1043337--3/16/2006--STONERIDGE

related topics

{cost, regulation, environmental}

{competitive, industry, competition}

{product, market, service}

{cost, operation, labor}

{condition, economic, financial}

{operation, natural, condition}

Our business is cyclical and seasonal in nature and further downturns in the automotive, medium- and heavy-duty truck, agricultural and off-road vehicle industries could reduce the sales and profitability of our business. Consolidation among vehicle parts customers and suppliers could make it more difficult for us to compete favorably. Our physical properties and information systems are subject to damage as a result of disasters, outages or similar events. Our business is very competitive and increased competition could reduce our sales. We must implement and sustain a competitive technological advantage in producing our products to compete effectively. We may experience increased costs associated with labor unions that could adversely affect our financial performance and results of operations. Compliance with environmental and other governmental regulations could be costly and require us to make significant expenditures. We may incur material product liability costs.

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1043337--3/16/2006--STONERIDGE_INC