74046--10/20/2006--OIL_DRI_CORPORATION_OF

related topics

{stock, price, share}

{customer, product, revenue}

{cost, regulation, environmental}

{product, liability, claim}

{acquisition, growth, future}

{stock, price, operating}

{gas, price, oil}

{provision, law, control}

{control, financial, internal}

{operation, international, foreign}

{competitive, industry, competition}

{product, market, service}

Risks Related to our Business Our future growth and financial performance depend in large part on successful new product introductions. We face intense competition in our markets. Our quarterly results may be volatile. Acquisitions involve a number of risks, any of which could cause us not to realize the anticipated benefits. We depend on a limited number of customers for a large portion of our net sales. Providing price concessions or trade terms that are acceptable to our customers, or the failure to do so, could adversely affect our sales and profitability. Increases in energy prices would increase our operating costs, and we may be unable to pass all these increases on to our customers in the form of higher prices. Reductions in inventory by our customers could adversely affect our sales and increase our inventory risk. Increasing market acceptance of genetically enhanced and treated agricultural products, particularly genetically modified and treated seeds, could continue to adversely affect our business. Environmental, health and safety matters create potential compliance and other liability risks. Government regulation imposes significant costs on us, and future regulatory changes could increase those costs or limit our ability to produce and sell our products. We depend on our mining operations for substantially all of our supply of sorbent minerals. We may not be successful in acquiring adequate additional reserves in the future. We face risks as a result of our international sales and business operations. We may face product liability claims that are costly and create adverse publicity. Failure to achieve and maintain effective internal controls could have a material adverse effect on our business, operating results and stock price. Risks Related to Our Common Stock Our principal stockholders have the ability to control matters requiring a stockholder vote and could delay, deter or prevent a change of control in our company. We are a controlled company within the meaning of the New York Stock Exchange rules and, as a result, qualify for, and intend to rely on, exemptions from certain corporate governance requirements. The market price for our Common Stock may be volatile. Future sales of our Common Stock could depress its market price.

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74046--10/20/2006--OIL_DRI_CORPORATION_OF_AMERICA