The Association of Gaming Equipment Manufacturers (AGEM) has published its December 2008 Index, which rebounded 12.1% from its close in November 2008. AGEM states that while the overall index was down significantly during last year, December’s increase represented the largest single month valuation increase since August 2007. The AGEM Index reached a value of 79.96 and is based on a 100-point value as of January 2005.

. Eight of the global gaming suppliers reported a stock value increase while seven posted month-to-month declines and one remained flat. The largest positive contributors were: (1) International Game Technology (IGT) that contributed 2.78 points to the index driven by a 17.14-percent increase in its stock valuation; (2) Konami (KNM) that contributed 2.18 points to the index driven by a 13.27-percent increase in its stock valuation; and (3) Bally Technologies (BYI) that contributed 1.84 points to the index driven by a 30.10-percent increase in its stock valuation.

The large stock increases by a majority of the global gaming suppliers were not hindered much by the decline of a few. The strengthening of the Euro and Australian dollar modestly impacted results. Global gaming suppliers posting significant negative contributions to the index were: (1) Global Cash Access (GCA) that posted a 28.16-percent decline; (2) Transact Technologies (TACT) that reported a 14.04-percent decline; and Progressive Gaming International (PGIC) that is in the process of winding down.

The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index that comprises 16 global gaming suppliers throughout the world. A total of 13 suppliers are based in the United States and are listed on the NYSE, Nasdaq, or AMEX, while two trade on the Australian exchange and one supplier trades on the Milan 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. (E-01.13.09)

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