1038280--3/16/2007--MAC-GRAY

related topics

{acquisition, growth, future}

{capital, credit, financial}

{competitive, industry, competition}

{investment, property, distribution}

{provision, law, control}

{personnel, key, retain}

{control, financial, internal}

{tax, income, asset}

{customer, product, revenue}

{property, intellectual, protect}

{stock, price, operating}

{cost, regulation, environmental}

{loan, real, estate}

If we are unable to establish new laundry leases, renew our existing laundry leases or retain relationships with our customers who are not subject to leases, our business, results of operations, cash flows and financial condition could be adversely affected. We face strong competition in the outsourced laundry facilities management industry. Our cash flows may not be sufficient to finance the significant capital expenditures required to replace equipment and implement new technology or make incentive payments to property managers. If we are unable to continue our relationships with Whirlpool and other equipment suppliers, our revenues could be reduced, and our ability to meet customer requirements could be materially and adversely affected. A decrease in multi-unit housing sector occupancy rates in the markets in which we conduct business could adversely affect our facilities management revenue. If we are unable to access capital on acceptable financial terms, our ability to consummate acquisitions will be limited. We may have difficulties integrating future acquisitions into our business. Our internal controls over financial reporting may not be adequate and our independent auditors may not be able to certify as to their adequacy, which could have a significant and adverse effect on our business and reputation. Inability to protect our trademarks and other proprietary rights could adversely impact our competitive position. We are dependent on key personnel, and the loss of any of our key personnel could have a material adverse effect on our business, results of operations and financial condition. We have significant intangible assets and goodwill, the value of which might not be realized in the event of an impairment in, or a sale or liquidation of our businesses. We face risks associated with environmental regulation. We are controlled by a concentrated group of stockholders, whose interests could be in conflict with yours. Provisions in our charter and bylaws, Delaware law, and the stockholder rights agreement could have the effect of discouraging takeovers.

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1038280--3/16/2007--MAC-GRAY_CORP