1025573--4/2/2007--NATROL_INC

related topics
{product, liability, claim}
{customer, product, revenue}
{property, intellectual, protect}
{stock, price, operating}
{product, market, service}
{acquisition, growth, future}
{financial, litigation, operation}
{personnel, key, retain}
{operation, natural, condition}
{debt, indebtedness, cash}
{interest, director, officer}
{loss, insurance, financial}
Forward Looking Statements and Certain Risks If we fail to successfully implement our current business strategies, our ability to increase our revenues and operating profits could be adversely affected and our overall business could be harmed. We may be unable to continue to obtain raw materials for our Ester-C line of products at favorable prices or at all, which could adversely affect our business and operating results. Adverse publicity or consumer perception of our products and any similar products distributed by others could harm our reputation and adversely affect our sales and revenues. There are many risks associated with our acquisition strategy and our inability to address these risks could harm our business and operating results. If we are unable to retain key personnel, our ability to manage our business effectively and continue our growth could be negatively impacted. We may be exposed to material product liability claims, which could increase our costs and adversely affect our reputation and business. Our insurance coverage or third party indemnification rights may not be sufficient to cover our legal claims or other losses that we may incur in the future. We may experience greater than expected product returns, which might adversely affect our sales and results of operations. If we fail to adequately anticipate sales trends for our products, we may be required to write down the value of our inventory, which could aversely affect our results of operations. A significant natural disaster, such as an earthquake, involving our manufacturing facility could harm or disrupt our operations. A shortage in the supply of key raw materials could increase our costs or adversely affect our sales and revenues. Our inability to protect our intellectual property rights could adversely affect our business. Intellectual property litigation and infringement claims against us could cause us to incur significant expenses or prevent us from manufacturing, selling or using some aspect of our products. Our quarterly operating results are subject to significant fluctuations and, if our operating results decline or are worse than expected, our stock price could fall. The terms of our senior credit facility prohibit us from our engaging in many transactions and may limit or restrict our ability to grow our business. Our failure to meet investor expectations, material announcements by us or our competitors or other material events could cause our stock price to fall. Because we are subject to numerous laws and regulations, and involved in litigation from time to time, we could incur substantial judgments, fines, legal fees and other costs.

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