1095277--3/15/2006--INTERSECTIONS

related topics

{system, service, information}

{regulation, government, change}

{stock, price, share}

{stock, price, operating}

{product, market, service}

{acquisition, growth, future}

{customer, product, revenue}

{financial, litigation, operation}

{capital, credit, financial}

{personnel, key, retain}

{property, intellectual, protect}

{loss, insurance, financial}

We historically have depended upon a few clients to derive a significant portion of our revenue, and the loss of any of these clients could have a material adverse effect on our growth strategy and prospects. If one or more of our agreements with clients were to be terminated or expire, or one or more of our clients were to reduce the marketing of our services, we would lose access to prospective subscribers and could lose sources of revenue. We are substantially dependent upon our consumer identity theft protection and credit management services for a significant portion of our revenue, and market demand for these services could decrease. If we lose our ability to purchase data from any of the three major credit reporting agencies, each of which is a competitor of ours, demand for our services could decrease. If we experience system failures or interruptions in our telecommunications or information technology infrastructure, our revenue could decrease and our reputation could be harmed. We and our clients outsource telemarketing to third parties who may take actions that lead to negative publicity and consumer dissatisfaction. We may lose subscribers and significant revenue if our existing services become obsolete, or if we fail to introduce new services with broad consumer appeal or fail to do so in a timely or cost-effective manner. We may not be able to develop and maintain relationships with third party data and analytics providers on which we will be substantially dependent for our fraud protection and small business services, and failures by those third parties could harm our business and prospects. We expect that our revenue, expenses and operating results may be subject to significant fluctuations, which could contribute to wide fluctuations in period-to-period performance and could have a material adverse effect on the price of our stock. We may be unable to meet our future capital requirements to grow our business, which could adversely impact our financial condition and growth strategy. We may raise additional funds in the future, which could cause dilution to our existing stockholders or adversely affect their voting or other rights. If we are not able to hire and retain qualified personnel, our ability to grow and maintain our business could be adversely affected. If we are found liable in the consumer class action litigation that has been brought against us or in any other litigation to which we may be subject in the future, we may be required to pay damages and/or change our business practices, any of which could have a material adverse effect on our revenue and profitability. If we determine in the future that we are required to establish reserves or we incur liabilities for any litigation that has been or may be brought against us, our results of operations, cash flow and financial condition could be materially and adversely affected. We may not be able to consummate future acquisitions or joint ventures or successfully integrate these into our business. Risks Related to Our Industry Our failure to protect private data could damage our reputation and cause us to expend capital and resources to protect against future security breaches or other unauthorized access. We are subject to government regulation and increasing public scrutiny, which could impede our ability to market and provide our services and have a material adverse effect on our business. Laws requiring the free issuance of credit reports by credit reporting agencies could impede our ability to obtain new subscribers or maintain existing subscribers and could have a material adverse effect on our revenue. A significant downturn in the charge or credit card industry or a trend in that industry to reduce or eliminate marketing programs could harm our business. Competition could reduce our market share or decrease our revenue. If we are unable to enforce or defend our ownership and use of our intellectual property, our competitive position and operating results could be harmed. Risks Related to the Common Stock Our stock price fluctuates and may continue to fluctuate. A large number of shares of our common stock may be sold in the market, which could cause the market price of our common stock to decline.

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1095277--3/15/2006--INTERSECTIONS_INC