1065696--2/29/2008--LKQ

related topics

{cost, regulation, environmental}

{customer, product, revenue}

{acquisition, growth, future}

{personnel, key, retain}

{stock, price, share}

{competitive, industry, competition}

{stock, price, operating}

{financial, litigation, operation}

{provision, law, control}

{system, service, information}

{tax, income, asset}

{cost, contract, operation}

{product, liability, claim}

{gas, price, oil}

Risks Relating to Our Business We face intense competition from local, national, and internet-based light vehicle products providers, and this competition could negatively affect our business. Claims by OEMs relating to aftermarket products could adversely affect our business. An adverse change in our relationships with auction companies or our suppliers could increase our expenses and hurt our ability to serve our customers. If our business relationships with insurance companies end, we may lose important sales opportunities. We may not be able to sell our products due to existing or new laws and regulations prohibiting or restricting the sale of recycled OEM, aftermarket or refurbished products. We may not be able to successfully acquire new operations or integrate acquisitions, which could cause our business to suffer. Financing the Keystone acquisition substantially increased our leverage and involves restrictions on our business. Keystone's business may have liabilities that are not known by us. We may not be able to maintain Keystone's or our vendor relationships nor be able to retain key employees of Keystone. Our future capital needs may require that we seek debt financing or additional equity funding that, if not available, could cause our business to suffer. Our annual and quarterly performance may fluctuate. Fluctuations in the prices of scrap metals could adversely affect our financial results. If we determine that our goodwill has become impaired, we may incur significant charges to our pre-tax income. If the number of vehicles involved in accidents declines, our business could suffer. Governmental agencies may refuse to grant or renew our operating licenses and permits. If we lose our key management personnel, we may not be able to successfully manage our business or achieve our objectives. We rely on information technology in critical areas of our operations and a disruption relating to such technology could harm our business. If we experience problems with our fleet of trucks, our business could be harmed. We are subject to environmental regulations and incur costs relating to environmental matters. We could be subject to product liability claims. Proposed regulations under the National Stolen Passenger Motor Vehicle Information System could harm our business. Risks Relating to Our Common Stock Future sales of our common stock may depress our stock price. Delaware law, our charter documents and our loan documents may impede or discourage a takeover, which could affect the price of our stock.

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1065696--2/29/2008--LKQ_CORP