1324477--3/28/2006--AMERICAN_BARGE_LINE

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{operation, natural, condition}

{cost, operation, labor}

{operation, international, foreign}

{cost, regulation, environmental}

{regulation, change, law}

{financial, litigation, operation}

{debt, indebtedness, cash}

{competitive, industry, competition}

{condition, economic, financial}

{gas, price, oil}

{personnel, key, retain}

{property, intellectual, protect}

{customer, product, revenue}

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RISKS RELATED TO OUR INDUSTRY Freight transportation rates for the Inland Waterways fluctuate from time to time and may decrease. An oversupply of barging capacity may lead to reductions in freight rates. Yields from North American and worldwide grain harvests could materially affect demand for our barging services. Diminishing demand for new barge construction may lead to a reduction in sales prices for new barges. Higher fuel prices, if not recouped from our customers, could dramatically increase operating expenses and adversely affect profitability. We are subject to adverse weather and river conditions. Seasonal fluctuations in industry demand could adversely affect our operating results, cash flow and working capital requirements. The aging infrastructure on the Inland Waterways may lead to increased costs and disruptions in our operations. The inland barge transportation industry is highly competitive; increased competition could adversely affect us. Global trade agreements, tariffs and subsidies could decrease the demand for imported and exported goods, adversely affecting the flow of import and export tonnage through the Port of New Orleans and the demand for barging services. Our failure to comply with domestic or international government regulations affecting the domestic or foreign barging industries, or changes in these regulations, may cause us to incur significant expenses or affect our ability to operate. The Jones Act restricts foreign ownership of our stock, and the repeal, suspension or substantial amendment of the Jones Act could increase competition on the Inland Waterways and have a material adverse effect on our business. RISKS RELATED TO OUR BUSINESS Our aging fleet of barges may lead to increased costs and disruptions in our operations. Our cash flows and borrowing facilities may not be adequate for our additional capital needs and, if we incur additional borrowings, our future cash flow and capital resources may not be sufficient for payments of interest and principal of our substantial indebtedness. There could be adverse consequences if the pending appeal of the confirmation of our Plan of Reorganization is successful. Our barging services outside the United States subject us to changes in foreign economic and political conditions. A disposition of our Venezuelan operations would affect earnings. The loss of one or more key customers, or material nonpayment or nonperformance by one or more of our key customers, would have a material adverse effect on our revenue and profitability. A major accident or casualty loss at any of our facilities could significantly reduce production. Our employees are covered by federal maritime laws that may subject us to job-related claims in addition to those provided by state laws. We have experienced significant work stoppages by union employees in the past, and future work stoppages may disrupt our services and adversely affect our operations. The loss of key personnel, including highly skilled and licensed vessel personnel, could adversely affect our business. Failure to comply with environmental, health and safety regulations could result in substantial penalties and changes to our operations. Our financial condition and results of operations will not be comparable to the financial condition or results of operations reflected in our historical financial statements. We are subject to, and may in the future be subject to, disputes, or legal or other proceedings that could involve significant expenditures by us. Investor confidence and the market price of our parent s common stock may be adversely impacted if we are unable to comply with Section 404 of the Sarbanes-Oxley Act of 2002.

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1324477--3/28/2006--AMERICAN_BARGE_LINE_CO