1024657--2/28/2007--WEST

related topics

{debt, indebtedness, cash}

{customer, product, revenue}

{system, service, information}

{operation, natural, condition}

{personnel, key, retain}

{property, intellectual, protect}

{acquisition, growth, future}

{regulation, change, law}

{capital, credit, financial}

{cost, operation, labor}

{financial, litigation, operation}

{operation, international, foreign}

{product, market, service}

We are subject to extensive regulation that could limit or restrict our activities and impose financial requirements or limitations on the conduct of our business. Pending and future litigation may divert management s time and attention and result in substantial costs of defense, damages or settlement, which could adversely affect our business, results of operations and financial condition. Our business, results of operations and financial condition could be adversely affected if we are unable to maximize the use of our contact centers. If we are unable to integrate or achieve the objectives of our recent and future acquisitions, our overall business may suffer. Our ability to recover charged-off consumer receivables may be limited under federal and state laws. Increases in the cost of voice and data services or significant interruptions in these services could adversely affect our business, results of operations and financial condition. We depend on key personnel. Our inability to continue to attract and retain a sufficient number of qualified employees could adversely affect our business, results of operations and financial condition. Increases in labor costs and turnover rates could adversely affect our business, results of operations and financial condition. Because we have operations in countries outside of the United States, we may be subject to political, economic and other conditions affecting these countries that could result in increased operating expenses and regulation. A large portion of our revenues are generated from a limited number of clients, and the loss of one or more key clients would result in the loss of net revenues. The financial results of our Receivables Management segment depend on our ability to purchase charged-off receivable portfolios on acceptable terms and in sufficient amounts. If we are unable to do so, our business, results of operations and financial condition could be adversely affected. Because of the length of time involved in collecting charged-off consumer receivables on acquired portfolios and the volatility in the timing of our collections, we may not be able to identify trends and make changes in our purchasing strategies in a timely manner. Security and privacy breaches of the systems we use to protect personal data could adversely affect our business, results of operations and financial condition. Our contracts are generally not exclusive and typically do not provide for revenue commitments. Our data and contact centers are exposed to interruption. Acts of terrorism or war could adversely affect our business, results of operations and financial condition. We may not be able to adequately protect our proprietary information or technology. Our technology and services may infringe upon the intellectual property rights of others. Our business depends on our ability to keep pace with our clients needs for rapid technological change and systems availability. If we are unable to complete future acquisitions, our business strategy and earnings may be negatively affected. Risks Related to Our Outstanding Indebtedness Our current or future indebtedness under our senior secured credit facilities, senior notes and senior subordinated notes could impair our financial condition and reduce the funds available to us for other purposes and our failure to comply with the covenants contained in our senior secured credit facilities documentation or the indentures that govern the senior notes and senior subordinated notes could result in an event of default that could adversely affect our results of operations. We may not be able to generate sufficient cash to service all of our indebtedness, including the senior notes and senior subordinated notes, and fund our other liquidity needs, and we may be forced to take other actions, which may not be successful, to satisfy our obligations under our indebtedness. The notes and the related guarantees are effectively subordinated to all of our secured debt and if a default occurs, we may not have sufficient funds to fulfill our obligations under the notes and the related guarantees. The senior notes and senior subordinated notes are structurally subordinated to all indebtedness of our existing or future subsidiaries that do not become guarantors of the senior notes and senior subordinated notes. If we default on our obligations to pay our indebtedness, we may not be able to make payments on the senior notes and senior subordinated notes.

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1024657--2/28/2007--WEST_CORP