1158324--3/16/2006--COGENT_COMMUNICATIONS_GROUP

related topics

{system, service, information}

{acquisition, growth, future}

{operation, international, foreign}

{cost, contract, operation}

{cost, operation, labor}

{personnel, key, retain}

{operation, natural, condition}

{control, financial, internal}

{property, intellectual, protect}

{competitive, industry, competition}

{loss, insurance, financial}

{product, market, service}

{investment, property, distribution}

{regulation, government, change}

If our operations do not produce positive cash flow to pay for our growth or meet our operating and financing obligations, and we are unable to otherwise raise additional capital to meet these needs, our ability to implement our business plan will be materially and adversely affected. We need to retain existing customers and continue to add new customers in order to become profitable and cash flow positive. We have historically incurred operating losses and these losses may continue for the foreseeable future. We are experiencing rapid growth of our business and operations and we may not be able to efficiently manage our growth. We may experience difficulties in implementing our business plan in Europe and may incur related unexpected costs. We may experience delays and additional costs in expanding our on-net buildings. We may not successfully make or integrate acquisitions or enter into strategic alliances. We depend upon our key employees and may be unable to attract or retain sufficient qualified personnel. Our connections to the Internet require us to establish and maintain relationships with other providers, which we may not be able to maintain. Our European and Canadian operations expose us to economic, regulatory and other risks. Fluctuations in foreign exchange rates may adversely affect our financial position and results of operations. Our business could suffer delays and problems due to the actions of network providers on whom we are partially dependent. If the information systems that we depend on to support our customers, network operations, sales and billing do not perform as expected, our operations and our financial results may be adversely affected. Our business could suffer from an interruption of service from our fiber providers. Our business depends on license agreements with building owners and managers, which we could fail to obtain or maintain. We may not be able to obtain or construct additional building laterals to connect new buildings to our network. Impairment of our intellectual property rights and our alleged infringement on other companies intellectual property rights could harm our business. The sector in which we operate is highly competitive, and we may not be able to compete effectively. We issue projected results and estimates for future periods from time to time, and such projections and estimates are subject to inherent uncertainties and may prove to be inaccurate. Network failure or delays and errors in transmissions expose us to potential liability. As an Internet access provider, we may incur liability for information disseminated through our network. Legislation and government regulation could adversely affect us. Terrorist activity throughout the world and military action to counter terrorism could adversely impact our business.

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1158324--3/16/2006--COGENT_COMMUNICATIONS_GROUP_INC