1026650--3/10/2006--ERESEARCHTECHNOLOGY_INC

related topics

{product, market, service}

{customer, product, revenue}

{property, intellectual, protect}

{regulation, government, change}

{system, service, information}

{product, candidate, development}

{capital, credit, financial}

{personnel, key, retain}

{stock, price, operating}

{operation, international, foreign}

{acquisition, growth, future}

{control, financial, internal}

{financial, litigation, operation}

Extensive governmental regulation of the clinical trial process could require costly modifications to our products, adversely affect prospective clients willingness to use our products and services and increase competition and reduce our market share. We have several large clients from whom we derive substantial revenue and therefore the loss of even a few of our clients could significantly reduce our revenues. Consolidation among our clients could cause us to lose clients, decrease the market for our products and result in a reduction of our revenues. If clinical trial sponsors and CROs do not shift from their existing paper-based methods of collecting and managing clinical trial data to an electronic system, we may not achieve the market penetration necessary to grow the business at expected levels. If general economic conditions worsen, potential clients may be unwilling to make large capital software purchases or commitments, which could affect our ability to maintain and/or increase license revenues. We may fail to maintain revenue and income growth. If we do not maintain revenue and income growth, our stock price is likely to decline and we may not be able to continue to operate. Our future operating results are uncertain and may fluctuate. If we fail to meet the expectations of securities analysts and investors, our stock price would likely decline. We depend entirely on the clinical trial market and a downturn in this market could cause our revenues to decrease. Our failure to expand our business or manage growth successfully could disrupt our business operations, increase our costs and delay implementation of our business strategies. Our failure to establish and maintain strategic alliances may delay the development of our products and services, cause us to lose clients and prevent us from growing our business, any of which could cause our stock price to decline. We may not be successful in competing against others providing similar products and services, which could reduce our revenues and market share. We may incur liability as a result of providing Cardiac Safety analysis and interpretation services. The cardiac safety equipment that we own and lease could become obsolete due to technological advances or we may not be able to provide the quantity of equipment needed to service our clients. Capacity constraint or system failures could result in the loss of or liability to clients, which could reduce our revenues and increase our expenses. Our software products are complex and may contain undetected software errors, which could lead to an increase in our costs or a reduction in our revenues. Rapidly changing technology may impair our ability to develop and market our solutions and cause us to become less competitive. We depend on certain key executives. If we lose the services of any of these executives, our operations could be disrupted, we could incur additional expenses and our ability to expand our operations could be impeded, particularly if we are not able to recruit a suitable replacement in a timely manner. If we are unable to protect our proprietary technology or maintain our technological advantages, we may lose our intellectual property rights and become less competitive. Third parties may claim that we infringe upon their intellectual property rights, which could result in the loss of our rights, subject us to liability and divert management attention. Third parties have made claims for damages against the Company and may continue to do so, which could result in an unfavorable settlement or judgment against us. Our international operations expose us to additional risks.

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1026650--3/10/2006--ERESEARCHTECHNOLOGY_INC_/DE/