66479--3/15/2006--MILLIPORE_CORP

related topics

{customer, product, revenue}

{acquisition, growth, future}

{product, market, service}

{operation, international, foreign}

{product, candidate, development}

{product, liability, claim}

{system, service, information}

{cost, regulation, environmental}

{personnel, key, retain}

{cost, operation, labor}

{property, intellectual, protect}

{tax, income, asset}

{debt, indebtedness, cash}

{stock, price, operating}

{cost, contract, operation}

Lack of early success with our pharmaceutical and biotechnology customers can shut us out of future business with those customers. The suspension or termination of production of a customer s therapeutic product may result in the abrupt suspension or termination of their purchases of our products, resulting in an unexpected reduction in our revenue. Disruptions in the supply of raw materials from our single source suppliers could result in a significant disruption in sales and profitability. If we fail to maintain adequate quality standards for our products and services, our business may be adversely affected and our reputation harmed. We may be unable to establish and to maintain collaborative development and marketing relationships with business partners, which could result in a decline in revenues or slower than anticipated growth rates. Demand for our bioprocess products and services are subject to the commercial success of our customers products which may vary for reasons outside our control. Technology innovations in the markets that we serve may create alternatives to our products and result in reduced sales. We may be unable to realize our growth strategy if we cannot identify suitable acquisition opportunities in the future. Our continued growth is dependent on our development and successful commercialization of new products. If we fail to attract, hire, develop and retain qualified personnel, we may not be able to design, manufacture, market or sell our products or successfully grow our business. If we do not achieve the anticipated cost benefits of our global supply chain initiative, our future profitability may be adversely impacted. If our consolidated manufacturing operations were disrupted, we may be unable to supply products to our customers and achieve expected revenues. Sales of several of our products are dependent on a small number of customers, the loss of which may harm our business and result in a reduction in revenues and earnings. We may become involved in disputes regarding our patents and other intellectual property rights, which could result in prohibition on the use of certain technology in current or planned products, exposure of the business to significant liability and diversion of management s focus. Our operations must comply with environmental statutes and regulations, and any failure to comply could result in extensive costs which would harm our business. If our efforts to integrate acquired or licensed businesses or technologies into our business are not successful, our business could be harmed. Our sales may be negatively affected by the implementation of second source programs by our customers. Our use of third party manufacturers exposes us to increased risks that may affect our ability to supply our customers. Because we compete directly with one of our key suppliers and one of our significant distributors, our results of operations could be adversely affected if either of these parties discontinues or materially changes the terms of the agreement. If we experience a significant disruption in our information technology systems or if we fail to implement new systems and software successfully, our business could be adversely affected. We are subject to economic, political and other risks associated with our significant international sales and operations, which could adversely affect our business. Foreign exchange fluctuations may adversely affect our reported earnings, the value of our assets and the costs of our debt repayment. Reduction in our customers research and development budgets and government funding may result in reduced sales. Our revenues may fluctuate, and this fluctuation could cause financial results to be below expectations. Increased exposure to product liability claims could adversely affect our earnings. We heavily rely on air cargo carriers and other third party package delivery services, and a significant disruption in these services or significant increases in prices may disrupt our ability to ship products or import materials, increase our costs and lower our profitability. The stated value of long-lived and intangible assets may become impaired and result in an impairment charge. Our level of debt could limit cash flow available for our operations and could adversely affect our ability to service our debt or obtain additional financing, if necessary. We may require substantial additional capital to pursue strategic acquisitions or alliances, which capital we may not be able to obtain on commercially reasonable terms, if at all.

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66479--3/15/2006--MILLIPORE_CORP_/MA