1100682--2/27/2007--CHARLES_RIVER_LABORATORIES_INTERNATIONAL

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{cost, contract, operation}

{product, candidate, development}

{acquisition, growth, future}

{product, market, service}

{system, service, information}

{product, liability, claim}

{regulation, change, law}

{customer, product, revenue}

{personnel, key, retain}

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{property, intellectual, protect}

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Risks Related to Our Business and Industry The outsourcing trend in the preclinical and clinical stages of drug discovery and development may decrease, which could slow our growth. A reduction in research and development budgets at pharmaceutical and biotechnology companies may adversely affect our business. A reduction or delay in government funding of research and development may adversely affect our business. Changes in government regulation or in practices relating to the pharmaceutical or biotechnological industries, including potential health care reform, could decrease the need for the services we provide. Our standard customer agreements contain liberal termination and service reduction provisions, which may result in less contract revenue than we anticipate. Many of our contracts are fixed price and may be delayed or terminated or reduced in scope for reasons beyond our control, or we may under price or overrun cost estimates with these contracts, potentially resulting in financial losses. Contaminations in our animal populations can damage our inventory, harm our reputation for contaminant-free production and result in decreased sales. Our business is subject to risks relating to operating internationally. Negative attention from special interest groups may impair our business. Several of our product and service offerings are dependent on a limited source of supply, which if interrupted could adversely affect our business. We may be unable to build out our facilities as anticipated. Any failure by us to comply with existing regulations could harm our reputation and operating results. The drug discovery and development services industry is highly competitive. We could be adversely affected by tax law changes in the United Kingdom or Canada. Impairment of goodwill may adversely impact future results of operations. Contract research services create a risk of liability. If we are unable to attract suitable participants for our clinical trials, our business might suffer. New technologies may be developed, validated and increasingly used in biomedical research that could reduce demand for some of our products and services. The drug discovery and development industry has a history of patent and other intellectual property litigation, and we might be involved in costly intellectual property lawsuits. Our debt level could adversely affect our business and growth prospects. If we are not successful in selecting and integrating the businesses and technologies we acquire, our business may suffer. We could experience a breach of the confidentiality of the information we hold or of the security of our computer systems. We depend on key personnel and may not be able to retain these employees or recruit additional qualified personnel, which would harm our business. Our quarterly operating results may vary, which could negatively affect the market price of our common stock.

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1100682--2/27/2007--CHARLES_RIVER_LABORATORIES_INTERNATIONAL_INC