1024795--3/14/2007--SUN_HYDRAULICS

related topics

{product, market, service}

{provision, law, control}

{cost, regulation, environmental}

{personnel, key, retain}

{condition, economic, financial}

{product, liability, claim}

{operation, natural, condition}

{operation, international, foreign}

{control, financial, internal}

{customer, product, revenue}

{stock, price, share}

{acquisition, growth, future}

{competitive, industry, competition}

FACTORS INFLUENCING FUTURE RESULTS FORWARD-LOOKING STATEMENTS Sales in our industry are subject to economic cycles. Our products are subject to obsolescence due to technological change. We are subject to intense competition. The marketplace could adopt an industry standard cavity that would not accommodate our products. We are subject to risks relating to international sales. We are subject to various risks relating to our growth strategy. We are dependent upon key employees and skilled personnel. We are subject to the risk of liability for defective products. We are subject to fluctuations in the prices of raw materials. We are dependent upon our parts suppliers. Hurricanes could cause a disruption in our operations which could adversely affect our business, results of operations, and financial condition. We are subject to the cost of environmental compliance and the risk of failing to comply with environmental laws. Our board may decide to reduce or eliminate dividends. Certain anti-takeover provisions may hinder or prevent a change in control. We are subject to control by certain shareholders and management.

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1024795--3/14/2007--SUN_HYDRAULICS_CORP