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1 Macquarie Equipment Leasing Fund, LLC 225 Franklin Street 17th Floor, Suite 1700 Boston MA UNITED STATES Telephone Fax Internet March 15, 2011 To: The Investors Macquarie Equipment Leasing Fund, LLC Dear Investor ANNUAL PORTFOLIO REVIEW We are pleased to provide you with this summary report of Macquarie Equipment Leasing Fund, LLC s (the Company ) portfolio activities during For a more detailed description of the Company s operations during 2010, we encourage you to read the Company s 2010 Annual Report on Form 10-K. The Company s 2010 Annual Report, contains: - the Company s financial statements for 2010; - Management s discussion and analysis of the Company s financial condition and results of operations; and - a report of the fees, costs, expenses and other compensation which was paid or reimbursed by the Company to its manager, Macquarie Asset Management Inc., and its affiliates during Should you have any queries regarding this Annual Portfolio Review, the Company s 2010 Annual Report, or any other matter, please to not hesitate to contact our Investor Relations department on (866) Yours faithfully Macquarie Asset Management Inc., Manager of Macquarie Equipment Leasing Fund, LLC David Fahy President letter - melf annual portfolio review - rc _372272_1 (MC_NewYork).DOC

2 Macquarie Equipment Leasing Fund, LLC 2 ANNUAL PORTFOLIO REVIEW Background The Company is a Delaware limited liability company formed on August 21, The Company pools the capital invested by its members with borrowings to acquire a diversified portfolio of equipment and equipment leases. The Company also makes investments in other equipment-related transactions which allow it to participate in the benefits and risks of equipment ownership or usage, such as trading transactions, residual value guarantees, forward purchase agreements, total lease return swaps, participation agreements, equipment purchase options and joint ventures. The pooled capital contributions are also used to pay fees and expenses associated with the Company s offering and its operations and to create a reserve. The majority of equipment that the Company purchases will be accompanied by a lease of that equipment to third parties, though the Company may also invest in other types of equipment-related transactions. The Company anticipates that its operations will continue for approximately eight years from June 19, The Company s operations are divided into three phases. The first phase, called the offering period, will last for up to two years. The Company is currently in this phase. During this period, member s capital will be raised and investments shall be made by the Company. The offering period commenced on June 19, As of December 31, 2010, the Company has received and accepted cumulative subscriptions for 2,113,196 shares (including the Distribution Reinvestment Plan, or DRP, shares and net of repurchase of shares) of limited liability company interest ( shares ) for $18,508,589, net of offering costs, including the capital contributions from its manager. The second phase, called the operating period, is anticipated to last five years from the end of the offering period, but may last longer. During this period, the Company will invest and re-invest in equipment, equipment leases and other equipment-related transactions. The third phase, called the liquidation period, is anticipated to last one year from the end of the operating period, but not more than three years from the end of the operating period. During this period, the Company will dispose of the remainder of its portfolio and make final distributions to its members. The Company is managed by its manager, Macquarie Asset Management Inc. (the Manager ), a member of the Macquarie Group of companies. Investment Report The Company engaged in the following transactions during 2010, which represent all the investments held by the Company as at December 31, 2010: Commercial Jet Aircraft Engines In March 2010, the Company entered into a participation agreement with Macquarie Bank Limited ( MBL ) a member of the Macquarie Group of companies, to acquire an economic interest of up to 10% ($6,500,000) in a sale leaseback transaction. No leverage was used to finance this participating interest. Pursuant to the participation agreement, the Company made installment payments to, and will receive monthly payments from, MBL in a manner which mirrors the cash flows arising in connection with the commercial aircraft engines leased by a third party ( the underlying airline ) which are subject to leases of between 51 to 69 months. MBL will pay the Company approximately 10% (consistent with the investment percentage) of the monthly lease payments received from the third party and approximately 10% of the engine sales proceeds, remaining maintenance reserves and damages and insurance proceeds (collectively referred to as residual value ), at the end of the lease term when the engines have been successfully remarketed. Under a separate agreement, the Company shall

3 Macquarie Equipment Leasing Fund, LLC 3 pay Macquarie Aviation Capital Limited, a member of the Macquarie Group of companies, via the Manager, a fee (5% of the lease rental receipts) for the ongoing management of the engines and for the collection and remittance of rentals. In connection with this investment, acquisition fees of $195,000 were paid to Macquarie Asset Management Inc. Technology Equipment In October 2010, the Company acquired 451 new NCR Self-Serv kiosks (customer self-service terminals). These customer self-service terminals are on lease to a leading U.S. retailer for a period of 59 months and will be used in the retailer s stores across the U.S. The retailer is an existing client of an entity affiliated with the Company s manager. The acquisition of the equipment was facilitated by the entity affiliated with the Company s manager purchasing the equipment and then simultaneously selling it to the Company. The purchase price for the equipment, including the initial direct costs was $2,097,353. No leverage was used to finance this acquisition by the Company. Rentals of $38,361 are paid monthly and at the end of the lease term, the lessee may return the equipment, continue to rent the equipment, or purchase the equipment for its then fair market value. In connection with this investment, acquisition fees of $61,088 were paid to Macquarie Asset Management Inc. Retirement Community Equipment In November 2010, the Company acquired various items of furniture and other related equipment for use in model display apartments. This equipment is on lease to a leading U.S. owner and operator of senior housing and retirement communities for a 36 month period. The equipment will be used in the client s facilities across the U.S. The purchase price for the equipment, including the initial direct costs was $703,480. No leverage was used to finance this acquisition by the Company. Rentals of $21,646 are paid monthly and at the end of the lease term, the lessee may return the equipment, continue to rent the equipment, or purchase the equipment for its then fair market value. In connection with this investment, acquisition fees of $20,293 were paid to Macquarie Asset Management Inc. and Macquarie Equipment Finance, LLC and acquisition expenses of $6,764 were paid to Macquarie Equipment Finance, LLC. As at December 31, 2010, $8,970,075 of capital contributions received by the Company remained unexpended and uncommitted to pending investments. Status Report As at December 31, 2010, the status of each investment held by the Company was as follows: Commercial Jet Aircraft Engines by the Company to a major Australian airline. remaining lease terms of between 37 and 55 months.

4 Macquarie Equipment Leasing Fund, LLC 4 Technology Equipment by the Company to a leading U.S. retailer. a remaining lease term of 57 months. Retirement Community Equipment by the Company to a leading U.S. owner and operator of senior housing and retirement communities. a remaining lease term of 34 months. Distributions Report During the year to December 31, 2010, the following distributions were made to the Company s investors: Cash Distributions: $496,916 Distribution Reinvestment Plan: $141,381 Cash distributions made to investors during the year to December 31, 2010 primarily came from the following sources: Lease payments received and receivable during 2010: $642,902 Lease payments received and receivable during prior $0. periods: Proceeds from the sale of investments: $0. Reserves comprised of capital contributions from investors: $0. Total: $642,902

5 Macquarie Equipment Leasing Fund, LLC 5 Important Notice: Forward Looking Statements Certain statements within this report may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 ( PSLRA ). These statements are being made pursuant to the PSLRA, with the intention of obtaining the benefits of the safe harbor provisions of the PSLRA, and, other than as required by law, we assume no obligation to update or supplement such statements. Forward-looking statements are those that do not relate solely to historical fact. They include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. You can identify these statements by the use of words such as may, will, could, anticipate, believe, estimate, expect, continue, further, plan, seek, intend, predict or project and variations of these words or comparable words or phrases of similar meaning. These forward-looking statements reflect our current beliefs and expectations with respect to future events and are based on assumptions and are subject to risks and uncertainties and other factors outside our control that may cause actual results to differ materially from those projected. In particular, the economic recession and changes in general economic conditions, including fluctuations in demand for equipment, lease rates, and interest rates, may result in delays in investment and reinvestment, delays in leasing, re-leasing, and disposition of equipment, and reduced returns on invested capital. The Company s performance is also subject to risks relating to the value if its equipment at the end of its leases, which may be affected by the condition of the equipment, technological obsolescence and the markets for new and used equipment at the end of lease terms. Investors are cautioned not to attribute undue certainty to these forward-looking statements, which speak only as of the date of this report. We undertake no obligation to update publicly or review any forward-looking statement, whether as a result of new information, future developments or otherwise. Macquarie Equipment Leasing Company, LLC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia) and its obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of Macquarie Equipment Leasing Company, LLC.