811828--4/6/2007--ATLANTIS_PLASTICS

related topics

{property, intellectual, protect}

{customer, product, revenue}

{cost, regulation, environmental}

{condition, economic, financial}

{personnel, key, retain}

{provision, law, control}

{competitive, industry, competition}

{loan, real, estate}

We face intense competition that could result in our losing or failing to gain market share and adversely affect our results of operations. Our financial performance is dependent on raw material prices and our ability to pass on price increases to customers. Sales to one of our customers accounted for 17.4% of our net sales in 2006, and the loss of sales to that customer could harm our business, financial condition and results of operations. Our business may suffer if any of our key senior executives discontinues employment with us or if we are unable to recruit and retain highly qualified employees. Our intellectual property rights may be inadequate to protect our business. If third parties claim that we infringe upon their intellectual property rights, our operating profits could be adversely affected. If our products infringe on the intellectual property rights of others, we may be required to indemnify our customers for any damages they suffer. Environmental, health and safety matters could require material expenditures and changes in our operations. Our major shareholder has significant influence over our business and could delay, deter or prevent a change of control or other business combination. We face significant exposure to difficulties in the housing sector.

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811828--4/6/2007--ATLANTIS_PLASTICS_INC