854860--12/14/2006--WILLIAMS_CONTROLS

related topics

{customer, product, revenue}

{operation, international, foreign}

{cost, regulation, environmental}

{product, liability, claim}

{cost, contract, operation}

{regulation, change, law}

{cost, operation, labor}

{loss, insurance, financial}

{stock, price, operating}

Risks related to our business: A significant portion of our sales are derived from a limited number of customers, and results of operations could be adversely affected and stockholder value harmed if we lose any of these customers. Demand for equipment on which our products are installed may decrease, which could adversely affect our revenues and stockholder value. Our products could be recalled, which could increase our costs and decrease our revenues. We purchase raw materials and component parts from suppliers and changes in the relationships with such suppliers, as well as increases in the costs of such raw materials and/or component parts, would adversely affect our ability to produce and market our products, which would adversely affect our profit margins, results from operations and stockholder value. Our products could be subject to product liability claims by customers and/or consumers, which would adversely affect our profit margins, results from operations and stockholder value. Work stoppages or other changes in the relationships with our employees could make it difficult for us to produce and effectively market our products, which would adversely affect our profit margins, results from operations and stockholder value. Our defined benefit pension plans are under-funded and, therefore, we may be required to increase our contributions to the plans, which would adversely affect our cash flows. Risks related to environmental laws: The soil and groundwater at our Portland, Oregon facility contains certain contaminants that may require us to incur substantial expense to investigate and remediate, which would adversely affect our profit margins, results from operations and stockholder value. We are required to comply with federal and state environmental laws, which could become increasingly expensive and could result in substantial liability if we do not comply. Risks related to foreign operations: Fluctuations in the value of currencies could adversely affect our international sales, which would result in reduced revenues and stockholder value. Complying with the laws applicable to foreign markets may become more difficult and expensive in the future, which could adversely affect our results from operations and stockholder value. Political and economic instability in the foreign markets may make doing business there more difficult and costly, which could adversely affect our results from operations and stockholder value. Risks Related to our Capital Structure: The market price of our stock has been and may continue to be volatile, which could result in losses for stockholders.

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854860--12/14/2006--WILLIAMS_CONTROLS_INC