12978--2/28/2007--OFFICEMAX_INC

related topics
{system, service, information}
{competitive, industry, competition}
{cost, regulation, environmental}
{personnel, key, retain}
{cost, operation, labor}
{condition, economic, financial}
{product, liability, claim}
{stock, price, operating}
Intense competition in our markets could harm our ability to maintain profitability. We may be unable to open and remodel stores successfully. Economic conditions directly influence our operating results. Our quarterly operating results are subject to fluctuation. We may be unable to attract and retain qualified associates. We cannot assure that new associates will perform effectively. Our expanded offering of proprietary branded products may not improve our financial performance and may expose us to product liability claims. We are more leveraged than some of our competitors, which could adversely affect our business plans. We cannot ensure new systems and technology will be implemented successfully. a number of system enhancements and conversions that, if not done properly, could divert the attention of our workforce during development and implementation and constrain for some time our ability to provide the level of service our customers demand. Also, when implemented, the systems and technology enhancements may not provide the benefits anticipated and could add costs and complications to our ongoing operations. A failure to effectively implement changes to to these systems or to realize the intended efficiencies could have an adverse effect on our business and results of our operations. We retained responsibility for certain liabilities of the paper, forest products and timberland businesses we sold. Our business may be adversely affected by the actions of and risks associated with our third-party vendors. Our investment in Boise Cascade, L.L.C. subjects us to the risks associated with the paper and forest products industry. Compromises of customer debit and credit card data in 2004, regardless of the source of the breach, may damage the OfficeMax brand and our reputation.

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