HPSC Inc.  (HDR)
By: Richard W. West, CFA

"THE MONITOR 100 LIST" RAISES RANKING OF HPSC TO
65TH LARGEST EQUIPMENT/ASSET LEASING COMPANY

STRONG BUY RECOMMENDATION REITERATED

HPSC, Inc., announced on June 21, 2001, that the June issue of The Monitor 100 List ranked HPSC as the 65th largest equipment/asset leasing company in the country, based on an 18.4% increase in net assets, This is an improvement from last years ranking at the 77th position. The Monitor 100 is a list published by the Monitor Daily an independent publication. and reflects HPSC's growth in assets. Based on volume of originations, HPSC also moved up in rankings to 65th from the level of 75th last year. Growth in net assets and growth in origination volume are two of the base line measurements used in ranking similar companies in the industry.

SUMMARY and CONCLUSION:

Since our last Research Note on June 19, 2002, the common stock of HPSC has eased slightly from its recent recovery high close of $10.00 to its present level of $9.60, which is a reflection of the continued general stock market malaise. Based on our estimated diluted EPS of $0.98 for this year, the common stock of HPSC is selling at a modest 9.8 P/E ratio and with HPSC's continued growth in originations and net assets, we reiterate our STRONG BUY RECOMMENDATION and our price target over the next twelve to eighteen months of $14.00 to $16.00 a share.

J.M.Dutton & Associates, LLC. John M. Dutton, President and Supervisory Analyst, 1129 Manning Drive, Suite 310, El Dorado Hills, CA 95762 Phone (916) 941-4985, Fax (978) 418-6422 Email: [email protected] Web site: www.JMDutton.com

Information, opinions or recommendations contained in this research note are submitted solely for advisory and information purposes. The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Such information and the opinions expressed are subject to change without notice. This research note is not intended as an offering or a solicitation of an offer to buy or sell the securities mentioned or discussed. Neither the Firm, its principals, nor the assigned analysts own or trade shares of any company covered. The Firm does not accept any equity compensation. Anyone may enroll a company for research coverage, which costs US $25,000 prepaid for one-year. Reports are performed on behalf of the public, and are not a service to any company. The analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests and insure independence. Please read full disclosure and other reports and notes on the Company at www.JMDutton.com.

© Copyright, 2002, by J.M. Dutton & Associates, LLC.