Growth Continues For Gaming Industry

Gaming Industry Continues Rapid Sector Growth Garnering Interest and Activity from New Investor Group, Private Equity Funds Says Mercanti's Monthly Report

Opportunities in Middle Market Segment Especially Compelling, Report Notes

September 19, 2007 - MINNEAPOLIS--(BUSINESS WIRE)--It is a safe bet that the Gaming industry of today, now more than an $85 billion industry, is vastly different from the Las Vegas and Atlantic City focused casino market that existed just a decade ago, according to this month's Chronicle report published by The Mercanti Group, an investment banking firm headquartered in Minneapolis and with offices in Los Angeles and New York City.

"Over the last 10 years, the U.S. gaming industry has been transformed from a small number of large-scale casino destinations into more of a widespread and readily available public entertainment option," says Mercanti director Brian Wood, who specializes in counseling gaming companies and their management, and who authored this month's Chronicle. "This proliferation is evident in the overall acceptability of gaming in the general populace as over 80% of Americans consider casino gambling acceptable for themselves and others."

The growth of casinos operated by Native American tribes has been especially striking, the report says. In 2006, Native American casinos registered sales of $25.1 billion, with tribal casino revenues growing at 14.8 compounded growth rate (CAGR) since 1996. Spurring tribal gaming growth has been the advent of Class II gaming machines and compact arrangements for Class III gaming with an increasing diversity of states.

Additionally, the report notes, Native American gaming has also been a primary reason for expansion of commercial casino gambling which generated $32.4 billion of revenue in 2006 with a 6.6% CAGR since 1996. The visible success of tribal operations such as Foxwoods in Connecticut and Pechanga in California, and the resultant increased tax revenues these operations have brought in, has provided significant incentive for budget-constrained states to endorse new gaming initiatives.

"The significant impact a potential boost in tax revenues can have on education and public services, as well as the positive economics of new casino developments, such as job growth and increased tourism, has motivated many states, Pennsylvania and New York, among them, to support the supervised expansion of gaming," Mr. Wood observes.

During this period of sector-wide growth, the industry has been fortunate to be supported by unprecedented capital availability and liquidity in the debt and public equity markets. Mr. Wood points out, though, that 2006 led the previously hesitant private equity investor to the Gaming sector with the industry's drastically changing transaction dynamics - higher valuation multiples, companies holding larger amounts of debt and strategic acquirers forced to be more aggressive."

Nonetheless, Mr. Wood comments that despite the high profile equity deals, recent transaction activity has been "fairly limited," focusing primarily on large cap casino operators. "One of the reasons we believe private equity in the sector is in its early stages is that the area with the greatest need for capital - family and entrepreneur-owned middle market companies - has yet to be addressed," he said.

The report calls the middle market, from approximately $5 million to $25 million of EBITDA (earnings before interest, taxes, depreciation and amortization), a compelling yet undiscovered opportunity. "We believe the recent progress and precedent established by large-scale LBO transactions will establish the platform for middle market private equity in licensed gaming transactions," the Mercanti study says.

A full copy of this report can be obtained at www.mercantigroup.com.

About The Mercanti Group

The Mercanti Group is a results-oriented boutique financial advisory firm that embraces a fierce commitment to client service and provides creative Merger & Acquisition, Capital Raising and Strategic Advisory solutions to small and middle market companies, private equity firms and individual business owners in the consumer, health care, technology, business services and manufacturing industries. Mercanti offers companies the expertise and capabilities of a large investment bank with the focus, attention and energy of a small entrepreneurial firm. Mercanti has offices in Minneapolis, Los Angeles and New York. Mercanti also is strategically affiliated with Marquette Financial Companies, a diversified financial services company which is a part of the Pohlad family holdings. If you would like more information on The Mercanti Group, please visit the Web at www.mercantigroup.com, or contact a Mercanti professional at 612.333.0130 (Minneapolis); 310.444.0130 (Los Angeles); or 212.883.0130 (New York).

Contacts

The Mercanti Group
Sara Schmidt, 612-333-0130 x234
or
Anreder & Company
Steven Anreder or Paul Del Colle, 212-532-3232

Searching For Novel Therapeutics for Treating Alzheimer's Disease

Mount Sinai School of Medicine and Medisyn Technologies Announce Agreement to Discover Novel Therapeutics for Treating Alzheimer's Disease

September 13, 2007 - NEW YORK & MINNEAPOLIS--(BUSINESS WIRE)--Mount Sinai School of Medicine (MSSM) and Medisyn Technologies today announced a collaboration for the development of novel ?-amyloid (A?) lowering drugs as a treatment in Alzheimer's disease. Starting with MSSM's previous research data obtained from testing early-stage lead compounds, the collaboration utilizes Medisyn Technologies' molecular topology Forward EngineeringT platform to build a diverse pipeline of Alzheimer's disease drug candidates. The goal of the study is to complete in vivo efficacy validation of the novel drug candidates by the end of 2007.

It is estimated that 4.5 Americans currently suffer from Alzheimer's disease - a number that has doubled since 1980 and is expected to reach 12-16 million by 2050. There are currently no approved drugs to prevent the development of Alzheimer's disease (AD), a progressive brain disorder that gradually destroys cognitive function. Drugs that are currently available treat the symptoms of the disease, while the MSSM/Medisyn Technology candidates are designed to significantly slow the decline in cognitive function and thereby improve the patients' quality of life. The total US market for pharmaceuticals directed at neurodegenerative diseases was $16.5 billion in 2006.

Under the collaboration, Dr. Giulio Maria Pasinetti, Professor of Psychiatry and Neuroscience and Geriatrics and Director of the Alzheimer's Disease Translational Research Laboratory in the Department of Psychiatry at MSSM provided a recently identified set of lead compounds that were effective in reducing the generation of endogenous A?1-40 and A?1-42 peptides in primary neuron cultures. The efficacy data along with in vitro toxicity data have been correlated with Medisyn's empirical, activity-based molecular topological methodology to dissect specific molecular features of the lead compounds. The combined approach has identified 24 diverse new lead compounds from which 21 compounds and 16 compounds tested active for lowering A?1-40 and A?1-42 peptides respectively. Presently 10 compounds meet all property parameters for potency and low toxicity, with two of them showing a 10 fold increase in potency over the most potent compounds in the MSSM lead set.

The collaboration's in vitro evidence substantiated that a set of drugs could be used to build a predictive model for A?-lowering activity in vitro. Ongoing activity-based topological studies will provide clarification of the molecular features responsible for A?-lowering activities in vivo including the absence of aversive hypotensive side effects, low toxicity, high bioavailability and high penetration across the blood-brain barrier. Validated and characterized lead compounds will be out-licensed to pharmaceutical companies for further clinical development. Commercialization rights will be shared between MSSM and Medisyn Technologies.

Dr. Giulio Maria Pasinetti, stated that "We are extremely pleased to announce this collaboration with Medisyn Technologies and the preliminary results achieved. The combination of Medisyn's molecular topology platform together with the research advances and experience at MSSM creates a highly efficient team capable of identifying, discovering and validating novel compounds for treatment of AD that are of interest to the pharmaceutical industry."

"The in vitro results have been outstanding and bode well for success of the in vivo phase under development," said David Land, President of Minneapolis-based Medisyn Technologies. "By next applying the core competencies of Medisyn's proven Forward EngineeringT discovery engine to MSSM's pre-clinical in vivo work and therapeutic expertise, we anticipate rapid identification of new validated in vivo leads to build a diverse pre-clinical pipeline of drug candidates for treating AD."

About Mount Sinai School of Medicine

The Mount Sinai Medical Center encompasses The Mount Sinai Hospital and Mount Sinai School of Medicine. The Mount Sinai Hospital is one of the nation's oldest, largest and most-respected voluntary hospitals. Founded in 1852, Mount Sinai today is a 1,171-bed tertiary-care teaching facility that is internationally acclaimed for excellence in clinical care. Last year, nearly 50,000 people were treated at Mount Sinai as inpatients, and there were nearly 450,000 outpatient visits to the Medical Center.

Mount Sinai School of Medicine is internationally recognized as a leader in groundbreaking clinical and basic-science research, as well as having an innovative approach to medical education. With a faculty of more than 3,400 in 38 clinical and basic science departments and centers, Mount Sinai ranks among the top 20 medical schools in receipt of National Institute of Health (NIH) grants.

About Medisyn Technologies

Medisyn Technologies is a unique small molecule design company that uses proprietary technology to make drug discovery faster, more predictable and less expensive. Based on molecular topology, Medisyn's Forward EngineeringT platform enables the design of novel, diverse and unexpected compounds that meet exact parameters for a specific therapeutic use. By compressing design and discovery time from years to weeks and optimizing lead candidates, Medisyn's novel approach enables drug discovery customers to reduce risk, improve probability of success and control costs associated with the traditional lead discovery process. For more information about Medisyn Technologies, visit the company's website at: http://www.medisyntech.com or call 952.475.8084.

Contacts

Latitude
Pam Pettinella, 952-404-1853
pam@latitude-c.com

11 States Have Triple Digit Foreclosure Increases

ForeclosureS.com: August Report: 11 States Have Triple Digit Increases

September 10, 2007 - SACRAMENTO, Calif.--(BUSINESS WIRE)--Tens of thousands of Americans lost their homes to foreclosure in August and tens of thousands more face impending foreclosure, both signs the nation's foreclosure abyss has widened.

Already this year 355,624 homes have been taken back by their lenders following foreclosure, according to analysis of REO filings by longtime California-based foreclosure experts ForeclosureS.com. An REO (real-estate owned) filing is the final step in the foreclosure process and occurs when the bank or lender files notice that it has reclaimed a property for nonpayment of debt.

Despite highly touted government and private efforts to check the nation's upward spiral of foreclosures, 11 states have recorded triple-digit increases in REO filings so far this year vs. the same period last year. This fallout from the subprime loan debacle shows no signs of abating.

On a per capita basis, which measures the real impact of housing market trends, a little more than 4 of every 1,000 households in the United States have been lost to foreclosure this year. That's up from just over 3 homes per 1,000 during the same time last year, based on internal research from ForeclosureS.com's database of more than 3.5 million property listings.

Equally as troubling, pre-foreclosure filings - including notices of default and notices of foreclosure auction - continue to increase at an alarming rate. In fact, if the current trend continues, the number of homeowners in default on their mortgages in the United States since the beginning of the year could top 1 million by the end of October, according to a ForeclosureS.com analysis.

So far this year, 731,244 pre-foreclosures have been filed nationwide. That translates to nearly 10 out of every 1,000 households in trouble financially with their mortgages.

The nation's Northeast and Southeast regions have suffered triple-digit increases in per capita numbers of homeowners in pre-foreclosure this year compared with last. Pre-foreclosures in the Southeast - 14.2 filings for every 1,000 households - were up nearly 145% so far this year compared with the same period last year. The actual number of filings in the Southeast - 158,466 - also rose 145% to date over the same time in 2006.

The Northeast, which at midyear seemed to be on track to bounce back from the foreclosure abyss, showed a more than 116% increase in per capita numbers, with 8 of every 1,000 households facing mortgages in default. The actual number of filings in the Northeast - 95,528 to date in 2007 - is 120% higher than last year's number.

It's a dismal picture, but one that may get a bit brighter for at least some homeowners, thanks to changes in the Federal Housing Administration's lending practices as announced by President Bush last month, says Alexis McGee, president of ForeclosureS.com and author of the book, "The Foreclosures.com Guide to Investing: Making Huge Profits Investing in Pre-Foreclosures Without Selling Your Soul" (John Wiley, September 17, 2007). Although some homeowners will benefit from the plan, "Thankfully, though, Bush - along with Fed Chairman Ben Bernanke - rejected a wide-scale federal bailout of lenders and borrowers," says McGee. "After all, both groups, the government leaders agree, made their own financial mistakes."

Under Bush's plan to help homeowners trapped by subprime ARMs, those who qualify - roughly 80,000 borrowers - will be able to refinance into better and more affordable FHA-backed loans. Bush also wants to raise the FHA's disconnected from the current market (especially the coastal areas), maximum loan limit of $362,000. That will allow homeowners a chance at FHA loans in markets previously all but priced out, adds McGee.

"But new bailouts and proposals aside, just how bad are things likely to get before they start improving? That depends on what day it is and what reports come from what experts," says McGee. "The basic economy remains sound. The just-released Fed's Beige Book, which describes the economic conditions in regions around the country, points to the fact that while upheaval in the financial markets has made the housing slump worse, the overall economy hasn't been widely harmed."

"At almost the same time, though," McGee adds, "the National Association of Realtors reported that its pending sales of existing homes fell in July to the lowest level in nearly six years. Although the report did support the argument for an interest-rate cut - we anticipate the Fed will cut its benchmark Fed funds rate when it meets Sept. 18 - it also worried investors who are nervous about the housing market growing so weak that it drags the economy into recession."

The also just-released Mortgage Bankers Association's National Delinquency Survey for second-quarter 2007 singles out just four states, California, Florida, Nevada, and Arizona, as the drivers of soaring national foreclosure numbers. "Get rid of those states' problems and national foreclosure numbers actually would be down, the MBA says," adds McGee. "Of course, we can't do that, plus states like Ohio, Michigan, Tennessee, and others even the MBA admits have their share of foreclosure issues, too."

MBA's latest survey points to a 5.12% delinquency rate (seasonally adjusted) of all loans outstanding in the second quarter this year, up 28 basis points from the first quarter, and 73 basis points from a year ago. (1 basis point=0.01%; 100 basis points=1% change) That doesn't include loans in the process of foreclosure - another 1.4% of all outstanding loans.

Consider a few more numbers from ForeclosureS.com that help paint the picture of the size and extent of the subprime mortgage problem - a problem that will have to work its way through the system before things start looking up, adds McGee. These numbers are from John Robbins, chairman of the Mortgage Bankers Association, and are quoted from a letter he sent to Jennifer J. Johnson, secretary of the Federal Reserve's Board of Governor's in mid-August:

    * 4.9% of current homeowners are subprime borrowers with ARMs.
    * Of those subprime ARMs, 10.13% (or approximately 250,000 homeowners) are seriously delinquent or in foreclosure.
    * Delinquencies in the subprime market were significantly higher at the end of 2000 and in 2002 as compared with the first quarter of 2007, according to the MBA's National Delinquency Survey, the widely recognized, reputable authority on delinquency numbers.

Let's look at ForeclosureS.com August's default and foreclosure numbers: Among REO filings, states with triple-digit gains year over year are: California (with filings up 471%), Arizona (up 217%), Nevada (up 192%), New Mexico (up 157%), Florida (up 141%), Hawaii (up 138%), New Hampshire (up 119%), and Minnesota (up 112%).

    * On a per capita basis, states with the most people losing their home this year include: Louisiana (14.7 homeowners out of every 1,000 households in the state), Michigan (11.1 per 1,000), Nevada (11 per 1,000), Georgia (9.9 of every 1,000), Colorado (9.8 per 1,000), Indiana (8.8 per 1,000), Ohio (7.6 per 1,000), and Missouri (7.6 per 1,000).

    * Costilla County, Colorado, leads the nation in REO filings per capita so far this year with 256.2 of every 1,000 households lost to foreclosure. But in a bit of irony, that's actually down more than 33% from the same period last year.
    * Other leading counties with their per capita REO filing numbers year to date include: Valencia County, New Mexico (80.7 filings per 1,000 households); Mohave County, Arizona (38.4 filings per 1,000 households); Elko County, Nevada (38.2 filings per 1,000), and East Baton Rouge Parish, Louisiana (33.9 filings per 1,000 households).
    * States with the most pre-foreclosure filings per capita year to date include: Nevada (30.9 per 1,000 households); Florida (21.5 per 1,000); Colorado (16 per 1,000); Illinois (15.3 per 1,000); California (14 per 1,000); New Jersey (14 per 1,000); Arizona (13.5 per 1,000); Utah (10.6 per 1,000); Texas (9.2 per 1,000 households), and Tennessee (8.7 filings for every 1,000 households).

    * Counties with the highest per capita numbers of pre-foreclosure filings nationwide year to date and for the month of August include: Alpine County, California (45.5 filings per 1,000 households); Lee County, Florida (42.3 filings per 1,000); Pinal County, Arizona (40.4 per 1,000); Flagler County, Florida (40.2 per 1,000), and Clark County, Nevada (39.2 filings per 1,000 households).

Tune in to Alexis McGee on the Foreclosure Markets:

Don't miss Alexis McGee Live discussing the nation's foreclosure crisis and her white knight approach to pre-foreclosure investing - how to make big profits without selling your soul - coming Sept. 24 and 25 to a radio station in your area.

The Truth about Foreclosure-Investing:

Coming September 17th, Alexis McGee's new book: "The ForeclosureS.com Guide to Investing in Pre-foreclosures Without Selling Your Soul" John Wiley and Sons (paperback). Available at your favorite bookseller or here:

http://www.foreclosures.com/www/pages/Guide-to-Making-Huge-Profits-Investing-in-Pre-Foreclosures.asp (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

About ForeclosureS.com:

Sacramento-based ForeclosureS.com, publisher of foreclosure property information for more than two decades, has more than 3.5 million listings of current foreclosure filings covering nearly 1,600 major U.S. counties. To ensure accuracy, ForeclosureS.com bases its statistics on the numbers of formal notices filed against a property in the foreclosure process. In some states that can mean up to three filings against one property - notice of default, notice of foreclosure auction, and notice of REO - after a property has gone to foreclosure auction and a bank or lender takes possession of a property. In other states, it's only two filings - auction notice and REO notice. Whatever the case, the same property can be counted multiple times, and inaccurately skew the numbers. To avoid that, ForeclosureS.com reports only two sets of numbers, Pre-foreclosure (filings before foreclosure) and REO (after foreclosure) filings.

To get the details of what's happening with foreclosures and housing markets in your state, region, and county, including year-to-date and month-to-month comparisons per capita and in filing numbers, please visit http://www.ForeclosureS.com/www/pages/pressinquiry.asp.

You can customize your search and analysis with just a mouse click.

For expert commentary please contact Alexis McGee, President, Foreclosures.com at alexis@foreclosures.com. For help in using our Press Inquiry or Statistics Pages please contact support@foreclosures.com.

Contacts

ForeclosureS.com
Alexis McGee, 916-860-1122
President
alexis@foreclosureS.com

California Bans Cell Phones

California Becomes the Fourth State to Ban Cell Phones While Driving

With exceptions to headsets and other hands free devices, driving while using a cell phone is becoming illegal in more and more states. Many companies are beginning to sell devices that will allow people to still use cell phones while driving.

Grass Valley, CA (PRWEB) June 28, 2007 -- On July 1, 2008, California will become the fourth state that will implement a ban on the use of cell phones while driving.

The California Governor, Arnold Schwarzenegger, signed into law a legislation that passed in the California Assembly last month. The measure goes into effect in July 2008, and imposes a minimum fine of $20 for anyone caught driving and using a cell phone unless the driver uses a headset, ear bud or other technology that frees both hands.

New York, New Jersey, Connecticut and Washington, D.C., have similar laws, but California is a large state to sign off on such legislation. More than 35 other states are considering a similar bill.

Palm, California's largest producer of cell phone and accessories, is one of the largest supporters of this bill. The company said the bill responsibly addresses evidence that handheld cell phone use increases the risk of an accident.

"With the technology available today, there is no reason for a driver to be holding a cell phone while behind a wheel. Headset technology, both wired and wireless, is readily available, and call quality using hands-free headset is generally excellent," said Mary Doyle, Senior Vice President and General Counsel at Palm.

Ms. Doyle added, "Palm gives drivers numerous options for helping keep their eyes on the road and two hands on the wheel, focusing first and foremost on driving."

Cellphone Battery Warehouse has more than 47 different styles and brands of headsets to offer to motorists. The Palm Bluetooth Wireless Headset is one of the most popular headsets for motorists.

To learn more about the products visit http://www.batteries4less.com/

Press Contact: Coryon Redd
Company Name: Batteries 4 Less
Phone: 530-277-2940
Website: www.batteries4less.com