835011--9/11/2009--MGP_INGREDIENTS

related topics

{gas, price, oil}

{customer, product, revenue}

{cost, contract, operation}

{condition, economic, financial}

{debt, indebtedness, cash}

{cost, operation, labor}

{product, market, service}

{tax, income, asset}

{cost, regulation, environmental}

{stock, price, share}

{personnel, key, retain}

{provision, law, control}

{control, financial, internal}

RISKS THAT AFFECT OUR BUSINESS AS A WHOLE Our reduced liquidity could affect our operations. We have incurred impairment and restructuring losses and may suffer such future losses. Covenants and other provisions in our credit facility could hinder our ability to operate. Our failure to comply with covenants in our credit facility could result in the acceleration of the debt extended under such facility, limit our liquidity and trigger other rights. As a result of recent operating losses we have incurred significant debt. Our profitability is affected by the cost of grain and flour that we use in our business, and the availability and cost of such agricultural products are subject to weather and other factors beyond our control. Our hedging strategy may not protect us from changes in prices of commodities. Our profitability is affected by the cost of natural gas. An interruption of operations at our Atchison facility could negatively affect our business. Changes in interest rates may affect our profitability We may require significant cash flow to make capital expenditures, and our ability to make such expenditures is limited. We are subject to extensive regulation, and compliance with existing or future laws and regulations may require us to incur substantial expenditures or require us to make product recalls. If we lose certain key personnel, we may not be successful. RISKS SPECIFIC TO OUR DISTILLERY PRODUCTS SEGMENT Volatile corn prices affect our profitability. The relationship between the price we pay for corn and the sales prices of our distillery co-products can fluctuate significantly and affect our results of operations. Our cost associated with our Pekin facility may increase. RISKS SPECIFIC TO OUR INGREDIENT SOLUTIONS SEGMENT The markets for our protein and starch products are very competitive, and our results could be adversely affected if we do not compete effectively. RISKS SPECIFIC TO OUR OTHER SEGMENT Our plant-based biopolymers and wood-based resins may not prove to be profitable. Common stockholders have limited rights under our Articles of Incorporation If we fail to meet all applicable continued listing requirements of The NASDAQ Global Market and NASDAQ determines to delist our common stock, the market liquidity and market price of our common stock could decline.

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835011--9/11/2009--MGP_INGREDIENTS_INC