1049758--3/14/2007--FIRST_CONSULTING_GROUP

related topics

{product, market, service}

{system, service, information}

{personnel, key, retain}

{property, intellectual, protect}

{regulation, government, change}

{cost, contract, operation}

{provision, law, control}

{acquisition, growth, future}

{financial, litigation, operation}

{stock, price, operating}

{operation, natural, condition}

{customer, product, revenue}

{competitive, industry, competition}

Many factors may cause our net revenues, operating results, and cash flows to fluctuate and possibly decline. We are dependent on our outsourcing engagements for a significant part of our revenues. The length of time required to engage a client and to complete an assignment may be unpredictable and could negatively impact our net revenues and operating results. Our investments in products and emerging service lines may not generate a positive return. If we are unable to generate additional revenue from our existing clients, our business may be negatively affected. If we fail to meet client expectations in the performance of our services, our business could suffer. Our international operations create specialized risks that can negatively affect us. If we do not compete effectively in the healthcare and pharmaceutical information services industries, our business will be negatively impacted. We may be unable to attract and retain a sufficient number of qualified employees. The loss of our key client service employees and executive officers could negatively affect us. If we are unable to manage shifts in market demand or growth in our business, our business may be negatively impacted. Changes in the healthcare and pharmaceutical industries could negatively impact our revenues. We could be negatively impacted if we fail to successfully integrate the businesses we acquire. If we fail to establish and maintain relationships with vendors of software and hardware products, it could have a negative effect on our ability to secure engagements. Our relationships with vendors of software and hardware products could have a negative impact on our ability to secure consulting engagements. If we fail to keep pace with regulatory and technological changes, our business could be materially adversely affected. We may be unable to effectively protect our proprietary information and procedures. We may infringe the intellectual property rights of third parties. We may become subject to securities litigation, which is expensive and could result in a diversion of resources. Our charter documents, Delaware law and stockholders rights plan will make it more difficult to acquire us and may discourage take-over attempts and thus depress the market price of our common stock.

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1049758--3/14/2007--FIRST_CONSULTING_GROUP_INC