846876--3/16/2006--PRESSTEK_INC

related topics

{customer, product, revenue}

{acquisition, growth, future}

{product, market, service}

{property, intellectual, protect}

{control, financial, internal}

{product, liability, claim}

{condition, economic, financial}

{personnel, key, retain}

{stock, price, operating}

{financial, litigation, operation}

{product, candidate, development}

We are substantially dependent on our strategic alliance, as well as our manufacturing and distribution relationships to develop and grow our business. The loss or failure of one or more of our strategic partners could significantly harm our business. The acquisition of the ABDick business may affect our relationship with our third-party distribution and service partners, which may negatively impact our sales and distribution channels. If we are unable to manage acquisitions successfully it could harm our financial results, business and prospects. Our lengthy and variable sales cycle makes it difficult for us to predict when or if sales will occur and therefore we may experience an unplanned shortfall in revenues. We may not be able to increase revenues if we do not expand our sales and distribution channels. Our growth strategy may include licenses or acquisitions of technologies or businesses, which entail a number of risks. We face risks associated with our efforts to expand into international market and such risks could result in diversion of our management s attention from our existing business and/or cause us to incur additional expected and unexpected costs associated with penetrating, operating in and servicing such markets, any of which could have a material adverse effect on our financial condition and results of operations. We have experienced losses in the past, could incur substantial losses in the future, and may not be able to maintain profitability. Our quarterly revenues and operating results are likely to fluctuate significantly. We are dependent on third party suppliers for critical components and our inability to maintain an adequate supply of advanced laser diodes and other critical components could adversely affect us. Our manufacturing capabilities may be insufficient to meet the demand for our products. Recently introduced products that incorporate our technology may not be commercially successful and may not gain market acceptance. Recently introduced products that incorporate our technology may result in substantial support costs and warranty expenditures. If the United States and global economies slow down, the demand for our products could decrease and our revenue may be materially adversely affected. If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud. As a result, investors may lose confidence in our financial reporting and the price of our common stock may be negatively affected. The expansion of Lasertel into areas other than the production of laser diodes for our printing business may be unsuccessful. Lasertel may require additional working capital infusions from us, which may have a material adverse effect on our business. Our success is dependent on our ability to maintain and protect our proprietary rights. We face substantial competition in the sale of our products. We may not be able to adequately respond to changes in technology affecting the printing industry. Ongoing litigation could have an adverse impact on our business. The loss or unavailability of our key personnel would have a material adverse effect on our business.

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