1053374--3/29/2007--IPASS

related topics

{system, service, information}

{product, market, service}

{acquisition, growth, future}

{operation, international, foreign}

{customer, product, revenue}

{property, intellectual, protect}

{stock, price, operating}

{regulation, change, law}

{competitive, industry, competition}

{financial, litigation, operation}

{stock, price, share}

{condition, economic, financial}

Our business is in transition from a business reliant primarily on narrowband connectivity to one reliant primarily on broadband connectivity and services, and if we are unable to effectively manage this transition our business will be impaired. We face strong competition in our market, which could make it difficult for us If our security measures are breached and unauthorized access is obtained to a customer s internal network, our virtual network may be perceived as not being secure and enterprises may curtail or stop using our services. If our security measures are breached and unauthorized access is obtained to a customer s internal network, our virtual network may be perceived as not being secure and enterprises may curtail or stop using our services. Our customers require a high degree of reliability in our services cannot meet their expectations, demand for our services will decline. If enterprise connectivity demand does not continue to expand, our revenues and operating results may be negatively impacted. If we are unable to meet the challenges related to the market acceptance and provision of our policy management services, our ability to grow the business Our long sales and service deployment cycles require us to incur substantial sales costs that may not result in related revenues. countries in which we provide dial-up access only through Equant. The loss of Equant as a dial-up network service provider would substantially diminish our ability to deliver global network access. The telecommunications industry has experienced a dramatic decline, which may cause consolidation among network service providers and impair our ability to provide reliable, redundant service coverage and negotiate favorable network If our channel partners do not successfully market our services to their customers or corporate end users, then our revenues and business may be If we fail to address evolving standards and technological changes in the enterprise connectivity and policy management services industry, our business Our software is complex and may contain errors that could damage our reputation and decrease usage of our services. Because much of our business is international, we encounter additional risks, Because much of our business is international, we encounter additional risks, cause us to incur significant expenses or harm our could dilute the ownership of If we are unable to effectively manage future expansion, our business may be , and in the future may be, subject to securities class action lawsuits due to decreases in our stock price. Litigation arising from disputes involving third parties could disrupt the Litigation arising out of intellectual property infringement could be expensive and disrupt our business. If licenses to third party technologie do not continue to be available to us at a reasonable cost, or at all, our business and operations may be adversely affected. Risks Relating to Our Industry Security concerns may delay the widespread adoption of the Internet for enterprise communications, or limit usage of Internet-based services, which would reduce demand for our products and services. Government regulation of, and legal uncertainties regarding, the Internet

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1053374--3/29/2007--IPASS_INC