1036081--6/29/2007--PEAK_INTERNATIONAL

related topics

{regulation, change, law}

{operation, international, foreign}

{stock, price, operating}

{interest, director, officer}

{financial, litigation, operation}

{property, intellectual, protect}

{product, market, service}

{control, financial, internal}

{personnel, key, retain}

{customer, product, revenue}

{acquisition, growth, future}

Our operating results are difficult to predict and are likely to fluctuate significantly based on several factors, which can cause our stock price to decline. We depend on the health of the semiconductor, disk drive and electronic industries which are highly cyclical and the decline in demand for products in these industries could severely affect our net sales and financial results. Our customer base is concentrated and the loss of one or more of our key customers would harm our business. As a result of the resignation of one of our directors in May 2007, we are not in compliance with NASDAQ rules regarding the composition of our board of directors and audit committee, and there is a risk of delisting if the non-compliance is not cured within the time period allowed by NASDAQ. Our operations are concentrated in the People s Republic of China and we are subject to the risks associated with international operations, which may negatively affect our business. We, and the Factory at which our products are manufactured, have in the past and may in the future be the subject of investigations by PRC government authorities, which can divert management s attention, lead to fines and penalties, increase our costs and harm our operating results. Failure to successfully defend against intellectual property lawsuits brought against us may adversely affect our business. The loss of any of our key personnel or the failure to attract or retain specialized technical and management personnel could impair our ability to grow our business. We may engage in future acquisitions and we may be unable to successfully integrate these companies into our operations, which would adversely affect our business. We have in the past and may in the future, be party to legal proceedings that could have a negative financial impact on us. A significant portion of our business is conducted in the Asia Pacific region. This concentration could expose us to risks inherent to doing business in the Asia Pacific region that could harm our business. We are incorporated under the laws of Bermuda and there may be potential difficulties in protecting our shareholders rights. Our stock price has been and will likely continue to be volatile. A decline in our stock price could result in securities class action litigation against us, which could divert management s attention and harm our business. If we fail to maintain an effective system of internal controls, we may not be able to accurately or timely report our financial results or prevent fraud. As a result, current and potential shareholders could lose confidence in our financial reporting, which would harm our business and the trading price of our stock. Changes to financial accounting standards may affect our results of operations and cause us to change our business practices.

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1036081--6/29/2007--PEAK_INTERNATIONAL_LTD