739878--3/31/2009--RUSS_BERRIE_&_CO

related topics

{product, market, service}

{debt, indebtedness, cash}

{customer, product, revenue}

{stock, price, share}

{condition, economic, financial}

{stock, price, operating}

{regulation, change, law}

{operation, international, foreign}

{property, intellectual, protect}

{system, service, information}

{operation, natural, condition}

{personnel, key, retain}

{product, liability, claim}

{provision, law, control}

{loss, insurance, financial}

{acquisition, growth, future}

Gross margin could be adversely affected by several factors. The state of the economy may impact our business. If the national and world-wide financial crisis intensifies, further potential disruptions in the credit markets may adversely affect the availability and cost of short-term funds for liquidity requirements and our ability to meet long-term commitments, which could adversely affect our results of operations, cash flows and financial condition. Changes in consumer preferences could adversely affect our net sales and profitability. Competition in our markets could reduce our net sales and profitability. To compete successfully, we must develop and maintain consumer-meaningful brands. Our debt covenants may affect our liquidity or limit our ability to complete acquisitions, incur debt, make investments, sell assets, merge or complete other significant transactions. Inability to maintain compliance with the bank covenants. Our cash flows and capital resources may be insufficient to make required payments on our indebtedness. If we lose key personnel we may not be able to achieve our objectives. Our business is dependent on several large customers. We may not be able to collect outstanding accounts receivable from our major retail customers. We rely on foreign suppliers, primarily in the PRC, to manufacture most of our products, which subjects us to numerous international business risks that could increase our costs or disrupt the supply of our products. Currency exchange rate fluctuations could increase our expenses. Product liability, product recalls and other claims relating to the use of our products could increase our costs. Competition for licenses could increase our licensing costs or limit our ability to market products. Trademark infringement or other intellectual property claims relating to our products could increase our costs. We may experience difficulties in integrating strategic acquisitions. Disruptions in our current information technology systems or difficulties in implementing alternative information technology systems could harm our business. A limited number of our shareholders can exert significant influence over us. Changes in our effective tax rate may have an adverse effect on our results of operations. Actual results differing from estimates. Increased costs associated with corporate governance compliance may affect our results of operations. If our divested gift business fails to satisfy certain obligations relating to their operations, we could face third-party claims seeking to hold us liable for those obligations. The trading price of our common stock has been volatile and investors in our common stock may experience substantial losses. If we fail to maintain compliance with the listing standards of the New York Stock Exchange, our common stock may be delisted therefrom. We do not anticipate paying regular dividends on our common stock in the foreseeable future, so any short-term return on your investment will depend on the market price of our common stock. Terrorist attacks and threats may disrupt our operations and negatively impact our revenues, costs and stock price. Various restrictions in our charter documents, policies, New Jersey law and our credit agreement could prevent or delay a change in control of us which is not supported by our board of directors.

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739878--3/31/2009--RUSS_BERRIE_&_CO_INC