895450--6/16/2006--WILLBROS_GROUP

related topics

{operation, international, foreign}

{financial, litigation, operation}

{regulation, change, law}

{capital, credit, financial}

{cost, regulation, environmental}

{personnel, key, retain}

{customer, product, revenue}

{operation, natural, condition}

{investment, property, distribution}

{gas, price, oil}

{competitive, industry, competition}

{stock, price, operating}

{provision, law, control}

{debt, indebtedness, cash}

Governmental investigations into the activities of the Company, J. Kenneth Tillery, the former President of our principal international subsidiary, and other current and former employees of the Company could adversely affect us. The actions of Mr. Tillery and others have harmed the Company and may harm the Company in the future. Our reputation and our ability to do business may be impaired by the corrupt behavior of Mr. Tillery and other employees of WII or its subsidiaries. Special risks associated with doing business in highly corrupt environments may adversely affect our business. Investors are seeking to recover damages from us because of the actions of Mr. Tillery and others. Our business is highly dependent upon the level of capital expenditures by oil, gas and power companies on infrastructure. If we are not able to obtain a new credit facility to replace the 2004 Credit Facility, our ability to operate may be significantly restricted. If we are not able to renegotiate our surety bond lines, our ability to operate may be significantly restricted. Our significant international operations are subject to political and economic risks of developing countries. We may be adversely affected by a concentration of business in a particular country. Our business is dependent on a limited number of key clients. Our dependence upon fixed-price contracts could adversely affect our operating results. Percentage-of-completion method of accounting for contract revenue may result in material adjustments that would adversely affect our operating results. Terrorist attacks and war or risk of war may adversely affect our results of operations, our ability to raise capital or secure insurance or our future growth. Our operations are subject to a number of operational risks. We may become liable for the obligations of our joint ventures and our subcontractors. Governmental regulations could adversely affect our business. Our operations expose us to potential environmental liabilities. Our industry is highly competitive, which could impede our growth. Our operating results could be adversely affected if our non-U.S. operations became taxable in the United States. We are dependent upon the services of our executive management. Our Stockholder Rights Plan, Articles of Incorporation and By-Laws may inhibit a takeover, which may adversely affect the performance of our stock. It may be difficult to enforce judgments which are predicated on the federal securities laws of the United States against us.

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895450--6/16/2006--WILLBROS_GROUP_INC