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Bankruptcy Filings and Public ARM Companies Weigh on Index

September 14, 2006: BETHESDA, MD - The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management (ARM) industry, has decreased 1.2% to 1454.2.  The decrease is attributed to downward movement in the market capitalization of publicly traded ARM stocks and an increase in the number of bankruptcy filings.  Overall, the KGI remains up 15.1% year over year and down only 1.3% from its all-time high of 1472.7.

“While there has been some downward movement in the Index, economic conditions for the industry as a whole are excellent,” said Paul Legrady, Director of Kaulkin Ginsberg’s Research Group.

The KGI is expected to dip in the third quarter as NCO Group completes its plan to go private and is delisted from public exchanges.  The market capitalization of publicly traded ARM companies will decrease significantly as a result.

The Index’s changes in July were caused by the following factors:

Variable	July 2006 *	Variable Change *	Effect on KGI *
Unemployment Rate	4.7%	3.1%	Up
Federal Funds Rate	5.24%	5.0%	Up
Charge-off Rate	0.42%	0.0%	-
Outstanding Consumer Credit	$2.350T	7.5%	Up
Total Market Cap of ARM Stocks	$3.03B	-5.0%	Down
Bankruptcy Filings	155,833	-7.7%	Down
Consumer Price Index	203.5	0.3%	Up
* See “How is the KGI Calculated,” http://www.kaulkin.com/research/kgi/calculate.cfm

For more information about the Kaulkin Ginsberg Index, see www.kaulkin.com/research/kgi or call Paul Legrady, Director of Kaulkin Ginsberg's Research Group, at 301-907-0840 ext. 104.

About Kaulkin Ginsberg Company
Kaulkin Ginsberg is a diversified advisory, research, and media company, providing solutions to accounts receivable management and related business services industries since 1989.  The Strategic Advisory Group provides merger, acquisition, and valuation advice; operational consulting; and executive search services. The Research Group leverages Kaulkin Ginsberg’s 15 years of industry insight and relationships to provide clients with industry-specific publications and custom research products. The Kaulkin Ginsberg family of companies also includes Kaulkin Media, publisher of the most popular sources of industry information such as CollectionIndustry.com™ and Credit & Collection Daily™. 

Read more about Kaulkin Ginsberg at www.kaulkin.com.