1000297--2/28/2007--TRAFFIX

related topics

{product, market, service}

{system, service, information}

{personnel, key, retain}

{provision, law, control}

{financial, litigation, operation}

{regulation, change, law}

{stock, price, share}

{cost, operation, labor}

We May Not Continue To Pay Dividends On Our Equity Securities. Advertisers May Be Reluctant To Devote A Portion Of Their Budgets To Internet Advertising And Digital Marketing Solutions. We May Not Be Able To Comply With The Adoption Of Newly Created Laws And Governmental Regulation Of The Internet Industry And New Restrictions For Internet Use May Increase Our Cost Of Doing Business. Demand For Our Services May Decline Due To The Proliferation Of "Spam" And Software Designed To Prevent Its Delivery. We May Be Unable To Keep Up With The Rapid Technological Changes That May Occur In The Internet And E-Commerce Arenas Which Would Adversely Affect Our Business Operations. We Depend On Third-Party Internet And Telecommunications Providers, Over Whom We Have No Control, To Operate Our Services. Interruptions In These Services Caused By One Of The Providers Could Have An Adverse Effect On Revenue And Securing Alternate Sources Of These Services Could Significantly Increase Expenses. We Face Intense Competition In The Marketing Of Our Services and Our Clients Products. Our Success Depends On Our Ability To Continue Forming Relationships With Other Internet And Interactive Media Content, Service And Product Providers. The Outcome Of Litigation In Which We Have Been Named As A Defendant Is Unpredictable And A Materially Adverse Decision In Any Such Matter Could Have A Material Adverse Affect On Our Financial Position And Results Of Operations. We Are Dependent On Our Key Personnel For Managing Our Business Affairs. The Loss Of Their Services Could Materially And Adversely Affect The Conduct Of Our Business. Our Business Plan Is Subject To Change And Any Expectations We And You May Have For Its Successful Implementation May Be Unrealized. The Concentration Of Ownership Of Our Common Stock Will Discourage Purchases Of Our Common Stock By Persons Who Might Otherwise Seek To Gain Control Of Traffix.

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1000297--2/28/2007--TRAFFIX_INC