912728--3/9/2006--FORWARD_AIR

related topics

{cost, regulation, environmental}

{customer, product, revenue}

{system, service, information}

{acquisition, growth, future}

{cost, operation, labor}

{capital, credit, financial}

{personnel, key, retain}

{product, market, service}

{provision, law, control}

{condition, economic, financial}

{financial, litigation, operation}

{regulation, change, law}

Our business is subject to general economic and business factors that are largely out of our control, any of which could have a materially adverse effect on our results of operations. In order to continue growth in our business, we will need to increase the volume and revenue per pound of the freight shipped through our system. Because a portion of our network costs are fixed, we will be adversely affected by any decrease in the volume or revenue per pound of freight shipped through our network. We operate in a highly competitive and fragmented industry, and our business will suffer if we are unable to adequately address downward pricing pressures and other factors that may adversely affect our operations and profitability. Claims for property damage, personal injuries or workers compensation and related expenses could significantly reduce our earnings. We have grown and may grow, in part, through acquisitions, which involve various risks, and we may not be able to identify or acquire companies consistent with our growth strategy or successfully integrate acquired businesses into our operations. We may have difficulty effectively managing our growth, which could adversely affect our results of operations. If we fail to maintain and enhance our information technology systems, we may lose orders and customers or incur costs beyond expectations. Our information technology systems are subject to risks that we cannot control. If we have difficulty attracting and retaining owner-operators or freight handlers, our results of operations could be adversely affected. A determination by regulators that our independent owner-operators are employees rather than independent contractors could expose us to various liabilities and additional costs. We operate in a regulated industry, and increased costs of compliance with, or liability for violation of, existing or future regulations could have a material adverse effect on our business. We are dependent on our senior management team, and the loss of any such personnel could materially and adversely affect our business. If our employees were to unionize, our operating costs would likely increase. Our shareholder rights plan, charter and bylaws and provisions of Tennessee law could discourage or prevent a takeover that may be considered favorable.

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912728--3/9/2006--FORWARD_AIR_CORP