1049758--4/19/2006--FIRST_CONSULTING_GROUP

related topics

{regulation, government, change}

{system, service, information}

{personnel, key, retain}

{customer, product, revenue}

{control, financial, internal}

{property, intellectual, protect}

{competitive, industry, competition}

{cost, operation, labor}

We are dependent on our outsourcing engagements for a significant part of our revenues. We have experienced a material weakness in our internal controls. If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results and our management may not be able to provide its report on the effectiveness of our internal controls as required by the Sarbanes-Oxley Act of 2002. If we are unable to generate additional revenue from our existing clients, our business may be negatively affected. 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. Continued or increased employee turnover could negatively affect our business. Changes in the healthcare and pharmaceutical industries or the economy in general could negatively impact our revenues. 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. We may be unable to effectively protect our proprietary information and procedures.

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1049758--4/19/2006--FIRST_CONSULTING_GROUP_INC