1227654--2/24/2006--COMPASS_MINERALS_INTERNATIONAL

related topics

{debt, indebtedness, cash}

{cost, regulation, environmental}

{gas, price, oil}

{customer, product, revenue}

{product, market, service}

{cost, operation, labor}

{property, intellectual, protect}

{cost, contract, operation}

{operation, international, foreign}

Our substantial indebtedness could adversely affect our financial condition and impair our ability to operate our business. We are a holding company with no operations of our own and depend on our subsidiaries for cash. Increasing interest rates would have an adverse affect on our interest expense under our senior secured credit facilities. Additionally, the restrictive covenants in the agreements governing our indebtedness and the indebtedness of Compass Minerals Group may limit our ability to pursue our business strategies or may require accelerated payments on our debt. Economic and other risks associated with international sales and operations could adversely affect our business, including economic loss and a negative impact on earnings. Our operations are dependent on natural gas and a significant interruption in the supply or increase in the price of natural gas could have a material adverse effect on our financial condition or results of operations. Increasing costs or a lack of availability of transportation services could have an adverse effect on our ability to deliver products at competitive prices. Competition in our markets could limit our ability to attract and retain customers, force us to continuously make capital investments and put pressure on the prices we can charge for our products. Environmental laws and regulation may subject us to significant liability and require us to incur additional costs in the future. The Canadian government s proposal to designate road salt as a toxic substance could have a material adverse effect on our business, including reduced sales and the incurrence of substantial costs and expenditures. Our operations are dependent on our rights to mine our property and having received the required permits and approvals from governmental authorities. Protection of proprietary technology Our intellectual property may be misappropriated or subject to claims of infringement. If we are unsuccessful in negotiating new collective bargaining agreements, we may experience significant increases in the cost of labor or a disruption in our operations. We rely on independent distributors and the loss of a substantial number of these distributors may reduce our profits and sales.

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1227654--2/24/2006--COMPASS_MINERALS_INTERNATIONAL_INC