782842--3/14/2007--FIRST_ALBANY_COMPANIES

related topics

{financial, litigation, operation}

{loss, insurance, financial}

{competitive, industry, competition}

{personnel, key, retain}

{condition, economic, financial}

{debt, indebtedness, cash}

{stock, price, operating}

{loan, real, estate}

{acquisition, growth, future}

{stock, price, share}

{system, service, information}

{regulation, change, law}

{regulation, government, change}

Our ability to retain our senior professionals and hire new senior management is critical to the success of our business. Limitations on our access to capital could impair our liquidity and our ability to conduct our businesses. Pricing and other competitive pressures may impair the revenues and profitability of our brokerage business. We focus principally on specific sectors of the economy, and a deterioration in the business environment in these sectors generally or decline in the market for securities of companies within these sectors could materially adversely affect our businesses. Increase in capital commitments in our trading, underwriting and other businesses increases the potential for significant losses. Our principal trading and investments expose us to risk of loss. Our financial results may fluctuate substantially from period to period, which may impact our stock price. If we violate the listing requirements of The NASDAQ Global Market, our common stock may be delisted. Difficult market conditions could adversely affect our business in many ways. We face strong competition from larger firms. Our risk management policies and procedures may leave us exposed to unidentified or unanticipated risk. Our operations and infrastructure may malfunction or fail. To be successful, we must profitably expand our business operations. We face numerous risks and uncertainties as we seek to expand. Our pending sale of the Municipal Capital Markets Group is subject to a variety of conditions and may not be completed. Risks Related to Our Industry Financial services firms have been subject to increased scrutiny and enforcement activity over the last several years, increasing the risk of financial liability and reputational harm resulting from adverse regulatory actions. Increased regulation of public companies in the U.S. could reduce our revenue and otherwise adversely affect our business. Our business is subject to significant credit risk. Our exposure to legal liability is significant, and damages that we may be required to pay and the reputational harm that could result from legal action against us could materially adversely affect our businesses. Employee misconduct could harm us and is difficult to detect and deter.

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782842--3/14/2007--FIRST_ALBANY_COMPANIES_INC