892537--3/9/2007--MANTECH_INTERNATIONAL

related topics

{regulation, government, change}

{system, service, information}

{personnel, key, retain}

{cost, contract, operation}

{stock, price, operating}

{acquisition, growth, future}

{property, intellectual, protect}

{competitive, industry, competition}

{debt, indebtedness, cash}

{cost, operation, labor}

We depend on contracts with the U.S. federal government for substantially all of our revenues. If our relationships with the federal government are harmed, our business could be adversely affected. Federal government spending priorities may change in a manner that harms our business. Federal government contracts contain provisions that are unfavorable to us. If we fail to comply with complex procurement laws and regulations, we could be liable for various penalties or sanctions. Unfavorable federal government audit results could subject us to penalties or sanctions, and could harm our reputation and relationships with our customers and impair our ability to win new contracts. We derive significant revenues from contracts awarded through a competitive bidding process. The government may terminate our federal government contracts at any time. We may not accurately estimate the expenses, time and resources necessary to satisfy our contractual obligations. We may not receive the full amount authorized under our contracts and we may not accurately estimate our backlog. Federal customers may be consolidating requirements to larger procurements for procurement efficiency. Many of our federal government customers execute their procurement budgets through multiple award contracts under which we are required to compete for post-award orders, or for which we may not be eligible to compete, potentially limiting our ability to win new contracts and increase revenue. If we fail to recruit and retain skilled employees or employees with the necessary security clearances, we might not be able to perform under our contracts or win new business. Failure to maintain strong relationships with other contractors could result in a decline in our revenues. If we are unable to manage our growth, our business could be adversely affected. We may not be successful in identifying acquisition candidates, and we may undertake acquisitions that could increase our costs or liabilities or be disruptive. We may be exposed to liabilities or losses from operations that we have or will discontinue or otherwise sell. We face competition from other firms, many of which have substantially greater resources. Mr. Pedersen, our Chairman and Chief Executive Officer, effectively controls our company, and his interests may not be aligned with those of other stockholders. The loss of any member of our senior management could impair our customer relationships and disrupt the management of our business. We may be liable for systems and service failures. Covenants in our credit facility may restrict our financial and operating flexibility. Security breaches in classified government systems could adversely affect our business. Our quarterly operating results may fluctuate. Our business depends upon obtaining and maintaining required security clearances. Our employees or subcontractors may engage in misconduct or other improper activities, which could cause us to lose contracts. We may be harmed by intellectual property infringement claims.

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892537--3/9/2007--MANTECH_INTERNATIONAL_CORP