1022079--2/22/2008--QUEST_DIAGNOSTICS

related topics

{system, service, information}

{product, market, service}

{regulation, government, change}

{financial, litigation, operation}

{cost, operation, labor}

{operation, natural, condition}

{personnel, key, retain}

{debt, indebtedness, cash}

{operation, international, foreign}

{regulation, change, law}

{customer, product, revenue}

The clinical testing business is highly competitive, and if we fail to provide an appropriately priced level of service or otherwise fail to compete effectively it could have a material adverse effect on our net revenues and profitability. Government payers, such as Medicare and Medicaid, have taken steps to control the utilization and pricing of healthcare services, including clinical test services. Healthcare insurers have taken steps to control the utilization and pricing of healthcare services, including clinical test services. Business development activities are inherently risky, and integrating our operations with businesses we acquire may be difficult and, if unsuccessfully executed, may have a material adverse effect on our business. Our business could be negatively affected if we are unable successfully to continue to improve our efficiency. Adverse resolution of the investigation related to NID may cause us material losses and have an adverse impact on our client base and reputation. We are subject to numerous legal and regulatory requirements governing our activities, and we may face substantial fines and penalties, and our business activities may be impacted, if we fail to comply. Failure to timely or accurately bill for our services could have a material adverse effect on our business. Failure in our information technology systems, including failures resulting from our systems conversions, could disrupt our operations and cause the loss of customers or business opportunities. Failure to develop, or acquire licenses for, new tests, technology and services could negatively impact our testing volume and net revenues. The development of new, more cost-effective tests that can be performed by our customers or by patients could negatively impact our testing volume and net revenues. Our outstanding debt may impair our financial and operating flexibility. Our ability to attract and retain qualified employees is critical to the success of our business and the failure to do so may materially adversely affect our performance. Failure to establish, and perform to, appropriate quality standards to assure that the highest level of quality is observed in the performance of our testing services and in the design, manufacture and marketing of our products could adversely affect the results of our operations and adversely impact our reputation. The failure of our IT systems to keep pace with technological advances may significantly reduce our revenues or increase our expenses. Our operations and reputation may be impaired if we do not adequately secure information. We are subject to numerous political, legal, operational and other risks as a result of our international operations which could impact our business in many ways. Our operations may be adversely impacted by the effects of natural disasters such as hurricanes and earthquakes, hostilities or acts of terrorism and other criminal activities. Adverse results in material litigation could have an adverse financial impact and an adverse impact on our client base and reputation. CAUTIONARY FACTORS THAT MAY AFFECT FUTURE RESULTS

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1022079--2/22/2008--QUEST_DIAGNOSTICS_INC