892482--3/12/2010--RIMAGE

related topics

{product, market, service}

{customer, product, revenue}

{property, intellectual, protect}

{stock, price, operating}

{stock, price, share}

{system, service, information}

{personnel, key, retain}

{operation, international, foreign}

{regulation, government, change}

{provision, law, control}

{regulation, change, law}

{condition, economic, financial}

Adverse economic conditions, particularly those affecting our customers, distributors and resellers, will harm our business. Technology in our industry evolves rapidly, potentially causing our products to become obsolete, and we must continue to enhance existing systems and develop new systems or we will lose sales. Our market is competitive and such competition may result in price reductions, lower gross profits and loss of market share. If our products fail to compete successfully with other existing publishing systems or newly-developed products for the storage media or content distribution industries, our business will suffer. We sell a significant portion of our products internationally, which exposes us to risks associated with foreign operations. If our domestic or international intellectual property rights are not adequately protected, others may offer products similar to ours which could depress our product selling prices and gross profit or result in loss of market share. We cannot assure you that others may not independently develop the same or similar technologies or otherwise obtain access to our technology and trade secrets. Our sales will decline, and our business will be materially harmed, if our sales and marketing efforts are not effective. If we do not maintain adequate inventories of component parts or finished goods, or if we fail to adequately forecast demand, the likely resulting delays in producing our publishing systems products would damage our business. We rely on single-source suppliers, which could cause delays, increases in costs or prevent us from completing customer orders, all of which could materially harm our business. Our products must be compatible with products designed and manufactured by others and, in the event of design changes or the introduction of new products by them or us, our products must continue to be compatible with products of others. Our publishing systems may have manufacturing or design defects that we discover after shipment, which could negatively affect our revenues, increase our costs and harm our reputation. If our systems fail to comply with domestic and international government regulations, or if these regulations result in a barrier to our business, we could lose sales. Fluctuations in our future operating results may negatively affect the market price of our common stock. If we fail to retain and attract highly skilled managerial and technical personnel, we may fail to remain competitive. Our stock price may be volatile, and a shareholder s investment could decline in value. Future sales of shares of our common stock in the public market may negatively affect our stock price. Provisions of Minnesota law, our bylaws and other agreements may deter a change of control of our company and may have a possible negative effect on our stock price. Compliance with changing regulation of corporate governance and public disclosure may result in additional expenses.

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892482--3/12/2010--RIMAGE_CORP