1018003--3/14/2006--INGRAM_MICRO

related topics

{financial, litigation, operation}

{regulation, change, law}

{condition, economic, financial}

{system, service, information}

{operation, international, foreign}

{capital, credit, financial}

{acquisition, growth, future}

{customer, product, revenue}

{product, market, service}

{operation, natural, condition}

{personnel, key, retain}

{stock, price, operating}

{gas, price, oil}

We have made and expect to continue to make investments in new business strategies and initiatives, including acquisitions, which could disrupt our business and have an adverse effect on our operating results. We operate a global business that exposes us to risks associated with international activities. We are dependent on a variety of information systems and a failure of these systems as well as infrastructure could disrupt our business and harm our reputation and net sales. Terminations of a supply or services agreement or a significant change in supplier terms or conditions of sale could negatively affect our operating margins, revenue or the level of capital required to fund our operations. Changes in, or interpretations of, tax rules and regulations may adversely affect our effective tax rates and operating margins and we may be required to pay additional tax assessments. We cannot predict what loss, if any, we might incur as a result of the SEC and U.S. Attorney s inquiries we have received. We may incur material litigation, regulatory or operational costs or expenses, and may be frustrated in our marketing efforts, as a result of new environmental regulations or private intellectual property enforcement disputes. If a downturn in economic conditions for the IT industry were to occur and continue for a long period of time, it would likely have an adverse impact on our business. We have significant credit exposure to our reseller customers and negative trends in their businesses could cause us significant credit loss. We are subject to the risk that our inventory values may decline and protective terms under supplier agreements may not adequately cover the decline in values. Future terrorist or military actions could result in disruption to our operations or loss of assets in certain markets or globally. Failure to retain and recruit key personnel would harm our ability to meet key objectives. We face a variety of risks with outsourcing arrangements. Changes in our credit rating, or other market factors may increase our interest expense or other costs of capital, or capital may not be available to us on acceptable terms to fund our working capital needs. Rapid changes in the operating environment for IT distributors have placed significant strain on our business, and we offer no assurance that our ability to manage future adverse industry trends will be successful. Changes in accounting rules could adversely affect our future operating results. Our quarterly results have fluctuated significantly.

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1018003--3/14/2006--INGRAM_MICRO_INC