37912--3/27/2006--DELHAIZE_AMERICA

related topics

{cost, operation, labor}

{loan, real, estate}

{acquisition, growth, future}

{cost, regulation, environmental}

{financial, litigation, operation}

{product, liability, claim}

{operation, natural, condition}

{debt, indebtedness, cash}

{control, financial, internal}

{customer, product, revenue}

{tax, income, asset}

{gas, price, oil}

{loss, insurance, financial}

Our results are subject to risks relating to competition and narrow profit margins in the food retail industry, which could adversely affect net income and cash generated from operations. We have substantial financial debt outstanding that could negatively impact our business. A competitive labor market may increase our costs, resulting in a decrease in our profits or an increase in our losses. Because of the number of properties that we own and lease, we face a potential risk of environmental liability. If we are unable to locate appropriate real estate or enter into real estate leases on commercially acceptable terms, we may be unable to open new stores. Various aspects of our business are subject to federal, regional, state and local laws and regulations, in addition to environmental regulations. Our compliance with these laws and regulations may require additional expenses or capital expenditures and could adversely affect our ability to conduct our business as planned. There are inherent limitations in all control systems, and misstatements due to error or fraud may occur and not be detected, which may adversely impact our business and operating results. As a result of selling food products, we face the risk of exposure to product liability claims and adverse publicity. We may suffer disruptions in our business caused by labor unrest by our employees or employees of companies in our supply chain. Our renovation plans may not be successful, which may adversely affect our business and financial condition. We may be unsuccessful in managing the growth of our business or the integration of acquisitions we have made. A shortage or significant increase in the cost of electricity, diesel fuel or gasoline could disrupt distribution activities and negatively impact our business and results of operation. The geographic concentration of our stores on the east coast of the United States makes us vulnerable to economic downturns, natural disasters and other catastrophic events that may impact that region. A change in supplier rebates could adversely affect our results. Unexpected outcomes in our legal proceedings could materially impact our results. The effect of pending state and federal tax audits on our business can not be determined. We may experience adverse results arising from claims against our self-insurance programs.

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37912--3/27/2006--DELHAIZE_AMERICA_INC