1084765--7/25/2007--RESOURCES_CONNECTION

related topics

{personnel, key, retain}

{regulation, government, change}

{acquisition, growth, future}

{competitive, industry, competition}

{property, intellectual, protect}

{control, financial, internal}

{stock, price, share}

{provision, law, control}

{stock, price, operating}

{operation, international, foreign}

{cost, regulation, environmental}

{system, service, information}

We must provide our clients with highly qualified and experienced associates, and the loss of a significant number of our associates, or an inability to attract and retain new associates, could adversely affect our business and operating results. Decreased effectiveness of equity compensation could adversely affect our ability to attract and retain employees. The market for professional services is highly competitive, and if we are unable to compete effectively against our competitors, our business and operating results could be adversely affected. An economic downturn or change in the use of outsourced professional services associates could adversely affect our business. Our business depends upon our ability to secure new projects from clients and, therefore, we could be adversely affected if we fail to do so. We may be legally liable for damages resulting from the performance of projects by our associates or for our clients mistreatment of our associates. We may not be able to grow our business, manage our growth or sustain our current business. The increase in our international activities will expose us to additional operational challenges that we might not otherwise face. We have acquired, and may continue to acquire, companies, and these acquisitions could disrupt our business. Our business could suffer if we lose the services of one or more key members of our management. Our quarterly financial results may be subject to significant fluctuations that may increase the volatility of our stock price. If our internal controls over financial reporting do not comply with the requirements of Sarbanes, our business and stock price could be adversely affected. We may be subject to laws and regulations that impose difficult and costly compliance requirements and subject us to potential liability and the loss of clients. It may be difficult for a third party to acquire our Company, and this could depress our stock price. Beginning with the first quarter of fiscal 2007 we were required to recognize compensation expense related to employee stock options and our employee stock purchase plan. There is no assurance that the expense that we are required to recognize measures accurately the value of our share-based payment awards, and the recognition of this expense could cause the trading price of our common stock to decline. We may be unable to adequately protect our intellectual property rights, including our brand name. If we fail to adequately protect our intellectual property rights, the value of such rights may diminish and our results of operations and financial condition may be adversely affected.

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1084765--7/25/2007--RESOURCES_CONNECTION_INC