1110803--2/28/2007--ILLUMINA

related topics

{product, candidate, development}

{cost, operation, labor}

{control, financial, internal}

{product, market, service}

{personnel, key, retain}

{stock, price, share}

{property, intellectual, protect}

{stock, price, operating}

{customer, product, revenue}

{tax, income, asset}

{operation, international, foreign}

We expect intense competition in our target markets, which could render our products obsolete, result in significant price reductions or substantially limit the volume of products that we sell. This would limit our ability to compete and maintain profitability. If we cannot continuously develop and commercialize new products, our revenue may not grow as intended. Any inability to adequately protect our proprietary technologies could harm our competitive position. If we are unable to develop and maintain operation of our manufacturing capability, we may not be able to launch or support our products in a timely manner, or at all. Our manufacturing capacity may limit our ability to sell our products. If we are unable to find third-party manufacturers to manufacture components of our products, we may not be able to launch or support our products in a timely manner, or at all. We may encounter difficulties in integrating acquisitions that could adversely affect our business. The combined company may fail to realize the anticipated benefits of the merger as a result of our failure to achieve anticipated revenue growth following the merger. The merger will cause dilution of Illumina s earnings per share. Solexa had a material weakness in its internal controls over financial reporting as of December 31, 2005. If additional material weaknesses are identified in the future, current and potential stockholders could lose confidence in our consolidated financial reporting, which could harm our business and the trading of our common stock. We expect that our results of operations will fluctuate. This fluctuation could cause our stock price to decline. We have a limited history of commercial sales of systems and consumable products, and our success depends on our ability to develop commercially successful products and on market acceptance of our new and relatively unproven technologies. Our sales, marketing and technical support organization may limit our ability to sell our products. We have only recently achieved annual operating profitability. We may encounter difficulties in managing our growth. These difficulties could impair our profitability. Our effective tax rate may vary significantly. If we lose our key personnel or are unable to attract and retain additional personnel, we may be unable to achieve our goals. A significant portion of our sales are to international customers.

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1110803--2/28/2007--ILLUMINA_INC