1089143--9/13/2006--COLLECTORS_UNIVERSE

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A decline in the popularity of high-value collectibles and a resulting decrease in submissions for our services could adversely impact our business. Declines in general economic conditions could result in decreased demand for our services, which could adversely affect our operating results. Temporary popularity of some collectibles may result in short-term increases, followed by decreases, in the volume of submissions for our services, which could cause our revenues to fluctuate. Our revenues and income depend significantly on revenues generated by our coin authentication and grading services. A decrease in the level of submissions for these services, which historically has been impacted by changes in economic conditions, could adversely affect our revenues and results of operations. Our top 5 customers, account for approximately 22% of our total net revenues. Our stamp, currency and diamond authentication and grading businesses are in their start-up phases . There can be no assurance that these businesses will prove to be successful. Future acquisitions and the commencement of new businesses present risks, and we may be unable to achieve the financial and strategic goals of any acquisition or commencement of any new business. There are risks associated with new service offerings, including our dealer financing program, with which we have little experience. We are dependent on our key management personnel. We are dependent on our collectibles experts. We could suffer losses on authentication and grading warranties. Increased competition could adversely affect our financial performance. We depend on our ability to protect and enforce our intellectual property rights. Our unregistered trademarks could conflict with trademarks of others. The imposition of government regulations could increase our costs of doing business. Our reliance on a single source for principally all of our tamper-evident, clear plastic coin and sportscard holders exposes us to potential supply and quality problems. Our computer and network systems may be vulnerable to unforeseen problems and security risks, and we are vulnerable to system failure due to a lack of redundant systems at another location. We rely on third parties for various Internet and processing services. We are exposed to potential risks and we will continued to incur increased costs as a result of the internal control testing and evaluation process mandated by Section 404 of the Sarbanes-Oxley Act of 2002. If our quarterly results are below the expectations of securities market analysts and investors or we decide to suspend or discontinue the payment of dividends, the price of our common stock may decline. No assurance that we will continue to pay cash dividends. Provisions in our charter documents or in Delaware law may make an acquisition of us more difficult or delay a change in control, which may adversely affect the market price of our common stock.

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1089143--9/13/2006--COLLECTORS_UNIVERSE_INC