887227--6/14/2006--CHOLESTECH

related topics

{customer, product, revenue}

{acquisition, growth, future}

{product, market, service}

{product, liability, claim}

{regulation, change, law}

{product, candidate, development}

{cost, regulation, environmental}

{property, intellectual, protect}

{operation, international, foreign}

{personnel, key, retain}

{control, financial, internal}

{provision, law, control}

{stock, price, operating}

{cost, operation, labor}

Our business depends on our ability to protect our proprietary technology through patents and other means and to operate without infringing the proprietary rights of others We depend on technology that we license from others, which may not be available to us in the future and would prevent us from introducing new products and harm our business Our stock price has been highly volatile and is likely to continue to be volatile, which could result in substantial losses for investors If third-party reimbursement for use of our products is eliminated or reduced, our sales will be greatly reduced and our business may fail If the healthcare system in the United States undergoes fundamental change, these changes may harm our business We depend on distributors to sell our products and failure to successfully maintain these relationships could adversely affect our ability to generate revenue We may be unable to accurately predict future sales through our distributors, which could harm our ability to efficiently manage our internal resources to match market demand We may be unable to effectively compete against other providers of diagnostic products, which could cause our sales to decline If we do not successfully develop, acquire or form alliances to introduce and market new tests and products, our future business will be harmed We face risks from failures in our manufacturing processes Our operating results may suffer if we do not reduce our manufacturing costs Our future results could be harmed by economic, political, regulatory and other risks associated with international sales We depend on single source suppliers for certain materials used in our manufacturing process and failure of our suppliers to provide materials to us could harm our business We rely on a limited number of customers for a substantial part of our revenue While we believe that we currently have adequate internal control over financial reporting, we are exposed to risks from recent legislation requiring companies to evaluate internal control over financial reporting Our products are subject to multiple levels of government regulation and any regulatory changes are difficult to predict and may be damaging to our business We may face fines or our manufacturing facilities could be closed if we fail to comply with manufacturing and environmental regulations We may pursue strategic acquisitions which could have an adverse impact on our business if they are unsuccessful If we are successful in growing sales, our business will be harmed if we cannot effectively manage the operational and management challenges of growth Our business could be negatively affected by the loss of key personnel or our inability to hire qualified personnel Product liability and professional liability suits against us could result in expensive and time consuming litigation, payment of substantial damages and an increase in our insurance rates We may need additional capital in the future to support our growth, and such additional funds may not be available to us We have made use of a device to limit the possibility that we are acquired, which may mean that a transaction that shareholders are in favor of or are benefited by may be prevented

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887227--6/14/2006--CHOLESTECH_CORPORATION