1396838--3/8/2010--Dolan_Media

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{system, service, information}

{stock, price, share}

{acquisition, growth, future}

{cost, operation, labor}

{debt, indebtedness, cash}

{regulation, government, change}

{property, intellectual, protect}

{product, market, service}

{condition, economic, financial}

{tax, income, asset}

{investment, property, distribution}

{personnel, key, retain}

{cost, regulation, environmental}

If the number of case files referred to us by our mortgage default processing service law firm customers or loan servicers and mortgage lenders we serve directly in California decreases or fails to increase, our operating results and ability to execute our growth strategy could be adversely affected. We have owned and operated DiscoverReady LLC for a very short period of time and we are highly dependent on the skills and knowledge of the individuals serving as chief executive officer and president of DiscoverReady as none of our executive officers have managed or operated a discovery management and document review services company prior to this acquisition. DiscoverReady s business revenues are very concentrated among a few customers and if these customers choose to manage their discovery with their own staff or by engaging another provider and if we are unable to develop new customer relationships, our operating results and the ability to execute our growth strategy at DiscoverReady may be adversely affected. Regulation of the legal profession may constrain the operations of the businesses in our Professional Services division, and numerous related issues could impair our ability to provide professional services to our customers and reduce our revenues and profitability. Failure to effectively customize either of our proprietary case management software systems so that they can be used to serve law firm customers in new states could adversely affect our mortgage default processing service business and growth prospects. Risks Relating to Our Business Information Division We depend on the economies and the demographics of our targeted sectors in the local and regional markets that we serve, and changes in those factors could have an adverse impact on our revenues, cash flows and profitability. A change in the laws governing public notice requirements, as well as new or increased regulation of residential mortgage products, may delay, reduce or eliminate the amount of public notices required to be published in print, affect how newspapers are chosen for the publication of public notices or adversely change the eligibility requirements for publishing public notices, which could adversely affect our revenues, profitability and growth opportunities. If our Business Information operations in certain states where we generate a significant portion of that operating division s revenues are not as successful in the future, our operating results could be adversely affected. A key component of our operating income and operating cash flows has been, and may continue to be, our minority equity investment in a Michigan publishing company. Government regulations related to the Internet could increase our cost of doing business, affect our ability to grow or may otherwise negatively affect our business. If we are unable to generate traffic to our online publications and other web sites and electronic services, our ability to continue to grow our Business Information Division may be negatively affected. Risks Relating to Our Business in General We depend on key personnel and we may not be able to operate and grow our business effectively if we lose the services of any of our key personnel or are unable to attract qualified personnel in the future. We intend to continue to pursue acquisition opportunities, which we may not do successfully and may subject us to considerable business and financial risks. We may have difficulty managing our growth, which may result in operating inefficiencies and negatively impact our operating margins. Our business and reputation could suffer if third-party providers of printing, delivery and outsourced technology services that we rely upon, as well as newspapers, including The Detroit Legal News Publishing, where we place foreclosure public notices fail to perform satisfactorily. We rely on our proprietary case management software systems, document conversion and review systems, web sites and online networks, and a disruption, failure or security compromise of these systems may disrupt our business, damage our reputation and adversely affect our revenues and profitability. We may be required to incur additional indebtedness or raise additional capital to fund our operations and acquisitions, repay our indebtedness and fund capital expenditures and this additional cash may not be available to us on satisfactory timing or terms or at all. If our indefinite-lived intangible assets (including goodwill) or finite-life intangible assets become impaired, we may be required to record a significant charge to earnings. We are subject to risks relating to litigation due to the nature of our product and service offerings. Our failure to comply with the covenants contained on our debt instruments could result in an event of default that could adversely affect our financial condition and ability to operate our business as planned. We rely on exclusive proprietary rights and intellectual property that may not be adequately protected under current laws, and we encounter disputes from time to time relating to our use of intellectual property of third parties. Risks Associated with Purchasing Our Common Stock Our common stock has a limited trading history and, during that time, the market price of our common stock has been, and may continue to be, highly volatile. The market price of our common stock depends on a variety of factors, which could cause our common stock to trade at prices below the price you have paid. Future offerings of debt or equity securities by us may adversely affect the market price of our common stock or your rights as holders of our common stock. Future sales of our common stock in the public market may adversely affect the market price of our common stock or our ability to raise additional capital.

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1396838--3/8/2010--Dolan_Media_CO