1100917--3/30/2007--ONVIA

related topics

{product, market, service}

{system, service, information}

{acquisition, growth, future}

{regulation, government, change}

{stock, price, operating}

{personnel, key, retain}

{financial, litigation, operation}

{gas, price, oil}

{control, financial, internal}

{regulation, change, law}

{cost, contract, operation}

{product, candidate, development}

{provision, law, control}

{condition, economic, financial}

{competitive, industry, competition}

Risks related to our growth strategy We may not be able to meet our projected renewal rates. The change in our sales methodology may not be successful and we may be required to increase our sales and marketing expenses in order to achieve our revenue goals. We may not be able to increase subscribership to our high value products. We may not achieve our projections for adoption of our products by targeted enterprise clients. We may not achieve our projections for adoption of our new products by new and existing clients. We may fail to hire, train and retain sales associates who can effectively communicate the benefits of our products to our clients and prospects, and they may be unable to achieve expected sales targets. Our ability to grow our business depends in part on government agencies and businesses increasing their use of the Internet to conduct commerce. We may lose the right to use the content that we distribute, which we collect from governmental entities and other third parties. If we cannot effectively satisfy our clients across all our targeted industry verticals, we may decide to target fewer industries, and as a result, may lose clients. Intense competition could impede our ability to gain market share and could harm our financial results. Risks related to our new product strategy We may fail to introduce new content and products that are broadly accepted by our clients, and there may be delays in the introduction of these tools and products. We may be unable to control the cost of ongoing content collection or the cost of collecting new content types to support new product offerings. We have invested significant capital into the development of new products, such as Onvia Business Builder and Onvia Navigator, and if new products fail to meet expectations we may not achieve our anticipated return on these investments. Our clients may be dissatisfied with the accuracy, coverage and timeliness of our content and performance of our new products. We may improperly price our new product offerings for broad client acceptance. We may overestimate the value of sales intelligence to companies doing business with the government. Our competitors may develop similar technologies that are more broadly accepted in the marketplace. Financial, economic and market risks We have a limited operating history, making it difficult to evaluate our business and future prospects. We have incurred negative cash flows from operations in each quarter since inception, and under our current operating plan we expect to continue to incur negative cash flows in the near term. Our quarterly financial results are subject to fluctuations that may make it difficult to forecast our future performance. We may require significant additional capital in the future, which may not be available on suitable terms, or at all. Our stock price has fluctuated significantly in the past and could fluctuate significantly in the future in response to various factors, some of which are beyond our control. We have implemented anti-takeover provisions that may discourage takeover attempts and depress the market price of our stock. Changes in accounting and reporting policies or practices may affect our financial results or presentation of results, which may affect our stock price. Risks related to integrating future mergers, acquisitions or other corporate transactions We may fail to successfully evaluate, execute and integrate future mergers, acquisitions or other corporate transactions. If a merger, acquisition or other corporate transaction does not meet the expectations of financial or industry analysts or Onvia s investors, the market price of our common stock may decline. Our current technology infrastructure and network software systems may be unable to accommodate our anticipated growth, and we may require a significant investment in these systems to accommodate performance and storage requirements of new and planned products. We may not be able to retain the services of our executive officers, directors, senior managers and other key employees, which would harm our business. Our network and software may be vulnerable to security breaches and similar threats that could result in our liability for damages and harm our business. We may be unable to effectively combat unauthorized redistribution of our published information. System failures could cause an interruption in the services of our network and impact our ability to compile information and deliver our product to our clients. Our services and products depend upon the continued availability of licensed technology from third parties, and we may not be able to obtain those licenses on commercially reasonable terms, or at all. Increased blocking of our emails could negatively impact client satisfaction with our products and could inhibit the effectiveness of our marketing efforts. Regulatory, judicial or legislative risks Any settlement or claim awarded against Onvia in our ongoing litigation matters could negatively impact our operating results. Future regulations could be enacted that either directly restrict our business or indirectly impact our business by limiting the growth of e-commerce. If regulations or legal restrictions are imposed upon bid aggregation on the Internet or upon charging a fee for publicly available bid information, our business will be materially harmed.

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1100917--3/30/2007--ONVIA_INC