1016439--3/29/2007--INTELLIGROUP

related topics

{condition, economic, financial}

{personnel, key, retain}

{regulation, change, law}

{property, intellectual, protect}

{stock, price, share}

{operation, international, foreign}

{financial, litigation, operation}

{tax, income, asset}

{competitive, industry, competition}

{customer, product, revenue}

{capital, credit, financial}

{interest, director, officer}

If we are unable to generate new sales and attain profitability, our business and financial condition and results of operations may be adversely impacted. The departure of one or more key employees may have a material adverse effect on our ability to operate our business. If we are unable to attract and retain a sufficient number of highly skilled employees it may adversely affect our profitability. We may not be able to compete effectively for technical personnel in India. Our performance could be materially adversely affected by a general economic downturn or lessening demand in the information technology services industry. If we are unable to maintain access to external funding, we may be unable to continue our ongoing business or fund future growth. The information technology services industry is highly competitive and we may not be able to compete effectively. Business and financial risks to important business partners may negatively impact our financial condition. If we lose any large customer, our financial condition could be materially, negatively impacted. The fact that our common stock is not listed on a national exchange may negatively impact our ability to attract investors and to use our common stock to fund future growth. We are unable to predict the outcomes of various lawsuits and legal claims or the potential losses related to those lawsuits and claims. Currency fluctuations may have a material adverse effect on our financial condition and results of operations. We can not predict shifts in policy or political changes in governments which can regulate or impact our business operations, specifically in the United States and India. If our measures to protect our intellectual property rights are inadequate, our financial condition could be negatively impacted. We may be subject to increased tax liabilities, including if the spin-off of our former subsidiary, SeraNova, is determined to be taxable, we would be liable for up to approximately $65 million, which would negatively impact our financial condition. Third parties may claim that our services or deliverables infringe upon their intellectual property rights, which could result in material costs. If accounting interpretations relating to revenue recognition change, our reported revenues could decline or we could be forced to make changes in our business practices. Some of our clients may experience unique economic conditions that are specific to their particular industry. If we are unable to negotiate customer contract renewals on comparable terms, it may materially adversely effect our financial condition and results of operations. Our stock price may be extremely volatile, and you may not be able to resell your shares of common stock at or above your purchase price. There may be circumstances in which the interests of our major shareholders could be in conflict with your interests as a shareholder.

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1016439--3/29/2007--INTELLIGROUP_INC