1041652--9/28/2006--IOMED

related topics

{acquisition, growth, future}

{property, intellectual, protect}

{product, candidate, development}

{customer, product, revenue}

{product, liability, claim}

{product, market, service}

{cost, regulation, environmental}

{personnel, key, retain}

{provision, law, control}

{tax, income, asset}

{regulation, change, law}

{stock, price, operating}

The price of our stock is volatile. We may not be able to sustain profitability. We rely on a limited number of independent third party distributors to sell our products, one of whom recently terminated their distribution agreement with us. Demand for our products is dependent on third party reimbursement. The business in which we operate is intensely competitive and prone to rapid technological change. No transaction may result from our determination to explore strategic alternatives. A material agreement to which we are a party contains terms that may deter takeover attempts and limit the opportunity of our shareholders to sell their shares at a favorable price. Our ability to utilize net operating losses may become limited and adversely affect financial results. Our business relies on our proprietary technology and intellectual property rights. Third Parties claiming that we infringe their proprietary rights regardless of their merit could cause us to incur significant legal expenses and prevent us from selling our products. EEMSO, Inc. v. Compex Technologies, Inc. f/k/a Rehabilicare, Inc. and Iomed, Inc.) Product development is expensive, time consuming, and may be unsuccessful. If we are unable to maintain relationships with current collaborative partners or enter into new collaborative arrangements then our business could be harmed. The loss of key personnel could adversely impact our business. We may not be able to effectively manage expanded operations for existing or new products. We depend on a limited number of suppliers. We have limited production capacity and manufacturing experience and rely on contract manufacturers. The regulation of our business is extensive and uncertain. We may require additional capital in the future and that capital may not be available. Acquisition activity could disrupt our ongoing business and involve significant risks. Product liability insurance is costly and difficult to obtain. If we were successfully sued for product liability we could face substantial liabilities. Our business involves environmental risks that may result in liability for us.

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1041652--9/28/2006--IOMED_INC