886171--3/31/2006--UNIVERSAL_HOSPITAL_SERVICES

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{customer, product, revenue}

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{personnel, key, retain}

{stock, price, operating}

{tax, income, asset}

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If the patient census of our customers decreases, the revenues generated by our business could decrease. 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. If we are unable to meet certain financial and operating covenants contained in our Amended Credit Agreement or Senior Notes, our creditors could accelerate the debt or restrict further borrowing. 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 price competition or liquidate significant amounts of surplus equipment, thereby decreasing the demand for outsourcing services and possibly causing us to reduce the rates we charge for our services. We have relationships with certain key suppliers, and adverse developments concerning these suppliers could delay our ability to procure equipment or increase our cost of purchasing equipment. A substantial portion of our revenues come from customers with whom 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. If we are unable to renew our contracts with GPOs or IDNs, we may lose existing customers, thereby reducing the amount of revenues we generate. 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. 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 future revenue growth, thereby weakening our position in the industry with respect to our competitors. We depend on our sales professionals and service specialists and may lose customers when any of our sales professionals and service specialists leave us. 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. Changes in reimbursement rates and policies by third-party payors for medical equipment costs may reduce the rates that providers can pay for our services, thereby requiring us to reduce our rates or putting our ability to collect payments at risk. In periods when significant health care reform initiatives were under consideration and uncertainty remained as to their likely outcome, our profits decreased as the cost of doing business increased. If other significant health care reform initiatives occur, they may have a similar, negative effect. A portion of our revenues are derived from home care providers and nursing homes, and these health care providers may pose additional credit risks. The interests of our major stockholders may conflict with your interests, and these stockholders could cause us to take action that would be against your interests. Consolidation in the health care industry may lead to a reduction in the outsourcing rates we charge, thereby decreasing our revenues. Our competitors may bundle products and services offered to customers, some of which we do not offer. Our customers operate in a highly regulated environment and the regulations affecting them could lead to additional expenses associated with compliance and licensing, along with penalties resulting from possible violations, thereby increasing our costs and reducing income. Although we do not manufacture any medical equipment, we own a large fleet of movable medical equipment which may be subject to equipment recalls or obsolescence. We may incur increased vendor costs that we cannot pass through to our customers.

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886171--3/31/2006--UNIVERSAL_HOSPITAL_SERVICES_INC