1022079--3/1/2007--QUEST_DIAGNOSTICS

related topics

{regulation, government, change}

{product, candidate, development}

{system, service, information}

{regulation, change, law}

{cost, operation, labor}

{operation, natural, condition}

{operation, international, foreign}

{provision, law, control}

{debt, indebtedness, cash}

{cost, regulation, environmental}

{customer, product, revenue}

{financial, litigation, operation}

Efforts by third party payers, including the government, to reduce utilization and pricing could have a material adverse effect on our net revenues and profitability. If we fail to comply with extensive laws and regulations, we could suffer fines and penalties or be required to make significant changes to our operations. Failure to timely or accurately bill for our services could have a material adverse effect on our net revenues and bad debt expense. Adverse results in material litigation could have an adverse financial impact and an adverse impact on our client base and reputation. Failure in our information technology systems, including failures resulting from our systems conversions or failures to adapt existing systems to proposed Health Information Technology (HIT) standards, could significantly increase turnaround time, otherwise disrupt our operations, or lead to increased competition by other providers of laboratory services, all of which could reduce our customer base and result in lost net revenues. Integrating our operations with business we acquire may be difficult and, if unsuccessfully executed, may have a material adverse effect on our business. Our outstanding debt may impair our financial and operating flexibility. Failure to provide a higher quality of service than that of our competitors could have a material adverse effect on our net revenues and profitability. Compliance with the HIPAA security regulations and privacy regulations may increase our costs. FDA regulation of laboratory-developed tests, analyte specific reagents, or genetic testing could lead to increased costs and delays in introducing new genetic tests. Failure to develop, or acquire, licenses for new or improved testing technologies, or 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 growing international operations expose us to certain risks inherent in conducting business in international markets. Our operations may be adversely impacted by the effects of natural disasters such as hurricanes and earthquakes, or acts of terrorism and other criminal activities. Our organizational documents and other agreements contain restrictions that might prevent a takeover or change in management. CAUTIONARY STATEMENT FOR PURPOSES OF THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

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1022079--3/1/2007--QUEST_DIAGNOSTICS_INC