1138118--2/29/2008--CB_RICHARD_ELLIS_GROUP

related topics

{loan, real, estate}

{debt, indebtedness, cash}

{acquisition, growth, future}

{personnel, key, retain}

{operation, international, foreign}

{stock, price, operating}

{condition, economic, financial}

{competitive, industry, competition}

Recent adverse developments in the credit markets and the risk of continued market deterioration have adversely affected and may continue to adversely affect our business, results of operations and financial condition. The success of our business is significantly related to general economic conditions and, accordingly, our business could be harmed in the event of an economic slowdown or recession or a downturn in the real estate market. Our substantial leverage and debt service obligations could harm our ability to operate our business, remain in compliance with debt covenants and make payments on our debt. We are able to incur more indebtedness, which may intensify the risks associated with our leverage, including our ability to service our indebtedness. Our debt instruments impose operating and financial restrictions on us, and in the event of a default, all of our borrowings would become immediately due and payable. If we fail to meet our payment or other obligations under the senior secured term loan facilities, the lenders under the senior secured term loan facilities could foreclose on, and acquire control of, substantially all of our assets. Our success depends upon the retention of our senior management, as well as our ability to attract and retain qualified and experienced employees (including those acquired through acquisitions). Our growth has benefited significantly from acquisitions, which may not be available in the future. If we acquire companies in the future, we may experience integration costs and the acquired businesses may not perform as we expect. Our international operations subject us to social, political and economic risks of doing business in foreign countries. Our revenue and earnings may be adversely affected by foreign currency fluctuations. Our stock price is subject to volatility. If the properties that we manage fail to perform, then our financial condition and results of operations could be harmed. Our real estate investment and co-investment activities subject us to real estate investment risks which could cause fluctuations in earnings and cash flow. Our joint venture activities involve unique risks that are often outside of our control which, if realized, could harm our business. We have numerous significant competitors and potential future competitors, some of which may have greater financial and operational resources than we do. A significant portion of our operations are concentrated in California and our business could be harmed in the event of a future economic downturn in the California real estate markets. Our results of operations vary significantly among quarters during each calendar year, which makes comparisons of our quarterly results difficult. We license the use of the Trammell Crow trade name and this license is not exclusive and may be revoked. If we fail to comply with laws and regulations applicable to us in our role as a real estate broker, mortgage broker, property/facility manager or developer, we may incur significant financial penalties. We may have liabilities in connection with real estate brokerage and property management activities. We may be subject to environmental liability as a result of our role as a property or facility manager or developer of real estate.

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1138118--2/29/2008--CB_RICHARD_ELLIS_GROUP_INC