1095277--3/16/2009--INTERSECTIONS

related topics

{system, service, information}

{regulation, government, change}

{acquisition, growth, future}

{product, market, service}

{customer, product, revenue}

{capital, credit, financial}

{operation, international, foreign}

{condition, economic, financial}

{cost, operation, labor}

{financial, litigation, operation}

{personnel, key, retain}

{product, liability, claim}

{stock, price, operating}

{debt, indebtedness, cash}

{loss, insurance, financial}

{tax, income, asset}

{provision, law, control}

Disruptions in the world markets adversely affecting financial institutions could adversely affect our business. We must replace the subscribers we lose in the ordinary course of business and, if we fail to do so, our revenue and subscriber base will decline. We historically have depended upon a few clients to derive a significant portion of our revenue. 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 or change (or threaten to reduce or change) the marketing of our services, we would lose access to prospective subscribers and could lose sources of revenue and profit. We are substantially dependent upon our consumer products and 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. Our consumer products and services depend on data and technology from third party suppliers, and any failure of that data or those technologies or their suppliers could harm our products and services and our business. A failure of any of the insurance companies that underwrite the insurance products or related benefits provided as part of our consumer products and services, or refusal by those insurance companies to provide the expected insurance, could harm our business. We may incur substantial marketing expenses as we enter new businesses, develop new products or increase our direct marketing arrangements, which could cause our operating income to decline on a quarterly basis and our stock price to drop. 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 customers and significant revenue if our existing products and services become obsolete, or if we fail to introduce new products and services with broad appeal or fail to do so in a timely or cost-effective manner. We may lose subscribers and significant revenue if our subscribers cease to maintain the accounts through which they are billed for our products and services, or our clients change their billing or credit practices or policies. We may not be able to develop and maintain relationships with third party providers, and failures by those third parties could harm our business and prospects. Our senior secured credit agreement provides our lenders with a first-priority lien against substantially all of our assets and contains financial covenants and other restrictions on our actions, and it could therefore limit our operational flexibility or otherwise adversely affect our financial condition. 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 depend on key members of our management and marketing personnel. We are subject to legal claims, including a consumer class action litigation, that could require us to pay damages and/or change our business practices. 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 acquisitions or investments that are accretive or which improve our financial condition. We may not realize planned benefits of our acquisitions or investments. We may not realize planned benefits of our membership agreement or other customer portfolio acquisitions. Screening International is subject to additional risks due to its international scope. Screening International, and any other acquisition or investment where we do not own 100% of the business, could be hindered if we fail to maintain a satisfactory working relationship with our partners. Fluctuations of foreign currency values may adversely affect our reported revenue, results of operations and financial condition We recognized substantial impairment charges in 2008 and may continue to incur future impairments of goodwill and other assets, both tangible and intangible, in the future. Our stock price fluctuates and may continue to fluctuate significantly over a short period of time. Insiders have substantial control over us and could delay or prevent a change in corporate control, which may harm the market price of our common stock. 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. Marketing laws and regulations may materially limit our or our clients ability to offer our products and services to consumers.

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1095277--3/16/2009--INTERSECTIONS_INC