<PAGE>   1
\                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

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


For Quarter Ended              September 30, 2000
                   ------------------------------------------------------------


Commission file number                0-13563
                       --------------------------------------------------------


                     DAMSON/BIRTCHER REALTY INCOME FUND - I
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


          Pennsylvania                                           13-3264491
-------------------------------                              -------------------
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)


27611 La Paz Road, P.O. Box 30009, Laguna Niguel, California    92607-0009
--------------------------------------------------------------------------------
          (Address of principal executive offices)              (Zip Code)


                                 (949) 643-7700
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)


                                       N/A
--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report.)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 12(g), 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding twelve 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
                                     ---        ---

<PAGE>   2

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

                          QUARTERLY REPORT ON FORM 10-Q
                  FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000

                                      INDEX


                                                                           Page
                                                                           ----
PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

         Statements of Net Assets in Liquidation - September 30, 2000
         (Unaudited)and December 31, 1999 (Audited).......................   3

         Statements of Changes of Net Assets in Liquidation -
         Three and Nine Months Ended September 30, 2000 and
         1999 (Unaudited).................................................   4

         Notes to Financial Statements (Unaudited)........................   5

Item 2.  Management's Discussion and Analysis of
         Financial Condition and Results of Operations....................  12

Item 3.  Quantitative and Qualitative Market Risk Disclosures.............  18

PART II. OTHER INFORMATION................................................  18


                                       2

<PAGE>   3

                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

                     STATEMENTS OF NET ASSETS IN LIQUIDATION

<TABLE>
<CAPTION>
                                                September 30,     December 31,
                                                    2000              1999
                                                -----------       -----------
                                                (unaudited)
<S>                                             <C>               <C>
ASSETS (Liquidation Basis):

Properties                                      $       --        $ 5,980,000
Cash and cash equivalents                        7,331,000         10,137,000
Cash held in escrow                                118,000            512,000
Receivables, net                                    36,000             18,000
Other assets                                        33,000             38,000
                                                ----------        -----------
    Total Assets                                 7,518,000         16,685,000
                                                ----------        -----------

LIABILITIES (Liquidation Basis):

Accounts payable and accrued liabilities            50,000            134,000
Accrued expenses for liquidation                   273,000            429,000
                                                ----------        -----------
    Total Liabilities                              323,000            563,000
                                                ----------        -----------
Net Assets in Liquidation                       $7,195,000        $16,122,000
                                                ==========        ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                       3

<PAGE>   4

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

               STATEMENTS OF CHANGES OF NET ASSETS IN LIQUIDATION
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                     Three Months Ended                         Nine Months Ended
                                                       September 30,                             September 30,
                                              --------------------------------         ---------------------------------
                                                  2000                1999                  2000                1999
                                              -----------         ------------         ------------         ------------
<S>                                           <C>                 <C>                  <C>                  <C>
Net assets in liquidation
  at beginning of period                      $ 7,209,000         $ 29,344,000         $ 16,122,000         $ 30,796,000
Increase (decrease) during period:
  Operating activities:
    Property operating income (loss), net              --              979,000             (144,000)           2,445,000
    Interest income                               116,000               36,000              260,000               43,000
    General and administrative expenses                --             (252,000)                  --             (704,000)
    Interest expense on mortgage payable               --              (49,000)                  --             (160,000)
    Leasing commissions                                --              (13,000)                  --              (78,000)
    Other expense, net                            (13,000)                  --              (13,000)                  --
                                              -----------         ------------         ------------         ------------
                                                  103,000              701,000              103,000            1,546,000
                                              -----------         ------------         ------------         ------------

  Liquidating activities:
    Gain (Loss) on sale of real estate                 --             (425,000)             151,000             (425,000)
    Liquidation expenses                         (117,000)             316,000             (181,000)             316,000
    Adjustment to the carrying
      value of real estate                             --                   --                   --           (1,717,000)
    Distributions to partners                          --             (344,000)          (9,000,000)            (924,000)
                                              -----------         ------------         ------------         ------------
                                                 (117,000)            (453,000)          (9,030,000)          (2,750,000)
                                              -----------         ------------         ------------         ------------

Net increase (decrease) in assets
  in liquidation                                  (14,000)             248,000           (8,927,000)          (1,204,000)
                                              -----------         ------------         ------------         ------------
Net assets in liquidation at
  end of period                               $ 7,195,000         $ 29,592,000         $  7,195,000         $ 29,592,000
                                              ===========         ============         ============         ============
</TABLE>

The accompanying notes are an integral part of these financial statements.

                                       4

<PAGE>   5

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED

(1)  Accounting Policies

     The financial statements of Damson/Birtcher Realty Income Fund-I (the
     "Partnership") included herein have been prepared by the General Partner,
     without audit, pursuant to the rules and regulations of the Securities and
     Exchange Commission. These financial statements include all adjustments
     which are of a normal recurring nature and, in the opinion of the General
     Partner, are necessary for a fair presentation. Certain information and
     footnote disclosures normally included in financial statements prepared in
     accordance with generally accepted accounting principles have been
     condensed or omitted, pursuant to the rules and regulations of the
     Securities and Exchange Commission. These financial statements should be
     read in conjunction with the financial statements and notes thereto
     included in the Partnership's annual report on Form 10-K for the year ended
     December 31, 1999.

     Sale of the Properties

     The Partnership sold five of its six remaining properties during the year
     ended December 31, 1999. The Partnership's sold Terracentre, its last
     property, on May 31, 2000 (see Note 5).

     Liquidation Basis of Accounting

     On February 18, 1997, the Partnership mailed a Consent Solicitation to the
     Limited Partners which sought their consent to dissolve the Partnership and
     sell and liquidate all of its remaining properties as soon as practicable,
     consistent with selling the Partnership's properties to the best advantage
     under the circumstances. A majority in interest of the Limited Partners
     consented by March 14, 1997. As a result, the Partnership adopted the
     liquidation basis of accounting as of March 31, 1997. The liquidation basis
     of accounting is appropriate when liquidation appears imminent, the
     Partnership can no longer be classified as a going concern and the net
     realizable values of the Partnership's assets are reasonably determinable.
     The difference between the adoption of the liquidation basis of accounting
     as of March 14, 1997 and March 31, 1997 was not material.

     Under the liquidation basis of accounting, assets are stated at their
     estimated net realizable values and liabilities are stated at their
     anticipated settlement amounts. The valuation of assets and liabilities
     necessarily requires many estimates and assumptions, and there are
     substantial uncertainties in carrying out the dissolution of the
     Partnership. The actual values upon dissolution and costs associated
     therewith could be higher or lower than the amounts recorded.

     Segment Reporting

     The Partnership adopted Statement of Financial Accounting Standards No.
     131, "Disclosures About Segments of an Enterprise and Related Information"
     ("SFAS 131"). SFAS 131 requires, among other items, that a public business
     enterprise report a measure of segment profit or loss, certain specific
     revenue and expense items, segment assets, information about the revenues
     derived from the enterprise's products or services and major customers.
     SFAS 131 also requires


                                       5

<PAGE>   6

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

NOTES TO FINANCIAL STATEMENTS - UNAUDITED (Cont'd.)

(1)  Accounting Policies (Cont'd.)

     Segment Reporting (Cont'd.)

     that the enterprise report descriptive information about the way that the
     operating segments were determined and the products and services provided
     by the operating segments. Given that the Partnership is in the process of
     liquidation, the Partnership has identified only one operating business
     segment which is the business of asset liquidation. The adoption of SFAS
     131 did not have an impact on the Partnership's financial reporting.

     Rental income from FISERV, Inc. (formerly d.b.a. Citicorp CIR, Inc.)
     totaled $160,000 for the three months ended September 30, 1999, or
     approximately 16% of the Partnership's total rental income. For the nine
     months ended September 30 1999, such rental income amounted to $470,000 or
     12% of the Partnership's total rental income. Oakpointe Business Center,
     which FISERV, Inc. formerly occupied was sold in September 1999.

     Earnings Per Unit

     The Partnership Agreement does not designate investment interests in units.
     All investment interests are calculated on a "percent of Partnership"
     basis, in part to accommodate original reduced rates on sales commissions
     for subscriptions in excess of certain specified amounts.

     A Limited Partner who was charged a reduced sales commission or no sales
     commission was credited with proportionately larger Invested Capital and
     therefore had a disproportionately greater interest in the capital and
     revenues of the Partnership than a Limited Partner who paid commissions at
     a higher rate. As a result, the Partnership has no set unit value as all
     accounting, investor reporting and tax information is based upon each
     investor's relative percentage of Invested Capital. Accordingly, earnings
     or loss per unit is not presented in the accompanying financial statements.

(2)  Transactions with Affiliates

     The Partnership has no employees and, accordingly, the General Partner and
     its affiliates perform services on behalf of the Partnership in connection
     with administering the affairs of the Partnership. The General Partner and
     affiliates are reimbursed for their general and administrative costs
     actually incurred and associated with services performed on behalf of the
     Partnership. For the three months ended September 30, 2000 and 1999, the
     Partnership incurred approximately $9,000 and $26,000, respectively. Such
     costs were $71,000 and $112,000 for the nine months there ended.

     An affiliate of the General Partner provides property management services
     with respect to the Partnership's properties and receives a fee for such
     services not to exceed 3% of the gross receipts from the properties under
     management. Such fees amounted to approximately $0 and $37,000 for the
     three months ended September 30, 2000 and 1999 and $10,000 and $122,000 for
     the nine months there ended. In addition, an affiliate of the General
     Partner received $3,000 and $71,000 for the three months ended September
     30, 2000 and 1999, respectively, as


                                       6

<PAGE>   7

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

NOTES TO FINANCIAL STATEMENTS - UNAUDITED (Cont'd.)

(2)  Transactions with Affiliates (Cont'd.)

     reimbursement of costs of on-site property management personnel and other
     reimbursable costs. For the nine months there ended, such reimbursements
     were $46,000 and $242,000, respectively.

     As previously reported, on June 24, 1993, the Partnership completed its
     solicitation of written consents from its Limited Partners. A majority in
     interest of the Partnership's Limited Partners approved each of the
     proposals contained in the Information Statement dated May 5, 1993. Those
     proposals were implemented by the Partnership as contemplated by the
     Information Statement as amendments to the Partnership Agreement, and are
     reflected in these financial statements as such.

     The amended Partnership Agreement provides for the Partnership's payment to
     the General Partner of an annual asset management fee equal to .35% for
     2000 and .45% for 1999 of the aggregate appraised value of the
     Partnership's properties. Appraised value was determined by the General
     Partner's estimate of fair value. Such fees for the three months ended
     September 30, 2000 and 1999, amounted to $0 and $37,000, respectively. For
     the nine months there ended, such fees were $9,000 and $116,000,
     respectively. Since the Partnership has sold all of its properties, the
     Partnership no longer pays an asset management fee.

     The amended Partnership Agreement provides for the Partnership's payment to
     the General Partner of a property disposition fee if and to the extent that
     the sale price of the property in question, net of any brokerage
     commissions (but not other costs of sale), exceeds the appraised value of
     the property as of January 1993. For the nine months ended September 30,
     2000, a fee of $130,000 was earned and paid on the sale of Terracentre. For
     the nine months ended September 20, 1999, a fee of $98,750 was earned and
     paid on the sale of Washington Technical Center.

     In addition, the amended Partnership Agreement provides for payment to the
     General Partner of a leasing fee for services rendered in connection with
     leasing space in a Partnership property after the expiration or termination
     of leases. Fees for leasing services for the three months ended September
     30, 2000 and 1999, amounted to $0 and $2,000, respectively. For the nine
     months there ended, such fees were $0 and $20,000, respectively.

(3)  Commitments and Contingencies

     Litigation

     So far as is known to the General Partner, neither the Partnership nor its
     properties are subject to any material pending legal proceedings, except
     for the following:

     Bigelow/Diversified Secondary Partnership's Fund 1990 Litigation

     On March 25, 1997, a limited partner named Bigelow/Diversified Secondary
     Partnership Fund 1990 L.P. filed a purported class action lawsuit in the
     Court of Common Pleas of Philadelphia County against Damson/Birtcher
     Partners, Birtcher


                                       7

<PAGE>   8

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

NOTES TO FINANCIAL STATEMENT - UNAUDITED (Cont'd.)

(3)  Commitments and Contingencies (Cont'd.)

     Litigation (Cont'd.)

     Bigelow/Diversified Secondary Partnership's Fund 1990 Litigation (Cont'd.)

     Investors, Birtcher/Liquidity Properties, Birtcher Investments, L.F.
     Special Fund II, L.P., L.F. Special Fund I, L.P., Arthur Birtcher, Ronald
     Birtcher, Robert Anderson, Richard G. Wollack and Brent R. Donaldson
     alleging breach of fiduciary duty and breach of contract and seeking to
     enjoin the Consent Solicitation dated February 18, 1997. On April 18, 1997,
     the court denied the plaintiff's motion for a preliminary injunction. On
     June 10, 1997, the court dismissed the plaintiff's complaint on the basis
     of lack of personal jurisdiction and forum non conveniens.

     On June 13, 1997, the Partnership's affiliated partnerships,
     Damson/Birtcher Realty Income Fund-II and Real Estate Income Partners III,
     and their general partner, Birtcher/Liquidity Properties, filed a complaint
     for declaratory relief in the Court of Chancery in Delaware against
     Bigelow/Diversified Secondary Partnership Fund 1990 L.P. The complaint
     seeks a declaration that the vote that the limited partners of
     Damson/Birtcher Realty Income Fund-II and Real Estate Income Partners III
     took pursuant to the respective consent solicitations dated February 18,
     1997 was effective to dissolve the respective partnerships and complied
     with applicable law, that the actions of the General Partner in utilizing
     the consent solicitations to solicit the vote of the limited partners did
     not breach any fiduciary or contractual duty to such limited partners, and
     an award of costs and fees to the plaintiffs. The defendant has answered
     the complaint. The parties have initiated discovery. No motions are pending
     at this time.

     In September 1998, Bigelow/Diversified Secondary Partnership 1990 informed
     the Partnership that it was filing suit in the Delaware Chancery Court
     against Damson/Birtcher Partners, Birtcher Investors, Birtcher Liquidity
     Properties, Birtcher Investments, BREICORP, LF Special Fund I, LP, LF
     Special Fund II. LP, Arthur Birtcher, Ronald Birtcher, Robert Anderson,
     Richard G. Wollack and Brent R. Donaldson alleging a purported class action
     on behalf of the limited partners of Damson/Birtcher Realty Income Fund-I,
     Damson/Birtcher Realty Income Fund-II and Real Estate Income Partners III
     alleging breach of fiduciary duty and incorporating the allegations set
     forth in the previously dismissed March 25, 1997 complaint filed in the
     Court of Chancery of Philadelphia County. Plaintiff has engaged in
     preliminary discovery and the parties have held settlement discussions.

     In March 2000, defendants informed the Court and plaintiff that they would
     bring a Motion for Summary Judgment against the named plaintiff based upon
     the allegations set forth in plaintiff's complaint. On April 14, 2000,
     Bigelow/Diversified Secondary Partnership Fund 1990 filed a First Amended
     Class Action and Derivative Complaint against Damson/Birtcher Partners,
     Birtcher Investors, Birtcher/Liquidity Properties, Birtcher Partners,
     Birtcher Properties, Birtcher Ltd., Birtcher Investments, BREICORP, L.F.
     Special Fund II, L.P., L.F. Special Fund I, L.P., Liquidity Fund Asset
     Management, Inc., Arthur Birtcher,


                                       8

<PAGE>   9

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

NOTES TO FINANCIAL STATEMENT - UNAUDITED (Cont'd.)

(3)  Commitments and Contingencies (Cont'd.)

     Litigation (Cont'd.)

     Bigelow/Diversified Secondary Partnership's Fund 1990 Litigation (Cont'd.)

     Ronald Birtcher, Robert Anderson, Richard G. Wollack and Brent R.
     Donaldson, the Partnership, Damson/Birtcher Realty Income Fund-II and Real
     Estate Income Partners III, alleging breach of fiduciary duty, breach of
     contract, and a derivative claim for breach of fiduciary duty. Defendants
     have answered the First Amended Complaint.

     Rex Garton, et al. v. Damson/Birtcher Partners, et al.

     This action was filed on September 25, 1998 in the District Court of
     Oklahoma County for the State of Oklahoma against the Partnership's general
     partner, Damson/Birtcher Partners, other related defendants and numerous
     unrelated defendants. Damson/Birtcher Partners and other related defendants
     were brought into the action in late December 1998, when they were served
     with the Second Amended Petition. The other related defendants are Birtcher
     Partners, Birtcher Properties, The Birtcher Group, Birtcher American
     Properties, Arthur B. Birtcher, Ronald E. Birtcher, LF Special Fund II,
     L.P., and Liquidity Fund Asset Management Inc., but The Birtcher Group and
     Birtcher American Properties were served with process and did not appear in
     the action. The Partnership itself is not named as a defendant. The case is
     a class action brought on behalf of investors in the Partnership who
     purchased limited partnership interests from May 7, 1984 to September 17,
     1985. The Second Amended Petition alleges breach of contract, intentional
     and negligent misrepresentation, breach of fiduciary duties, and violations
     of various Oklahoma and federal statutes in connection with the sale of the
     limited partnership interests. Plaintiff seeks unspecified compensatory
     damages and $10 million in punitive damages.

     Damson/Birtcher Partners and the related defendants removed the case to the
     United States District Court for the Western District of Oklahoma, and
     filed a motion to dismiss the case for lack of personal jurisdiction or,
     alternatively, to transfer the action to the United States District Court
     for the Central District of California, for the convenience of the parties
     and witnesses and in the interests of justice. Plaintiff moved to remand
     the case back to the Oklahoma state court. The court denied plaintiff's
     motion for removal, and took defendant's motion to dismiss or transfer
     under submission pending receipt of additional information the court
     ordered plaintiff to provide. On March 29, 2000, the court entered its
     order granting defendant's motion to dismiss the case for lack of personal
     jurisdiction, and dismissed the case.

     Madison Partnership and ISA Partnership Litigation

     On April 2, 1999, Madison Partnership Liquidity Investors XVI, LLC and ISA
     Partnership Liquidity Investors filed a purported class and derivative
     action in the California Superior Court in Orange County, California
     against Damson Birtcher Partners, Birtcher/Liquidity Properties, Birtcher
     Partners, Birtcher Investors, Birtcher Investments, Birtcher Limited,
     Breicorp LP Special Fund II,


                                       9

<PAGE>   10

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

NOTES TO FINANCIAL STATEMENT - UNAUDITED (Cont'd.)

(3)  Commitments and Contingencies (Cont'd.)

     Litigation (Cont'd.)

     Madison Partnership and ISA Partnership Litigation (Cont'd.)

     L.P., Liquidity Fund Asset Management, Inc., Robert M. Anderson, Brent R.
     Donaldson, Arthur B. Birtcher, Ronald E. Birtcher, and Richard G. Wollack,
     Defendants, and Damson/Birtcher Realty Income Fund-I, Damson/Birtcher
     Realty Income Fund-II, and Real Estate Income Partners III, Nominal
     Defendants. The complaint asserts claims for breach of fiduciary duty and
     breach of contract. The gravamen of the complaint is that the General
     Partners of these limited partnerships have not undertaken all reasonable
     efforts to expedite liquidation of the Partnerships' properties and to
     maximize the returns to the Partnerships' limited partners. The complaint
     seeks unspecified monetary damages, attorneys' fees and litigation
     expenses, and an order for dissolution of the partnerships and appointment
     of an independent liquidating trustee. The Partnership moved to stay or
     dismiss the case on the grounds that the pending Bigelow class action,
     discussed above, raises essentially the same claims. The court granted the
     Partnership's motion and ordered a stay of the litigation pending
     re-evaluation at a May 23, 2000 status conference. The court lifted the
     stay on May 23, 2000. Plaintiffs have initiated document discovery.
     Plaintiffs have moved to certify the class and the parties are engaged in
     discovery regarding class certification. The motion to certify the class is
     currently scheduled to be heard on December 14, 2000.

(4)  Accrued Expenses for Liquidation

     Accrued expenses for liquidation as of September 30, 2000, include
     estimates of costs to be incurred in carrying out the dissolution and
     liquidation of the Partnership. These costs include estimates of legal
     fees, accounting fees, tax preparation and filing fees, other professional
     services and the general partner's liability insurance. During the three
     months ended September 30, 2000, the Partnership incurred $86,000 of such
     expenses. At September 30, 2000, the General Partner re-evaluated the
     estimated costs to wind up and dissolve the Partnership given the
     uncertainty involved with the ongoing litigation. The provision for
     liquidation expenses was accordingly increased by an additional $117,000 to
     reflect the revised estimates. The increase was primarily the result of
     attorney fees incurred to date in association with the litigation.

     The actual costs could vary significantly from the related provisions due
     to the uncertainty related to the length of time required to complete the
     liquidation and dissolution and the complexities which may arise in
     disposing of the Partnership's remaining assets. The accrued expenses for
     liquidation do not take into consideration the possible outcome of the
     ongoing litigation. Such costs are unknown and are not estimable at this
     time.

(5)  Gain on Sale of Real Estate

     On May 31, 2000, the Partnership sold Terracentre, in Denver, Colorado to
     Robert E. Collawn ("Collawn"), a Denver real estate developer and operator,
     for


                                       10

<PAGE>   11

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

NOTES TO FINANCIAL STATEMENT - UNAUDITED (Cont'd.)

(5)  Gain on Sale of Real Estate (Cont'd.)

     $6,500,000. The Partnership realized a gain on the sale of $151,000, in
     excess of its carrying value, after deducting for closing costs and
     prorations totaling approximately $294,000. Collawn is not affiliated in
     any way with the Partnership, its General Partner or the General Partner's
     affiliates.

     The Partnership was represented by a third-party broker in the transaction.
     The broker was paid $227,500 from the sale proceeds. The General Partner
     earned and was paid a disposition fee of $130,000 in connection with the
     transaction. Collawn will not hire the General Partner or any affiliate to
     perform asset management or property management services for this property.

(6)  Subsequent Event

     On October 19, 2000, Grape Investors, LLC ("Grape"), the holder of 7.94% of
     the limited partnership interests of the Partnership, settled its portion
     of the purported class action lawsuits entitled "Bigelow/Diversified
     Secondary Partnerships Fund 1990 Litigation" and "Madison Partnership and
     ISA Partnership Litigation". In exchange for a complete settlement and
     release from Grape, the Partnership paid Grape its pro rata share of the
     proceeds available for distribution from the liquidation of the
     Partnership's properties. Grape's final distribution was $576,000, or
     approximately $75 per $1,000 of original investment. The General Partner
     also paid $1.00 for all of Grape's interest in the Partnership.



                                       11

<PAGE>   12

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

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

     Liquidity and Capital Resources

     Since the completion of its acquisition program in September 1985, the
     Partnership has been engaged in the operation of its properties. The
     Partnership's original objective had been to hold its properties as
     long-term investments. However, an Information Statement, dated May 5,
     1993, mandated that the General Partner seek a vote of the Limited Partners
     no later than December 31, 1996, regarding prompt liquidation of the
     Partnership in the event that properties with appraised values as of
     January 1993 which constituted at least one half of the aggregate appraised
     values of all Partnership properties as of that date were not sold or under
     contract for sale by the end of 1996. Given the mandate of the May 5, 1993
     Information Statement, as of December 31, 1995, the General Partner decided
     to account for the Partnership's properties as assets held for sale,
     instead of for investment. In a Consent Solicitation dated February 18,
     1997, the Partnership solicited and received the consent of the Limited
     Partners on March 14, 1997 to dissolve the Partnership and sell and
     liquidate all of its remaining properties as soon as practicable,
     consistent with selling the Partnership's properties to the best advantage
     under the circumstances. The Partnership's properties were held for sale
     throughout 1999 and five of its six remaining properties were sold by
     year-end. The Partnership's remaining property was sold on May 31, 2000.

     In November 1998, the Partnership entered into a definitive Purchase and
     Sale Agreement with Abbey Investments, Inc. to sell all the Partnership's
     properties for a range between $34,500,000 and $36,000,000, depending on
     final occupancy rates at the time of closing. However, in January 1999, the
     agreement was terminated because Abbey had requested a material reduction
     in the purchase price (approximately 11%), which the Partnership did not
     agree to.

     On April 30, 1999, the Partnership and Praedium Performance Fund IV
     ("Praedium") executed a Purchase and Sale Agreement to sell all of the
     Partnership's properties except Terracentre to Praedium for $31,700,000.
     Praedium deposited $243,100 into escrow, pending completion of its due
     diligence inspection and review. Praedium's contingency period expired on
     June 14, 1999. During and after the contingency period, Praedium, in a
     series of negotiations with the Partnership, sought reductions in the
     purchase price of each of the properties and declined to include the
     Cornerstone, Ladera-I and Certified in its offers. During this time, the
     General Partner negotiated with Praedium, and also sought other purchasers
     for the properties, both individually and as a group. Finally, in late July
     1999, the Partnership declined Praedium's offer to purchase only
     Cornerstone, Oakpointe and Washington Tech for a materially reduced
     purchase price and terminated its dealings with Praedium.

     Sale of the Properties

     During the three month period ended September 30, 1999, the Partnership
     sold four of its six properties in two separate transactions, and
     subsequently sold The Cornerstone on October 15, 1999 and Terracentre on
     May 31, 2000, as set forth below:


                                       12

<PAGE>   13

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS (Cont'd.)

     Liquidity and Capital Resources (Cont'd.)

     Sale of the Properties (Cont'd)

     Ladera-I

     On September 22, 1999, the Partnership sold Ladera-I shopping center, in
     Albuquerque, New Mexico to CA New Mexico, LLC, a wholly-owned subsidiary of
     CenterAmerica Trust ("CenterAmerica"), a Houston-based real estate
     investment trust that is not affiliated in any way with the Partnership,
     its General Partner or any of its principals or affiliates. The sale price
     was $4,424,000.

     CenterAmerica and the Partnership were each represented by third-party
     brokers in the transaction. The brokers were paid an aggregate $186,800
     from the sale proceeds. The General Partner was not paid a disposition fee
     in connection with the transaction. CenterAmerica did not hire the General
     Partner or any affiliate to perform asset management or property management
     services for this property.

     The Rubin Pachulsky Dew Transaction

     On September 23, 1999, the Partnership sold Certified Warehouse and
     Distribution Center, in Salt Lake City, Utah, Oakpointe Business Center, in
     Arlington Heights, Illinois, and Washington Technical Center, in Renton,
     Washington to Rubin Pachulsky Dew Properties, LLC ("Rubin Pachulsky Dew")
     for $5,100,000, $5,600,000 and $3,950,000, respectively, or an aggregate
     purchase price of $14,650,000. Rubin Pachulsky Dew is a third-party real
     estate investment entity that is not affiliated in any way with the
     Partnership, its General Partner or any of its principals or affiliates.

     Rubin Pachulsky Dew was represented by a third-party broker in the
     transaction. The broker was paid $146,500 from the sale proceeds. Since the
     sale price of Washington Technical Center exceeded the January 1, 1993
     appraised value ($3,400,000), pursuant to the 1993 Amendment of the
     Partnership Agreement, the General Partner earned and was paid a property
     disposition fee of $98,750 in connection with the sale of that property.

     Rubin Pachulsky Dew has hired an affiliate of Birtcher as property manager
     for the properties for a fee that is approximately the same as the fee the
     Partnership previously paid to the General Partner for property management.
     In addition, Rubin Pachulsky Dew has hired an affiliate of Birtcher to
     provide certain asset management services for the properties, and will pay
     an incentive fee approximately equal to 10% of the profits, if any, after
     Rubin Pachulsky Dew has received a 15% cumulative annual return on its
     investment. The incentive fee, if earned, is not payable until the last
     property is sold or four years from date of purchase, whichever comes
     first. The property management agreement is cancelable at any time upon 60
     days notice, but the incentive fee will survive termination of the
     contract.


                                       13

<PAGE>   14

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS (Cont'd.)

     Liquidity and Capital Resources (Cont'd.)

     Sale of the Properties (Cont'd)

     The Rubin Pachulsky Dew Transaction (Cont'd.)

     A portion of the proceeds from the sale of the properties to Rubin
     Pachulsky Dew continues to be held in escrow. A sum equal to two and
     one-half percent of the purchase price was held back as a potential source
     of payment for any claims that may arise related to a Partnership breach of
     certain representations and warranties related to the sale (expiring on
     September 23, 2000) and for any litigation costs that may arise (released
     to the Partnership on March 23, 2000). The remaining cash held in escrow
     relates to holdbacks for tenant improvements and tax prorations. The cash
     held in escrow has been included in the calculation of loss on sale of real
     estate.

     The Cornerstone

     On October 15, 1999, Damson/Birtcher Realty Income Fund-I (the
     "Partnership") sold The Cornerstone shopping center, in Tempe, Arizona to
     GDA Real Estate Services, LLC ("GDA"), a Denver-based real estate developer
     and operator that is not affiliated in any way with the Partnership, its
     General Partner or the General Partner's affiliates, for a sale price of
     $8,500,000.

     GDA was represented by two third-party brokers in the transaction. The
     brokers were paid $170,000 from the sale proceeds. The General Partner was
     not paid a disposition fee in connection with the transaction. GDA will not
     hire the General Partner or any affiliate to perform asset management or
     property management services for this property.

     Terracentre

     On March 24, 1999, the Partnership signed a Purchase and Sale Agreement to
     sell Terracentre for $6,450,000 to Halcyon Real Estate, Inc. ("Halcyon"), a
     local Denver real estate development company. During its due diligence
     period Halcyon asked to extend its contingency period to address zoning and
     land-use changes with the city of Denver (it apparently wanted to change
     the site from office to residential condominium use). The General Partner
     did not accept the request for extension. Halcyon thereupon asked to reduce
     the purchase price from $6,450,000 to $4,500,000. The Partnership rejected
     this request and terminated its dealings with Halcyon.

     On June 18, 1999, the Partnership entered into a Purchase and Sale
     Agreement to sell Terracentre to Charles Callaway ("Callaway"), an
     unaffiliated Denver real estate developer and operator, for $6,450,000. The
     purchaser deposited $200,000 into escrow on June 21, 1999, all but $50,000
     of which was refundable pending completion of its due diligence
     investigation. Unfortunately, at a Denver city council meeting on August
     10, 1999, certain council members discussed condemning Terracentre in order
     to expand the adjacent convention center. The Callaway


                                       14

<PAGE>   15

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS (Cont'd.)

     Liquidity and Capital Resources (Cont'd.)

     Sale of the Properties (Cont'd)

     Terracentre (Cont'd.)

     transaction was subsequently terminated and the deposit returned. On
     November 2, 1999, Denver voters approved a referendum in favor of expanding
     the convention center.

     On May 31, 2000, the Partnership sold Terracentre, in Denver, Colorado to
     Robert E. Collawn ("Collawn"), a Denver real estate developer and operator,
     for $6,500,000. Collawn is not affiliated in any way with the Partnership,
     its General Partner or the General Partner's affiliates.

     The Partnership was represented by a third-party broker in the transaction.
     The broker was paid $227,500 from the sale proceeds. The General Partner
     earned and was paid a disposition fee of $130,000 in connection with the
     transaction. Collawn did not hire the General Partner or any affiliate to
     perform asset management or property management services for this property.

     The Partnership realized approximately $6,206,000, in cash proceeds from
     the sale of Terracentre, after deducting for closing costs and prorations
     totaling approximately $294,000.

     Other Matters

     Regular distributions through the year ended December 31, 1999, represented
     net cash flow generated from the operation of the Partnership's properties
     and interest earned on the temporary investment of working capital, net of
     capital reserve requirements. On December 8, 1999, the Partnership made a
     special distribution of $13,300,000, representing a portion of the proceeds
     from the sale of five of its six remaining properties. Another special
     distribution of $9,000,000 was made on March 1, 2000. This last special
     distribution arose out of discussions with the named plaintiffs and their
     lawyers in the purported class action lawsuits. It represents the
     culmination of further, private discussions with representatives of Grape
     Investors, LLC ("Grape"), the holder of the largest investor position in
     the Partnership (approximately 7.94% of the limited partnership interests).
     Grape Investors agreed that for a period of 24 months, it will not involve
     itself in any way or support any effort to seek, or cause anyone else to
     seek, the addition of new general partners, the appointment of a receiver,
     or the removal of the General Partner. Grape Investors also has agreed to
     either abstain or vote against any such action or proposal.

     On October 19, 2000, Grape settled its portion of the purported class
     action lawsuits entitled "Bigelow/Diversified Secondary Partnerships Fund
     1990 Litigation" and "Madison Partnership and ISA Partnership Litigation".
     In exchange for a complete settlement and release from Grape, the
     Partnership paid Grape its pro rata share of the proceeds available for
     distribution from the liquidation of the


                                       15

<PAGE>   16

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS (Cont'd.)

     Liquidity and Capital Resources (Cont'd.)

     Other Matters (Cont'd.)

     Partnership's properties. Grape's final distribution was $576,000, or
     approximately $75 per $1,000 of original investment. The General Partner
     also paid $1.00 for all of Grape's interest in the Partnership.

     As of May 31, 2000, the Partnership has sold all of its operating
     properties. Two lawsuits remain pending against the Partnership and its
     General Partner and certain of its affiliates that seek, among other
     things, unspecified monetary damages. Since these cases are in the
     preliminary discovery phase, there is unavoidable uncertainty regarding
     their ultimate resolution. The Partnership Agreement mandates that the
     General Partner provide for all of the Partnership's liabilities and
     obligations, including contingent liabilities, before distributing
     liquidation proceeds to its partners. Therefore, the amount and timing of
     any distribution of liquidation proceeds will be determined by the General
     Partner in light of these and other relevant considerations. Due to these
     uncertainties, it is possible that future distributions may be limited to a
     liquidating distribution upon Partnership wind down should funds be
     available at that time.

     Year 2000

     As of December 31, 1999, the Partnership's accounting systems and the
     investor services system used to track the limited partners' interests,
     distributions and tax information were tested and appeared to be free of
     year 2000 bugs. The Partnership's remaining property was also reviewed
     utilizing the Building Owners and Managers Association ("BOMA") industry
     standards as a guideline for necessary corrections and those corrections
     were successful. As of September 30, 2000, the Partnership did not
     experience any significant issues or problems relating to year 2000. The
     cost of the Partnership's accounting systems upgrade was borne by the
     General Partner and was not reimbursed by the Partnership.

     Results of Operations for the Three Months Ended September 30, 2000

     Because the Partnership has been liquidating its assets, a
     quarter-to-quarter comparison of the results of operations is not
     practical. As the Partnership's assets (properties) were sold, the results
     of operations have been generated from a smaller asset base, and therefore
     are not comparable. The Partnership completed the sale of five of its six
     remaining properties in three separate transactions during 1999 and sold
     its last property on May 31, 2000. The Partnership's operating results have
     been reflected on the Statements of Changes of Net Assets in Liquidation.

     Interest income resulted from the temporary investment of Partnership
     working capital. For the three months ended September 30, 2000, interest
     income was approximately $116,000. The increase in interest income was
     reflective of the increased cash and cash equivalent balances that were
     generated from the sale of the properties and are being held in reserve.


                                       16

<PAGE>   17

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS (Cont'd.)

     Results of Operations for the Three Months Ended September 30, 2000
     (Cont'd.)

     Accrued expenses for liquidation as of September 30, 2000, include
     estimates of costs to be incurred in carrying out the dissolution and
     liquidation of the Partnership. These costs include estimates of legal
     fees, accounting fees, tax preparation and filing fees, and other
     professional services. During the three months ended September 30, 2000,
     the Partnership incurred $86,000 of such expenses. At September 30, 2000,
     the General Partner re-evaluated the estimated costs to wind up and
     dissolve the Partnership given the uncertainty involved with the ongoing
     litigation. The provision for liquidation expenses was accordingly
     increased by an additional $117,000 to reflect the revised estimates. The
     increase was primarily the result of attorney fees incurred to date in
     association with the litigation. The allowance for accrued expenses for
     liquidation does not, however, reflect any future costs of the ongoing
     litigation due to the uncertainty associated with those matters.

     Liquidation expenses incurred for the three months ended September 30,
     2000, include charges of $9,000 from the General Partner and its affiliates
     for services rendered in connection with administering the affairs of the
     Partnership. Also included in liquidation expenses incurred for the three
     months ended September 30, 2000, are direct charges of $77,000, relating to
     audit fees, tax preparation fees, legal fees and professional services,
     costs incurred in providing information to the Limited Partners and other
     miscellaneous costs.

     Interest expense in 1999 resulted from interest on the first deed of trust
     on Certified Distribution Center. That mortgage was retired on September
     23, 1999 with the sale of Certified Distribution Center to Rubin Pachulsky
     Dew.

     Other expense for the three and nine months ended September 30, 2000,
     resulted from the write off of several miscellaneous uncollectable tenant
     receivables ($7,000) and other minor expenses.


                                       17

<PAGE>   18

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

ITEM 3. QUANTITATIVE AND QUALITATIVE MARKET RISK DISCLOSURES

     As of September 30, 2000, the Partnership had cash equivalents of
     $7,033,000 invested in interest-bearing certificates of deposit. These
     investments are subject to interest rate risk due to changes in interest
     rates upon maturity. Declines in interest rates over time would reduce
     Partnership interest income.

                           PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

     So far as is known to the General Partner, neither the Partnership nor its
     properties are subject to any material pending legal proceedings, except
     for the following:

     Bigelow Diversified Secondary Partnership Fund 1990 litigation

     On March 25, 1997, a limited partner named Bigelow/Diversified Secondary
     Partnership Fund 1990 L.P. filed a purported class action lawsuit in the
     Court of Common Pleas of Philadelphia County against Damson/Birtcher
     Partners, Birtcher Investors, Birtcher/Liquidity Properties, Birtcher
     Investments, L.F. Special Fund II, L.P., L.F. Special Fund I, L.P., Arthur
     Birtcher, Ronald Birtcher, Robert Anderson, Richard G. Wollack and Brent R.
     Donaldson alleging breach of fiduciary duty and breach of contract and
     seeking to enjoin the Consent Solicitation dated February 18, 1997. On
     April 18, 1997, the court denied the plaintiff's motion for a preliminary
     injunction. On June 10, 1997, the court dismissed the plaintiff's complaint
     on the basis of lack of personal jurisdiction and forum non conveniens.

     On June 13, 1997, the Partnership's affiliated partnerships,
     Damson/Birtcher Realty Income Fund-II and Real Estate Income Partners III,
     and their general partner, Birtcher/Liquidity Properties, filed a complaint
     for declaratory relief in the Court of Chancery in Delaware against
     Bigelow/Diversified Secondary Partnership Fund 1990 L.P. The complaint
     seeks a declaration that the vote that the limited partners of
     Damson/Birtcher Realty Income Fund-II and Real Estate Income Partners III
     took pursuant to the respective consent solicitations dated February 18,
     1997 was effective to dissolve the respective partnerships and complied
     with applicable law, that the actions of the General Partner in utilizing
     the consent solicitations to solicit the vote of the limited partners did
     not breach any fiduciary or contractual duty to such limited partners, and
     an award of costs and fees to the plaintiffs. The defendant has answered
     the complaint. The parties have initiated discovery. No motions are pending
     at this time.

     In September 1998, Bigelow/Diversified Secondary Partnership 1990 informed
     the Partnership that it was filing suit in the Delaware Chancery Court
     against Damson/Birtcher Partners, Birtcher Investors, Birtcher Liquidity
     Properties, Birtcher Investments, BREICORP, LF Special Fund I, LP, LF
     Special Fund II. LP, Arthur Birtcher, Ronald Birtcher, Robert Anderson,
     Richard G. Wollack and Brent R. Donaldson alleging a purported class action
     on behalf of the limited partners of Damson/Birtcher Realty Income Fund-I,
     Damson/Birtcher Realty Income Fund-II and Real Estate Income Partners III
     alleging breach of fiduciary duty and


                                       18

<PAGE>   19

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

ITEM 1. LEGAL PROCEEDINGS (Cont'd.)

     Bigelow Diversified Secondary Partnership Fund 1990 litigation (Cont'd.)

     incorporating the allegations set forth in the previously dismissed March
     25, 1997 complaint filed in the Court of Chancery of Philadelphia County.
     Plaintiff has engaged in preliminary discovery and the parties have held
     settlement discussions.

     In March 2000, defendants informed the Court and plaintiff that they would
     bring a Motion for Summary Judgment against the named plaintiff based upon
     the allegations set forth in plaintiff's complaint. On April 14, 2000,
     Bigelow/Diversified Secondary Partnership Fund 1990 filed a First Amended
     Class Action and Derivative Complaint against Damson/Birtcher Partners,
     Birtcher Investors, Birtcher/Liquidity Properties, Birtcher Partners,
     Birtcher Properties, Birtcher Ltd., Birtcher Investments, BREICORP, L.F.
     Special Fund II, L.P., L.F. Special Fund I, L.P., Liquidity Fund Asset
     Management, Inc., Arthur Birtcher, Ronald Birtcher, Robert Anderson,
     Richard G. Wollack and Brent R. Donaldson, the Partnership, Damson/Birtcher
     Realty Income Fund-II and Real Estate Income Partners III, alleging breach
     of fiduciary duty, breach of contract, and a derivative claim for breach of
     fiduciary duty. Defendants have answered the First Amended Complaint.

     Rex Garton, et al. v. Damson/Birtcher Partners, et al.

     This action was filed on September 25, 1998 in the District Court of
     Oklahoma County for the State of Oklahoma against the Partnership's general
     partner, Damson/Birtcher Partners, other related defendants and numerous
     unrelated defendants. Damson/Birtcher Partners and other related defendants
     were brought into the action in late December 1998, when they were served
     with the Second Amended Petition. The other related defendants are Birtcher
     Partners, Birtcher Properties, The Birtcher Group, Birtcher American
     Properties, Arthur B. Birtcher, Ronald E. Birtcher, LF Special Fund II,
     L.P., and Liquidity Fund Asset Management Inc., but The Birtcher Group and
     Birtcher American Properties were served with process and did not appear in
     the action. The Partnership itself is not named as a defendant. The case is
     a class action brought on behalf of investors in the Partnership who
     purchased limited partnership interests from May 7, 1984 to September 17,
     1985. The Second Amended Petition alleges breach of contract, intentional
     and negligent misrepresentation, breach of fiduciary duties, and violations
     of various Oklahoma and federal statutes in connection with the sale of the
     limited partnership interests. Plaintiff seeks unspecified compensatory
     damages and $10 million in punitive damages.

     Damson/Birtcher Partners and the related defendants removed the case to the
     United States District Court for the Western District of Oklahoma, and
     filed a motion to dismiss the case for lack of personal jurisdiction or,
     alternatively, to transfer the action to the United States District Court
     for the Central District of California, for the convenience of the parties
     and witnesses and in the interests of justice. Plaintiff moved to remand
     the case back to the Oklahoma state court. The court denied plaintiff's
     motion for removal, and took defendant's motion to dismiss or transfer
     under submission pending receipt of additional information the court
     ordered plaintiff to provide. On March 29, 2000, the court entered its
     order granting defendant's motion to dismiss the case for lack of personal
     jurisdiction, and dismissed the case.


                                       19

<PAGE>   20

                      DAMSON/BIRTCHER REALTY INCOME FUND-I

ITEM 1. LEGAL PROCEEDINGS (Cont'd.)

     Madison Partnership and ISA Partnership Litigation

     On April 2, 1999, Madison Partnership Liquidity Investors XVI, LLC and ISA
     Partnership Liquidity Investors filed a purported class and derivative
     action in the California Superior Court in Orange County, California
     against Damson Birtcher Partners, Birtcher/Liquidity Properties, Birtcher
     Partners, Birtcher Investors, Birtcher Investments, Birtcher Limited,
     Breicorp LP Special Fund II, L.P., Liquidity Fund Asset Management, Inc.,
     Robert M. Anderson, Brent R. Donaldson, Arthur B. Birtcher, Ronald E.
     Birtcher, and Richard G. Wollack, Defendants, and Damson/Birtcher Realty
     Income Fund-I, Damson/Birtcher Realty Income Fund-II, and Real Estate
     Income Partners III, Nominal Defendants. The complaint asserts claims for
     breach of fiduciary duty and breach of contract. The gravamen of the
     complaint is that the General Partners of these limited partnerships have
     not undertaken all reasonable efforts to expedite liquidation of the
     Partnerships' properties and to maximize the returns to the Partnerships'
     limited partners. The complaint seeks unspecified monetary damages,
     attorneys' fees and litigation expenses, and an order for dissolution of
     the partnerships and appointment of an independent liquidating trustee. The
     Partnership moved to stay or dismiss the case on the grounds that the
     pending Bigelow class action, discussed above, raises essentially the same
     claims. The court granted the Partnership's motion and ordered a stay of
     the litigation pending re-evaluation at a May 23, 2000 status conference.
     The court lifted the stay on May 23, 2000. Plaintiffs have initiated
     document discovery. Plaintiffs have moved to certify the class and the
     parties are engaged in discovery regarding class certification. The motion
     to certify the class is currently scheduled to be heard on December 14,
     2000.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     (a) Exhibits:

         27 - Financial Data Schedule

     (b) Reports on Form 8-K:

         None filed during the three months ended September 30, 2000.



                                       20

<PAGE>   21

                                   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.


                                    DAMSON/BIRTCHER REALTY INCOME FUND-I


By: DAMSON/BIRTCHER PARTNERS        By: BIRTCHER PARTNERS,
    (General Partner)                   a California general partnership

                                        By: BIRTCHER INVESTMENTS,
                                            a California general partnership,
                                            General Partner of Birtcher Partners

                                            By: BIRTCHER LIMITED,
                                                a California limited
                                                partnership, General Partner of
                                                Birtcher Investments

                                                By: BREICORP,
                                                    a California corporation,
                                                    formerly known as Birtcher
                                                    Real Estate Inc., General
                                                    Partner of Birtcher Limited

Date: November 13, 2000                             By: /s/ Robert M. Anderson
                                                        ------------------------
                                                            Robert M. Anderson
                                                            Executive Director
                                                            BREICORP

                                    By: LF Special Fund II, L.P.,
                                        a California limited partnership

                                        By: Liquidity Fund Asset Management,
                                            Inc., a California corporation,
                                            General Partner of LF Special
                                            Fund II, L.P.

Date: November 13, 2000                     By: /s/ Brent R. Donaldson
                                                --------------------------------
                                                    Brent R. Donaldson
                                                    President
                                                    Liquidity Fund Asset
                                                    Management, Inc.



                                       21

<PAGE>   22

                                 EXHIBIT INDEX

          EXHIBIT
          NUMBER                  DESCRIPTION
          -------                 -----------

            27              Financial Data Schedule