1006195--6/8/2009--MATRIXX_INITIATIVES

related topics

{product, liability, claim}

{customer, product, revenue}

{stock, price, operating}

{product, candidate, development}

{stock, price, share}

{acquisition, growth, future}

{property, intellectual, protect}

{personnel, key, retain}

{interest, director, officer}

{operation, international, foreign}

{regulation, government, change}

{loss, insurance, financial}

{product, market, service}

{financial, litigation, operation}

Our business is subject to seasonality that may cause our quarterly operating results to fluctuate materially and cause the market price of our stock to decline. We face increasing competition from lower-priced, private label and branded over-the-counter products. We may continue to incur significant costs resulting from product liability claims or securities litigation. Because a significant portion of our business depends on a small group of large national retailers, our sales, operating margins and income would be adversely affected by any disruption of our relationship with these retailers, or any other material adverse change in such retailers businesses. Our entry into international operations exposes us to numerous risks. We believe that growth in the over-the-counter healthcare products market is driven, in part, by factors beyond our control, such as media attention, adverse publicity, and regulatory changes. Our future growth will depend in part upon our ability to develop and achieve sales of new products. Unanticipated problems associated with product development and commercialization could adversely affect our operating results. The inability to provide scientific proof for product claims may adversely affect our sales. FDA and other government regulation may restrict our ability to sell our products or require us to recall products. If we are unable to protect our intellectual property or if we infringe the intellectual property of others, our financial condition and future prospects could be materially harmed. Under our current business model, we do not have manufacturing capabilities of our own. We may pursue strategic acquisitions of technologies, products, and/or brands, which involve a variety of costs, and we may not realize the anticipated benefits of such acquisitions. We may experience product backlogs. Loss of key personnel could have a material adverse effect on our operations and financial results. To protect against various potential liabilities, we maintain a variety of insurance programs. Significant increases in the cost or decreases in the availability of such insurance could adversely impact our financial condition. Our Board of Directors is authorized to issue shares of preferred stock that could have rights superior to our outstanding shares of common stock and, if issued, could adversely impact the value of our common stock. The price of our stock may be volatile. We have agreed to indemnify our officers and directors from liability.

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1006195--6/8/2009--MATRIXX_INITIATIVES_INC