1389050--2/25/2010--EXTERRAN_HOLDINGS

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{debt, indebtedness, cash}

{regulation, change, law}

{operation, international, foreign}

{cost, contract, operation}

{condition, economic, financial}

{competitive, industry, competition}

{cost, regulation, environmental}

{provision, law, control}

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The currently available supply of compression equipment owned by our customers and competitors could cause a further reduction in demand for our products and services and a further reduction in our pricing. The erosion of the financial condition of our customers could adversely affect our business. There are many risks associated with conducting operations in international markets. There are risks associated with our operations in Nigeria. Local unrest and violence in Nigeria have adversely affected our historical financial results and could result in additional impairments and write-downs of our assets in Nigeria if the political situation in Nigeria does not improve. We are exposed to exchange rate fluctuations in the international markets in which we operate. A decrease in the value of any of these currencies relative to the U.S. dollar could reduce profits from international operations and the value of our international net assets. Our failure to timely and cost-effectively execute on larger projects could adversely affect our business. We may incur losses on fixed-price contracts, which constitute a significant portion of our fabrication business. We have a substantial amount of debt that could limit our ability to fund future growth and operations and increase our exposure to risk during adverse economic conditions. We may be vulnerable to interest rate increases due to our floating rate debt obligations. Covenants in our debt agreements may impair our ability to operate our business. Many of our contract operations services contracts have short initial terms, and we cannot be sure that such contracts will be renewed after the end of the initial contractual term. We depend on particular suppliers and are vulnerable to product shortages and price increases. We face significant competitive pressures that may cause us to lose market share and harm our financial performance. Our operations entail inherent risks that may result in substantial liability. We do not insure against all potential losses and could be seriously harmed by unexpected liabilities. The tax treatment of publicly traded partnerships or our investment in the Partnership could be subject to potential legislative, judicial or administrative changes and differing interpretations, possibly on a retroactive basis. New proposed regulations under the Clean Air Act, if implemented, could result in increased compliance costs. We are subject to a variety of governmental regulations; failure to comply with these regulations may result in administrative, civil and criminal enforcement measures. Climate change legislation and regulatory initiatives could result in increased compliance costs. The price of our common stock may be volatile. We may not be able to consummate additional contributions or sales of portions of our U.S. contract operations business to the Partnership. Our charter and bylaws contain provisions that may make it more difficult for a third party to acquire control of us, even if a change in control would result in the purchase of our stockholders shares of common stock at a premium to the market price or would otherwise be beneficial to our stockholders.

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1389050--2/25/2010--EXTERRAN_HOLDINGS_INC.