Revenue from other products was $3.4 million in the third quarter of 2012, an increase of 60% compared to $2.1 million in the third quarter of 2011. The increase was a result of higher sales of gaming chips and plaques, which were $1.7 million for the third quarter of 2012 compared to $241,000 in the prior year period. The third quarter of 2012 gaming chip and plaque revenue included a large order for $1.6 million from a prominent long-time customer. Given the relatively short lead time for this order and inefficiencies related to the first time utilization of in-house plaque production processes that were previously outsourced, the Company incurred higher than normal expenses related to this order. This negatively impacted the gross profit for these operations for the quarter.

Adjusted EBITDA was $2.3 million for the third quarter of 2012 compared to $2.8 million for the prior year period. The decrease was primarily a result of lower slot revenue from the Company’s operations at NagaWorld and higher gaming division expenses related to the new casino operations, which are still ramping up.

Entertainment Gaming Asia reported net income of $43,000, or breakeven per share, on a weighted average diluted share count of approximately 31.1 million shares for the third quarter of 2012. This compared to net income of $647,000, or $0.02 per share, on a weighted average diluted share count of approximately 30.0 million shares for the third quarter of 2011. The decrease in net income was primarily the result of lower slot revenue from the Company’s operations at NagaWorld and higher gaming division costs partially offset by lower stock-based compensation and interest expenses and foreign currency gains compared to losses in the same period of the prior year.

Improving Potential for Gaming Chips and Plaques Operations

Over the last several years, the Company has made a strategic shift in focus of its other products division toward the manufacture and sale of gaming chips and plaques. With investment in product development and targeted marketing programs, the Company has made significant progress in improving the top-line performance of these operations and further strengthening its existing customer relationships in its core markets of Australia and Macau and broadening its customer base in existing and new geographies.

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