813781--6/9/2008--EXIDE

related topics

{financial, litigation, operation}

{competitive, industry, competition}

{debt, indebtedness, cash}

{product, market, service}

{condition, economic, financial}

{cost, operation, labor}

{operation, natural, condition}

{tax, income, asset}

{stock, price, share}

{cost, regulation, environmental}

{regulation, change, law}

{acquisition, growth, future}

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, financial position, results of operations, and cash flow. 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 business, financial position, results of operations, or cash flows. Work stoppages or other labor issues at the Company s facilities or its customers or suppliers facilities could adversely affect the Company s business, financial position, results of operations, or cash flows. 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. Holders of the Company s common stock are subject to the risk of dilution of their investment as the result of the issuance of additional shares of common stock and warrants to purchase common stock to holders of pre-petition claims to the extent the reserve of common stock and warrants established to satisfy such claims is insufficient. The Company s ability to recognize the benefits of deferred tax assets is dependent on future cash flows and taxable income CAUTIONARY STATEMENT FOR PURPOSES OF THE SAFE HARBOR PROVISION OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

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813781--6/9/2008--EXIDE_TECHNOLOGIES