Machine Tool Leases Much Less Delinquent than Home Mortgages

"In November, the delinquency rate on machine tool leases was much lower than on home mortgages. Shops are not booming but are uniformly in good financial shape," commented Harry Moser, President of Agie Charmilles Corp.

Lincolnshire, Illinois, January 3, 2006 - "In November, the delinquency rate on machine tool leases was much lower than on home mortgages. Shops are not booming but are uniformly in good financial shape," commented Harry Moser, President of Agie Charmilles Corp.

The Agie Charmilles Machining Business Activity Index was unchanged at 60 in November. The Index is created by surveying machine tool users concerning their current business level versus three months earlier (August '06). Any reading above 50 indicates that business activity has improved. The Index was inaugurated in October 2004 and is the only known monthly index of business in the U.S. machining industries. Business activity was strongest in the EDM Job Shop sector and in the Central region. Historical data is shown in Figure 1, and, along with a detailed breakdown of results by geographic region and application/sector, is at www.charmillesus.com/newsroom/bizindex.cfm.

The November 30 day delinquency rate on machine tool leases was less than 2%, which is lower than the 4.7% delinquency rate on home mortgages. The Agie Charmilles/USBEF Machining Industry Financial Strength Index was 333, vs. 294 in October 2006, 370 in November 2005 and 55 in January 2002, the lowest reading on record. Any reading above 100 indicates that US Bancorp Equipment Finance's (USBEF's) machine tool lease payment delinquencies (a good measure of liquidity and consistent profitability) are at a rate below the average rate of 1990 to 1999. As profitability rises, liquidity rises, delinquencies fall and the Index rises. Historical data is shown in Figure 2 and is available at the Charmilles URL mentioned above.

The approximately 126,000 U.S. companies that use machine tools have about 2 million machine tools and 750,000 to 1,000,000 directly related employees (toolmakers, machinists, operators, programmers, etc.). Almost all mid-size to large manufacturing companies use, and periodically purchase or lease, machine tools. Thus, these indices give timely insight into the condition of U.S. manufacturing. The Machining Business Activity Index is a coincident indicator of this key manufacturing sector. The Financial Strength lags business activity and leads capital investment.

About Agie Charmilles Corp.

Agie Charmilles Corp., a Swiss company, is the North American leading supplier of wire EDM, CNC, diesinking and manual EDM systems and high speed/performance and 5-axis CNC milling machines. For more information on the company's products and services, contact Gisbert Ledvon, Agie Charmilles Corp., 560 Bond St., Lincolnshire, IL 60069-4224, Tel: 1-800-CTC-1EDM. Gisbert.Ledvon@AgieCharmilles.us, Fax: 847-913-5340, or visit http://www.agiecharmilles.us.


About US Bancorp Equipment France

The Machine Tool Finance Group of US Bancorp Equipment Finance (USBEF) offers manufacturers and vendors, flexible and competitive lease financing for metal cutting, fabrication and plastics and wood manufacturing equipment. As a subsidiary of U.S. Bank, USBEF is one of the largest bank-affiliated equipment finance companies in the nation. Telephone (800) 255-8029 ext. 492.

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