835011--9/7/2006--MGP_INGREDIENTS

related topics

{gas, price, oil}

{debt, indebtedness, cash}

{loss, insurance, financial}

{cost, operation, labor}

{cost, regulation, environmental}

{interest, director, officer}

{personnel, key, retain}

{provision, law, control}

{regulation, change, law}

{customer, product, revenue}

{tax, income, asset}

{condition, economic, financial}

{operation, natural, condition}

Our business is subject to certain risks and uncertainties. The following identifies those which we consider to be most important. The availability and cost of agricultural products that we use in our business are subject to weather and other factors beyond our control Our profitability is affected by the cost of natural gas. Volatile gasoline prices affect our profitability. The loss of major customer could have an adverse effect on our results of operations. The rapid growth of production capacity in the ethanol industry creates some market uncertainly for the ethanol industry. Federal regulations concerning tax incentives could expire or change which could reduce our revenue. 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. We may require significant cash flow to make capital expenditures and pay our debt. Hedging transactions involve risks that could harm our profitability. If we lose certain key personnel, we may not be successful. Work stoppages at our facilities could have a material adverse effect on the profitability of our business. We may suffer future impairment losses. Lenders may require us to abide by restrictive loan covenants that may hinder our ability to operate and reduce our profitability Common stockholders have limited rights under our Articles of Incorporation.

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835011--9/7/2006--MGP_INGREDIENTS_INC