PACIFIC SOURCE PARTNERSHIP
                             (A LIMITED PARTNERSHIP)

                              FINANCIAL STATEMENTS



<PAGE>







INDEPENDENT  AUDITORS'  REPORT





The  Partners
Pacific  Source  Partnership

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

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

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

As  described  in  Note  1  to  the  financial  statements,  the Partnership was
dissolved on November 26, 2002, as the marine vessel in the Partnership has been
sold.




/s/  Deloitte  &  Touche  LLP


Certified  Public  Accountants

Tampa,  Florida
March  8,  2002
(November  26,  2002  as  to  the  fourth  paragraph  of  Note  1)

<PAGE>

                           PACIFIC SOURCE PARTNERSHIP
                             (A LIMITED PARTNERSHIP)
                                 BALANCE SHEETS
                            (in thousands of dollars)




<TABLE>
<CAPTION>


                                                November 26,    December 31,
                                                    2002            2001
                                                (unaudited)
-----------------------------------------------------------------------------
ASSETS
<S>                                             <C>            <C>
Marine vessel held for lease, at cost. . . . .  $          --  $          --
Less accumulated depreciation. . . . . . . . .             --             --
                                                -------------  --------------
    Net equipment. . . . . . . . . . . . . . .             --             --
                                                -------------  --------------

      Total assets . . . . . . . . . . . . . .  $          --  $          --
                                                =============  ==============

LIABILITIES AND PARTNERS' CAPITAL

Liabilities:
Accounts payable and accrued expenses. . . . .  $          --  $          18
                                                -------------  --------------
  Total liabilities. . . . . . . . . . . . . .             --             18

Partners' capital
Limited partners . . . . . . . . . . . . . . .             --            161
General partner. . . . . . . . . . . . . . . .             --           (179)
                                                -------------  --------------
  Total partners' capital. . . . . . . . . . .             --            (18)
                                                -------------  --------------

      Total liabilities and partners' capital.  $          --  $          --
                                                =============  ==============
</TABLE>






















                 See accompanying notes to financial statements.

<PAGE>

                           PACIFIC SOURCE PARTNERSHIP
                             (A LIMITED PARTNERSHIP)
                              STATEMENTS OF INCOME
        FOR THE PERIOD FROM JANUARY 1, 2002 THROUGH NOVEMBER 26, 2002
                             (DISSOLUTION) AND  THE
                     YEARS ENDED DECEMBER 31, 2001 AND 2000
                            (in thousands of dollars)


<TABLE>
<CAPTION>


                                            2002       2001    2000
                                         (unaudited)       (unaudited)
----------------------------------------------------------------------
REVENUES
<S>                                     <C>           <C>     <C>
Lease revenue. . . . . . . . . . . . .  $        --   $  925  $2,839
Interest and other income. . . . . . .           --       --      68
Net gain on disposition of equipment .           --    2,586      --
                                        ------------  ------  ------
  Total revenues . . . . . . . . . . .           --    3,511   2,907
                                        ------------  ------  ------
EXPENSES

Depreciation and amortization. . . . .           --      335   1,005
Marine operating expenses. . . . . . .          (18)     305   1,106
Repairs and maintenance. . . . . . . .           --      198     405
Management fees to affiliate . . . . .           --       46     142
Insurance expense. . . . . . . . . . .           --       53      31
Administrative expenses to affiliates.           --       47      30
Administrative and other . . . . . . .            2       20      34
                                        ------------  ------  ------
  Total expenses . . . . . . . . . . .          (16)   1,004   2,753
                                        ------------  ------  ------
      Net income . . . . . . . . . . .  $        16   $2,507  $  154
                                        ============  ======  ======
</TABLE>


























                 See accompanying notes to financial statements.

<PAGE>

                           PACIFIC SOURCE PARTNERSHIP
                             (A LIMITED PARTNERSHIP)
                   STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
          FOR THE PERIOD FROM JANUARY 1, 2002 THROUGH NOVEMBER 26, 2002
                             (DISSOLUTION) AND  THE
                     YEARS ENDED DECEMBER 31, 2001, AND 2000
                            (in thousands of dollars)




<TABLE>
<CAPTION>


                                                                     Limited     General
                                                                     Partners    Partner    Total
---------------------------------------------------------------------------------------------------
<S>                                                                 <C>         <C>        <C>
  Partners' capital (deficiency) at December 31, 1999 (unaudited).  $   5,414   $   (126)  $ 5,288

Net income (unaudited) . . . . . . . . . . . . . . . . . . . . . .        152          2       154

Cash distribution (unaudited). . . . . . . . . . . . . . . . . . .     (1,074)       (11)   (1,085)
                                                                    ----------  ---------  --------
  Partners' capital (deficiency) at December 31, 2000 (unaudited).      4,492       (135)    4,357

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . .      2,482         25     2,507

Cash distribution. . . . . . . . . . . . . . . . . . . . . . . . .     (6,813)       (69)   (6,882)
                                                                    ----------  ---------  --------
  Partners' capital (deficiency) at December 31, 2001. . . . . . .        161       (179)      (18)

Net income (unaudited) . . . . . . . . . . . . . . . . . . . . . .         16         --        16

Cash (contribution) distribution (unaudited) . . . . . . . . . . .       (177)       179         2
                                                                    ----------  ---------  --------

  Partners' capital at November 26, 2002 (dissolution) (unaudited)  $      --   $     --   $    --
                                                                    ==========  =========  ========
</TABLE>
























                 See accompanying notes to financial statements.

<PAGE>

                           PACIFIC SOURCE PARTNERSHIP
                             (A LIMITED PARTNERSHIP)
                            STATEMENTS OF CASH FLOWS
          FOR THE PERIOD FROM JANUARY 1, 2002 THROUGH NOVEMBER 26, 2002
                             (DISSOLUTION) AND THE
                     YEARS ENDED DECEMBER 31, 2001 AND 2000
                            (in thousands of dollars)

                                                           2002    2001     2000
                                                     (unaudited)     (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

OPERATING ACTIVITIES
<S>                                                        <C>     <C>       <C>
Net income. . . . . . . . . . . . . . . . . . . . . . . .  $  16   $ 2,507   $   154
Adjustments to reconcile net income to net cash
    provided by (used in) operating activities:
  Depreciation and amortization . . . . . . . . . . . . .     --       335     1,005
  Net gain on disposition of equipment. . . . . . . . . .     --    (2,586)       --
  Changes in operating assets and liabilities:
    Accounts receivable . . . . . . . . . . . . . . . . .     --        18       167
    Prepaid expenses. . . . . . . . . . . . . . . . . . .     --        --        --
    Accounts payable and accrued expenses . . . . . . . .    (18)      (21)      (67)
    Due to affiliates . . . . . . . . . . . . . . . . . .     --       (22)        2
    Reserve for repairs . . . . . . . . . . . . . . . . .     --        44      (176)
                                                           ------  --------  --------
      Net cash provided by (used in) operating activities     (2)      275     1,085
                                                           ------  --------  --------

INVESTING ACTIVITIES

Proceeds from disposition of marine vessel. . . . . . . .     --     6,607        --
                                                           ------  --------  --------
      Net cash provided by investing activities . . . . .     --     6,607        --
                                                           ------  --------  --------

FINANCING ACTIVITIES

Cash contribution (distribution) - General Partner. . . .    179       (69)      (11)
Cash distribution - limited partners. . . . . . . . . . .   (177)   (6,813)   (1,074)
                                                           ------  --------  --------
      Net cash provided by (used in) financing activities      2    (6,882)   (1,085)
                                                           ------  --------  --------

Net change in cash and cash equivalents . . . . . . . . .     --        --        --
Cash and cash equivalents at beginning of year. . . . . .     --        --        --
                                                           ------  --------  --------
Cash and cash equivalents at November 26, 2002
(dissolution) and end of years 2001 and 2000. . . . . . .  $  --   $    --   $    --
                                                           ======  ========  ========
</TABLE>
















                 See accompanying notes to financial statements.

<PAGE>

                           PACIFIC SOURCE PARTNERSHIP
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS

1.     Summary  of  Significant  Accounting  Policies
       ----------------------------------------------

     Organization
     ------------

Pacific  Source Partnership, a California limited partnership (the Partnership),
was  formed during September 1993. The Partnership was formed for the purpose of
purchasing  a bulk-carrier marine vessel and commenced significant operations in
September  1993.  The Partnership had no employees nor operations other than the
operation  of  the  marine vessel.  The Partnership was owned 99% by the limited
partners  and  1%  by  the  General  Partner.  The  Partnership  had two limited
partners:  PLM  Equipment  Growth  Fund  VI  (EGF  VI),  a  California  limited
partnership,  and PLM Equipment Growth & Income Fund VII (EGF VII), a California
limited  partnership, (the Limited Partners).  The Limited Partnership was owned
20%  by  EGF  VI and 80% by EGF VII.  The General Partner was the Pacific Source
Corporation  (PSC)  which  was  owned  20%  by  EGF  VI  and  80%  by  EGF  VII.

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

The marine vessel was purchased in September 1993 for $17.0 million.  EGF VI and
EGF  VII  paid  acquisition  and  lease negotiation fees of $0.9 million to FSI.

The  Partnership was terminated on November 26, 2002 as the marine vessel in the
Partnership  was  sold  May  2001.

     Estimates
     ---------

These  accompanying financial statements have been prepared on the accrual basis
of accounting in accordance with accounting principles generally accepted in the
United  States  of  America.  This  requires  management  to  make estimates and
assumptions  that  affect  the  reported  amounts  of  assets  and  liabilities,
disclosures  of  contingent  assets and liabilities at the date of the financial
statements,  and  the  reported  amounts  of  revenues  and  expenses during the
reporting  period.  Actual  results  could  differ  from  those  estimates.  All
amounts for the year ended December 31, 2000 and as of November 26, 2002 and for
the  period  from  January  1,  2002  through  November  26, 2002 are unaudited.

     Operations
     ----------

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

     Cash  and  Cash  Equivalents
     ----------------------------

All  cash generated from operations is distributed to the partners; accordingly,
the  Partnership has no cash balance at November 26, 2002 and December 31, 2001.

     Accounting  for  Leases
     -----------------------

The  marine  vessel in the Partnership was leased under operating leases.  Under
the  operating lease method of accounting, the leased asset was recorded at cost
and  depreciated over its estimated useful life. Rental payments are recorded as
revenue  over the lease term as earned in accordance with Statement of Financial
Accounting  Standards  No.  13,  "Accounting  for  Leases".

<PAGE>
                           PACIFIC SOURCE PARTNERSHIP
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS

1.     Summary  of  Significant  Accounting  Policies  (continued)
       ----------------------------------------------

     Depreciation
     ------------

Depreciation  of  the  marine  vessel  was  computed  using the double-declining
balance method, taking a full month's depreciation in  the month of acquisition,
based  upon  an  estimated  useful  life  of  12 years.  The depreciation method
changed  to  straight-line  when  the  annual  depreciation  expense  using  the
straight-line  method  exceeded  that calculated by the double-declining balance
method.  Acquisition  fees  of  $0.8  million,  that  were paid to FSI, had been
capitalized  as part of the cost of the equipment.  Major expenditures that were
expected  to  extend  the marine vessel's useful life or reduce future equipment
operating  expenses, were capitalized and amortized over the estimated remaining
life  of  the  marine  vessel.

     Marine  Vessel
     --------------

In accordance with the Financial Accounting Standards Board's Statement No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be  Disposed  Of,"  FSI  reviewed the carrying value of the Partnership's marine
vessel  at  least  quarterly,  and  whenever  circumstances  indicated  that the
carrying  value  of  this  asset  may  not be recoverable due to expected future
market  conditions.  If  projected  undiscounted  future cash flows and the fair
market value of the marine vessel was less than the carrying value of the marine
vessel,  an  impairment  loss  would  have  been  recorded.  No reduction to the
carrying  value  of  the  marine  vessel  was  required  during  2001  or  2000.

     Repairs  and  Maintenance
     -------------------------

Repairs  and  maintenance  for  the  marine  vessel  are  the  obligation of the
Partnership.  Costs  associated with marine vessel drydocking were estimated and
accrued  ratably  over  the period prior to such drydocking.  The balance in the
drydocking  reserve  account  was included as additional sales proceeds when the
marine  vessel  was  sold.

     Net  Income  and  Cash  Distribution  to  Limited  Partners
     -----------------------------------------------------------

The  net  income and cash distributions of the Partnership were allocated 99% to
the  limited  partners  and  1% to the General Partner.  The net income and cash
distributions  were  allocated to the limited partners based on their percentage
of  ownership in the Partnership.  The limited partners' 99% share of net income
and  cash  distributions  are  allocated  20%  to  EGF  VI  and  80% to EGF VII.

Cash  distributions  are  recorded  when  paid.

     Comprehensive  Income
     ---------------------

The  Partnership's  net  income  is equal to comprehensive income for the period
from  January 1, 2002 through November 26, 2002 and the years ended December 31,
2001,  and  2000.

2.     General  Partner
       ----------------

PSC contributed $100 of the Partnership's initial capital.  PSC was owned by two
shareholders,  EGF  VI  owns  20% and EGF VII owns 80%.  Dividends, if declared,
were  paid  to  the  shareholders  based  on  the  percentage  of ownership each
shareholder  owns.


<PAGE>
                           PACIFIC SOURCE PARTNERSHIP
                             (A LIMITED PARTNERSHIP)
                          NOTES TO FINANCIAL STATEMENTS

3.     Transactions  with  Affiliates
       ------------------------------

Under  the equipment management agreement, IMI received a monthly management fee
attributable  to  owned equipment equal to the lesser of (i) the fees that would
be  charged  by  an  independent  third  party  for similar services for similar
equipment  or (ii) 5% of the gross lease revenues attributable to equipment that
is  subject  to  operating  leases.  The Partnership's management fee expense to
affiliate  was $46,000 and $0.1 million during 2001 and 2000, respectively.  The
Partnership  reimbursed  FSI  $47,000  and  $30,000  during  2001  and  2000,
respectively,  for  data  processing  and  administrative  expenses  directly
attributable  to  the  Partnership.

4.     Marine  Vessel  on  Lease
       -------------------------

The  Partnership's  marine  vessel  was  leased  to multiple operators on a time
charter  basis.  In  such  instances,  revenues are earned from each lessee that
hires  the  marine  vessel  for  a  specific  voyage.

The  marine  vessel in the Partnership was used as collateral against the senior
loans  of  the  Limited  Partners.

During 2001, the Partnership disposed of the marine vessel with a net book value
of  $4.3 million for proceeds of $6.6 million.  Included in the net gain on sale
of  the  marine  vessel  was  the  unused  portion  of  marine vessel drydocking
liability  of  $0.3  million.

The  marine  vessel  leases were being accounted for as an operating lease.  Per
diem  and  short-term  rentals  consisting  of  utilization  rate lease payments
included  in lease revenues amounted to $0.9 million in 2001 and $2.8 million in
2000.

5.     Geographic  Information
       -----------------------

The  Partnership's  marine  vessel  was  leased to multiple lessees in different
regions  that  operate  worldwide.

6.     Income  Taxes
       -------------

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

7.     Concentrations  of  Credit  Risk
       --------------------------------

The Partnership's customers that accounted for 10% or more of the total revenues
for  the  marine vessel during 2001 and 2000: Crecian Star Shipping Limited (74%
in  2001),  Panocean  (10%  in  2001), Chilsan (43% in 2000), Korea Line (11% in
2000), Samsun (14% in 2000), and F. Withy (12% in 2000).  The Partnership had no
revenue  for  the  period  from  January  1,  2002  through  November  26, 2002.