BOEING 737-300 TRUST S/N 24700
                                    (A TRUST)

                              FINANCIAL STATEMENTS












                          INDEPENDENT AUDITORS' REPORT






The Owners
Boeing 737-300 Trust S/N 24700

We have audited the  accompanying  balance sheet of the Boeing 737-300 Trust S/N
24700 as of December 31, 2000, and the related statements of operations, changes
in owners'  equity,  and cash  flows for the year then  ended.  These  financial
statements are the responsibility of the owner's management.  Our responsibility
is to express an opinion on these financial statements based on our audit.

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

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial  position of the Boeing 737-300 Trust S/N
24700 as of December 31, 2000,  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.  The  accompanying  1999  financial
statements were not audited by us, and accordingly, we express no opinion or any
other form of assurance on them.

/S/  KPMG LLP


SAN FRANCISCO, CALIFORNIA
March 12, 2001






                         BOEING 737-300 TRUST S/N 24700
                                    (A TRUST)
                                 BALANCE SHEETS
                                  DECEMBER 31,
                            (IN THOUSANDS OF DOLLARS)

<TABLE>
<CAPTION>

                                                                   2000               1999
                                                                                   (unaudited)
                                                              ------------------------------------
  ASSETS

<S>                                                           <C>               <C>
  Aircraft equipment held for lease, at cost                  $       23,382    $        23,124
  Less accumulated depreciation                                       (6,027)            (2,569)
                                                              -----------------------------------
      Net equipment                                                   17,355             20,555

  Accounts receivable due from owners                                    836                 --
  Lease negotiation fees, less accumulated
        amortization of $33 in 2000                                       52                 --
  Equipment deposits                                                      58
  Prepaid expenses                                                         3                  3
                                                              -----------------------------------
        Total assets                                          $       18,304    $        20,558
                                                              ===================================


  LIABILITIES AND OWNERS' EQUITY

  Liabilities:
  Accounts payable and accrued expenses                        $          500    $           11
  Due to affiliates                                                       156                --
  Lessee deposits                                                         836                --
                                                               -----------------------------------
    Total liabilities                                                   1,492                11

  Owners' equity                                                       16,812            20,547
  ------------------------------------------------------------------------------------------------

        Total liabilities and owners' equity                   $       18,304    $       20,558
                                                               ===================================
</TABLE>

















      See accompanying auditors' report and notes to financial statements.






                         BOEING 737-300 TRUST S/N 24700
                                    (A TRUST)
                            STATEMENTS OF OPERATIONS
                            (IN THOUSANDS OF DOLLARS)

<TABLE>
<CAPTION>

                                                                       For the period
                                                                        from 06/07/99
                                                   For the year          (inception)
                                                  ended 12/31/00      through 12/31/99
                                                                         (unaudited)
                                                 -----------------------------------------
  REVENUES

<S>                                               <C>                 <C>
  Lease revenue                                   $        1,396      $            --
  Interest income                                              3                   --
                                                  ----------------------------------------
    Total revenues                                         1,399                   --
                                                  ----------------------------------------

  EXPENSES

  Depreciation and amortization expense                    3,491                2,569
  Repairs and maintenance                                  1,146                  100
  Equipment operating expenses                                77                   --
  Management fees to affiliate                                70                   --
  Insurance expense                                           38                   14
  Administrative expenses to affiliates                       11                   13
  Administrative expenses                                    115                   55
                                                  ----------------------------------------
    Total expenses                                         4,948                2,751
                                                  ----------------------------------------

        Net loss                                  $       (3,549)     $        (2,751)
                                                  ========================================
</TABLE>
























      See accompanying auditors' report and notes to financial statements.






                         BOEING 737-300 TRUST S/N 24700
                                    (A TRUST)
                     STATEMENTS OF CHANGES IN OWNERS' EQUITY
                   FOR THE PERIOD FROM INCEPTION JUNE 7, 1999
                      THROUGH DECEMBER 31, 1999 AND FOR THE
                        YEAR ENDED DECEMBER 31, 2000 (IN
                              THOUSANDS OF DOLLARS)








  Owners' capital contribution (unaudited)                  $       23,298

  Net loss (unaudited)                                              (2,751)
                                                            ----------------

   Owners' equity at December 31, 1999 (unaudited)                  20,547

  Net loss                                                          (3,549)

  Distributions paid                                                  (186)
                                                            ----------------

    Owners' equity at December 31, 2000                     $       16,812
                                                            ================





























      See accompanying auditors' report and notes to financial statements.






                         BOEING 737-300 TRUST S/N 24700
                                    (A TRUST)
                            STATEMENTS OF CASH FLOWS
                            (IN THOUSANDS OF DOLLARS)

<TABLE>
<CAPTION>

                                                                                     For the period
                                                                                     from 06/07/99
                                                                   For the year       (inception)
                                                                      ended         through 12/31/99
                                                                   December 31,
                                                                       2000
                                                                                      (unaudited)
                                                               ----------------------------------------

  OPERATING ACTIVITIES

<S>                                                             <C>                <C>
  Net loss                                                      $        (3,549)   $        (2,751)
  Adjustments to reconcile net loss to net cash
      provided by (used in) operating activities:
    Depreciation and amortization                                         3,491              2,569
    Changes in operating assets and liabilities:
      Accounts receivable                                                  (836)                --
      Prepaid expenses                                                       --                 (3)
      Equipment deposits                                                    (58)                --
      Accounts payable and accrued expenses                                 489                 11
      Due to affiliates                                                     156                 --
      Lessee deposits                                                       836                 --
                                                                -------------------------------------
        Net cash provided by (used in) operating activities                 529               (174)
                                                                -------------------------------------

  INVESTING ACTIVITIES

  Payments for the purchase of the aircraft and
    capitalized repairs                                                    (258)           (22,600)
  Payment of acquisition fees to affiliate                                   --               (524)
  Payment of lease negoitation fees to affiliate                            (85)                --
                                                                -------------------------------------
          Net cash used in investing activities                             (343)          (23,124)
                                                                -------------------------------------

  FINANCING ACTIVITIES

  Owners' capital contributions                                              --             23,298
  Distributions paid                                                       (186)                --
                                                                -------------------------------------
        Net cash (used in) provided by financing activities                (186)            23,298
                                                                -------------------------------------

  Net change in cash and cash equivalents                                    --                 --
  Cash and cash equivalents at beginning of period                           --                 --
                                                                -------------------------------------
  Cash and cash equivalents at end of year                      $            --    $            --
                                                                =====================================
</TABLE>








      See accompanying auditors' report and notes to financial statements.






                         BOEING 737-300 TRUST S/N 24700
                                    (A TRUST)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2000

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     ORGANIZATION

In June 1999,  PLM  Equipment  Growth & Income Fund VII (EGF VII),  a California
limited  partnership,  and PLM  Equipment  Growth Fund VI (EGF VI) a  California
limited  partnership,  (the Owners)  entered into a Trust  Agreement (the Trust)
with PLM Transportation  Equipment Corp.(TEC),  a wholly-owned subsidiary of PLM
International,  Inc., by the terms of which TEC is owner trustee for the benefit
of the  Owners as equal  co-beneficiaries.  The Trust  was  established  for the
purpose of purchasing a Boeing  737-300  commercial  aircraft.  The Trust has no
employees  nor  operations  other  than  the  operation  of the  Boeing  737-300
commercial aircraft. The Trust estate is owned 38% by EGF VII and 62% by EGF VI.

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

The  aircraft  was  purchased  in June 1999 for $22.6  million.  EGF VII paid or
accrued  acquistion and lease  negotiation  fees of $0.5 million and EGF VI paid
acquisition  fees of $0.1 million to FSI. In June 2000,  the aircraft was leased
to Islandsflug HF with a term expiring in November 2001.

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

     OPERATIONS

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

     CASH AND CASH EQUIVALENTS

All cash  generated from  operations is distributed to the owners,  accordingly,
the Trust has no cash balance at December 31, 2000 and 1999.

     ACCOUNTING FOR LEASES

The  aircraft  under the Trust is leased  under an  operating  lease  with fixed
monthly  payments.  Under the operating  lease method of accounting,  the leased
asset is recorded at cost and depreciated over its estimated useful life. Rental
payments  are  recorded  as  revenue  over the  lease  term in  accordance  with
Financial  Accounting  Standards Board Statement No. 13 "Accounting for Leases".
Lease origination costs are amortized equally over 18 months.







                         BOEING 737-300 TRUST S/N 24700
                                    (A TRUST)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2000

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

     DEPRECIATION

Depreciation  of  aircraft  equipment  is  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.  Acquisition  fees of $0.5
million,  which were paid to FSI,  were  capitalized  as part of the cost of the
equipment and amortized over the life of the aircraft.

     AIRCRAFT

In accordance with the Financial  Accounting  Standards Board Statement No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be Disposed Of", FSI reviews the carrying  value of the aircraft under the Trust
at least quarterly, and whenever circumstances indicated that the carrying value
of the aircraft may not be  recoverable  in relation to expected  future  market
conditions for the purpose of assessing  recoverability of the recorded amounts.
If  projected  undiscounted  future  cash flows and fair value are less than the
carrying value of the aircraft,  a loss on revaluation would have been recorded.
No reductions to the carrying value of the aircraft were required during 2000 or
1999.

     REPAIRS AND MAINTENANCE

Repair and  maintenance  for the aircraft are the  obligation of the lessee.  To
meet the  maintenance  requirements of certain  aircraft  airframes and engines,
reserve  accounts are prefunded by the lessee over the period of the lease based
on the number of hours  this  equipment  is used,  times the  estimated  rate to
repair this equipment. If repairs exceed the amount prefunded by the lessee, the
Trust has the  obligation to fund and accrue the  difference.  If an aircraft is
sold and there is a balance in the reserve account for repairs to that aircraft,
the balance in the reserve account is reclassified as additional sales proceeds.
The  aircraft  reserve  accounts  are  included in the  balance  sheet as lessee
deposits and reserve for repairs.

Since one of the aircraft  engines was scheduled for an overhaul  prior to going
on lease,  the Trust is  responsible  for the  overhaul  to one of the  aircraft
engines.

     NET LOSS AND CASH DISTRIBUTIONS TO OWNERS

The net loss and cash  distributions  of the Trust are  allocated to the Owners.
The net loss is generally  allocated to the Owners based on their  percentage of
ownership  in  the  Trust.  Certain  depreciable  and  amortizable  amounts  are
allocated   specifically  to  each  of  the  Owners,  such  as  depreciation  on
acquisition fees and amortization on lease negotiation fees. Cash  distributions
are allocated 50% to EGF VII and 50% to EGF VI.

     COMPREHENSIVE LOSS

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

2.   GENERAL PARTNER AND TRANSACTIONS WITH AFFILIATES

Under the equipment management agreement,  IMI receives a monthly management fee
equal to the  lessor 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 Trust's management fee expense to affiliate was $0.1 million and $-0- during
2000 and 1999, respectively.






                         BOEING 737-300 TRUST S/N 24700
                                    (A TRUST)
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2000

2.   GENERAL PARTNER AND TRANSACTIONS WITH AFFILIATES (continued)

The Trust reimbursed FSI $11,000 and $13,000 during 2000 and 1999, respectively,
for data processing and  administrative  expenses  directly  attributable to the
Trust.

As of December 31, 2000,  amounts due to affiliates  included  Trust  management
fees payable to IMI of $0.1 million and lease negotiation fees payable to FSI of
$0.1 million. No fees were payable to affiliates as of December 31, 1999.

3.   EQUIPMENT

Lease revenues are earned by placing the aircraft on an operating lease.  During
May 2000, a fixed rate lease for 18 months was signed with Islandsflug HF.

The aircraft in the Trust is used as  collateral  against the senior loan of the
Owners.

The  aircraft  lease is  accounted  for as an operating  lease.  Future  minimum
rentals under  noncancelable  operating  leases, as of December 31, 2000, during
each of the next five years are: $1.7 million in 2001, and $-0- thereafter.

4.   GEOGRAPHIC INFORMATION

The aircraft is leased and operated in Iceland.

5.   INCOME TAXES

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

As of December 31, 2000, the financial  statement  carrying amount of assets and
liabilities  was  approximately  $5.1 million lower than the federal  income tax
basis  of  such  assets  and  liabilities,   primarily  due  to  differences  in
depreciation methods.

6.   CONCENTRATIONS OF CREDIT RISK

Financial instruments,  which potentially subject the Trust to concentrations of
credit risk, consist principally of lease receivables. The aircraft in the Trust
was on lease to only one customer  during 2000.  This  lessee,  Islandsflug  HF,
accounted for all of the revenue.

As of December 31, 2000, the manager believes the Trust had no other significant
concentrations  of credit risk that could have a material  adverse effect on the
Trust.