19446--10/14/2010--CANTEL_MEDICAL

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{product, market, service}

{product, liability, claim}

{operation, international, foreign}

{cost, regulation, environmental}

{gas, price, oil}

{capital, credit, financial}

{regulation, government, change}

{customer, product, revenue}

{property, intellectual, protect}

{personnel, key, retain}

{acquisition, growth, future}

{stock, price, share}

{condition, economic, financial}

Our market for dialysis reprocessing products is limited to dialysis centers that reuse dialyzers, which market has been decreasing in the United States. Industry consolidation and the highly competitive market has resulted in the loss of dialysate concentrate sales. Because a significant portion of our Water Purification and Filtration, Dialysis and Healthcare Disposables segments net sales comes from a few large customers, any significant decrease in sales to these customers, due to industry consolidation or otherwise, could harm our operating results. Demand for some of our healthcare disposables products can be significantly affected by the severity of flu outbreaks, such as the novel H1N1 flu, and the level of urgency our customers and the general public develop and maintain with respect to epidemic and pandemic preparedness. Our businesses are adversely impacted by rising fuel and oil prices and are heavily reliant on certain raw materials. The acquisition of new businesses and product lines, which has inherent risks, is an important part of our growth strategy. Competition from manufacturing facilities located in China and Southeast Asia could result in a reduction in our net sales of healthcare disposable products due to reduced average selling prices or our customers no longer purchasing certain products from us. We are subject to extensive government regulation. Government regulation may delay or prevent new product introduction. Currency fluctuations and trade barriers could adversely affect our results of operations. Customer acceptance of our products is dependent on our ability to meet changing requirements. We distribute our products in highly competitive markets. Deterioration in the economy and credit markets may adversely affect our future results of operations. Because we operate in international markets, we are subject to political and economic risks that we do not face in the United States. The markets for many of our products are subject to changing technology. We may be exposed to product liability claims resulting from the use of products we sell and distribute. We use chemicals and other regulated substances in the manufacturing of our products. We rely on intellectual property and proprietary rights to maintain our competitive position. If we are unable to retain key personnel, our business could be adversely affected. Our stock price has been volatile and may experience continued significant price and volume fluctuations in the future that could reduce the value of outstanding shares. Modifications to our revolving credit facility in fiscal 2011 may result in less favorable terms. We may face significant uncertainty in the industry due to government healthcare reform.

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19446--10/14/2010--CANTEL_MEDICAL_CORP