1107216--3/12/2008--ORCHID_CELLMARK

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{property, intellectual, protect}

{acquisition, growth, future}

{product, market, service}

{regulation, government, change}

{customer, product, revenue}

{stock, price, operating}

{cost, contract, operation}

{stock, price, share}

{interest, director, officer}

{control, financial, internal}

{operation, natural, condition}

{tax, income, asset}

{provision, law, control}

{product, candidate, development}

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Risks Related to Our Business If we fail to maintain the service contracts we have with various governmental agencies or fail to enter into additional contracts, we would lose a significant source of revenues. We currently receive a significant percentage of our annual gross revenue through our relationships with one customer. We currently rely primarily on a single supplier for the majority of reagents and other components for the performance of our DNA testing services. Our future sales and marketing efforts may not be successful in achieving revenue growth. We have limited sales and marketing resources, and as a result, we may not achieve our expected revenue growth. We cannot guarantee the receipt of revenue from our government contracts. We cannot guarantee the timing of revenue from the North West/South West and Wales regional tender. If we are not successful in integrating ReliaGene, we may not be able to operate efficiently after the acquisition. Integrating ReliaGene may divert management s attention away from our operations. We expect to incur additional costs in connection with integrating ReliaGene into our business. Future acquisitions or mergers could disrupt our ongoing operations, increase our expenses and adversely affect our revenues. Our failure to comply with applicable government and industry regulations or to maintain accreditations may affect our ability to develop, produce or market our potential services and may adversely affect our results of operations. International sales are subject to increased costs and other risks, which could affect our revenues. We had an accumulated deficit of $320 million as of December 31, 2007. If we fail to reach profitability and need to raise additional capital to fund our current and future operating plans or obtain such capital on unfavorable terms, then we may have to take further cost-cutting measures. We may be held liable for any inaccuracies associated with our services, which may require us to defend ourselves in costly litigation. Our improvement of existing technologies and our ability to capture and develop future technologies to be utilized in our service offerings may not be commercially successful, which could adversely affect our revenues. We may be unable to hire an adequate number of DNA analysts or successfully apply new technology. Our ability to provide services may be seriously impaired by the occurrence of a natural disaster affecting any one or more of our laboratories. Our success will depend partly on our ability to operate without misappropriating the intellectual property rights of others. If we cannot enter into new development or licensing agreements, we may be unable to further enhance our service offerings. If our patent applications do not result in issued patents, our competitors may obtain rights to commercialize our discoveries, which would harm our competitive position. The scope of our issued patents may not provide us with adequate protection of our intellectual property, which would harm our competitive position. We may need to initiate lawsuits to protect or enforce our patents and other intellectual property rights, which could result in the forfeiture of these rights. Other rights and measures that we rely upon to protect our intellectual property may not be adequate to protect our services and could reduce our ability to compete in the market. Our ability to utilize our net operating loss carryforwards may be limited. Risks Associated with Our Common Stock Future issuance of our securities may dilute the rights of our stockholders. We have various mechanisms in place that stockholders may not consider favorable, which may discourage takeover attempts and may prevent or frustrate attempts by stockholders to change our direction or management. Our stock price has been, and likely will continue to be, volatile and your investment may suffer a decline in value. Fluctuations in our operating results may negatively impact our stock price.

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1107216--3/12/2008--ORCHID_CELLMARK_INC