817979--3/9/2007--ACCURIDE

related topics

{debt, indebtedness, cash}

{property, intellectual, protect}

{product, market, service}

{product, liability, claim}

{personnel, key, retain}

{operation, natural, condition}

{operation, international, foreign}

{cost, operation, labor}

{investment, property, distribution}

{competitive, industry, competition}

{cost, regulation, environmental}

We operate in highly competitive markets. We face exposure to foreign exchange rate fluctuations and if we were to experience a substantial fluctuation, our profitability may change. We may not be able to continue to meet our customers demands for our products and services. Equipment failures, delays in deliveries or catastrophic loss at any of our facilities could lead to production or service curtailments or shutdowns. We may incur potential product liability, warranty and product recall costs. Work stoppages or other labor issues at our facilities or at our customers facilities could adversely affect our operations. We are subject to a number of environmental rules and regulations that may require us to make substantial expenditures. We might fail to adequately protect our intellectual property, or third parties might assert that our technologies infringe on their intellectual property. Litigation against us could be costly and time consuming to defend. If we fail to retain our executive officers, our business could be harmed. Although we do not presently anticipate terminating any senior management employees, certain senior management employees have entered into potentially costly severance arrangements with us. Our products may be rendered obsolete or less attractive by changes in regulatory, legislative or industry requirements. Other Risks Related to Our Business Our substantial leverage and significant debt service obligations could adversely affect our financial condition or our ability to fulfill our obligations and make it more difficult for us to fund our operations. Despite our substantial leverage, our subsidiaries and we will be able to incur more indebtedness. This could further exacerbate the risk immediately described above, including our ability to service our indebtedness. To service our indebtedness, we will require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control. We are subject to a number of restrictive covenants, which, if breached, may restrict our business and financing activities.

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817979--3/9/2007--ACCURIDE_CORP