884624--3/16/2007--ORTHOFIX_INTERNATIONAL_N

related topics

{product, liability, claim}

{regulation, change, law}

{operation, international, foreign}

{property, intellectual, protect}

{personnel, key, retain}

{customer, product, revenue}

{regulation, government, change}

{cost, contract, operation}

{competitive, industry, competition}

{debt, indebtedness, cash}

{provision, law, control}

{stock, price, operating}

{cost, operation, labor}

{product, market, service}

Our acquisition of Blackstone Medical could present challenges for us. We depend on our ability to protect our intellectual property and proprietary rights, but we may not be able to maintain the confidentiality, or assure the protection, of these assets. Third parties may claim that we infringe on their proprietary rights and may prevent us from manufacturing and selling certain of our products. Reimbursement policies of third parties, cost containment measures and healthcare reform could adversely affect the demand for our products and limit our ability to sell our products. We may be subject to extensive government regulation that increases our costs and could limit our ability to market or sell our products. We may be subject to federal and state health care fraud and abuse laws, and could face substantial penalties if we are unable to fully comply with such laws. Our allograft and mesenchymal stem cell products could expose us to certain risks which could disrupt our business. We may be subject to product liability claims that may not be covered by insurance and could require us to pay substantial sums. Fluctuations in insurance expense could adversely affect our profitability. Our quarterly operating results may fluctuate. New developments by others could make our products or technologies non-competitive or obsolete. Our ability to market products successfully depends, in part, upon the acceptance of the products not only by consumers, but also by independent third parties. The industry in which we operate is highly competitive. We depend on our senior management team. Termination of our existing relationships with our independent sales representatives or distributors could have an adverse effect on our business. We are party to numerous contractual relationships. We face risks related to foreign currency exchange rates. We are subject to differing tax rates in several jurisdictions in which we operate. We are subject to differing customs and import/export rules in several jurisdictions in which we operate. Provisions of Netherlands Antilles law may have adverse consequences to our shareholders. Our business is subject to economic, political, regulatory and other risks associated with international sales and operations. We may incur costs and undertake new debt and contingent liabilities in a search for acquisitions. Our subsidiary Orthofix Holdings, Inc.'s senior secured bank credit facility contains significant financial and operating restrictions and requires mandatory prepayments that may have an adverse effect on our operations and limit our ability to grow our business. In order to compete, we must attract, retain and motivate key employees, and our failure to do so could have an adverse effect on our results of operations. Our results of operations could vary as a result of the methods, estimates and judgments we use in applying our accounting policies.

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884624--3/16/2007--ORTHOFIX_INTERNATIONAL_N_V