813781--6/29/2006--EXIDE

related topics

{financial, litigation, operation}

{competitive, industry, competition}

{debt, indebtedness, cash}

{product, market, service}

{condition, economic, financial}

{operation, international, foreign}

{cost, operation, labor}

{personnel, key, retain}

{operation, natural, condition}

{cost, regulation, environmental}

{control, financial, internal}

{acquisition, growth, future}

The Company is subject to a preliminary SEC inquiry. The Company is subject to fluctuations in exchange rates and other risks associated with its non-U.S. operations which could adversely affect the Company s results of operations. The Company s liquidity is affected by the seasonality of its business. Warm winters and cool summers adversely affect the Company. Decreased demand in the industries in which the Company operates may adversely affect its business. The loss of the Company s sole supplier of polyethylene battery separators would have a material adverse effect on the Company s business. Many of the industries in which the Company operates are cyclical. The Company is subject to pricing pressure from its larger customers. The Company faces increasing competition and pricing pressure from other companies in its industries, and if the Company is unable to compete effectively with these competitors, the Company s sales and profitability could be adversely affected. If the Company is not able to develop new products or improve upon its existing products on a timely basis, the Company s business and financial condition could be adversely affected. The Company may be adversely affected by the instability and uncertainty in the world financial markets and the global economy, including the effects of turmoil in the Middle East. The Company may be unable to successfully implement its business strategy, which could adversely affect its results of operations and financial condition. The Company is subject to costly regulation in relation to environmental, health and safety matters, which could adversely affect its business and results of operations. The EPA or state environmental agencies could take the position that the Company has liability under environmental laws that were not discharged in bankruptcy. To the extent these authorities are successful in disputing the pre-petition nature of these claims, the Company could be required to perform remedial work that has not yet been performed for alleged pre-petition contamination, which would have a material adverse effect on the Company s financial condition, cash flows or results of operations. The Company may be adversely affected by legal proceedings to which the Company is, or may become, a party. The cost of resolving the Company s pre-petition disputed claims, including legal and other professional fees involved in settling or litigating these matters, could have a material adverse effect on its financial condition, cash flows and results of operations. The Company s ability to operate its business effectively could be impaired if the Company fails to attract and retain experienced key personnel. Work stoppages or other labor issues at the Company s facilities or its customers or suppliers facilities could adversely affect the Company s operations. The Company s substantial indebtedness could adversely affect its financial condition. Restrictive covenants limit the Company s ability to operate its business and to pursue its business strategies, and its failure to comply with these covenants could result in an acceleration of its indebtedness. The Company s internal control over financial reporting was not effective as of March 31, 2006.

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813781--6/29/2006--EXIDE_TECHNOLOGIES