319240--3/23/2007--IRIS_INTERNATIONAL

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{product, market, service}

{product, liability, claim}

{customer, product, revenue}

{operation, international, foreign}

{regulation, government, change}

{stock, price, share}

{system, service, information}

{stock, price, operating}

{personnel, key, retain}

{property, intellectual, protect}

{tax, income, asset}

{competitive, industry, competition}

{acquisition, growth, future}

Our success depends largely on the acceptance of our iQ200 and iChem product line. Any failure to successfully introduce our future products and systems into the market could adversely affect our business. Any failure to successfully develop new products could adversely affect our business. Failure to achieve significant clinical acceptance of our molecular diagnostics product line would reduce growth and revenue. Changes in reimbursement fees or lower than anticipated reimbursement for diagnostics tests could reduce demand and the price at which we can sell our products. If we fail to meet changing demands of technology, we may not continue to be able to compete successfully with our competitors. Any failure or inability to protect our technology and confidential information could adversely affect our business. Our products could infringe on the intellectual property rights of others. We operate in a consolidating industry that creates barriers to our market penetration. Since we operate in the medical technology industry, our products are subject to government regulation that could impair our operations. Changes in government regulation of the healthcare industry could adversely affect our business. We may not be able to realize the deferred tax asset relating to our tax net operating loss carry forward. We rely on independent and some single-source suppliers for key components of our instruments. Any delay or disruption in the supply of components may prevent us from selling our products and negatively impact our operations. One of our single-source suppliers has terminated its agreement with us. We face intense competition and our failure to compete effectively, particularly against larger, more established companies will cause our business to suffer. Our success depends on our ability to attract, retain and motivate management and other skilled employees. Defective products may subject us to liability. Business interruptions could adversely affect our business. If we are unable to manage our growth, our results could suffer. We depend on independent distributors to sell our products in international markets. Our sales in international markets are subject to a variety of laws and political and economic risks that may adversely impact our sales and results of operations in certain regions. We are subject to currency fluctuations. Risks Related to Ownership of Our Common Stock We have adopted a number of anti-takeover measures that may depress the price of our common stock. Our quarterly sales and operating results may fluctuate in future periods, and if we fail to meet expectations the price of our common stock may decline.

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319240--3/23/2007--IRIS_INTERNATIONAL_INC