1100682--3/14/2006--CHARLES_RIVER_LABORATORIES_INTERNATIONAL

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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. 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. Tax benefits we expect to be available in the future may be subject to challenge. We could be adversely affected by tax law changes in the United Kingdom or Canada. Impairment of goodwill arising from the acquisition of Inveresk may adversely impact future results of operations. Our exposure to exchange rate fluctuations could adversely affect our results of operations. Contract research services create a risk of liability. If we are unable to attract suitable investigators and volunteers 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. If we are not successful in selecting and integrating the businesses and technologies we acquire, our business may suffer. 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--3/14/2006--CHARLES_RIVER_LABORATORIES_INTERNATIONAL_INC