Economic Conditions Continue to Worsen for Accounts Recievable Management Industry

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The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management (ARM) industry, dropped another 5.2% in the fourth quarter of 2007 -- its lowest point in two years. This indicates that economic conditions are making it more difficult to collect bad debt.

The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management (ARM) industry, dropped another 5.2% in the fourth quarter of 2007 to 1253.5. As the U.S. economy has slowed, the Index has dropped to its lowest point in two years.

"Economic conditions are making it more difficult to collect bad debt," said Paul Legrady, a Director of Kaulkin Ginsberg Director. "We should continue to see further decreases in the Index in the coming months."

During the fourth quarter of 2007, the KGI was weighed down by four of its seven contributing variables. The unemployment rate increased from 4.7% to 5.0%. The market capitalization of publicly traded ARM companies fell dramatically from $2.16 billion to $1.67 billion. The federal funds rate decreased from 4.76% to 3.94%. The number of bankruptcy filings across the country also increased from 210,449 to 218,909. All of these factors reflect increasing difficulty in recovery or liquidation of bad debt.

The Index's changes in Q4 2007 were caused by the following factors:

Variable............................................Dec. 2007 *..........Q4 Change *    .Effect on KGI *
Unemployment Rate..................................5.0%............-9.1%...........Down
Federal Funds Rate................................3.96%............-17.2%..........Down
Charge-off Rate......................................0.72%...........30.9%...........Up
Outstanding Consumer Credit................$2.52T............1.5%.............Up
Total Market Cap of ARM Stocks...........$1.66B............-22.7%.........Down
Bankruptcy Filings...............................218,909............-2.0%............Down
Consumer Price Index.............................211.2.............1.3%.............Up

*See "How is the KGI Calculated," http://www.kaulkin.com/research/kgi/calculate.cfm

For more information about the Kaulkin Ginsberg Index, see http://www.kaulkin.com/research/kgi or call Paul Legrady at 240-499-3818.

About Kaulkin Ginsberg Company
Kaulkin Ginsberg is the leading strategic advisor for the accounts receivable management industry (ARM). For ARM service providers, our value-add services focus on analysis, growth, and exit strategies. For credit grantors, our focus is on optimizing receivables management strategies. Kaulkin Ginsberg's media division is the worldwide leader in providing timely news and insight on the recovery of debt in all industries. Kaulkin Information Systems creates secure and affordable workflow, document, and business process management technologies. Read more about Kaulkin Ginsberg at http://www.kaulkin.com.

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