1086745--7/30/2007--WPCS_INTERNATIONAL

related topics

{stock, price, operating}

{acquisition, growth, future}

{product, market, service}

{regulation, change, law}

{stock, price, share}

{customer, product, revenue}

{cost, contract, operation}

{cost, operation, labor}

{product, candidate, development}

{tax, income, asset}

{personnel, key, retain}

{operation, international, foreign}

{competitive, industry, competition}

{condition, economic, financial}

{control, financial, internal}

{interest, director, officer}

{system, service, information}

Our success is dependent on growth in the deployment of wireless networks, and to the extent that such growth slows down, our revenues may decrease and our ability to continue operating profitably may be harmed. We have a limited history of profitability which may not continue. If we fail to accurately estimate costs associated with our fixed-price contracts using percentage-of-completion, our actual results may vary from our assumptions, which may reduce our profitability or impair our financial performance. Failure to properly manage projects may result in unanticipated costs or claims. The industry in which we operate has relatively low barriers to entry and increased competition could result in margin erosion, which would make profitability even more difficult to sustain. Our business depends upon our ability to keep pace with the latest technological changes, and our failure to do so could make us less competitive in our industry. Our failure to attract and retain engineering personnel or maintain appropriate staffing levels could adversely affect our business. If we are unable to identify and complete future acquisitions, we may be unable to continue our growth. Future acquired companies could be difficult to assimilate, disrupt our business, diminish stockholder value and adversely affect our operating results. We derive a significant portion of our revenues from a limited number of customers, the loss of which would significantly reduce our revenues. Amounts included in our backlog may not result in actual revenue or translate into profits. Our business could be affected by adverse weather conditions, resulting in variable quarterly results. If we are unable to retain the services of Messrs. Hidalgo, Schubiger, Heinz, Walker, or Madenford operations could be disrupted. Employee strikes and other labor-related disruptions may adversely affect our operations. We may incur goodwill impairment charges in our reporting entities which could harm our profitability. Our quarterly results fluctuate and may cause our stock price to decline. Our stock price may be volatile, which may result in lawsuits against us and our officers and directors. Future changes in financial accounting standards may adversely affect our reported results of operations. Compliance with changing regulation of corporate governance and public disclosure may result in additional expenses. We can issue shares of preferred stock without shareholder approval, which could adversely affect the rights of common shareholders. There may be an adverse effect on the market price of our shares as a result of shares being available for sale in the future. We are subject to the risks associated with doing business in the People s Republic of China (PRC).

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1086745--7/30/2007--WPCS_INTERNATIONAL_INC