1163673--3/27/2007--HANOVER_EQUIPMENT_TRUST

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Hanover s proposed merger with Universal is subject to the receipt of consents and approvals from various government entities that may impose conditions on, jeopardize or delay completion of the merger or reduce the anticipated benefits of the merger. While the merger is pending, Hanover will be subject to business uncertainties and contractual restrictions that could adversely affect Hanover s business. Failure to complete the merger could negatively impact Hanover s stock price and Hanover s future business and financial results because of, among other things, the disruption that would occur as a result of uncertainties relating to a failure to complete the merger. If at the end of the Lease term, HCLP fails to purchase the equipment, then HCLP is required to pay an amount equal to the final rent payment with respect to the Lease plus the proceeds, if any, from the sale of the equipment. This amount may be less than the amount due on the Notes. The value of the equipment securing the Notes may not be sufficient to cover the obligations owed to holders of the Notes under the Notes. There are some limitations on the right to amend the participation agreement and the other operative agreements and to accelerate payments under the Lease and to foreclose on the equipment.

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1163673--3/27/2007--HANOVER_EQUIPMENT_TRUST_2001B