745274--9/13/2006--CADMUS_COMMUNICATIONS

related topics

{cost, regulation, environmental}

{product, market, service}

{cost, operation, labor}

{competitive, industry, competition}

{cost, contract, operation}

{personnel, key, retain}

{property, intellectual, protect}

{debt, indebtedness, cash}

{condition, economic, financial}

{operation, international, foreign}

{acquisition, growth, future}

{customer, product, revenue}

Risks Relating To Our Business The printing industry is competitive and evolving; this competition may adversely affect our business. Certain revenues in the Publisher Services segment of our business are cyclical and dependent upon general economic conditions. The evolution of technology and alternative delivery media may decrease the demand for our products and services. We will be required to make capital expenditures to maintain our facilities and may be required to make significant capital expenditures to remain technologically and economically competitive, which may disrupt our operations. Our ability to attract, train and retain key executives and other qualified employees is crucial to our results of operations and future growth. Decreases in the types and amount of research funding could decrease the demand for our journal services. Some of our employees belong to labor unions and certain actions by such employees, such as strikes or work stoppages, could adversely affect our operations or cause us to incur costs. Our foreign operations subject us to additional operational and financial risk. We may not be able to acquire other companies, and companies we do acquire may not perform as well as expected. Industry consolidation of customers and increased competition for those customers may result in increased expenses and reduced revenue and market position. Increases in prices or shortages of paper and other raw materials could cause disruptions in our services to customers. Increases in fuel and other energy costs may have a negative impact on our financial results. Our cost reduction initiatives may not produce the expected cost savings or improve our profitability. Our production facilities may suffer business interruptions which could increase our operating costs, decrease our sales or cause us to lose customers. Our printing and other facilities are subject to environmental laws and regulations, which may subject us to liability or require us to incur costs. We may not protect our technology effectively, which would allow competitors to duplicate our products and services, or our products and services may infringe on claims of intellectual property rights of third parties. We may not be able to operate effectively given our high levels of indebtedness which could also adversely impact interest expense.

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745274--9/13/2006--CADMUS_COMMUNICATIONS_CORP/NEW