814549--4/10/2007--EBIX

related topics

{regulation, government, change}

{stock, price, operating}

{system, service, information}

{product, market, service}

{property, intellectual, protect}

{customer, product, revenue}

{provision, law, control}

{acquisition, growth, future}

{personnel, key, retain}

{regulation, change, law}

{operation, international, foreign}

Risks Related To Our Business and Our Industry Because the support revenue that we have traditionally relied upon has been steadily declining, it is important that new sources of revenue continue to be developed. One customer currently provides a significant percentage of our total revenue. Adverse insurance industry economics could adversely affect our revenues. Our operating results may fluctuate dramatically. We cannot predict our future capital needs and we may not be able to secure additional financing when we need it. Our recent acquisitions of Infinity and Finetre as well as any future acquisitions that we undertake could be difficult to integrate, disrupt our business, dilute stockholder value and harm our operating results. We may not be able to continue to develop new products to effectively adjust for rapid technological changes. The markets for our products are highly competitive and are likely to become more competitive, and our competitors may be able to respond more quickly to new or emerging technology and changes in customer requirements. If we are unable to protect our intellectual property, our reputation and competitiveness in the marketplace may be materially damaged. If we infringe on the proprietary rights of others, we may be at a competitive disadvantage, and any related litigation could be time consuming and costly. We depend on the continued services of our senior management and our ability to attract and retain other key personnel. Our international operations are subject to a number of risks that could affect our income and growth. Laws and regulations that govern the insurance industry could expose us or the agents, brokers and carriers who participate in our online marketplace to legal penalties. Governmental regulation of the telemarketing industry may increase our costs and restrict the operation and growth of our call center business. Risks Related to Our Conduct of Business on The Internet Any disruption of our Internet connections could affect the success of our Internet based products. Concerns regarding security of transactions or the transmission of confidential information over the Internet or security problems we experience may prevent us from expanding our business or subject us to legal exposure. Uncertainty in the marketplace regarding the use of Internet users personal information, or proposed legislation limiting such use, could reduce demand for our services and result in increased expenses. Future government regulation of the Internet could place financial burdens on our businesses. Risks Related To Our Common Stock The price of our common stock may be extremely volatile. The significant concentration of ownership of our common stock will limit your ability to influence corporate actions.

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814549--4/10/2007--EBIX_INC