1341439--7/1/2010--ORACLE

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{acquisition, growth, future}

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Economic, political and market conditions, including the recent recession and global economic crisis, can adversely affect our business, results of operations and financial condition, including our revenue growth and profitability, which in turn could adversely affect our stock price. We may fail to achieve our financial forecasts due to inaccurate sales forecasts or other factors. We may not achieve our financial forecasts with respect to our acquisition of Sun or our entrance into a new hardware systems business, or the achievement of such forecasts may take longer than expected. Our profitability could decline if we do not manage the risks associated with our acquisition and integration of Sun. Our success depends upon our ability to develop new products and services, integrate acquired products and services and enhance our existing products and services. Our strategy of transitioning from Sun s indirect sales model to our mixed direct and indirect sales model may not succeed and could result in lower hardware systems revenues or profits. Disruptions to our software indirect sales channel could affect our future operating results. If we are unable to compete effectively with existing or new hardware systems or software competitors, the results of operations and prospects for our business could be harmed through fewer customer orders, reduced pricing, lower revenues or lower profits. Our hardware systems offerings are complex products. If we cannot successfully manage the required processes to meet customer requirements and demand on a timely basis, the results of our hardware systems business will suffer. Acquisitions present many risks, and we may not realize the financial and strategic goals that were contemplated at the time of a transaction. Our international sales and operations subject us to additional risks that can adversely affect our operating results. We may experience foreign currency gains and losses. The future operating results of our hardware systems business will depend on our ability to manage our component inventory to meet the demands of our hardware systems customers and to avoid component inventory write-downs. We expect to continue to depend on third party manufacturers to build certain hardware systems products and are susceptible to manufacturing delays that could prevent us from shipping customer orders on time, if at all, and may result in the loss of sales and customers. We may not be able to protect our intellectual property rights. Third parties have claimed and, in the future, may claim infringement or misuse of intellectual property rights and/or breach of license agreement provisions. We may lose key employees or may be unable to hire enough qualified employees. We may need to change our pricing models to compete successfully. Charges to earnings resulting from acquisitions may adversely affect our operating results. Our periodic workforce restructurings can be disruptive. We might experience significant errors or security flaws in our software products and services. We may not receive significant revenues from our current research and development efforts for several years, if at all. Our sales to government clients subject us to risks including early termination, audits, investigations, sanctions and penalties. We may face numerous risks in connection with our strategic alliance with Fujitsu. Business disruptions could affect our operating results. There are risks associated with our outstanding indebtedness. Adverse litigation results could affect our business. We may have exposure to additional tax liabilities. Oracle On Demand and CRM On Demand may not be successful. Environmental laws and regulations subject us to a number of risks and could result in significant liabilities and costs. Our stock price could become more volatile and your investment could lose value.

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1341439--7/1/2010--ORACLE_CORP