914536--2/27/2006--SPHERION

related topics

{personnel, key, retain}

{financial, litigation, operation}

{acquisition, growth, future}

{condition, economic, financial}

{regulation, change, law}

{operation, international, foreign}

{interest, director, officer}

{competitive, industry, competition}

{debt, indebtedness, cash}

{stock, price, operating}

{regulation, government, change}

{system, service, information}

{cost, regulation, environmental}

{customer, product, revenue}

We operate in highly competitive markets with low barriers to entry, and may be unable to compete successfully against existing or new competitors. Any significant economic downturn could result in lower revenues. A significant reduction in demand from our customers may result in a material impact on the results of our operations. A material impact may also result from the loss of customers or a deterioration of their financial condition. We may not achieve the intended effects of our business strategy. Our contracts contain termination provisions and pricing risks that could decrease our revenues, profitability and cash flow. Our failure or inability to perform under customer contracts could result in damage to our reputation and give rise to legal claims against us. The disposition of businesses previously sold, or in the process of being sold, may create contractual liabilities associated with indemnifications provided. Regulatory challenges to our tax filing positions could result in additional taxes. Government regulation may significantly increase our costs, including payroll-related costs and unemployment taxes. We are subject to business risks associated with international operations in Canada, which could make our international operations significantly more costly. We may be exposed to employment-related claims and costs that could have a material adverse affect on our business, financial condition and results of operations. We are dependent upon availability of qualified personnel, and may not be able to attract and retain sufficient numbers of qualified personnel necessary to succeed. We may lose our key personnel, and therefore, our business may suffer. Managing or integrating any future acquisitions may strain our resources. Failure to meet certain covenant requirements under our revolving lines of credit could impact part or all of our availability to borrow under our revolving lines of credit. We are a defendant in a variety of litigation and other actions from time to time, which may have a material adverse effect on our business, financial condition and results of operations. The price of our common stock may fluctuate significantly, which may result in losses for our investors.

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914536--2/27/2006--SPHERION_CORP