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To: Yamakita who wrote (7535)	2/22/1998 10:51:00 PM
From: Nittany Lion	Respond to of 10368

For anyone who has not seen it in it's entirety, the First Research Financial buy recommendation has FINALLY been posted on the AB&G website along with the WSJ article from Nov. in the Analysts section. Gary

To: Yamakita who wrote (7535)	2/22/1998 10:54:00 PM
From: Ed Pettee	Read Replies (2) \| Respond to of 10368

Yamakita-- You are correct. I know that they had lined up some additional VGM locations to build on the current route operation. This has been placed on hold. If VGM's survive they will move aggressively to get to the 1000 machine number that was mentioned at the time of the Darlington purchase. A very important comment was made by Michael Mims when he was answering a question during the CC. He mentioned that the Darlington business had just had their biggest week ever of $130,000 in Revenue. This is 59% greater than the straight line average of $77,000 per week which was reported in the press release on the purchase of 400 machines with $4,000,000 in revenue. If we assume that this week was not typical and take the average down to $110,000, that still gives a quarters revenue from Darlington of $1,430,000, or 43% greater than the annual average. I do recall Mims saying that they had opened 15 new licenses in the Mrytle Beach area, and I don't know if they are included in the numbers and maybe the cause of the increase. If we take the last reported quarterly average from the 3rd Qtr. press conference of the machines belonging to Mims and add that for his 300 machines ($5000) we come up with a revenue # of $1,500,000, or a total of $2,930,000 in Revenue. I know that Darlington from their press release uses 25% to get to their net income. If we used that for the total we get $732,500 in bottom line income before taxes. I point this out to make the point on how important VGM's are to this business and the leverage that is in the VGM's side of the business. And to reinforce the reason MGT. would increase this end if they survive the battles in the Legislature. Feel free to critique the numbers,since I am a Sales and Marketing type and not a shiny ass green eye shade type. (As I used to call our financial gurus.)