886171--3/10/2010--UNIVERSAL_HOSPITAL_SERVICES

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{regulation, government, change}

{customer, product, revenue}

{debt, indebtedness, cash}

{product, market, service}

{cost, contract, operation}

{condition, economic, financial}

{gas, price, oil}

{acquisition, growth, future}

{control, financial, internal}

{personnel, key, retain}

{product, liability, claim}

{stock, price, operating}

{capital, credit, financial}

{system, service, information}

{tax, income, asset}

{cost, regulation, environmental}

Our substantial indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under our indebtedness. If we are unable to fund our significant cash needs, we may be unable to expand our business as planned or to service our debt. We may not be able to obtain funding on acceptable terms or at all under our existing credit facilities or otherwise because of the deterioration of the credit and capital markets. Thus, we may be unable to expand our business as planned or to service our debt. We have risks related to our pension plan, which could impact our financial position. If our customers patient census or services decrease, the revenues generated by our business could decrease. A continuation of the global economic downturn could continue to adversely affect our customers and suppliers or have new, additional adverse effects on them, which could have further adverse effects on our operating results and financial position. We have relationships with certain key suppliers, and adverse developments concerning these suppliers could delay our ability to procure equipment or provide certain services, or increase our cost of purchasing equipment. If we are unable to change the manner in which health care providers traditionally procure medical equipment, we may not be able to achieve significant revenue growth. Our competitors may engage in significant competitive practices or sell significant amounts of surplus equipment, which could cause us to lose market share, reduce prices, or increase expenditures. Our competitors may bundle products and services offered to customers, some of which we do not offer. A substantial portion of our revenues come from customers with which we do not have long-term commitments, and cancellations by or disputes with customers could decrease the amount of revenues we generate, thereby reducing our ability to operate and expand our business. Consolidation in the health care industry may lead to a reduction in the prices we charge, thereby decreasing our revenues. Our growth strategy depends in part on our ability to successfully identify and manage our acquisitions and a failure to do so could impede our revenue growth, thereby weakening our industry position. Uncertainty surrounding health care reform initiatives remains. Depending on the scope and form of final health care reform legislation and its implementation, our business may be adversely affected. Changes in third-party payor reimbursement for health care items and services may affect our customers ability to pay for our services, which could cause us to reduce our prices or adversely affect our ability to collect payments. We depend on key personnel and our inability to attract and retain key personnel could harm our business. If we are unable to maintain existing contracts or contract terms with, or enter into new contracts with GPOs or IDNs, we may lose customers and/or the associated revenues. Our cash flow fluctuates during the year because operating income as a percentage of revenue fluctuates with our quarterly operating results and we make semi-annual debt service payments. A portion of our revenues are derived from home care providers and nursing homes, and these health care providers may pose additional credit risks. Our customers operate in a highly regulated environment. Regulations affecting them could cause us to incur additional expenses associated with compliance and licensing. We could be assessed fines and face possible exclusion from participation in state and federal health care programs if we violate laws or regulations applicable to our business. Although we do not manufacture any medical equipment, we own a large fleet of medical equipment, which may be subject to equipment recalls or obsolescence. Although we do not manufacture any medical equipment, our business entails the risk of claims related to the medical equipment that we outsource and service. We may not have adequate insurance to cover a claim, and it may be more expensive or difficult for us to obtain adequate insurance in the future. We may incur increased costs that we cannot pass through to our customers. Any failure of our management information systems could harm our business and operating results. There are inherent limitations in all internal control systems over financial reporting, and misstatements due to error or fraud may occur and not be detected. The interests of our principal equity holder may not be aligned with the interests of our other security holders.

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886171--3/10/2010--UNIVERSAL_HOSPITAL_SERVICES_INC