November 9, 2007
Dear Mr. Trimble,
Gaming Partners International USA, Inc. (“GPI USA”) has long been proud of our position as leaders in the casino currency industry. Additionally, we are ever mindful of our responsibilities to our employees, you as our customers, and the general public. I am writing you today to provide you with the latest information that is known and verified with respect to lead content in the Paulson® chips.
By way of background, in September 2002, Paul-Son Gaming Corporation, the parent company of Paul-Son Gaming Supplies, Inc., was acquired through a reverse acquisition. In 2004, Paul-Son Gaming Corporation became Gaming Partners International Corporation and its U.S. subsidiary Paul-Son Gaming Supplies, Inc. became GPI USA. The Paulson chips, often referred to as “clay chips”, have been manufactured since 1968 and have been widely distributed mainly in the U.S. ever since.
Until 1998, these clay chips all contained approximately 47% (that is 470,000 Parts Per Million, or “PPM”) of lead in order to give them the weight that dealers and players were used to. Since 1998, the Paulson chip has had significant reductions in its lead content resulting in chips sold between January 1998 and November 2006 having a lead content of a few thousand PPM to a maximum of 6,500 PPM (0.65% in weight) for most of the approximately 70 colors of the available palette with the exception of 6 colors for which no acceptable formulation had been found until the second part of 2006.
Since November 2006, none of the chips manufactured have had lead levels that exceeded 6,500 PPM (0.65% in weight). Directly as a result of our continuous reformulation processes, we are pleased to report that all Paulson chips manufactured since October of this year have a lead content of less than 50 PPM (0.005% in weight).
We fully recognize that the recent publicity has raised awareness of this issue and we regret that a more accurate portrayal of any potential risks was not included in the broadcast. In the past, we have researched the issue regarding the amounts of lead used in recent production of gaming chips and with the coverings on the chips and the normal usage of the chips, there is no case reported of absorbing lead through the hands or fingers. Nonetheless, it is our intent to continue to refine our formulations and further eliminate this metal from our chips.
As rapidly as possible, we will provide a personalized analysis of each of your orders so that you will be able to view the measurements for yourself. We are confident that you will find that the reformulated chips pose no significant or elevated risk to either your employees or patrons.
If there are any specific questions you have, rest assured that we will be responsive and provide you with whatever information necessary to maintain your confidence in our products and our reputation.
Sincerely yours,
Gerard P. Charlier
President and Chief Executive Officer
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