879437--3/16/2009--infoGROUP

related topics

{regulation, government, change}

{product, market, service}

{acquisition, growth, future}

{capital, credit, financial}

{system, service, information}

{competitive, industry, competition}

{debt, indebtedness, cash}

{regulation, change, law}

{operation, international, foreign}

Our markets are highly competitive and many of our competitors have greater resources than we do. Changes in the direct marketing industry and in the industries in which our customers operate may adversely affect our business. If we do not adapt our products and services to respond to changes in technology, they could become obsolete. We must identify customer preferences and develop and offer products to meet their preferences to replace declining revenue from traditional direct marketing products and services. Changes in laws and regulations relating to data privacy could adversely affect our business. Our strategy to continue to grow through strategic acquisitions may result in unsuccessful integration of future acquired businesses and harm to our financial results. Future acquisitions may also harm our operating results, dilute our stockholders equity and create other financial difficulties for us. A failure in the integrity of our database could harm our brand and result in a loss of sales and an increase in legal claims. We may lose key business assets, including loss of data center capacity or the interruption of telecommunications links, the Internet, or power sources, which could significantly impede our ability to operate our business. Our ability to increase our revenues will depend in part on the success of the expansion of our international business. Our contracts with the U.S. federal government grant the government rights that are typically not found in commercial contracts and that could adversely affect our revenues and income. The U.S. federal government has the right to terminate its contracts with us at any time and such terminations could adversely affect our revenues and income. As a contractor to the U.S. federal government, we are subject to restrictions and compliance requirements that could divert the attention of our management, drain our resources and/or result in additional costs, fines or other penalties. Our government contracts are subject to audits and cost adjustments by the U.S. federal government, which could hurt our operating results. We are leveraged. If we are unable to service our debt as it becomes due or if we violate the covenants contained in our existing Credit Facility, our business would be harmed. The conditions of the U.S. and international capital and credit markets may adversely affect our ability to draw on our current revolving credit facility or obtain future short-term or long-term lending. The conditions of the U.S. and international capital and credit markets may adversely affect our interest expense under our existing credit facility.

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879437--3/16/2009--infoGROUP_Inc.