750004--3/1/2007--SCIENTIFIC_GAMES

related topics

{stock, price, operating}

{regulation, government, change}

{cost, operation, labor}

{customer, product, revenue}

{cost, regulation, environmental}

{acquisition, growth, future}

{system, service, information}

{competitive, industry, competition}

{debt, indebtedness, cash}

{property, intellectual, protect}

{personnel, key, retain}

{operation, international, foreign}

{product, market, service}

{cost, contract, operation}

We operate in highly competitive industries and our success depends on our ability to effectively compete with numerous domestic and foreign businesses. Our business is subject to evolving technology. We are heavily dependent on our ability to renew our long-term contracts with our customers and we could lose substantial revenue if we are unable to renew certain of our contracts. Our ability to bid on new contracts is dependent upon our ability to fund required up-front capital expenditures through our cash from operations or through financings. Our business depends on the protection of our intellectual property and proprietary information. Our business competes on the basis of the security and integrity of our systems and products. Our industry is subject to strict government regulations that may limit our existing operations and have a negative impact on our ability to grow. Gaming opponents persist in their efforts to curtail the expansion of legalized gaming, which, if successful, could limit our existing operations. Our ability to complete future acquisitions of gaming and related businesses and integrate those businesses successfully could limit our future growth. Our revenues fluctuate due to seasonal, weather and other variations and you should not rely upon our periodic operating results as indications of future performance. We are dependent on our suppliers and contract manufacturers, and any failure of these parties to meet our performance and quality standards or requirements could cause us to incur additional costs or lose customers. We have foreign operations, which subjects us to additional risks. Certain holders of our common stock exert significant influence over the Company and make decisions with which other stockholders may disagree. If certain of our key personnel leave us, our business will be significantly adversely affected. We could incur costs in the event of violations of or liabilities under environmental laws. Failure to perform under our lottery contracts may result in litigation, substantial monetary liquidated damages, as well as contract termination. Labor disputes may have an adverse effect on our pari-mutuel operations. We have a significant amount of indebtedness and failure to generate sufficient cash as our debt comes due or to renew credit lines prior to expiration may adversely affect our business. The price of our common stock may be volatile.

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750004--3/1/2007--SCIENTIFIC_GAMES_CORP