1186362--3/27/2009--EXOPACK_HOLDING

related topics

{debt, indebtedness, cash}

{cost, regulation, environmental}

{customer, product, revenue}

{condition, economic, financial}

{product, market, service}

{control, financial, internal}

{operation, natural, condition}

{cost, operation, labor}

{stock, price, operating}

{capital, credit, financial}

{property, intellectual, protect}

{personnel, key, retain}

{operation, international, foreign}

{cost, contract, operation}

Intense competition in the flexible packaging markets may adversely affect our operating results. The profitability of our business depends on the price and availability of polyethylene resin and paper, two of our principal raw materials, and our ability to pass on polyethylene resin and paper price increases to customers. Our business is affected by global economic factors including risks associated with a recession and our customers' access to credit. We are subject to the risk of loss resulting from nonpayment or nonperformance by our customers. Financial difficulties and related problems at our vendors, suppliers and other business partners could result in a disruption to our operations and have a material adverse effect on our business. Fluctuations in the equity market will likely adversely affect our pension plan assets and our future cash flows Energy price increases could adversely affect the results of our operations. We must adapt to technological advances in the packaging industry. We may be unable to protect our proprietary technology from infringement. The loss of a key supplier could lead to increased costs and lower profit margins. Our operations could expose us to substantial environmental costs and liabilities. Although we believe we currently have sufficient liquidity, we may not be able to obtain funding if needed because of the deterioration of the credit and capital markets. We are subject to risks related to our international operations. We may, from time to time, experience problems in our labor relations. Loss of third-party transportation providers upon whom we depend or increases in fuel prices could increase our costs or cause a disruption in our operations. Unexpected equipment failures may lead to production curtailments or shutdowns. An affiliate of Sun Capital controls us and may have conflicts of interest with us in the future. We are required to comply with Section 404 of the Sarbanes-Oxley Act, and there can be no assurance that we will be able to establish, maintain and apply effective internal control over financial reporting under applicable SEC rules promulgated under Section 404 Loss of key individuals could disrupt our operations and harm our business. We may be adversely affected by interest rate changes. Numerous other factors over which we may have limited or no control may affect our performance and profitability. Our substantial indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under our outstanding Notes. Despite current indebtedness levels, we and our subsidiaries may still be able to incur substantially more debt. This could further exacerbate the risks described above. To service our indebtedness, we will require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control. The indenture governing the Notes and our Senior Credit Facility will restrict our operations.

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1186362--3/27/2009--EXOPACK_HOLDING_CORP