82788--3/31/2006--REFAC_OPTICAL_GROUP

related topics
{regulation, government, change}
{personnel, key, retain}
{stock, price, operating}
{investment, property, distribution}
{product, liability, claim}
{control, financial, internal}
{acquisition, growth, future}
Our Business is Subject to Health Care Regulations, Which Could Materially Adversely Affect Our Business, Financial Condition and Results of Operations. Changes in the Regulatory Environment Applicable to the Retail Eye Care Business, Including Health-Care Cost Containment Efforts by Medicare, Medicaid and Other Third-Party Payers may Adversely Affect the Company s Profits. Risks Related to the Eye Care Industry, Including the Cost and Availability of Medical Malpractice Insurance, and Possible Adverse Long-Term Experience With Laser and Other Surgical Vision Correction Could Have a Material Adverse Effect on Our Business, Financial Condition and Results of Operations Managed Care Companies Face Increasing Threats of Private-Party Litigation, Including Class Actions, Over the Scope of Care for Which Managed Care Companies Must Pay. Loss of the Services of Key Management Personnel Could Adversely Affect the Company s Business. Palisade Owns Sufficient Shares of the Company s Common Stock to Control the Company s Board of Directors and Control the Outcome of any Stockholder Vote. Conflicts of Interest May Arise Between Palisade and the Company. OptiCare and U.S. Vision Have Not Had Profitable Operations in Recent Years, and We Cannot Assure that the Company will be Profitable. If We Fail to Execute Our Growth Strategy, We May Not Be Profitable. OptiCare s Business is Substantially Dependent on a Professional Services and Support Agreement with a Professional Affiliate. If OptiCare s Managed Vision Care Division Fails to Negotiate Profitable Capitated Fee Arrangements, it Could Have A Material Adverse Effect on the Results of Operations and Financial Condition of the Combined Company. U.S. Vision s Revenues Depend Largely Upon its Lease Arrangement with J.C. Penney Company, Inc. U.S. Vision s Revenues Also Depend Upon its Lease Arrangements with Other Department Stores.

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