23082--6/13/2007--COMPUTER_SCIENCES

related topics

{cost, operation, labor}

{control, financial, internal}

{operation, international, foreign}

{regulation, government, change}

{customer, product, revenue}

{cost, contract, operation}

{competitive, industry, competition}

{product, market, service}

{personnel, key, retain}

{financial, litigation, operation}

{property, intellectual, protect}

{interest, director, officer}

{system, service, information}

{stock, price, operating}

{capital, credit, financial}

Past performance may not be a reliable indicator of future financial performance. Future performance and historical trends may be adversely affected by the following factors, as well as other variables, and should not be relied upon to project future period results. Our business may be adversely impacted as a result of changes in demand, both globally and in individual market segments, for information technology outsourcing, business process outsourcing and consulting and systems integration services. Our business may be adversely impacted as a result of changes in demand, both globally and in individual market segments, for information technology outsourcing, business process outsourcing and consulting and systems integration services. Our ability to continue to develop and expand our service offerings to address emerging business demands and technological trends will impact our future growth. If we are not successful in meeting these business challenges our results of operations and cash flows will be materially and adversely affected. Our ability to continue to develop and expand our service offerings to address emerging business demands and technological trends will impact our future growth. If we are not successful in meeting these business challenges our results of operations and cash flows will be materially and adversely affected. Our primary markets, technology outsourcing and consulting and systems integration, are highly competitive markets. If we are unable to compete in these highly competitive markets our results of operations will be materially and adversely affected. Our primary markets, technology outsourcing and consulting and systems integration, are highly competitive markets. If we are unable to compete in these highly competitive markets our results of operations will be materially and adversely affected. O ur ability to consummate and integrate acquisitions may materially and adversely affect our profitability if we fail to achieve anticipated revenue improvements and cost reductions. O ur ability to consummate and integrate acquisitions may materially and adversely affect our profitability if we fail to achieve anticipated revenue improvements and cost reductions. Our customers may experience financial difficulties and we may not be able to collect our receivables, materially and adversely affecting our profitability. Our customers may experience financial difficulties and we may not be able to collect our receivables, materially and adversely affecting our profitability. If we are unable to accurately estimate the cost of services and the timeline for completion of contracts the profitability of our contracts may be materially and adversely affected. If we are unable to accurately estimate the cost of services and the timeline for completion of contracts the profitability of our contracts may be materially and adversely affected. We are defendants in pending litigation which may have a material and adverse impact on our profitability. We are defendants in pending litigation which may have a material and adverse impact on our profitability. Our ability to provide our customers with competitive services is dependent on our ability to attract and retain qualified personnel. Our ability to provide our customers with competitive services is dependent on our ability to attract and retain qualified personnel. Our international operations are exposed to risks, including fluctuations in exchange rates, which may be beyond our control. Our international operations are exposed to risks, including fluctuations in exchange rates, which may be beyond our control. Our ability to compete in certain markets we serve is dependent on our ability to continue to expand our capacity in certain offshore locations. However, as our presence in these locations increases we are exposed to risks inherent to these locations which may adversely impact our revenue and profitability. Our ability to compete in certain markets we serve is dependent on our ability to continue to expand our capacity in certain offshore locations. However, as our presence in these locations increases we are exposed to risks inherent to these locations which may adversely impact our revenue and profitability. In the course of providing services to customers we may inadvertently infringe on the intellectual property rights of others and be exposed to claims for damages. In the course of providing services to customers we may inadvertently infringe on the intellectual property rights of others and be exposed to claims for damages. Generally our contracts contain provisions under which a customer may terminate the contract prior to completion. Early contract terminations may materially and adversely affect our revenues and profitability. Generally our contracts contain provisions under which a customer may terminate the contract prior to completion. Early contract terminations may materially and adversely affect our revenues and profitability. We may be exposed to negative publicity and other potential risks if we are unable to maintain effective internal controls. We may be exposed to negative publicity and other potential risks if we are unable to maintain effective internal controls. We have identified a material weakness related to accounting for income taxes and concluded that our internal control over financial reporting was not effective as of March 30, 2007. Inability to maintain effective internal control over financial reporting could adversely affect our financial results, the market price of our common stock or our operations . We have identified a material weakness related to accounting for income taxes and concluded that our internal control over financial reporting was not effective as of March 30, 2007. Inability to maintain effective internal control over financial reporting could adversely affect our financial results, the market price of our common stock or our operations . Our largest customer, the U.S. federal government, accounts for a significant portion of our revenue and earnings. Inherent in the government contracting process are various risks which may materially and adversely affect our business and profitability. Our largest customer, the U.S. federal government, accounts for a significant portion of our revenue and earnings. Inherent in the government contracting process are various risks which may materially and adversely affect our business and profitability. Our ability to raise additional capital for future needs will impact our ability to compete in the markets we serve. Our ability to raise additional capital for future needs will impact our ability to compete in the markets we serve. As a result of the delayed filing of our Form 10-Q for the quarter ending December 29, 2006, we are currently ineligible to use Form S-3 to register securities with the SEC in capital-raising transactions, which may adversely affect our cost of future capital. As a result of the delayed filing of our Form 10-Q for the quarter ending December 29, 2006, we are currently ineligible to use Form S-3 to register securities with the SEC in capital-raising transactions, which may adversely affect our cost of future capital. Our future profitability may be materially and adversely affected if we fail to execute according to plan the restructuring announced by the Company on April 4, 2006. Our future profitability may be materially and adversely affected if we fail to execute according to plan the restructuring announced by the Company on April 4, 2006. Our performance on contracts on which we have partnered with third parties may be adversely affected if the third parties fail to deliver on their commitments. Our performance on contracts on which we have partnered with third parties may be adversely affected if the third parties fail to deliver on their commitments.

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23082--6/13/2007--COMPUTER_SCIENCES_CORP