355777--3/17/2008--LOJACK

related topics

{product, market, service}

{control, financial, internal}

{product, candidate, development}

{condition, economic, financial}

{acquisition, growth, future}

{property, intellectual, protect}

{regulation, government, change}

{operation, international, foreign}

{stock, price, share}

{system, service, information}

{provision, law, control}

{customer, product, revenue}

{tax, income, asset}

{personnel, key, retain}

{loan, real, estate}

{product, liability, claim}

RISKS RELATING TO OUR BUSINESS Any negative impact on the sales, licensing and marketing efforts of our principal products would adversely affect our business and results of operations. Failure to procure and maintain contracts with local law enforcement agencies would materially adversely affect the marketability of the LoJack System which would inhibit sales in the United States and harm our business. If we are unable to maintain our brand image and product quality, it may damage our reputation which could have an adverse effect on our business, financial condition and results of operations. Our growth depends in part on the development, production and market acceptance of new products which we cannot assure will happen successfully. If we are unable to hire or retain key employees, it could have a negative impact on our business. A change in the mix of our installation methodology or distribution channels may have a negative impact on gross profits and operating profitability. If our competitors or vehicle manufacturers develop products, systems or technologies that make our products less competitive or obsolete, our business would be harmed. Economic downturns could reduce the level of consumer spending and available credit within the automobile industry, which could adversely affect demand for our products and services. Economic, political and other risks associated with the operations in our international markets could adversely affect our revenue and earnings. Our international business growth strategy depends in large part on the success of our licensees and our reputation may be harmed by actions taken by licensees that are outside of our control. Operations of our Boomerang segment are currently heavily dependent on Boomerang s alliances with wireless carriers and insurance companies. We are subject to government regulations and approvals which may limit the number of our potential customers or result in costs and delays that could impede our ability to competitively offer our services and products in the market. Our failure to successfully integrate businesses that we acquire could disrupt our business and negatively impact our future financial condition and operating results. Our failure to successfully execute on our initiative to own and operate a vehicle tracking and recovery network in Italy and our failure to recognize significant benefits from our investment in SCI could disrupt our business and negatively impact our future financial condition and operating results. We may need additional financing in the future, which could be difficult to obtain on acceptable terms or at all. Any such financing could also dilute shareholder value. If we fail to protect and enforce our intellectual property rights, our competitiveness could be impeded and our business and operating results could be harmed. If a court determines that our technology infringes on third parties intellectual property, we will likely face significant costs and we may lose our rights to the technology, which would harm our business. We depend on a limited number of third parties to manufacture and supply infrastructure components for our principal products. If our suppliers cannot provide the components or services we require, our ability to market and sell our products could be harmed. Failure to create and maintain strategic relationships with qualified and effective third party installers could have a material adverse affect on our business. Our results of operations will be adversely affected if we fail to realize the full value of our intangible assets. If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results. If we are not able to build and sustain proper information technology infrastructure, our business could suffer. Our investment portfolio could experience a decline in market value which could adversely affect our financial results. RISKS RELATING TO OUR COMMON STOCK Sizeable future sales of our common stock may depress the share price for our common stock or prevent or delay our ability to sell equity investments in our Company at competitive rates. Certain provisions of our governing documents and Massachusetts law might make a takeover of us more difficult, which could impede the ability of our shareholders to benefit from changes in our management and board of directors.

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355777--3/17/2008--LOJACK_CORP