Dice Gaming Seating Playing Cards Table Gaming Layouts
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  Every gaming table is covered with a felt layout containing silk-screened patterns particular to each specific game, as well as multicolored logos and other markings according to individual casino preferences. Paul-Son is the leading manufacturer of felt layouts in the United States, utilizing high quality cloth, enhanced graphics, and proprietary dye formations which management believes result in the widest variety of customized colors.
   
  Layouts are typically installed by Paul-Son on new gaming tables prior to delivery to a casino. The layouts are then regularly replaced by the casinos to maintain their appearance, generally within 60 days. Layouts typically sell in a range of $65 to $325, depending on the type of table, the complexity of the patterns, and the variety and difficulty of color combinations.
   
  Since December 1994, the Company has manufactured it layouts in its San Luis, Mexico facilities. The Company's layout production capacity is approximately 50,000 "steam" layouts and 24,000 "hand-painted" layout per year. Management believes that the capacity of its layout production facilities in Mexico will allow the Company to increase layout production and continue to meet anticipated future demand.
   
  During the last two years, certain competitors of the Company in the gaming supply industry have introduced synthetic nylon layouts to the casino industry. Demand for these synthetic layouts, because of their durability and longer wear, has been increasing over the last year. To date, the principal disadvantage of synthetic layouts has been the limited selection of colors and graphics. Due to the increasing demand, the Company has sought to introduce its own line of technologically advanced synthetic layouts which will be available in a wider variety of colors and graphics. In August 1997 the Company entered into an agreement to procure the equipment necessary to manufacture its own synthetic layouts. Management believes the synthetic layouts which will be manufactured by the Company will be superior to synthetic layouts currently available, in terms of colors and graphics.