1049442--3/19/2008--PLIANT

related topics

{debt, indebtedness, cash}

{interest, director, officer}

{cost, operation, labor}

{stock, price, share}

{customer, product, revenue}

{financial, litigation, operation}

{cost, regulation, environmental}

{operation, international, foreign}

{stock, price, operating}

{property, intellectual, protect}

{product, market, service}

Risks Related to Our Business Continued increases in resin prices or the loss of a key resin supplier could lead to increased costs and lower profit margins. We operate in highly competitive markets and our customers may not continue to purchase our products, which could lead to our having reduced revenues and loss of market share. If we lose one or more of our major customers, our results of operations and our ability to service our indebtedness could be adversely affected. Our ongoing efforts to achieve cost savings may not improve our operating results. We may not be able to adequately protect our intellectual property, which could cause our revenues to decrease. Any future acquisitions may not be successfully integrated with our business and could cause our revenues to decrease, operating costs to increase or reduce cash flows. Our operations outside of the United States are subject to additional currency exchange and other risks that could adversely affect our results of operations. If we do not maintain good relationships with our employees, our business could be adversely affected by a loss of revenues, increased costs or reduced profitability. The cost of complying with federal and state environmental laws could be significant and increase our operating costs. Risks Related to Our Financial and Capital Structure The extent of our indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry and prevent us from meeting our debt obligations. Limits on our borrowing capacity under our credit facilities may affect our ability to finance our operations. We may not be able to generate sufficient cash to service all of our indebtedness and could be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful. Our variable rate indebtedness subjects us to interest rate risk. We will rely significantly on the funds received from our subsidiaries to meet our debt service obligations, but our subsidiaries may not be able to distribute sufficient funds to us. The lack of an established trading market for our securities may adversely affect their liquidity. We do not anticipate paying dividends. Our common stock is subject to significant dilution. The interest of JP Morgan as a controlling stockholder may differ from the interests of other securities holders. Risks related to Emergence from Bankruptcy Our actual financial results after emergence from bankruptcy may vary significantly from the projections filed with the Bankruptcy Court. Our actual financial results after emergence from bankruptcy may not be comparable to our historical financial information. We may be subject to litigation claims that were not discharged in the bankruptcy cases which could have a material adverse effect on our financial condition and results of operations. We cannot be certain that the bankruptcy proceeding will not adversely affect our operations going forward.

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1049442--3/19/2008--PLIANT_CORP