1017815--6/13/2006--QEP_CO_INC

related topics
{customer, product, revenue}
{cost, regulation, environmental}
{personnel, key, retain}
{debt, indebtedness, cash}
{acquisition, growth, future}
{control, financial, internal}
{operation, international, foreign}
{capital, credit, financial}
{product, market, service}
The Company may be unable to pass on to its customers increases in the costs of raw materials. The Company s largest customers seek to purchase product directly from foreign suppliers. The Company depends on a limited number of customers, and the loss of one or more of these customers could adversely affect our business. The Company has foreign currency exposures related to buying, selling, and financing in currencies other than the local currencies in which it operates. Failure to identify suitable acquisition candidates, to complete acquisitions and to integrate successfully the acquired operations. The Company has been, and in the future may be subject to claims and liabilities under environmental, health and safety laws and regulations, which could be significant. The Company faces intense competition in its industry, which could decrease demand for its products and could have a material adverse effect on its profitability. Recent management changes may disrupt the Company s operations, and the Company may not be able to retain key personnel or replace them when they leave. The Company s inability to maintain access to the debt and capital markets may adversely affect our business and financial results The Company has debt service obligations which are subject to restrictive covenants that limit the Company s flexibility to manage its business and could trigger an acceleration of the Company s outstanding indebtedness. The Company and its independent auditors have identified material weaknesses in the Company s internal control over financial reporting and the Company cannot assure you that additional material weaknesses will not be identified in the future.

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