1064243--3/30/2006--ADVANSTAR

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CERTAIN FACTORS WHICH MAY AFFECT FUTURE RESULTS Show exhibit space and ad pages could decline as a result of an economic slowdown in the United States, the threat of future terrorist attacks, or geopolitical concern. We depend on securing desirable dates and locations for our shows and conferences, which we may not be able to secure. A significant portion of our revenue and contribution before general and administrative expenses is generated from our MAGIC tradeshows, so any decline in the performance of these shows would reduce our revenue and operating income. We derive significant revenue and contribution margin before general and administrative expenses from our healthcare and pharmaceutical markets, which are dependent upon pharmaceutical marketing budgets. Any significant increase in paper or postage costs would cause our expenses to increase significantly. The market for our products and services is intensely competitive. We depend in part on new product introductions, and the process of researching, developing, launching and establishing profitability for a new event or publication is inherently risky and costly. Our growth strategy of identifying and consummating acquisitions entails integration and financing risk. We depend on our senior management team, and we do not have employment contracts for many of our senior managers. Our international operations expose us to various risks associated with international operations. Current geopolitical conditions and the continuing threat of domestic and international terrorist attacks may adversely impact our results. We have some exposure to fluctuations in the exchange rates of international currencies. Our business is seasonal due largely to higher tradeshow revenue in the first and third quarters. We may be required to recognize additional impairment charges. We have a significant amount of debt, which could limit our ability to remain competitive or grow our business. We are a holding company and therefore dependent on dividends from our subsidiaries to meet our debt obligations. We are controlled by principal stockholders who will be able to make important decisions about our business and capital structure; their interests may differ from your interests as a debtholder. You may not be able to rely on forward-looking statements included in this annual report, as our actual results may be materially different.

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1064243--3/30/2006--ADVANSTAR_INC