1077370--3/30/2006--INSWEB

related topics

{product, market, service}

{regulation, government, change}

{stock, price, operating}

{control, financial, internal}

{financial, litigation, operation}

{condition, economic, financial}

{regulation, change, law}

{system, service, information}

{provision, law, control}

{personnel, key, retain}

{property, intellectual, protect}

{operation, natural, condition}

{cost, operation, labor}

We have a history of losses, we expect future losses, and we may not achieve or maintain profitability If we are unable to achieve cash flow breakeven or to generate working capital that may be required in the future, our ability to operate could suffer or cease Our business is difficult to evaluate because our market is evolving rapidly and our business model is unpredictable We may incur unexpected costs or receive less revenue than we planned from recent initiatives that are part of our evolving business model and, as a result, our operations could be harmed Our future revenues are unpredictable, our operating results are likely to fluctuate from quarter to quarter, and if we fail to meet the expectations of investors, our stock price could decline significantly We are exposed to increased costs and risks associated with complying with the increasing regulation of corporate governance and disclosure standards Seasonality affecting insurance shopping and Internet advertising may cause fluctuations in our operating results Because a significant portion of our revenue is attributable to automobile insurance shopping on our online marketplace, we are especially vulnerable to risks related to the online market for automobile insurance or the automobile insurance industry generally If we are unable to promote our brands and expand our brand recognition, our ability to draw consumers and agents to our services will be limited Competition in the market for online distribution of insurance is intense, and if we are unable to compete effectively with current competitors or new competitors that enter the market, the fees paid to us by participating insurance companies may fall, the fees charged by online companies with which we have strategic relationships may rise, and our market share may suffer We do not have exclusive relationships or long-term contracts with insurance companies, which may limit our ability to retain these insurance companies as participants in our marketplace and maintain the attractiveness of our services to consumers The outcome and impact of the securities class action lawsuit involving InsWeb is uncertain Laws and regulations that govern the insurance industry could expose us, or our participating insurance companies, our officers, or agents with whom we contract, to legal penalties if we fail to comply, and could require changes to our business If we are unable to safeguard the security and privacy of consumers and participating insurance companies confidential data, consumers and insurance companies may not use our services and our business may be harmed System failures could reduce or limit traffic on our website or interrupt our communications with individual insurance companies and harm our ability to generate revenue Our facilities and systems are vulnerable to natural disasters and other unexpected losses, and we may not have adequate insurance to cover such losses We rely on the services of our executive officers and other key personnel, whose knowledge of our business and the insurance industry and technical expertise would be extremely difficult to replace We may be subject to claims for infringement of intellectual property, with or without merit, which could be costly to defend or settle Our stock price has fluctuated widely Delaware law and our charter documents contain provisions that could discourage or prevent a potential takeover, even if such a transaction would be beneficial to our stockholders

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1077370--3/30/2006--INSWEB_CORP