Percent AGEM Exchange: Stock Price Change Index Symbol At Month End Prior Prior Contribu- (Currency) Sep-08 Aug-08 Sep-07 Period Year tion Ainsworth Games ASX: AGI Technology (AU$) 0.09 0.12 0.36 (21.74) (75.00) (0.03) Aristocrat ASX: ALL Technologies (AU$) 6.46 5.90 13.90 9.49 (53.53) 0.07 Bally NYSE: BYI Technologies (US$) 30.28 34.23 35.43 (11.54) (14.54) (1.08) Elixir Gaming AMEX: EGT Technologies (US$) 0.33 0.42 4.36 (21.43) (92.43) (0.05) GameTech Nasdaq: International GMTC (US$) 2.61 3.89 7.75 (32.90) (66.32) (0.06) Gaming Partners Nasdaq: International GPIC (US$) 5.50 5.29 9.25 3.97 (40.54) 0.01 Global Cash NYSE: GCA Access (US$) 5.06 5.99 10.59 (15.53) (52.22) (0.34) IGT NYSE: IGT (US$) 17.18 21.43 42.51 (19.83) (59.59) (5.66) Konami NYSE: KNM (US$) 25.39 30.43 29.64 (16.56) (14.34) (3.23) Lottomatica MILAN: LTO.MI (GTECH) (EUR) 18.52 21.06 25.35 (12.06) (26.94) (3.60) Multimedia Nasdaq: Games MGAM (US$) 4.33 5.06 8.52 (14.43) (49.18) (0.09) Progressive Gaming Nasdaq: International PGICD (US$) 1.43 0.76 5.00 88.16 (71.40) 0.05 Shuffle Master Nasdaq: SHFL (US$) 5.09 5.02 14.95 1.39 (65.95) 0.02 Transact Nasdaq: Technologies TACT (US$) 7.96 12.25 6.13 (35.02) 29.85 (0.15) Wells-Gardner AMEX: WGA Electronics (US$) 1.03 1.32 2.38 (21.97) (56.72) (0.01) WMS Industries NYSE: WMS (US$) 30.57 33.60 33.10 (9.02) (7.64) (0.77) Change in Index Value (14.92) AGEM: August 2008 107.12 AGEM: September 2008 92.20ANALYSIS PROVIDED BY UNION GAMING GROUP In what is traditionally a strong month in the broader market, September 2009 would be considered textbook with gains across all major indices. Market strength was driven by favorable manufacturing and consumption data supporting the "green-shoots" of recovery notion. Gaming Suppliers' directionally followed yet outperformance of broader markets in September was likely due to a confluence of events. These underscored gaming expansion and operating improvement for the sector while property transactions, capital markets activity, and evidence of Las Vegas stabilization collectively bolstered sentiment for the entire gaming group. We list a number of gaming expansion data points below, yet more importantly for investors' was September's evidence of healthier casino operators which is indicative of a long awaited replacement cycle drawing nearer -- and investors are beginning to 'pay' for this now. Expansion reared its head in various ways: Seminoles signed their FL compact as did the Pomos in CA; Miami-Dade tracks took delivery of slots, Oregon Lottery is adding/replacing slots, Greenbrier got licensed, PA table game expansion progressed, Sands wants more slots in PA, Crown was approved for e-tables, MA gaming looked more probable, MD issued its fist slots license, and Aqueduct racino inched ahead. On the financial front Harrah's continued to chop away at debt with successful exchange offers, Wynn launched its HK IPO at premium valuation, Sugarhouse closed on Philly project financing, Revel AC may be progressing with financing talks, and SJM issued an attractive convert. SHFL beat numbers and we suspect 2010 estimates may prove conservative, Macau posted a record August, evidence of visa restrictions easing, while Harrahs, the Chickasaws, and PENN appeared active on the suitor front (Thistledown, Planet Hollywood, Remington, Lone Star, and Fontainebleau LV). While Taiwan's first county referendum for casinos was voted down the aforementioned momentum was overwhelming. This dynamic has continued into October. The AGEM Index The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index that comprises 17 global gaming suppliers throughout the world. A total of 12 suppliers are based in the United States and are listed on the NYSE, Nasdaq or AMEX, while two trade on the Australian exchange, one supplier trades on the Athens exchange, one trade on the Milan exchange, and another trades on the Taiwan OTC exchange. The index is computed based on the month-end stock price (adjusted for dividends and splits) of each company and weighted based on approximation of market capitalization. Market capitalizations for manufacturers trading on foreign exchanges have been converted to US dollar equivalents as of month-end for comparability purposes. The AGEM Index is based on a 100-point value as of January 2005. About AGEM AGEM is an international trade association representing manufacturers and suppliers of electronic gaming devices, systems, table games, key components and support products and services for the gaming industry. The Association works to further the interests of gaming equipment suppliers throughout the world. Through political action, tradeshow partnerships, information dissemination and good corporate citizenship, the members of AGEM work together to create benefits for every company within the organization. Together, AGEM has assisted regulatory commissions and participated in the legislative process to solve problems and create a positive business environment. AGEM Membership Roster The current AGEM membership roster, 81 strong, is a who's who of the supplier segment of the global gaming industry: AGEM Gold Members: Aristocrat Technologies, Aruze Gaming America, Austrian Gaming Industries, Bally Technologies, GTECH/Atronic/Spielo, International Game Technology (IGT), INTRALOT S.A., Konami Gaming and WMS Gaming. AGEM Silver Members: AC Coin & Slot, Action Gaming, Casino Technology, Interblock USA, JCM Global, MEI, Multimedia Games, Octavian International, Shuffle Master, Suzo-Happ Group, TCSJohnHuxley and Wells-Gardner Electronics. AGEM Bronze Members: Ainsworth Game Technology, Astro Corp., Cadillac Jack, Cammegh Limited, CashCode / Crane Payment Solutions, Diamond Game, Digital Display Group, Euro Games Technology (EGT), GameTech International, Gaming Support, Incredible Technologies, Jumbo Technology, KGM Gaming, MCA Processing, Modern Gaming, Rocket Gaming Systems and Summit Gaming. AGEM Associate Members: CMYK Creative, Cole Industries, Cybertec Gaming Systems, DynaGraphic Printing, Elite Casino Products, Esterline Advanced Input Systems, FutureLogic, Gaming Partners International, Gary Platt Manufacturing, Global Cash Access, Global Gaming Group (G3), Grand Products, Greenberg Traurig LLP, Howard & Howard, IdeaWork Studios, IDX, Intel, IPS, James Industries, Kreller Group, KSK, Lewis & Roca, Masterpiece Advertising, MC2, Mikohn Signs and Graphics, Money Controls, Nanoptix, Paokai Electronic Enterprise Co., Proforma GPS, Regulatory Management Counselors, Sanmina-SCI, Strategy9, Talent Associates, Tgraphics/Outpost Productions, The Bright Group, 3M Touch Systems, TMX, Tournament One, Trade Show Fabrications, TransAct Technologies, Veridocs, Wrex Products and Young Electric Sign Company (YESCO). AGEM Index and Overview The AGEM index and overview is prepared by Applied Analysis (AA). AA is a Nevada-based advisory services firm providing a wide range of consultation services for public and private entities. The company utilizes extensive experience in economics, information technology and finance to provide a wide range of services, including urban economic consulting, financial advisory services, market analysis, public policy analysis, hospitality industry and gaming consulting and information system and technology consulting. Industry Analysis Industry Analysis is prepared by Union Gaming Group (UGG). UGG is an independent research firm, government and industry advisor, focusing on the global gaming business. UGG provides research, access and advisory services and offers varying levels of research products and services, which capitalize on UGG's relationships with corporate managements, governments, and other parties relevant to the global gaming business.
Contact Information: Contact for AGEM release: Marcus Prater AGEM Executive Director (702) 812-6932