29806--3/24/2010--CONSTAR_INTERNATIONAL

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We must comply with financial and other covenants in our credit facility and other debt agreements Our key technologies are not covered by patents. A significant portion of our sales is concentrated with a few large customers. Conventional PET containers account for a significant portion of our consolidated net sales. Our customers are engaging in self-manufacturing. Consolidation of our customers may reduce the Company s volumes and profitability Contracts with customers generally do not require them to purchase any minimum amounts of products from us, and customers may not purchase amounts that meet our expectations. Pricing and volumes in our markets are sensitive to production capacity utilization. If the Company s custom PET packaging business does not grow, our growth and profitability may be lower than we currently expect. Our products and services may become obsolete. We are dependent on a limited number of resin and chemical suppliers Increases in the price of resin may negatively impact our financial results and may deter the growth of the PET market. Customers may supply us with an increasing amount of resin, which may reduce our ability to negotiate favorable resin purchase contracts. We earn a significant portion of our revenue in warmer months, and cool weather may result in lower sales and cash flows. A small number of stockholders are in a position to influence most of our significant corporate actions because they hold a significant amount of our common stock. Our interest expense may increase since indebtedness under the Secured Notes and our Credit Facility is subject to floating interest rates. We are subject to foreign currency risk and other instabilities from our international operations. We are exposed to the risk of liabilities or claims related to environmental and health and safety standards. Our operations and profitability could suffer if we experience labor relations problems or if we do not reach new union agreements on satisfactory terms. We face product liability risks and the risk of negative publicity if our products fail or if our customers and suppliers are affected by product liability risks or negative publicity. As a result of our Chapter 11 reorganization, our historical financial information may not be indicative of our future financial performance. We have a significant amount of goodwill and intangible assets that we may be required to write down in certain circumstances, which would result in lower reported net income (or higher net losses) and a reduction to stockholders equity. We are subject to lawsuits and claims that could adversely affect our results of operations and financial position. We have underfunded pension plans and an unfunded post-retirement medical/life insurance plan, which could affect our cash flows and financial condition. Our stock is not listed on a national securities exchange. It will likely be more difficult for stockholders and investors to sell our common stock or to obtain accurate quotations of the share price of our common stock.

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29806--3/24/2010--CONSTAR_INTERNATIONAL_INC