1373768--12/7/2007--American_Achievement_Group_Holding

related topics

{customer, product, revenue}

{debt, indebtedness, cash}

{condition, economic, financial}

{operation, international, foreign}

{cost, regulation, environmental}

{competitive, industry, competition}

{system, service, information}

{property, intellectual, protect}

{stock, price, operating}

{acquisition, growth, future}

{operation, natural, condition}

Our substantial indebtedness could adversely affect our financial health and prevent us from fulfilling our financial obligations. To service our indebtedness, we require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control. Restrictions in the indentures governing the senior PIK notes, the 10.25% senior discount notes, the 8.25% senior subordinated notes and the existing senior secured credit facility may prevent us from taking actions that we believe would be in the best interest of our business. If we are unable to maintain our business or further implement our business strategy, our business and financial condition could be adversely affected. We face significant competition from other national competitors. Increased prices for raw materials or finished goods used in our products could adversely affect our profitability or revenues. Currency exchange rate fluctuations may adversely affect our results of operations. Many of our products or components of our products are provided by a limited number of third-party suppliers. Our future operating results are dependent on maintaining our relationships with our independent sales representatives. Our performance may fluctuate with the financial condition of, or loss of, our retail customers. The seasonality of our sales may have an adverse effect on our operations and our ability to service our debt. We are subject to environmental laws and regulations that could impose substantial costs upon us and may adversely affect our financial results. Our business could be adversely affected by unforeseen economic and political conditions. We rely on proprietary rights which may not be adequately protected. We depend on numerous complex information systems, and any failure to successfully maintain those systems or implement new systems could materially harm our operations. Our results of operations are dependent on certain principal production facilities. Our stockholders interests may conflict with interests of our other investors.

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1373768--12/7/2007--American_Achievement_Group_Holding_Corp.