1398797--9/19/2008--Point.360

related topics

{stock, price, share}

{stock, price, operating}

{interest, director, officer}

{personnel, key, retain}

{competitive, industry, competition}

{cost, operation, labor}

{regulation, change, law}

{product, market, service}

{control, financial, internal}

{provision, law, control}

{acquisition, growth, future}

{debt, indebtedness, cash}

{customer, product, revenue}

Risks Relating to Point.360 s Business We have a history of losses, and we may incur losses in the future. Old Point.360 previously breached its credit agreements, and we may do so in the future. We may be unable to compete effectively in a highly competitive marketplace. We would be adversely affected by the loss of key customers. Our expansion strategy may fail. We are operating in a changing environment that may adversely affect our business. We may be unable to adapt our business to changing technological requirements. The loss of key personnel would adversely affect our business. We may be unable to meet the demands of our customers. Our quarterly operating results have fluctuated significantly in the past and may fluctuate in the future. Risks Relating to the Separation of the Company from Old Point.360 We may be unable to achieve some or all of the benefits that we expect to achieve from our separation from Old Point.360. We have no operating history as a separate public company, and our historical and pro forma financial information is not necessarily representative of the results we would have achieved as a separate publicly traded company, and may not be a reliable indicator of our future results. We may be unable to make, on a timely or cost-effective basis, the changes necessary to operate as an independent company, and we may experience increased costs after our separation from Old Point.360 or as a result of the separation. We will be responsible for paying certain liabilities incurred by Old Point.360 prior to the date of our separation from Old Point.360. Risks Relating to the Company s Common Stock A trading market that will provide adequate liquidity for our common stock may not develop. In addition, the market price of our shares may fluctuate widely. Investors may be unable to accurately value our common stock. Your percentage ownership in the Company may be diluted in the future. Our shareholder rights agreement and ability to issue preferred stock may discourage, delay or prevent a change in control of the Company that would benefit our shareholders. We do not expect to pay dividends. Our controlling shareholders may cause the Company to be operated in a manner that is not in the best interests of other shareholders.

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