19446--10/16/2006--CANTEL_MEDICAL

related topics

{product, market, service}

{product, liability, claim}

{personnel, key, retain}

{operation, international, foreign}

{stock, price, share}

{customer, product, revenue}

{cost, regulation, environmental}

{property, intellectual, protect}

{acquisition, growth, future}

Our market for dialysis reprocessing products is limited to dialysis centers that reuse dialyzers, which market has been decreasing in the United States. The consolidation of dialysis providers has resulted in greater buying power by certain of our customers, which has caused us to reduce the average selling prices of our dialysis products, thereby reducing net sales and profit margins. Such consolidation has also resulted in the loss of dialysate concentrate sales. We recently commenced sales and service of our Medivators endoscope reprocessing systems in the United States on a direct basis. There can be no assurance that our direct sales and service program will be successful. Because a significant portion of our Dental segment net sales comes from a few large customers, any significant decrease in sales to these customers could harm our operating results. Government regulation may delay or prevent new product introduction. Customer acceptance of our products is dependent on our ability to meet changing requirements. We distribute our products in highly competitive markets. Currency fluctuations and trade barriers could adversely affect our results of operations. Our growth may be dependent on acquiring new businesses Certain of our businesses are heavily reliant on certain raw materials. 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. Future issuances of our common stock may affect the market price of our common stock.

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19446--10/16/2006--CANTEL_MEDICAL_CORP