1389050--2/26/2009--EXTERRAN_HOLDINGS

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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. There are risks associated with our operations in Venezuela. Further changes to the laws and regulations of Venezuela could adversely impact our results of operations and require us to write-down certain of our assets in Venezuela. 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. The currently available supply of compression equipment owned by our customers and competitors could cause a reduction in demand for our products and services and a reduction in our pricing. 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. Our indebtedness imposes restrictions on us that may affect our ability to successfully operate our business. Many of our compression services contracts with customers have short initial terms, and we cannot be sure that such contracts will be renewed after the end of the initial contractual term. We are dependent on particular suppliers and are vulnerable to product shortages and price increases. We face significant competition that may cause us to lose market share and harm our financial performance. Natural gas 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. 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 experience volatility. We may not be able to consummate additional contributions or sales of portions of our U.S. contract operations business to the Partnership.

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1389050--2/26/2009--EXTERRAN_HOLDINGS_INC.