913077--3/2/2009--AFFYMETRIX

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Risks Related to the Growth of Our Business We must continually offer new products and technologies to be successful. Failure to integrate acquired businesses into our operations successfully will adversely impact our results of operations. Emerging market opportunities in molecular diagnostics may not develop as quickly as we expect and we depend on the efforts of our partners to be successful. Risks Related to Our Sales Reduction in research and development budgets and government funding adversely impacts our sales. If we are unable to maintain our relationships with collaborative partners, we may have difficulty developing and selling our products and services. The size and structure of our current sales, marketing and technical support organizations may limit our ability to sell our products. Risks Related to the Manufacturing of Our Products We depend on a limited number of suppliers and we will be unable to manufacture our products if shipments from these suppliers are delayed or interrupted. We need to adjust our manufacturing capacity based on business requirements or improvements made to our technological capabilities and there are risks associated with such adjustment. We may lose customers or experience lost sales if we are unable to manufacture or experience delays in the manufacture of our products, or if we are unable to ensure their proper performance and quality. We may not be able to deliver acceptable products to our customers due to the rapidly evolving nature of genetic sequence information upon which our products are based. Risks Related to Our Operations We may not achieve sustained profitability. If we do not attract and retain key employees, our business could be impaired. We may not realize the expected benefits of our initiatives to reduce costs across our operations. The recent financial crisis could negatively affect our business, results of operations, and financial condition. Due to the international nature of our business, political or economic changes or other factors could harm our business. Our effective tax rate may vary significantly. We may be required to record a significant charge to earnings if our goodwill or other identified intangible assets become impaired. Risks Related to Our Investments Our strategic equity investments may result in losses. Global credit and financial market conditions could negatively impact the value of our current portfolio of cash equivalents or short-term investments and our ability to meet our financing objectives. Risks Related to Government Regulation and Litigation We may not successfully obtain or retain regulatory approval of any diagnostic or other product or service that we or our collaborative partners develop. Healthcare reform and restrictions on reimbursements may limit our returns on molecular diagnostic products that we may develop with our collaborators. Risks related to handling of hazardous materials and other regulations governing environmental safety We may be exposed to liability due to product defects. Ethical, legal and social concerns surrounding the use of genetic information could reduce demand for our products. The matters relating to our internal review of our historical stock option granting practices and the restatement of our consolidated financial statements may have a material adverse effect on us. Risks Related to Our Intellectual Property Our success will require that we establish a strong intellectual property position and that we can defend ourselves against intellectual property claims from others. Risks Related to Our Common Stock The market price of our common stock has been volatile. Our quarterly results have historically fluctuated significantly and may continue to do so. Failure to meet financial expectations may disappoint securities analysts or investors and result in a decline in our stock price.

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913077--3/2/2009--AFFYMETRIX_INC