29669--3/2/2006--DONNELLEY_R_R_&_SONS_CO

related topics
{product, market, service}
{cost, regulation, environmental}
{condition, economic, financial}
{operation, international, foreign}
{competitive, industry, competition}
{regulation, government, change}
{cost, operation, labor}
{cost, contract, operation}
{personnel, key, retain}
{customer, product, revenue}
{regulation, change, law}
Risks Relating to the Businesses of the Company Fluctuations in the costs of paper, ink, energy and other raw materials may adversely impact the Company. The financial condition of our customers may deteriorate. The Company may not be able to improve its operating efficiency rapidly enough to meet market conditions. The Company may be unable to successfully integrate the operations of acquired businesses and may not achieve the cost savings and increased revenues anticipated as a result of these acquisitions. The Company may be unable to hire and retain talented employees, including management. Costs to provide health care and other benefits to the Company s employees may increase. Declines in the general economic conditions may adversely impact the Company s business. There are risks associated with operations outside the United States. The Company is exposed to significant risks related to potential adverse changes in currency exchange rates. Risks Related to Our Industry The highly competitive market for the Company s products and industry consolidation may create adverse pricing pressures. The substitution of electronic delivery for printed materials may adversely affect our businesses. Changes in the rules and regulations to which the Company is subject may increase the Company s costs. Changes in the rules and regulations to which our customers are subject may impact demand for the Company s products and services. Changes in postal rates and postal regulations may adversely impact demand for the Company s products and services. Changes in the advertising, retail, and capital markets may impact the demand for printing and related services.

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