913165--3/16/2007--EXACTECH

related topics

{regulation, government, change}

{customer, product, revenue}

{product, liability, claim}

{product, market, service}

{property, intellectual, protect}

{product, candidate, development}

{competitive, industry, competition}

Exactech is subject to extensive government regulation Exactech expects the healthcare industry to face increased scrutiny over reimbursement and healthcare reform, which could adversely impact how much or under what circumstances healthcare providers will prescribe or administer Exactech s products Exactech is required to incur significant expenditures of resources in order to maintain relatively high levels of inventory Exactech relies upon third party suppliers for its raw materials and supplies Exactech conducts business in a highly competitive industry Exactech s success is partially dependent upon its ability to successfully market new and improved products and the market acceptance of those products Exactech s sales revenues are partially derived from the distribution of third party manufacturer s products Exactech is subject to federal anti-kickback laws and regulations Exactech holds patents on specific designs and processes and relies on trade secrets and proprietary know-how Exactech must devote substantial resources to research and development Exactech is subject to potential product liability risks, which are inherent in the design, marketing and sale of orthopaedic implants and surgical instrumentation Exactech is subject to the risk of an inability to secure and maintain adequate levels of product liability insurance coverage on acceptable terms. Exactech s products, including products that are manufactured by third parties but distributed by us, may be subject to recall or product liability claims.

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913165--3/16/2007--EXACTECH_INC