TEXTAINER FINANCIAL SERVICES CORPORATION
                        650 California Street, 16th Floor
                             San Francisco, CA 94108


August 12, 2003


Securities and Exchange Commission
Washington, DC  20549

Ladies and Gentlemen:

Pursuant to the  requirements  of the  Securities  Exchange Act of 1934,  we are
submitting  herewith  for  filing on behalf of TCC  Equipment  Income  Fund (the
"Partnership")  the  Partnership's  Quarterly Report on Form 10-Q for the Second
Quarter ended June 30, 2003.

This filing is being effected by direct  transmission to the Commission's  EDGAR
System.

Sincerely,

Nadine Forsman
Controller
<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                               Washington DC 20549



                                    FORM 10-Q



                 QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


                  For the quarterly period ended June 30, 2003


                         Commission file number 0-17688


                            TCC EQUIPMENT INCOME FUND
                        A California Limited Partnership
             (Exact name of Registrant as specified in its charter)


                California                                      94-3045888
      (State or other jurisdiction                            (IRS Employer
    of incorporation or organization)                      Identification No.)

   650 California Street, 16th Floor
            San Francisco, CA                                    94108
(Address of Principal Executive Offices)                       (ZIP Code)

                                 (415) 434-0551
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                                 Yes [X] No [ ]

Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act).

                                 Yes [ ] No [X]

<PAGE>
<TABLE>
<CAPTION>

TCC EQUIPMENT INCOME FUND
(a California Limited Partnership)

Quarterly Report on Form 10-Q for the
Quarter Ended June 30, 2003

Table of Contents
-----------------------------------------------------------------------------------------------------------------




                                                                                                             Page
<S>                                                                                                          <C>
Part I    Financial Information

    Item 1.   Financial Statements (unaudited)

          Balance Sheets - June 30, 2003
          and December 31, 2002.............................................................................    3


          Statements of Operations for the three and six months
          ended June 30, 2003 and 2002......................................................................    4


          Statements of Partners' Capital for the six months
          ended June 30, 2003 and 2002......................................................................    5


          Statements of Cash Flows for the six months
          ended June 30, 2003 and 2002......................................................................    6


          Notes to Financial Statements.....................................................................    8


    Item 2.   Management's Discussion and Analysis of Financial Condition
              and Results of Operations.....................................................................   14


    Item 3.   Quantitative and Qualitative Disclosures about Market Risk....................................   22


    Item 4.   Controls and Procedures.......................................................................   22


Part II   Other Information

    Item 6.   Exhibits and Reports on Form 8-K..............................................................   23

</TABLE>
<PAGE>
<TABLE>
<CAPTION>

TCC EQUIPMENT INCOME FUND
(a California Limited Partnership)

Balance Sheets

June 30, 2003 and December 31, 2002
(Amounts in thousands)
(unaudited)
--------------------------------------------------------------------------------------------------------


                                                                              2003              2002
                                                                         -------------      ------------
<S>                                                                    <C>                  <C>

Assets
Container rental equipment, net of accumulated
   depreciation of  $6,042, (2002:  $6,154) (note 4)                     $      5,287       $     5,832
Cash                                                                              442               513
Accounts receivable, net of allowance for doubtful
   accounts of $28, (2002:  $24)                                                  378               410
Due from affiliates, net (note 2)                                                  58                29
Prepaid expenses                                                                    2                17
                                                                         -------------      ------------

                                                                         $      6,167       $     6,801
                                                                         =============      ============

Liabilities and Partners' Capital
Liabilities:
   Accounts payable                                                      $        117       $       128
   Accrued liabilities                                                             20                27
   Accrued recovery costs                                                          18                18
   Accrued damage protection plan costs                                            46                43
   Deferred damage protection plan revenue                                         21                22
                                                                         -------------      ------------

       Total liabilities                                                          222               238
                                                                         -------------      ------------

Partners' capital:
   General partners                                                                 -                 -
   Limited partners                                                             5,945             6,563
                                                                         -------------      ------------

       Total partners' capital                                                  5,945             6,563
                                                                         -------------      ------------


                                                                         $      6,167       $     6,801
                                                                         =============      ============


See accompanying notes to financial statements

</TABLE>


<PAGE>
<TABLE>
<CAPTION>

TCC EQUIPMENT INCOME FUND
(a California Limited Partnership)

Statements of Operations

For the three and six months ended June 30, 2003 and 2002
(Amounts in thousands except for unit and per unit amounts)
(unaudited)
------------------------------------------------------------------------------------------------------------------------------------


                                                                Three months      Three months       Six months        Six months
                                                                    Ended             Ended             Ended             Ended
                                                                June 30, 2003     June 30, 2002     June 30, 2003     June 30, 2002
                                                               ---------------   ---------------   ---------------   ---------------
<S>                                                            <C>               <C>               <C>               <C>
Rental income                                                  $          417    $          396    $          847    $          800
                                                               ---------------   ---------------   ---------------   ---------------

Costs and expenses:
   Direct container expenses                                              122               152               224               279
   Bad debt expense (benefit)                                              10                (5)                8                 1
   Depreciation (note 4)                                                  169               154               345               310
   Write-down of containers (note 4)                                        4                22                10                77
   Professional fees                                                       11                17                20                26
   Management fees to affiliates (note 2)                                  37                33                76                72
   General and administrative costs to affiliates (note 2)                 19                22                40                45
   Other general and administrative costs                                   5                19                10                37
   Loss (gain) on sale of containers (note 4)                              30               (17)               38                11
                                                               ---------------   ---------------   ---------------   ---------------

                                                                          407               397               771               858
                                                               ---------------   ---------------   ---------------   ---------------

   Income (loss) from operations                                           10                (1)               76               (58)
                                                               ---------------   ---------------   ---------------   ---------------

Interest income                                                             1                 2                 2                 3
                                                               ---------------   ---------------   ---------------   ---------------


    Net earnings (loss)                                        $           11    $            1    $           78    $          (55)
                                                               ===============   ===============   ===============   ===============

Allocation of net earnings (loss) (note 2):
   General partners                                            $            4    $            5    $            9    $           11
   Limited partners                                                         7                (4)               69               (66)
                                                               ---------------   ---------------   ---------------   ---------------

                                                               $           11    $            1    $           78    $          (55)
                                                               ===============   ===============   ===============   ===============
Limited partners' per unit share
   of net earnings (loss)                                      $         0.00    $         0.00    $         0.05    $        (0.05)
                                                               ===============   ===============   ===============   ===============

Limited partners' per unit share
   of distributions                                            $         0.20    $         0.25    $         0.48    $         0.55
                                                               ===============   ===============   ===============   ===============

Weighted average number of limited
   partnership units outstanding                                    1,412,199         1,428,963         1,412,199         1,428,963
                                                               ===============   ===============   ===============   ===============

See accompanying notes to financial statements

</TABLE>

<PAGE>
<TABLE>
<CAPTION>

TCC EQUIPMENT INCOME FUND
(a California Limited Partnership)

Statements of Partners' Capital

For the six months ended June 30, 2003 and 2002
(Amounts in thousands)
(unaudited)
-----------------------------------------------------------------------------------------------------------

                                                                          Partners' Capital
                                                         --------------------------------------------------

                                                           General            Limited             Total
                                                        -------------      -------------      -------------
<S>                                                     <C>                <C>                <C>
Balances at January 1, 2002                             $          -       $      8,043       $      8,043

Distributions                                                    (11)              (787)              (798)

Redemptions (note 5)                                               -                (21)               (21)

Net earnings (loss)                                               11                (66)               (55)
                                                        -------------      -------------      -------------

Balances at June 30, 2002                               $          -       $      7,169       $      7,169
                                                        =============      =============      =============

Balances at January 1, 2003                             $          -       $      6,563       $      6,563

Distributions                                                     (9)              (672)              (681)

Redemptions (note 5)                                               -                (15)               (15)

Net earnings                                                       9                 69                 78
                                                        -------------      -------------      -------------

Balances at June 30, 2003                               $          -       $      5,945       $      5,945
                                                        =============      =============      =============





See accompanying notes to financial statements
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

TCC EQUIPMENT INCOME FUND
(a California Limited Partnership)

Statements of Cash Flows

For the six months ended June 30, 2003 and 2002
(Amounts in thousands)
(unaudited)
----------------------------------------------------------------------------------------------------------------


                                                                                      2003              2002
                                                                                  ------------      ------------
<S>                                                                              <C>               <C>
Cash flows from operating activities:
     Net earnings (loss)                                                          $        78       $       (55)
     Adjustments to reconcile net earnings (loss) to
       net cash provided by operating activities:
        Depreciation (note 4)                                                             345               310
        Write-down of containers (note 4)                                                  10                77
        Increase (decrease) in allowance for doubtful accounts                              4                 1
        Loss on sale of containers                                                         38                11
        (Increase) decrease in assets:
           Accounts receivable                                                             29                74
           Due from affiliates, net                                                       (56)              (28)
           Prepaid expenses                                                                15                 3
        Increase (decrease) in liabilities:
           Accounts payable and accrued liabilities                                       (18)                5
           Accrued recovery costs                                                           -               (17)
           Damage protection plan costs                                                     3                (1)
           Deferred damage protection plan revenue                                         (1)               (1)
                                                                                  ------------      ------------

                Net cash provided by operating activities                                 447               379
                                                                                  ------------      ------------

Cash flows from investing activities:
     Proceeds from sale of containers                                                     178               321
                                                                                  ------------      ------------

               Net cash provided by investing activities                                  178               321
                                                                                  ------------      ------------

Cash flows from financing activities:
     Redemptions of limited partnership units                                             (15)              (21)
     Distributions to partners                                                           (681)             (799)
                                                                                  ------------      ------------

                Net cash used in financing activities                                    (696)             (820)
                                                                                  ------------      ------------

Net decrease in cash                                                                      (71)             (120)

Cash at beginning of period                                                               513               533
                                                                                  ------------      ------------

Cash at end of period                                                             $       442       $       413
                                                                                  ============      ============



See accompanying notes to financial statements
</TABLE>


<PAGE>


<TABLE>
<CAPTION>

TCC EQUIPMENT INCOME FUND
(a California Limited Partnership)


Statements Of Cash Flows--Continued

For the six months ended June 30, 2003 and 2002
(Amounts in thousands)
(unaudited)
--------------------------------------------------------------------------------

Supplemental Disclosures:

Supplemental schedule of non-cash investing and financing activities:

The following  table  summarizes  the amounts of  distributions  to partners and
proceeds from sale of containers  which had not been paid or received as of June
30, 2003 and 2002,  and December 31, 2002 and 2001,  resulting in differences in
amounts  recorded and amounts of cash disbursed or received by the  Partnership,
as shown in the  Statements of Cash Flows for the  six-month  periods ended June
30, 2003 and 2002.

                                                               June 30        Dec. 31        June 30        Dec. 31
                                                                 2003          2002            2002           2001
                                                             -----------    -----------    -----------    -----------
<S>                                                            <C>             <C>             <C>           <C>
Distributions to partners included in:
     Due to affiliates..............................             $ 1            $ 1             $ 1           $  2

Proceeds from sale of containers included in:
     Due from affiliates............................              32             59              88            110

The following  table  summarizes  the amounts of  distributions  to partners and
proceeds from sale of  containers  recorded by the  Partnership  and the amounts
paid or  received  as shown in the  Statements  of Cash Flows for the  six-month
periods ended June 30, 2003 and 2002.

                                                                                               2003           2002
                                                                                               ----           ----

Distributions to partners declared..................................                           $681           $798
Distributions to partners paid......................................                            681            799

Proceeds from sale of containers recorded...........................                            151            299
Proceeds from sale of containers received...........................                            178            321

The  Partnership  has  entered  into direct  finance  leases,  resulting  in the
transfer of containers from container rental  equipment to accounts  receivable.
The carrying value of containers  transferred during the six-month periods ended
June 30, 2003 and 2002 was $1 and $2, respectively.


See accompanying notes to financial statements
</TABLE>



<PAGE>

TCC EQUIPMENT INCOME FUND
(a California Limited Partnership)

Notes To Financial Statements

For the three and six months ended June 30, 2003 and 2002
(Amounts in thousands except for unit and per unit amounts)
(unaudited)
--------------------------------------------------------------------------------


Note 1.   General

     TCC  Equipment  Income  Fund  (the   Partnership),   a  California  limited
     partnership  with a maximum  life of 20  years,  was  formed  in 1987.  The
     Partnership owns a fleet of intermodal marine cargo  containers,  which are
     leased to international shipping lines.

     In January  1998,  the  Partnership  ceased  purchasing  containers  and in
     October 1998, the Partnership  began its liquidation  phase. This phase may
     last up to six or more years  depending on whether the  containers are sold
     (i) in one or more large  transactions  or (ii)  gradually,  either as they
     reach the end of their marine  useful  lives or when an analysis  indicates
     that their sale is warranted  based on existing  market  conditions and the
     container's age, location and condition.  The Partnership  anticipates that
     all excess cash, after  redemptions and working capital  reserves,  will be
     distributed to the limited and general partners on a quarterly basis.

     The accompanying financial statements have been prepared on a going concern
     basis  which  contemplates  the  realization  of  assets  and  payments  of
     liabilities in the ordinary course of business.  The final  termination and
     winding up of the  Partnership,  as well as payment of  liquidating  and/or
     final  distributions,  will occur at the end of the liquidation  phase when
     all or substantially all of the Partnership's containers have been sold and
     the Partnership begins its dissolution.

     The accompanying  interim  comparative  financial  statements have not been
     audited by an  independent  public  accountant.  However,  all  adjustments
     (which  were only  normal and  recurring  adjustments)  which  are,  in the
     opinion of management,  necessary to fairly present the financial  position
     of the  Partnership  as of June 30,  2003  and  December  31,  2002 and the
     results of its  operations  for the three and six-month  periods ended June
     30, 2003 and 2002 and changes in  partners'  capital and cash flows for the
     six-month periods ended June 30, 2003 and 2002, have been made.

     The financial  information  presented  herein should be read in conjunction
     with the audited financial statements and other accompanying notes included
     in the Partnership's  annual audited financial statements as of and for the
     year ended December 31, 2002, in the Annual Report filed on Form 10-K.

     Certain estimates and assumptions were made by the Partnership's management
     that affect the reported  amounts of assets and liabilities and disclosures
     of  contingent  assets  and  liabilities  at  the  date  of  the  financial
     statements  and the  reported  amounts of revenue and  expenses  during the
     reporting period. The Partnership's  management  evaluates its estimates on
     an  on-going  basis,  including  those  related  to  the  container  rental
     equipment, accounts receivable and accruals.

     These  estimates  are based on historical  experience  and on various other
     assumptions that are believed to be reasonable under the circumstances, the
     results of which form the basis for making judgments regarding the carrying
     values of assets and  liabilities.  Actual  results could differ from those
     estimates under different assumptions or conditions.

     The Partnership's  management  believes the following  critical  accounting
     policies  affect its more  significant  judgments and estimates used in the
     preparation of its financial statements.

     The Partnership  maintains  allowances for doubtful  accounts for estimated
     losses  resulting  from  the  inability  of its  lessees  to make  required
     payments.  These allowances are based on management's current assessment of
     the financial  condition of the Partnership's  lessees and their ability to
     make  their  required   payments.   If  the  financial   condition  of  the
     Partnership's  lessees were to  deteriorate,  resulting in an impairment of
     their ability to make payments, additional allowances may be required.

     The Partnership depreciates its container rental equipment based on certain
     estimates related to the container's  useful life and salvage value.  These
     estimates  are based  upon  assumptions  about  future  demand  for  leased
     containers  and the  estimated  sales  price at the end of the  container's
     useful life. The  Partnership  will evaluate the estimated  residual values
     and remaining  estimated  useful lives on an on-going basis and will revise
     its estimates as needed. As a result, depreciation expense may fluctuate in
     future periods based on fluctuations in these estimates.

     Additionally,  the  recoverability of the recorded amounts of containers to
     be held for continued use and identified for sale in the ordinary course of
     business are evaluated to ensure that containers held for continued use are
     not  impaired  and that  containers  identified  for sale are  recorded  at
     amounts  that do not exceed  the  estimated  fair value of the  containers.
     Containers  to be held for continued  use are  considered  impaired and are
     written down to estimated fair value when the estimated future undiscounted
     cash flows are less than the recorded  values.  Containers  identified  for
     sale are  written  down to  estimated  fair value when the  recorded  value
     exceeds the estimated  fair value.  In  determining  the  estimated  future
     undiscounted cash flows and fair value of containers,  assumptions are made
     regarding future demand and market conditions for leased containers and the
     sales prices for used  containers.  If actual  market  conditions  are less
     favorable  than those  projected  or if actual  sales prices are lower than
     those estimated by the Partnership,  additional write-downs may be required
     and/or losses may be realized.

     In  June  2002,  the  FASB  issued  SFAS  No.  146  "Accounting  for  costs
     Associated  With  Exit or  Disposal  Activities."  SFAS No.  146  addresses
     financial  accounting  and  reporting  for  costs  associated  with exit or
     disposal  activities and nullifies  Emerging Issues Task Force (EITF) Issue
     No. 94-3 "Liability  Recognition for Certain Employee  Termination Benefits
     and Other Costs to Exit an Activity  (including Certain Costs Incurred in a
     Restructuring)."  This  Statement  requires  that  a  liability  for a cost
     associated  with  an exit or  disposal  activity  be  recognized  when  the
     liability is incurred.  The Partnership  adopted SFAS No. 146 on January 1,
     2003 and  there  was no  material  impact  on the  Partnership's  financial
     condition, operating results or cash flow.

     Certain  reclassifications,  not affecting net earnings  (loss),  have been
     made to  prior  year  amounts  in order to  conform  to the 2003  financial
     statement presentation.

Note 2.   Transactions with Affiliates

     Textainer  Financial  Services  Corporation  (TFS) is the managing  general
     partner of the  Partnership  and is a wholly-owned  subsidiary of Textainer
     Capital Corporation (TCC). Textainer Equipment Management Limited (TEM) and
     Textainer  Limited (TL) are associate  general partners of the Partnership.
     The  managing  general  partner  and the  associate  general  partners  are
     collectively  referred to as the General Partners and are commonly owned by
     Textainer Group Holdings  Limited (TGH).  The General  Partners also act in
     this capacity for other limited  partnerships.  The General Partners manage
     and control the affairs of the Partnership.

     In accordance with the Partnership  Agreement,  sections 3.08 through 3.11,
     net earnings or losses and distributions are generally  allocated 1% to the
     General Partners and 99% to the Limited  Partners.  Effective October 1998,
     the allocation of  distributions  to the General  Partners was increased to
     1.3% in  accordance  with section  2.05 of the  Partnership  Agreement.  In
     addition,  if the allocation of distributions exceeds the allocation of net
     earnings  (loss) and creates a deficit in the General  Partners'  aggregate
     capital  account,   the  Partnership   Agreement  provides  for  a  special
     allocation of gross income equal to the amount of the deficit to be made to
     the General Partners.

     As part of the operation of the  Partnership,  the Partnership is to pay to
     the General Partners an equipment  management fee, an incentive  management
     fee and an equipment  liquidation  fee. These fees are for various services
     provided  in  connection  with the  administration  and  management  of the
     Partnership.  The Partnership  incurred $8 and $17 of incentive  management
     fees  during  the  three  and  six-month   periods  ended  June  30,  2003,
     respectively,  and $6 and  $16  during  the  comparable  periods  in  2002,
     respectively.  There were no equipment liquidation fees incurred during the
     six-month periods ended June 30, 2003 and 2002.

     The  Partnership's  containers  are managed by TEM. In its role as manager,
     TEM has authority to acquire,  hold, manage, lease, sell and dispose of the
     Partnership's  containers.  TEM holds,  for the payment of direct operating
     expenses,   a  reserve  of  cash  that  has  been  collected  from  leasing
     operations;  such cash is included in due from affiliates,  net at June 30,
     2003 and December 31, 2002.

     Subject to certain reductions,  TEM receives a monthly equipment management
     fee equal to 7% of gross revenues  attributable to operating  leases and 2%
     of gross  revenues  attributable  to full  payout  net  leases.  These fees
     totaled  $29 and $59 for the three and  six-month  periods  ended  June 30,
     2003,  respectively,  and $27 and  $56,  respectively,  for the  comparable
     periods in 2002.

     Certain  indirect  general  and  administrative  costs  such  as  salaries,
     employee   benefits,   taxes  and  insurance  are  incurred  in  performing
     administrative  services  necessary to the  operation  of the  Partnership.
     These  costs  are  incurred  and paid by TEM and  TFS.  Total  general  and
     administrative  costs  allocated  to the  Partnership  during the three and
     six-month periods ended June 30, 2003 and 2002 were as follows:
<PAGE>

                                       Three months         Six months
                                      ended June 30,      ended June 30,
                                      --------------      --------------
                                      2003      2002      2003      2002
                                      ----      ----      ----      ----

          Salaries                     $11       $14       $22       $29
          Other                          8         8        18        16
                                        --        --        --        --
            Total general and
               administrative costs    $19       $22       $40       $45
                                        ==        ==        ==        ==

     TEM allocates these general and administrative  costs based on the ratio of
     the Partnership's interest in the managed containers to the total container
     fleet managed by TEM during the period.  TFS allocates these costs based on
     the ratio of the  Partnership's  investors to the total number of investors
     of all limited partnerships managed by TFS or equally among all the limited
     partnerships  managed by TFS. The General Partners  allocated the following
     general and  administrative  costs to the Partnership  during the three and
     six-month periods ended June 30, 2003 and 2002:

                                       Three months         Six months
                                      ended June 30,      ended June 30,
                                      --------------      --------------
                                      2003      2002      2003      2002
                                      ----      ----      ----      ----

         TEM                           $17       $19       $35       $38
         TFS                             2         3         5         7
                                        --        --        --        --
           Total general and
              administrative costs     $19       $22       $40       $45
                                        ==        ==        ==        ==

     At June 30,  2003 and  December  31,  2002,  due  from  affiliates,  net is
     comprised of:

                                                            2003           2002
                                                            ----           ----
         Due from affiliates:
                  Due from TEM.......................        $70            $39
                                                              --             --

         Due to affiliates:
                  Due to TCC.........................          4              3
                  Due to TFS.........................          8              7
                                                              --             --
                                                              12             10
                                                              --             --

         Due from affiliates, net                            $58            $29
                                                              ==             ==


     These amounts  receivable  from and payable to affiliates  were incurred in
     the ordinary course of business  between the Partnership and its affiliates
     and represent timing differences in the accrual and remittance of expenses,
     fees and distributions described above and in the accrual and remittance of
     net rental revenues and container sales proceeds from TEM.


Note 3.   Lease Rental Income

     Leasing income arises principally from the renting of containers to various
     international  shipping lines. Revenue is recorded when earned according to
     the terms of the container rental contracts.  These contracts are typically
     for  terms of five  years or less.  The  following  is the lease mix of the
     on-lease containers (in units) at June 30, 2003 and 2002:

                                                           2003             2002
                                                           ----             ----

              On-lease under master leases                1,935            2,012
              On-lease under long-term leases             1,139              898
                                                          -----            -----

                 Total on-lease containers                3,074            2,910
                                                          =====            =====

     Under  master  lease  agreements,  the lessee is not  committed  to lease a
     minimum number of containers from the Partnership during the lease term and
     may generally  return any portion or all the containers to the  Partnership
     at any time, subject to certain restrictions in the lease agreement.  Under
     long-term  lease  agreements,   containers  are  usually  leased  from  the
     Partnership  for periods of between  three to five  years.  Such leases are
     generally cancelable with a penalty at the end of each twelve-month period.
     Under direct  finance  leases,  the  containers are usually leased from the
     Partnership  for  the  remainder  of the  container's  useful  life  with a
     purchase option at the end of the lease term.

     The remaining containers are off-lease and are located primarily at a large
     number of storage  depots.  At June 30,  2003 and 2002,  the  Partnership's
     off-lease containers were in the following locations:

                                                           2003             2002
                                                           ----             ----

              Americas                                      298              446
              Europe                                        129              235
              Asia                                          109              453
              Other                                          25               26
                                                            ---            -----

                 Total off-lease containers                 561            1,160
                                                            ===            =====

     At  June  30,  2003  approximately  12%  of  the  Partnership's   off-lease
     containers had been specifically identified as for sale.


Note 4. Container Rental Equipment

     Effective July 1, 2002, the Partnership  revised its estimate for container
     salvage  value from a percentage of equipment  cost to an estimated  dollar
     residual  value.  The  effect of this  change  for the three and  six-month
     periods ended June 30, 2003 was an increase to depreciation  expense of $22
     and $51, respectively. The Partnership will evaluate the estimated residual
     values and remaining  estimated  useful lives on an on-going basis and will
     revise its  estimates  as needed.  As a result,  depreciation  expense  may
     fluctuate in future periods based on fluctuations in these estimates.

     The  Partnership  stopped  purchasing  containers in 1998,  but its leasing
     activities  are  affected by  fluctuations  in new  container  prices.  New
     container prices steadily declined from 1995 through 1999 and have remained
     low through the first half of 2003. As a result, the cost of new containers
     purchased  in recent years is  significantly  less than the average cost of
     containers  purchased  in  prior  years.  The  Partnership   evaluated  the
     recoverability of the recorded amount of container rental equipment at June
     30,  2003  and  2002  for  containers  to be  held  for  continued  use and
     determined  that a reduction to the carrying value of these  containers was
     not required.  The  Partnership  also evaluated the  recoverability  of the
     recorded amount of containers identified for sale in the ordinary course of
     business and  determined  that a reduction  to the carrying  value of these
     containers  was  required.  The  Partnership wrote  down the value of these
     containers to their  estimated  net  realizable  value,  which was based on
     recent sales prices less cost to sell.  During the six-month  periods ended
     June 30, 2003 and 2002, the Partnership recorded write-down expenses of $10
     and $77, respectively,  on 32 and 162 containers identified as for sale and
     requiring a reserve. During the three-month periods ended June 30, 2003 and
     2002,  the  Partnership   recorded  write-down  expenses  of  $4  and  $24,
     respectively,  on 19 and 55 containers  identified for sale and requiring a
     reserve.  At June 30,  2003 and 2002,  the net book value of the 41 and 168
     containers identified for sale was $31 and $146, respectively.

     The  Partnership  sold 35 previously  written down  containers  for no gain
     during the  six-month  period  ended June 30, 2003 and sold 160  previously
     written down  containers  for a loss of $16 during the same period in 2002.
     During the three-month  period ended June 30, 2003 the Partnership  sold 21
     previously  written down containers for a loss of $1 and sold 87 previously
     written down  containers  for a loss of $11 during the same period in 2002.
     The Partnership  incurred losses on the sale of some containers  previously
     written down as the actual sales prices  received on these  containers were
     lower than the estimates used for the write-downs.

     The  Partnership  also sold  containers  that had not been written down and
     recorded a loss of $38 and a gain of $5 during the six-month  periods ended
     June 30, 2003, and 2002, respectively. During the three-month periods ended
     June 30, 2003 and 2002, the  Partnership  recorded a loss of $29 and a gain
     of $28,  respectively,  on the sale of containers that had not been written
     down.

     As more containers are subsequently  identified as for sale or if container
     sales prices  continue to decline,  the  Partnership  may incur  additional
     write-downs  on  containers   and/or  may  incur  losses  on  the  sale  of
     containers. The Partnership will continue to evaluate the recoverability of
     the recorded amounts of container rental equipment.
<PAGE>

<TABLE>
<CAPTION>

Note 5.   Redemptions

     The following  redemptions were  consummated by the Partnership  during the
     six-month periods ended June 30, 2003 and 2002:


                                                               Units              Average
                                                             Redeemed        Redemption Price           Amount Paid
                                                             --------        ----------------           -----------
<S>                                                          <C>                  <C>                      <C>
       Total Partnership redemptions as of
         December 31, 2001.......................             40,966               $6.36                    $260

       Six-month period ended
         June 30, 2002...........................              4,625               $4.64                      21
                                                              ------                                         ---

       Total Partnership redemptions as of
         June 30, 2002...........................             45,591               $6.16                    $281
                                                              ======                                         ===

       Total Partnership redemptions as
         of December 31, 2002....................             58,115               $5.68                    $330

       Six-month period ended
         June 30, 2003...........................              4,240               $3.54                      15
                                                              ------                                         ---

       Total Partnership redemptions as of
         June 30, 2003...........................             62,355               $5.53                    $345
                                                              ======                                         ===

</TABLE>


     The redemption price is fixed by formula in accordance with the Partnership
     Agreement.

<PAGE>

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

(Amounts in thousands except for unit and per unit amounts)
--------------------------------------------------------------------------------

The Financial Statements contain information which will assist in evaluating the
financial condition of the Partnership for the three and six-month periods ended
June 30, 2003,  and 2002.  Please refer to the  Financial  Statements  and Notes
thereto in connection with the following discussion.

Textainer  Financial Services  Corporation (TFS) is the Managing General Partner
of the  Partnership  and  is a  wholly-owned  subsidiary  of  Textainer  Capital
Corporation (TCC).  Textainer  Equipment  Management Limited (TEM) and Textainer
Limited (TL) are  Associate  General  Partners of the  Partnership.  The General
Partners manage and control the affairs of the Partnership.

Liquidity and Capital Resources

From  October  1987  until  October  1989,  the   Partnership   offered  limited
partnership  interests  to the  public.  The  Partnership  received  its minimum
subscription  amount of $1,000 on April 8, 1988,  and on October 26,  1989,  the
Partnership's offering of limited partnership interests was closed at $29,491.

In October 1998, the Partnership  entered its liquidation  phase, which may last
up to six or more years  depending on whether the containers are sold (i) in one
or more large  transactions or (ii)  gradually,  either as they reach the end of
their  useful  marine  lives or when an  analysis  indicates  that their sale is
warranted based on existing market  conditions and the container's age, location
and condition.  To date, the  Partnership  has sold  containers  only gradually,
rather than in large transactions.  The Partnership  anticipates that all excess
cash, after redemptions and working capital reserves, will be distributed to the
general and limited  partners on a quarterly  basis.  These  distributions  will
consist  of cash  from  operations  and/or  cash  from  sales  proceeds.  As the
Partnership's  container  fleet  decreases,  cash from operations is expected to
decrease,  while cash from sales proceeds is expected to fluctuate  based on the
number of  containers  sold and the actual sales price per  container  received.
Consequently,  the  Partnership  anticipates  that a large portion of all future
distributions will be a return of capital.

The final  termination and winding up of the Partnership,  as well as payment of
liquidating and/or final distributions, will occur at the end of the liquidation
phase when all or substantially  all of the  Partnership's  containers have been
sold and the Partnership begins its dissolution.

The  Partnership  invests  working  capital  and cash  flow from  operating  and
investing  activities  prior to its  distribution to the partners in short-term,
liquid  investments.  Rental  income and proceeds from  container  sales are the
Partnership's  principal  sources  of  liquidity  and the  source  of funds  for
distributions.  Rental income and container  sales prices are affected by market
conditions for leased and used containers.  Market conditions are discussed more
fully in "Results of  Operations."  The  Partnership's  cash is affected by cash
provided by or used in  operating,  investing and  financing  activities.  These
activities are discussed in detail below.

During the six-month  period ended June 30, 2003, the Partnership  declared cash
distributions  to limited  partners  pertaining  to the  fourth  quarter of 2002
through the first quarter of 2003 in the amount of $672, which represented $0.48
per unit. On a cash basis,  as reflected on the Statements of Cash Flows,  after
paying   redemptions   and  general   partner   distributions,   $423  of  these
distributions was from operating activities and the balance of $249 was a return
of capital.  On an accrual  basis,  as reflected on the  Statements of Partners'
Capital, after paying redemptions,  $54 of these distributions were from current
year earnings and $618 was a return of capital.

From time to time,  the  Partnership  redeems units from limited  partners for a
specified  redemption  value,  which  is  set  by  formula.  Up  to  2%  of  the
Partnership's outstanding units may be redeemed each year, although the 2% limit
may be exceeded at the Managing General  Partner's  discretion.  All redemptions
are subject to the Managing  General  Partner's  good faith  determination  that
payment for the redeemed units will not (i) cause the Partnership to be taxed as
a  corporation,  (ii) impair the capital or  operations of the  Partnership,  or
(iii) impair the ability of the Partnership to pay  distributions  in accordance
with its distribution  policy.  During the six-month period ended June 30, 2003,
the  Partnership  redeemed  4,240 units for a total  dollar  amount of $15.  The
Partnership used cash from operating activities to pay for the redeemed units.

Net cash provided by operating  activities for the six-month  periods ended June
30, 2003 and 2002, was $447 and $379, respectively. The increase of $68, or 18%,
was primarily due to fluctuations in net earnings (loss),  adjusted for non-cash
transactions,  offset by the  fluctuations  in gross  accounts  receivable.  Net
earnings (loss), adjusted for non-cash transactions, fluctuated primarily due to
the  increase in rental  income and the decrease in direct  container  expenses.
These items are discussed more fully under "Results of Operations." The decrease
of $29 in gross accounts receivable for the six-month period ended June 30, 2003
was  primarily  due to a decline in the  average  collection  period of accounts
receivable,  partially offset by the increase in rental income.  The decrease of
$66 in gross  accounts  receivable  during the same period in 2002 was primarily
due to the  decrease in rental  income,  partially  offset by an increase in the
average collection period of accounts receivable.

For the  six-month  periods  ended June 30, 2003 and 2002,  net cash provided by
investing  activities (the sale of containers) was $178 and $321,  respectively.
The decrease of $143 was due to the  Partnership  selling  fewer  containers  at
lower  average  sales prices  during the  six-month  period ended June 30, 2003,
compared to the equivalent period in 2002. The sales price received on container
sales continued to decrease as a result of current market conditions, which have
adversely  affected the value of used  containers.  Some of the containers  sold
were  located  in low  demand  locations,  and these  sales  were  driven by the
liquidation  plans discussed  above,  and by adverse market  conditions in these
locations. Until demand for containers improves in certain low demand locations,
the  Partnership  plans to  continue  selling  some of its  containers  that are
off-lease in these locations  rather than incurring the expense of repositioning
them.  The sale of  containers in these  locations,  the decline in the value of
used containers and the related market conditions are discussed more fully under
"Results of Operations."

Due, in part,  to these  market  conditions  and their effect on demand for used
containers,  the Partnership has been primarily  selling  containers only if the
containers  are at the end of their useful lives or if they are located in these
low  demand  locations.  Therefore,  and as noted  above,  the  Partnership  has
implemented its liquidation phase to date by selling containers  gradually.  The
Partnership will continue to evaluate its options for selling  containers in the
context of both these market conditions and the Partnership's liquidation plans.
The number of containers  sold both in low demand  locations and  elsewhere,  as
well as the amount of sales proceeds,  will affect how much the Partnership will
pay in future distributions to Partners.

Results of Operations

The  Partnership's  income from operations,  which consists  primarily of rental
income  less  costs  and  expenses  (including  container  depreciation,  direct
container  expenses,   management  fees,  and  reimbursement  of  administrative
expenses)  was directly  related to the size of the  container  fleet during the
six-month periods ended June 30, 2003 and 2002, as well as certain other factors
as discussed below. The following is a summary of the container fleet (in units)
available for lease during those periods:


                                                      2003            2002
                                                      ----            ----

         Beginning container fleet...............    3,822           4,416
         Ending container fleet..................    3,635           4,070
         Average container fleet.................    3,729           4,243

The average  container fleet decreased 12% from the six-month  period ended June
30, 2002 to the comparable period in 2003,  primarily due to the continuing sale
of containers (i) that had reached the end of their useful lives or (ii) that an
analysis had indicated that their sale was otherwise warranted. Included in this
second group were containers  located in low demand  locations.  The Partnership
expects that the size of its container  fleet will further decline as additional
containers  are sold for these  reasons  and as the  Partnership  continues  its
liquidation  plans.  The  Partnership  expects  rental  income to decline as the
container fleet  declines.  While the decline in the container fleet resulted in
lower rental  income,  this decrease was more than offset by the  improvement in
utilization,  resulting  in the  increase in rental  income  from the  six-month
period  ended June 30,  2002 to the same period in 2003.  An overall  decline in
rental  income is expected  in future  years,  as the size of the  Partnership's
container fleet continues to decrease.

Rental  income and direct  container  expenses are also  affected by the average
utilization of the container fleet,  which was 81% and 63% on average during the
six-month  periods  ended June 30, 2003 and 2002,  respectively.  The  remaining
container  fleet is  off-lease  and is located  primarily  at a large  number of
storage  depots.  At June  30,  2003  and  2002,  utilization  was 85% and  71%,
respectively,  and the Partnership's off-lease containers (in units) were in the
following locations:

                                                  2003         2002
                                                  ----         ----

              Americas                             298          446
              Europe                               129          235
              Asia                                 109          453
              Other                                 25           26
                                                   ---        -----

                 Total off-lease containers        561        1,160
                                                   ===        =====

At June 30, 2003 approximately 12% of the Partnership's off-lease containers had
been specifically identified as for sale.

In addition to utilization, rental income is affected by daily rental rates. The
average daily rental rate for the Partnership's  containers decreased 9% between
the  periods.  Average  rental  rates  declined  under both master and long term
leases,  which  are the two  principal  types of  leases  for the  Partnership's
containers.  The majority of the Partnership's  rental income was generated from
leasing of the Partnership's  containers under master operating  leases,  but in
the past several years an increasing percentage of the Partnership's  containers
have been on lease under long term  leases.  At June 30, 2003 and 2002,  37% and
31%, respectively,  of the Partnership's on-lease containers were on lease under
long term leases. Long term leases generally have lower rental rates than master
leases  because the lessees have  contracted to lease the containers for several
years and cannot return the containers  prior to the termination  date without a
penalty.  Fluctuations in rental rates under either type of lease generally will
affect the Partnership's operating results.

The  following is a comparative  analysis of the results of  operations  for the
six-month periods ended June 30, 2003 and 2002.

The Partnership's income (loss) from operations for the six-month periods ending
June 30, 2003 and 2002 was $76 and ($58), respectively, on rental income of $847
and $800,  respectively.  The increase in rental  income of $47, or 6%, from the
six-month  period  ended  June 30,  2002 to the  comparable  period  in 2003 was
attributable  to  increases  in income from  container  rentals and other rental
income,  which is discussed  below.  Income from  container  rentals,  the major
component of total revenue,  increased $43 or 6%,  primarily due to the increase
in average on-hire  utilization of 29%, offset by the decreases in average fleet
size of 12% and average rental rates of 9% between the periods.

Beginning  in March 2002,  utilization  began to improve and  improved  steadily
through the end of 2002 due to:

o         An increase in export cargo out of Asia
o         Prior   repositioning   of  containers  to  Asia  which  placed  large
          quantities  of  containers in areas of high demand
o         Disposal of older  containers and fewer purchases of new containers by
          both container lessors and shipping  lines in 2001 and 2002, resulting
          in an overall better-balanced supply of containers
o         The labor  disagreement  that  affected  U.S.  West Coast ports in the
          third and part of the fourth quarter had short-term  positive  effects
          on demand for containers as shipping lines were not able to reposition
          enough  containers  to Asia and had to lease more  containers  to meet
          their customers' demands

Utilization   declined   slightly  in  the  first  quarter  of  2003,  which  is
traditionally  a slow period for container  demand,  and then improved  slightly
during the second quarter of 2003.  Rental rates also declined  slightly in 2003
primarily  due to low new  container  prices,  low interest  rates and low rates
offered by  competitors.  The General  Partners are cautiously  optimistic  that
current utilization levels can be maintained or improved during the next several
months as the peak-shipping season begins. However, the General Partners caution
that  market  conditions  could  deteriorate  again due to global  economic  and
political conditions.  Demand for leased containers could therefore weaken again
and result in a decrease in utilization and further  declines in lease rates and
container sale prices, adversely affecting the Partnership's operating results.

Although demand for leased containers improved, the trade imbalance between Asia
and the Americas  continues.  As a result, a large portion of the  Partnership's
off-lease  containers  are located in low demand  locations  in the  Americas as
detailed  in the above  chart.  For these and other  off-lease  containers,  the
Partnership  determines  whether  these  containers  should  be sold or held for
continued  use.  The  decision  to  sell  containers  is  based  on the  current
expectation  that the economic  benefit of selling  these  containers is greater
than the estimated  economic benefit of continuing to own these containers.  The
majority of the  containers  sold are older  containers.  The expected  economic
benefit of continuing to own these older containers is  significantly  less than
that of newer  containers.  This is due to their shorter  remaining marine life,
the cost to reposition  them,  and the shipping  lines'  preference  for leasing
newer containers when they have a choice.

Once the decision is made to sell  containers,  the Partnership  writes down the
value of these  specifically  identified  containers when the carrying value was
greater than the container's  estimated net realizable value,  which is based on
recent sales prices less cost of sales.  The average sales prices for containers
sold by the  Partnership  as well as other  Partnerships  managed by the General
Partners  have  decreased.  The decrease is  primarily  due to a surplus of used
containers available for sale.

Other rental income consists of other lease-related items, primarily income from
charges to lessees for dropping off containers in surplus locations less credits
granted to lessees for  leasing  containers  from  surplus  locations  (location
income),  income  from  charges to lessees for  handling  related to leasing and
returning  containers (handling income) and income from charges to lessees for a
Damage  Protection  Plan (DPP).  For the  six-month  period ended June 30, 2003,
other rental  income was $121, an increase of $4 from the  equivalent  period in
2002.  The increase in other rental income was primarily due to increases in DPP
and location income of $9 and $7, respectively, offset by a decrease in handling
income of $12. DPP income increased  primarily due to the increase in the number
of containers covered under DPP. Location income increased  primarily due to the
increase in charges to one lessee who  required  containers  to be  delivered to
specific  locations.  The  decrease in handling  income was  primarily  due to a
decrease in container movement.

Direct container expenses decreased $55, or 20%, from the six-month period ended
June 30, 2002 to the  equivalent  period in 2003. The decrease was primarily due
to  the  decrease  in  storage  expense  of  $84,  offset  by  the  increase  in
repositioning  expense of $33.  Storage expense  decreased  primarily due to the
increase in utilization noted above and the decrease in the average storage cost
per container. Repositioning expense increased due to an increase in the average
repositioning  costs due to (i)  expensive  repositioning  moves  related to one
lessee who required containers to be delivered to certain locations as discussed
above and (ii) longer average  repositioning  moves. This increase was partially
offset by the  decline  in the number of  containers  repositioned  between  the
periods.

Bad debt expense was $8 and $1 for the six-month periods ended June 30, 2003 and
2002,  respectively.  Fluctuations  in bad debt  expense  reflect  the  required
adjustment to the bad debt reserve,  after deductions had been taken against the
reserve,  and are based on management's then current estimates of the portion of
accounts receivable that may not be collected,  and which will not be covered by
insurance.   These  estimates  are  based  primarily  on  management's   current
assessment of the  financial  condition of the  Partnership's  lessees and their
ability  to make their  required  payments.  The  expenses  recorded  during the
six-month   periods  ended  June  30,  2003  and  2002  reflect  higher  reserve
requirements from December 31, 2002 and 2001, respectively.

Depreciation expense increased $35, or 11%, from the six-month period ended June
30, 2002 to the comparable  period in 2003,  primarily due to an increase in the
depreciation  rate as a  result  of  changes  in  estimated  salvage  values  as
discussed below, offset by the decrease in average fleet size noted above.

Effective  July 1, 2002,  the  Partnership  revised its estimate  for  container
salvage  value  from a  percentage  of  equipment  cost to an  estimated  dollar
residual  value.  The effect of this change for the six-month  period ended June
30, 2003 was an increase to depreciation  expense of $51. The  Partnership  will
evaluate the estimated  residual values and remaining  estimated useful lives on
an  on-going  basis  and will  revise  its  estimates  as  needed.  As a result,
depreciation  expense may fluctuate in future periods based on  fluctuations  in
these estimates.

The  Partnership  stopped  purchasing   containers  in  1998,  but  its  leasing
activities are affected by fluctuations in new container  prices.  New container
prices  steadily  declined  from 1995 through 1999 and have remained low through
the first half of 2003.  As a result,  the cost of new  containers  purchased in
recent years is significantly less than the average cost of containers purchased
in prior years.  The Partnership  evaluated the  recoverability  of the recorded
amount of container rental equipment at June 30, 2003 and 2002 for containers to
be held for continued use and determined  that a reduction to the carrying value
of these  containers  was not  required.  The  Partnership  also  evaluated  the
recoverability  of the recorded amount of containers  identified for sale in the
ordinary  course of business  and  determined  that a reduction  to the carrying
value of some of these containers was required.  The Partnership  wrote down the
value of these  containers to their  estimated net realizable  value,  which was
based on recent sales  prices less cost to sell.  During the  six-month  periods
ended June 30, 2003 and 2002, the Partnership  recorded  write-down  expenses of
$10 and $77,  respectively,  on 32 and 162 containers identified as for sale and
requiring a reserve. At June 30, 2003 and 2002, the net book value of the 41 and
168 containers identified for sale was $31 and $146, respectively.

The  Partnership  sold 35 previously  written down containers for no gain during
the six-month  period ended June 30, 2003 and sold 160  previously  written down
containers  for a loss of $16 during the same  period in 2002.  The  Partnership
incurred  losses on the sale of some containers  previously  written down as the
actual sales prices  received on these  containers were lower than the estimates
used for the write-downs.

The Partnership also sold containers that had not been written down and recorded
a loss of $38 and a gain of $5 during the six-month periods ended June 30, 2003,
and 2002, respectively.

As more containers are subsequently identified as for sale or if container sales
prices continue to decline, the Partnership may incur additional  write-downs on
containers  and/or may incur losses on the sale of containers.  The  Partnership
will  continue  to  evaluate  the  recoverability  of the  recorded  amounts  of
container rental equipment.

Management  fees to affiliates  increased  $4, or 6%, from the six-month  period
ended  June  30,  2002 to the same  period  in 2003,  due to  increases  in both
equipment and incentive management fees. Equipment management fees increased due
to the increase in rental  income,  upon which these fees are  primarily  based.
These fees were  approximately  7% of rental income for both periods.  Incentive
management  fees  increased  primarily  due to the  increase  in the  amount  of
distributions paid from cash from operations.

General and  administrative  costs to affiliates  decreased $5, or 11%, from the
six-month  period  ended June 30,  2002 to the  comparable  period in 2003.  The
decrease was due to the decreases in overhead costs  allocated from TEM and TFS.
The  allocation  from TEM  decreased as the  Partnership  represented  a smaller
portion of the fleet  managed by TEM. The  allocation  from TFS decreased due to
the decrease in overhead costs incurred and allocated by TFS.

The  Partnership  Agreement  provides  for the  ongoing  payment to the  General
Partners of the management fees and the reimbursement of the expenses  discussed
above.  Since these fees and expenses are  established  by the  Agreement,  they
cannot be considered the result of arms' length negotiations with third parties.
The Partnership Agreement was formulated at the Partnership's  inception and was
part of the terms  upon which the  Partnership  solicited  investments  from its
limited partners. The business purpose of paying the General Partners these fees
is to  compensate  the  General  Partners  for the  services  they render to the
Partnership.  Reimbursement  for  expenses  is made to offset  some of the costs
incurred by the General  Partners in managing the  Partnership and its container
fleet.  More details about these fees and expenses are included in footnote 2 to
the Financial Statements.

Other general and  administrative  costs decreased $27 from the six-month period
ended June 30, 2002 to the same period in 2003.  The decrease was  primarily due
to decreases in other service fees between the periods.

Loss on sale of containers  increased  $27 from the six-month  period ended June
30, 2002 to the comparable  period in 2003.  Although the Partnership sold fewer
containers,   loss  on  sale  of  containers  increased  primarily  due  to  the
Partnership  incurring  greater  losses  on the  sale of  containers  due to the
decline in sales proceeds.

Net earnings/(loss) per limited partnership unit fluctuated from a loss of $0.05
during the six-month  period ended June 30, 2002 to earnings of $0.05 during the
equivalent  period in 2003,  reflecting the  fluctuation in net  earnings/(loss)
allocated  to  limited  partners  from a loss of $66 to  earnings  of  $69.  The
allocation of net  earnings/(loss) for the six-month periods ended June 30, 2003
and 2002 included a special  allocation of gross income to the General  Partners
of $8 and $12, respectively, in accordance with the Partnership Agreement.

The  following is a comparative  analysis of the results of  operations  for the
three-month periods ended June 30, 2003 and 2002.

The  Partnership's  income (loss) from  operations for the  three-month  periods
ending June 30, 2003 and 2002 was $10 and ($1),  respectively,  on rental income
of $417 and $396,  respectively.  The  increase in rental  income of $21, or 5%,
from the three-month period ended June 30, 2002 to the comparable period in 2003
was  attributable  to the increase in income from container  rentals,  partially
offset by the decrease in other rental  income.  Income from  container  rentals
increased  $24  or  7%,  primarily  due  to  the  increase  in  average  on-hire
utilization  of 28%,  offset by the  decreases in average  fleet size of 11% and
average rental rates of 7% between the periods.

For the three-month  period ended June 30, 2003,  other rental income was $54, a
decrease of $3 from the  equivalent  period in 2002.  The decrease was primarily
due to the  decrease  in handling  income,  offset by an increase in DPP income.
Handling  income  decreased  primarily due to a decrease in container  movement,
offset by an increase in the average  handling charge per container.  DPP income
increased  primarily  due to the  increase in the number of  containers  covered
under DPP.

Direct  container  expenses  decreased $30, or 20%, from the three-month  period
ending  June 30,  2002 to the  equivalent  period  in  2003.  The  decrease  was
primarily  due to the decrease in storage  expense of $37 offset by the increase
in repositioning expense of $7. Storage expense decreased due to the increase in
utilization  noted above and a slight  decrease in the average  storage cost per
container.  Repositioning  expense  increased  due to an increase in the average
repositioning  cost primarily due to longer average  repositioning  moves.  This
increase  was  partially  offset by the  decline  in the  number  of  containers
repositioned between the periods.

Bad debt expense  (benefit) was $10 and ($5) for the  three-month  periods ended
June  30,  2003  and  2002,  respectively.   The  expense  recorded  during  the
three-month  period ended June 30, 2003  reflects a higher  reserve  requirement
from March 31, 2003. The benefit  recorded during the comparable  period in 2002
reflects a lower reserve requirement from March 31, 2002.

Depreciation  expense  increased $15, or 10% from the  three-month  period ended
June 30, 2002 to the comparable  period in 2003,  primarily due to the change in
estimated salvage values used to calculate depreciation noted above, offset by a
decrease in average  fleet size noted  above.  The effect of this change for the
three-month  period ended June 30, 2003 was an increase to depreciation  expense
of $22.

During the  three-month  periods ended June 30, 2003 and 2002,  the  Partnership
recorded  write-down  expenses  of  $4  and  $24,  respectively,  on 19  and  55
containers  identified as for sale and requiring a reserve. The Partnership sold
21 of these  previously  written  down  containers  for a loss of $1 during  the
three-month  period  ended June 30,  2003 and sold 87  previously  written  down
containers  for a loss of $11 during the same  period in 2002.  The  Partnership
also sold  containers  that had not been written down and recorded a loss of $29
and a gain of $28 during the  three-month  periods ended June 30, 2003 and 2002,
respectively.

Management fees to affiliates  increased $4, or 12%, from the three-month period
ended  June  30,  2002 to the  same  period  in 2003  due to  increases  in both
incentive and equipment  management  fees.  Incentive  management fees increased
primarily due to an increase in the amount of distributions  made from cash from
operations.  Equipment  management  fees increased due to the increase in rental
income and were 7% of rental income for both periods.

General and  administrative  costs to affiliates  decreased $3, or 12%, from the
three-month  period  ended  June  30,  2002  to the  comparable  period  in 2003
primarily  due to the  decrease in  overhead  costs  allocated  from TEM, as the
Partnership represented a smaller portion of the total fleet managed by TEM.

Other general and administrative costs decreased $14 from the three-month period
ended June 30, 2002 to the same period in 2003.  The decrease was  primarily due
to decreases in other service fees between the periods.

Gain/loss  on  sale  of  containers  fluctuated  from a  gain  of  $17  for  the
three-month  period  ended June 30, 2002 to a loss of $30 for the same period in
2003.  The  fluctuation  in  gain/loss  was  primarily  due to  the  Partnership
incurring losses on the sale of containers  during the three-month  period ended
June 30, 2003 compared to incurring gains in the same period in 2002.

Net earnings per limited  partnership  unit were $0.00 for both the  three-month
periods  ended  June 30,  2003 and  2002,  reflecting  the net  earnings  (loss)
allocated to limited  partners of $7 and ($4),  respectively.  The allocation of
net earnings (loss) included a special allocation of gross income to the General
Partners made in accordance with the Partnership Agreement.

Critical Accounting Policies and Estimates

The Partnership's discussion and analysis of its financial condition and results
of operations are based upon the Partnership's financial statements,  which have
been prepared on a going concern basis, in accordance with accounting principles
generally  accepted  in the United  States of  America.  Certain  estimates  and
assumptions were made by the  Partnership's  management that affect the reported
amounts of assets and  liabilities  and  disclosures  of  contingent  assets and
liabilities at the date of the financial  statements and the reported amounts of
revenue and expenses during the reporting period.  The Partnership's  management
evaluates its  estimates on an on-going  basis,  including  those related to the
container rental equipment, accounts receivable and accruals.

These  estimates  are  based  on  historical  experience  and on  various  other
assumptions  that are believed to be  reasonable  under the  circumstances,  the
results of which  form the basis for making  judgments  regarding  the  carrying
values of assets  and  liabilities.  Actual  results  could  differ  from  those
estimates under different assumptions or conditions.  The accompanying financial
statements  have been prepared on a going concern basis which  contemplates  the
realization  of assets and payments of  liabilities  in the  ordinary  course of
business.

The Partnership's management believes the following critical accounting policies
affect its more  significant  judgments and estimates used in the preparation of
its financial statements.

The Partnership  maintains allowances for doubtful accounts for estimated losses
resulting  from the  inability of its lessees to make required  payments.  These
allowances  are  based  on  management's  current  assessment  of the  financial
condition of the Partnership's  lessees and their ability to make their required
payments.  If the  financial  condition  of the  Partnership's  lessees  were to
deteriorate,  resulting  in an  impairment  of their  ability to make  payments,
additional  allowances  may  be  required,  which  would  adversely  affect  the
Partnership's operating results.

The  Partnership  depreciates  its container  rental  equipment based on certain
estimates  related to the  container's  useful  life and  salvage  value.  These
estimates are based upon assumptions  about future demand for leased  containers
and the  estimated  sales  price  at the  end of the  container's  useful  life.
Effective  July 1, 2002,  the  Partnership  revised its estimate  for  container
salvage  value  from a  percentage  of  equipment  cost to an  estimated  dollar
residual value. The Partnership will evaluate the estimated  residual values and
remaining  estimated  useful  lives on an  on-going  basis and will  revise  its
estimates as needed. As a result,  depreciation  expense may fluctuate in future
periods based on fluctuations  in these  estimates.  If the estimates  regarding
residual  value and  remaining  useful life of the  containers  were to decline,
depreciation  expense would  increase,  adversely  affecting  the  Partnership's
operating results.

Additionally,  the  recoverability  of the recorded  amounts of containers to be
held for  continued  use and  identified  for  sale in the  ordinary  course  of
business are evaluated to ensure that  containers held for continued use are not
impaired and that containers identified for sale are recorded at amounts that do
not exceed the estimated fair value of the containers. Containers to be held for
continued  use are  considered  impaired and are written down to estimated  fair
value  when the  estimated  future  undiscounted  cash  flows  are less than the
recorded  values.  Containers  identified for sale are written down to estimated
fair  value when the  recorded  value  exceeds  the  estimated  fair  value.  In
determining  the  estimated  future  undiscounted  cash  flows and fair value of
containers,  assumptions are made regarding future demand and market  conditions
for leased containers and the sales prices for used containers. If actual market
conditions are less favorable than those projected or if actual sales prices are
lower than those  estimated by the  Partnership,  additional  write-downs may be
required  and/or losses may be realized.  Any  additional  write-downs or losses
would adversely affect the Partnership's operating results.

Risk Factors and Forward Looking Statements

Although  substantially  all of the  Partnership's  income  from  operations  is
derived from assets employed in foreign operations, virtually all of this income
is  denominated  in United  States  dollars.  The  Partnership's  customers  are
international  shipping  lines,  which transport  goods on  international  trade
routes.  The  domicile  of the lessee is not  indicative  of where the lessee is
transporting  the  containers.  The  Partnership's  business risk in its foreign
operations lies with the  creditworthiness of the lessees, and the Partnership's
ability to keep its containers under lease,  rather than the geographic location
of the  containers or the domicile of the lessees.  The containers are generally
operated on the international high seas rather than on domestic  waterways.  The
containers are subject to the risk of war or other political, economic or social
occurrence  where  the  containers  are used,  which  may  result in the loss of
containers,  which,  in turn,  may have a material  impact on the  Partnership's
results of operations and financial condition.

Other risks of the Partnership's  leasing  operations include  competition,  the
cost of  repositioning  containers  after  they come  off-lease,  the risk of an
uninsured loss, including bad debts,  increases in maintenance expenses or other
costs of  operating  the  containers,  and the effect of world  trade,  industry
trends  and/or  general  business  and  economic  cycles  on  the  Partnership's
operations. See "Risk Factors" in the Partnership's Prospectus, as supplemented,
for additional information on risks of the Partnership's business. See "Critical
Accounting  Policies and Estimates"  above for information on the  Partnership's
critical  accounting policies and how changes in those estimates could adversely
affect the Partnership's results of operations.

The foregoing includes forward-looking statements and predictions about possible
or  future  events,  results  of  operations  and  financial  condition.   These
statements  and  predictions  may  prove  to  be  inaccurate,   because  of  the
assumptions  made by the  Partnership  or the  General  Partners  or the  actual
development  of  future  events.  No  assurance  can be given  that any of these
forward-looking statements or predictions will ultimately prove to be correct or
even substantially correct. The risks and uncertainties in these forward-looking
statements  include,  but are not  limited  to,  changes  in demand  for  leased
containers,  changes in global  business  conditions  and their  effect on world
trade,  future  modifications  in the way in  which  the  Partnership's  lessees
conduct their business or of the  profitability of their business,  increases or
decreases in new container  prices or the  availability of financing  therefore,
alterations in the costs of maintaining and repairing used containers, increases
in competition,  changes in the Partnership's  ability to maintain insurance for
its  containers  and its  operations,  the effects of  political  conditions  on
worldwide  shipping and demand for global trade or of other general business and
economic cycles on the  Partnership,  as well as other risks detailed herein and
from time to time in the Partnership's  filings with the Securities and Exchange
Commission.  The  Partnership  does  not  undertake  any  obligation  to  update
forward-looking statements.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk.

Inapplicable.

Item 4.  Controls and Procedures.

Based on an evaluation of the Partnership's  disclosure  controls and procedures
(as defined in Rules 13a-14 and 15d-14 of the Securities  Exchange Act of 1934),
the  managing  general  partner's  principal  executive  officer  and  principal
financial officer have found those controls and procedures to be effective as of
the end of the  period  covered by the  report.  There has been no change in the
Partnership's internal control over financial reporting that occurred during the
Partnership's most recent fiscal quarter, and which has materially affected,  or
is reasonably  likely materially to affect,  the Partnership's  internal control
over financial reporting.


<PAGE>
<TABLE>
<CAPTION>

Part II

Item 6.   Exhibits and Reports on Form 8-K.

     (a)  Exhibits  31.1 and 31.2  Certifications  pursuant  to Rules  13a-14 or
          15d-14 of the Securities and Exchange Act of 1934.

          Exhibits 32.1 and 32.2  Certifications  pursuant to 18 U.S.C.  Section
          1350, as adopted,  and regarding Section 906 of the Sarbanes-Oxley Act
          of 2002.

     (b)  Not applicable.



                                   SIGNATURES


Pursuant  to the  requirements  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.


                                     TCC EQUIPMENT INCOME FUND
                                     A California Limited Partnership

                                     By Textainer Financial Services Corporation
                                     The Managing General Partner



                                     By ________________________________________
                                        Ernest J. Furtado
                                        Chief Financial Officer


Date:  August 12, 2003

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of Textainer  Financial
Services  Corporation,  the Managing  General Partner of the Registrant,  in the
capacities and on the dates indicated:


Signature                                Title                                          Date
<S>                                     <C>                                             <C>


________________________                 Chief Financial Officer, Senior                August 12, 2003
Ernest J. Furtado                        Vice President and Secretary




________________________                 President                                      August 12, 2003
John A. Maccarone
</TABLE>
<PAGE>
<TABLE>
<CAPTION>


Part II

Item 6.  Exhibits and Reports on Form 8-K.

     (a)  Exhibits  31.1 and 31.2  Certifications  pursuant  to Rules  13a-14 or
          15d-14 of the Securities and Exchange Act of 1934.

          Exhibits 32.1 and 32.2  Certifications  pursuant to 18 U.S.C.  Section
          1350, as adopted,  and regarding Section 906 of the Sarbanes-Oxley Act
          of 2002.

     (b)  Not applicable.



                                   SIGNATURES


Pursuant  to the  requirements  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.


                                    TCC EQUIPMENT INCOME FUND
                                    A California Limited Partnership

                                    By Textainer Financial Services Corporation
                                    The Managing General Partner



                                    By /s/Ernest J. Furtado
                                       _________________________________________
                                       Ernest J. Furtado
                                       Chief Financial Officer


Date:  August 12, 2003


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of Textainer  Financial
Services  Corporation,  the Managing  General Partner of the Registrant,  in the
capacities and on the dates indicated:


Signature                              Title                                             Date
<S>                                    <C>                                               <C>

/s/Ernest J. Furtado
_________________________________      Chief Financial Officer, Senior                   August 12, 2003
Ernest J. Furtado                      Vice President and Secretary




/s/John A. Maccarone
_________________________________      President                                         August 12, 2003
John A. Maccarone
</TABLE>

<PAGE>

                                  EXHIBIT 31.1


CERTIFICATIONS

I, John A. Maccarone, certify that:

1.   I have reviewed this quarterly  report on form 10-Q of TCC Equipment Income
     Fund;

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material  fact or omit to state a  material  fact  necessary  to make the
     statements made, in light of the circumstances  under which such statements
     were made,  not  misleading  with  respect  to the  period  covered by this
     report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in  this  report,  fairly  present  in all  material
     respects the financial  condition,  results of operations and cash flows of
     the registrant as of, and for, the periods presented in this report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules  13a-15(e) and  15d-15(e))  for the registrant and we
     have:

     a.)  designed  such  disclosure  controls  and  procedures,  or caused such
          disclosure   controls  and   procedures  to  be  designed   under  our
          supervision,  to ensure  that  material  information  relating  to the
          registrant,  including its consolidated subsidiaries, is made known to
          us by others within those entities,  particularly during the period in
          which this report is being prepared;

     b.)  evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures and presented in this report our conclusions  about the
          effectiveness of the disclosure controls and procedures, as of the end
          of the period covered by this report based on such evaluation; and

     c.)  disclosed  in this  report  any  change in the  registrant's  internal
          control over financial reporting that occurred during the registrant's
          most recent fiscal quarter (the registrant's  fourth fiscal quarter in
          the case of an annual  report)  that has  materially  affected,  or is
          reasonably  likely to materially  affect,  the  registrant's  internal
          control over financial reporting; and

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent evaluation of internal control over financial reporting, to
     the registrant's  auditors and the audit committee of registrant's board of
     directors (or persons performing the equivalent function):

     a.)  all significant  deficiencies and material weaknesses in the design or
          operation  of internal  control  over  financial  reporting  which are
          reasonably  likely to  adversely  affect the  registrant's  ability to
          record, process, summarize and report financial information; and

     b.)  any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          control over financial reporting.


August 12, 2003

                                           /s/ John A. Maccarone
                                           _____________________________________
                                           John A. Maccarone
                                           President and Director of TFS

<PAGE>

                                  EXHIBIT 31.2


CERTIFICATIONS

I, Ernest J. Furtado, certify that:

1.   I have reviewed this quarterly  report on form 10-Q of TCC Equipment Income
     Fund;

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material  fact or omit to state a  material  fact  necessary  to make the
     statements made, in light of the circumstances  under which such statements
     were made,  not  misleading  with  respect  to the  period  covered by this
     report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in  this  report,  fairly  present  in all  material
     respects the financial  condition,  results of operations and cash flows of
     the registrant as of, and for, the periods presented in this report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules  13a-15(e) and  15d-15(e))  for the registrant and we
     have:

     a.)  designed  such  disclosure  controls  and  procedures,  or caused such
          disclosure   controls  and   procedures  to  be  designed   under  our
          supervision,  to ensure  that  material  information  relating  to the
          registrant,  including its consolidated subsidiaries, is made known to
          us by others within those entities,  particularly during the period in
          which this report is being prepared;

     b.)  evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures and presented in this report our conclusions  about the
          effectiveness of the disclosure controls and procedures, as of the end
          of the period covered by this report based on such evaluation; and

     c.)  disclosed  in this  report  any  change in the  registrant's  internal
          control over financial reporting that occurred during the registrant's
          most recent fiscal quarter (the registrant's  fourth fiscal quarter in
          the case of an annual  report)  that has  materially  affected,  or is
          reasonably  likely to materially  affect,  the  registrant's  internal
          control over financial reporting; and

5.

     The registrant's other certifying  officers and I have disclosed,  based on
     our most recent evaluation of internal control over financial reporting, to
     the registrant's  auditors and the audit committee of registrant's board of
     directors (or persons performing the equivalent function):


     a.)  all significant  deficiencies and material weaknesses in the design or
          operation  of internal  control  over  financial  reporting  which are
          reasonably  likely to  adversely  affect the  registrant's  ability to
          record, process, summarize and report financial information; and

     b.)  any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          control over financial reporting.



August 12, 2003

                               /s/ Ernest J. Furtado
                               ________________________________________________
                               Ernest J. Furtado
                               Chief Financial Officer, Senior Vice President,
                               Secretary and Director of TFS


<PAGE>


                                  EXHIBIT 32.1



                            CERTIFICATION PURSUANT TO
                               18 U.S.C. ss. 1350,
                        AS ADOPTED, REGARDING SECTION 906
                        OF THE SARBANES-OXLEY ACT OF 2002



In connection  with the  Quarterly  Report of TCC  Equipment  Income Fund,  (the
"Registrant")  on Form 10-Q for the  quarterly  period ended June 30,  2003,  as
filed on August  12,  2003 with the  Securities  and  Exchange  Commission  (the
"Report"),  I, John A.  Maccarone,  the  President  and  Director  of  Textainer
Financial Services  Corporation  ("TFS") and Principal Executive Officer of TFS,
the Managing General Partner of the Registrant,  certify,  pursuant to 18 U.S.C.
ss. 1350, as adopted,  regarding Section 906 of the  Sarbanes-Oxley Act of 2002,
that:

(i)       The Report fully  complies with the  requirements  of Section 13(a) or
          15(d) of the Securities Exchange Act of 1934; and

(ii)      The  information  contained  in the  Report  fairly  presents,  in all
          material respects, the financial condition,  results of operations and
          cash flows of the Registrant.



August 12, 2003



                                        By  /s/ John A. Maccarone
                                            ____________________________
                                            John A. Maccarone
                                            President and Director of TFS



A signed  original of this  written  statement  required by Section 906 has been
provided to the  Registrant and will be retained by the Registrant and furnished
to the Securities and Exchange Commission or its staff upon request.


<PAGE>


                                  EXHIBIT 32.2



                            CERTIFICATION PURSUANT TO
                               18 U.S.C. ss. 1350,
                        AS ADOPTED, REGARDING SECTION 906
                        OF THE SARBANES-OXLEY ACT OF 2002



In connection  with the  Quarterly  Report of TCC  Equipment  Income Fund,  (the
"Registrant")  on Form 10-Q for the  quarterly  period ended June 30,  2003,  as
filed on August  12,  2003 with the  Securities  and  Exchange  Commission  (the
"Report"), I, Ernest J. Furtado, Chief Financial Officer, Senior Vice President,
Secretary and Director of Textainer  Financial Services  Corporation ("TFS") and
Principal  Financial and Accounting Officer of TFS, the Managing General Partner
of the  Registrant,  certify,  pursuant  to 18  U.S.C.  ss.  1350,  as  adopted,
regarding Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)       The Report fully  complies with the  requirements  of Section 13(a) or
          15(d) of the Securities Exchange Act of 1934; and

(ii)      The  information  contained  in the  Report  fairly  presents,  in all
          material respects, the financial condition,  results of operations and
          cash flows of the Registrant.



August 12, 2003



                              By /s/ Ernest J. Furtado
                                 _________________________________
                                 Ernest J. Furtado
                                 Chief Financial Officer, Senior Vice President,
                                 Secretary and Director of TFS





A signed  original of this  written  statement  required by Section 906 has been
provided to the  Registrant and will be retained by the Registrant and furnished
to the Securities and Exchange Commission or its staff upon request.