913077--3/9/2006--AFFYMETRIX

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{product, candidate, development}

{customer, product, revenue}

{stock, price, operating}

{control, financial, internal}

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We may not maintain profitability. Our quarterly results have historically fluctuated significantly and may continue to fluctuate unpredictably and any failure to meet financial expectations may disappoint securities analysts or investors and result in a decline in our stock price. We may lose customers or experience lost sales if we are unable to manufacture our products and 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. We face risks associated with technological obsolescence and emergence of standardized systems for genetic analysis. Our success depends on the continuous development of new products and our ability to manage the transition from our older products to new products. We expect to face increasing competition. Recent accounting pronouncements may impact our future financial position and results of operations. Our effective tax rate may vary significantly. Our business depends on research and development spending levels for pharmaceutical and biotechnology companies and academic and governmental research institutions. Our success in penetrating emerging market opportunities in molecular diagnostics depends on the efforts of our partners and the ability of our GeneChip technologies to be used in clinical applications for diagnosing and informing the treatment of disease. We may not successfully obtain 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. 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. Our success will require that we establish a strong intellectual property position and that we can defend ourselves against intellectual property claims from others. 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. Due to the international nature of our business, political or economic changes or other factors could harm our business. 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. Because our business depends on key executives and scientists, our inability to recruit and retain these people could hinder our business expansion plans. Our strategic equity investments may result in losses. Future acquisitions may disrupt our business and distract our management. The market price of our common stock has been volatile.

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913077--3/9/2006--AFFYMETRIX_INC