1026650--3/7/2008--ERESEARCHTECHNOLOGY_INC

related topics

{system, service, information}

{product, candidate, development}

{product, market, service}

{cost, operation, labor}

{financial, litigation, operation}

We depend entirely on the clinical trial market and a downturn in this market could cause our revenues and profitability to decrease. The FDA may recommend a different approach to measure drug effects on the QT interval of an ECG which could make our systems and processes obsolete and adversely affect revenue and profitability. We may not be successful in competing against others providing similar products and services, which could reduce our revenues, profitability and market share. 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 and profitability. If clinical trial sponsors and CROs do not shift from their existing paper-based methods of collecting and managing clinical trial data at investigator sites to an electronic system with centralization, we may not achieve the market penetration necessary to grow the business at expected levels. If we are not able to effectively integrate our recent transactions with our historic operations, we will not achieve the improvements in revenues and profitability that we anticipate. 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.

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1026650--3/7/2008--ERESEARCHTECHNOLOGY_INC_/DE/