1294608--3/30/2007--Solo_Cup

related topics

{acquisition, growth, future}

{financial, litigation, operation}

{cost, operation, labor}

{cost, regulation, environmental}

{competitive, industry, competition}

{debt, indebtedness, cash}

{capital, credit, financial}

{product, market, service}

{personnel, key, retain}

{operation, international, foreign}

{control, financial, internal}

{stock, price, operating}

{property, intellectual, protect}

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS We may not be able to manage our business as we might otherwise because of our significant debt. If we are unable to generate sufficient cash from operations, a sale-leaseback transaction, and sales of non-strategic assets, we may default under our credit agreements and notes governing our indenture. We may not realize all cost savings, synergies or revenue enhancements that we anticipate with the successful completion of the Company s Performance Improvement Program. We have determined that certain material weaknesses existed in our internal control over financial reporting, including our disclosure controls and procedures, which, if not remedied effectively, could have an adverse effect on our business and result in further material misstatements in our consolidated financial statements in future periods. Downgrades in our corporate ratings may impact the credit terms offered to us by our vendors and the interest rates offered to us if we require any additional capital or financing. We face risks related to the restatement of our consolidated financial statements that increases the possibility that we may face legal or regulatory proceedings related to our restatement. We operate in a highly competitive environment and may not be able to compete successfully. If we do not adequately manage, integrate and implement our order management system, our ability to manage and grow our business could be adversely affected. Further consolidation in the foodservice and retail industries may adversely affect our profitability. We could be adversely affected by raw material availability and pricing. We are subject to extensive environmental regulation and significant potential environmental liabilities. Our international operations expose us to risks related to conducting business in multiple jurisdictions outside the United States. If we are unable to improve existing products and develop new products, our sales and industry position may suffer. The loss of the services of our key management and personnel could adversely affect our business. We are controlled by the stockholders of Solo Cup Investment Corporation, the interests of which may conflict with the interests of our note holders. The loss of one or more of our principal customers could have a material adverse effect on our business, financial condition or results of operations. Prolonged work stoppages at plants with union employees could adversely affect our results and jeopardize our business and financial position. We may undertake divestitures or make other acquisitions and consequently face management diversion and other risks. We may not be able to adequately protect our intellectual property and other proprietary rights.

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1294608--3/30/2007--Solo_Cup_CO