771485--5/15/2009--PDG_ENVIRONMENTAL

related topics

{cost, contract, operation}

{capital, credit, financial}

{stock, price, share}

{stock, price, operating}

{acquisition, growth, future}

{debt, indebtedness, cash}

{personnel, key, retain}

{cost, regulation, environmental}

{competitive, industry, competition}

{condition, economic, financial}

{operation, natural, condition}

We are dependent upon our loan agreement and other financing to finance operations, and the failure to maintain this financing or to obtain replacement refinancing, would have a material adverse effect on our operations Our loan agreement contains restrictive covenants that limit our financial and operational flexibility and our ability to pay dividends. A continuing downturn in the U.S. economy may adversely affect our revenues, results of operations and financial condition. We are subject to the risk and uncertainties experienced by contractors. If we are unable to maintain adequate insurance and sufficient bonding capacity, our operations would be significantly impaired. If our insurance costs increase significantly, these incremental costs could negatively affect our financial results. We depend upon a few key employees and the loss of these employees would severely impact us. A significant number of our contracts are awarded via competitive bid and are priced as fixed fees, and a failure to accurately estimate the cost of such work could result in significant financial losses. The environmental remediation business is subject to significant government regulations, and the failure to comply with any such regulations could result in fines or injunctions, which could materially impair or even prevent the operation of our business. The failure to obtain and maintain required governmental licenses, permits and approvals could have a substantial adverse effect on our operations. The receipt of contract awards is unpredictable, and the failure to adjust our overhead structure to meet an unexpected decline in revenue could significantly impact our net income. The environmental remediation and specialty contracting industries are highly competitive and we face substantial competition from other companies. Our operating results may vary from quarter-to-quarter, causing our stock price to fluctuate. We cannot give any assurance that we will be able to secure additional financing to meet our future capital needs. A significant portion of our voting power is held by our directors, officers and significant stockholders, whose interest may conflict with those of our other stockholders. There may be limited liquidity in our common stock and its price may be subject to fluctuation. SEC rules concerning sales of low-priced securities may hinder re-sales of our common stock. Our strategy will include making additional acquisitions that may present risks to the business. We are required to file and to keep effective a shelf registration statement for stockholders and if we are unable to do so for the required period we may be required to make additional payments to the holders of the Common Stock issued in connection with the July 2005 private placement of our securities.

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771485--5/15/2009--PDG_ENVIRONMENTAL_INC