927355--5/27/2010--TESSCO_TECHNOLOGIES

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{customer, product, revenue}

{acquisition, growth, future}

{stock, price, operating}

{product, market, service}

{condition, economic, financial}

{system, service, information}

{regulation, change, law}

{property, intellectual, protect}

{provision, law, control}

{debt, indebtedness, cash}

{product, liability, claim}

{tax, income, asset}

{operation, natural, condition}

{personnel, key, retain}

{capital, credit, financial}

{financial, litigation, operation}

RISKS RELATING TO OUR BUSINESS We face significant competition in the wireless communications distribution industry. We typically purchase and sell our products and services on the basis of individual sales or purchase orders, and even in those cases where we have standing agreements or arrangements with our customers and vendors, those agreements and arrangements typically contain no purchase or sale obligations and are otherwise terminable by either party upon several months or otherwise short notice. The loss or any change in the business habits of key customers or vendors, including AT T Mobility, may have a material adverse affect on our financial position and results of operations. Our business depends on the continued tendency of wireless equipment manufacturers and network operators to outsource aspects of their business to us in the future. We require substantial capital to operate, and the inability to obtain financing on favorable terms will adversely impact our business, financial position and results of operations. The current global financial crisis may have significant effects on our customers and suppliers that could result in material adverse effects on our business, operating results, and stock price. Our ability to borrow funds under our credit agreement could be constrained by the level of eligible receivables and inventory. We may be unable to successfully execute our merchandising and marketing strategic initiatives. The telecommunications products marketplace is dynamic and challenging because of the continued introduction of new products and services. Consolidation among wireless service carriers could result in the loss of significant customers. The failure of our information systems or inability to upgrade them could have a material adverse affect on our business, financial position and results of operations. We depend heavily on e-commerce, and website security breaches or Internet disruptions could have a material adverse affect on our business, financial position and results of operations. The inability to hire or retain certain key professionals, management and staff could adversely affect our business, financial condition and results of operations. The damage or destruction of any of our principal distribution or administrative facilities could materially adversely impact our business, financial position and results of operations. We depend on third parties to manufacture products that we distribute and, accordingly, rely on their quality control procedures. Our future operating results depend on our ability to purchase a sufficient amount of finished goods and bulk inventory to meet the demands of our customers. If our business does not perform well, or if we otherwise experience decline in the fair values of a portion or all of our business, we may be required to recognize impairments of our intangible or other long-lived assets, which could adversely affect our results of operations or financial condition. We rely on trademark filings and confidentiality agreements to protect our intellectual property rights. We offer credit to our customers and, therefore, are subject to significant credit risk. We intend to explore additional growth through acquisitions. Risks associated with the foreign suppliers from whom our products are sourced could adversely affect our financial performance. We rely on independent shipping companies to deliver inventory to us and to ship products to customers. Changes in accounting rules could have a material adverse impact on our results of operations. Changes in Income Tax and Other Regulatory Legislation We may be subject to litigation. We may incur product liability claims which could be costly and could harm our reputation. RISKS RELATED TO OWNERSHIP OF OUR COMMON STOCK A significant portion of our voting stock is controlled by our executive officers, directors and beneficial owners of 5% or more of our common stock. Without approval of our Board of Directors, it may be difficult for a third party to acquire control of the Company. This could affect the price of our common stock. Our quarterly operating results are subject to significant fluctuation.

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927355--5/27/2010--TESSCO_TECHNOLOGIES_INC