimbursement
for its operating expenses incurred in relation to its functions as General
Partner of the Datronic Partnerships. These reimbursements are detailed in Note
9 to the Partnership's financial statements included in Item 8.


                                       40
<PAGE>   41
                                     PART IV


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

(a) The following documents are filed as part of this report:

      (1)    Financial Statements

             See index to Financial Statements included in Item 8 of this
             report.


      (2)    Financial Statement Schedules

             None.

      (3)    Exhibits

             The Exhibits listed in the Exhibit Index immediately following the
             signature page are filed as a part of this report.

(b)     Reports on Form 8-K

           None


                                       41
<PAGE>   42
                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized on the 27th day of March
1998.


      DATRONIC FINANCE INCOME FUND I, L.P.

March 27, 1998               By: Lease Resolution Corporation,
                         General Partner


                         By:  /s/ Donald D. Torisky
                             -----------------------------------------
                             Donald D. Torisky
                             Chairman and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the Registrant and
in the capacities indicated and on the dates indicated.


By:   /s/ Donald D. Torisky                                      March 27, 1998
     ------------------------------
     Donald D. Torisky
     Chairman and Chief Executive Officer,
     Lease Resolution Corporation,
     General Partner of
     Datronic Finance Income Fund I, L.P.


By:   /s/ Robert P. Schaen                                       March 27, 1998
     ------------------------------
     Robert P. Schaen
     Vice-Chairman and
     Chief Financial Officer,
     Lease Resolution Corporation,
     General Partner of
     Datronic Finance Income Fund I, L.P.


By:   /s/ Arthur M. Mintz                                        March 27, 1998
     ------------------------------
     Arthur M. Mintz
     Vice-Chairman and General Counsel,
     Lease Resolution Corporation,
     General Partner of Datronic Finance Income Fund I, L.P.


                                       42
<PAGE>   43
                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
         EXHIBIT NO.              DESCRIPTION
         -----------              -----------

<S>                               <C>
             27                   Financial Data Schedule, which is
                                  submitted electronically to the
                                  Securities and Exchange Commission for
                                  information only and not filed.
</TABLE>


                                       44