1034563--3/31/2006--AMERICAN_REAL_ESTATE_HOLDINGS_L_P

related topics
{gas, price, oil}
{debt, indebtedness, cash}
{cost, regulation, environmental}
{tax, income, asset}
{regulation, change, law}
{interest, director, officer}
{personnel, key, retain}
{acquisition, growth, future}
{product, market, service}
{cost, contract, operation}
To service our indebtedness, we will require a significant amount of cash. Our ability to maintain our current cash position or generate cash depends on many factors beyond our control. Our failure to comply with the covenants contained under any of AREP s debt instruments, including the indentures governing the outstanding notes, including a failure as a result of events beyond our control, could result in an event of default which would materially and adversely affect our financial condition. We may become taxable as a corporation. Estimating our reserves, production and future net cash flow is difficult to do with any certainty. Prospects that we decide to drill may not yield gas or oil in commercially viable quantities. Commodity price risk management activities may limit future revenues from price increases and result in financial losses or reduce its income. We may experience difficulty finding and acquiring additional reserves and may be unable to compensate for the depletion of proved reserves. Our acquisition activities may not be successful. Our activities are subject to complex laws and regulations, including environmental laws and regulations that can adversely affect the cost, manner and feasibility of doing business. We may be required to write down the carrying value of our properties. The gaming industry is highly regulated. The gaming authorities and state and municipal licensing authorities have significant control over our operations. Our acquisition of the Flamingo in Laughlin, Nevada and the Traymore site in Atlantic City, New Jersey may not be successful. Our investment in property development may be more costly than anticipated. WPI recently acquired its business from the former owners through bankruptcy proceedings. We cannot assure you that it will be able to operate profitably. A shortage of the principal raw materials WPI uses to manufacture its products could force WPI to pay more for those materials and, possibly, cause WPI to increase its prices, which could have an adverse effect on WPI s operations. There has been consolidation of retailers of WPI s products that may reduce its profitability.

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