932696--7/26/2007--INSIGHT_ENTERPRISES

related topics

{operation, international, foreign}

{product, market, service}

{system, service, information}

{capital, credit, financial}

{tax, income, asset}

{property, intellectual, protect}

{provision, law, control}

{financial, litigation, operation}

{control, financial, internal}

{stock, price, share}

{personnel, key, retain}

{regulation, government, change}

{acquisition, growth, future}

{customer, product, revenue}

Disruptions in our IT systems and voice and data networks, including the upgrade to my SAP and the migration of Software Spectrum to our IT systems and voice and data networks, could affect our ability to service our clients and cause us to incur additional expenses. The integration and operation of Software Spectrum may disrupt our business and create additional expenses, and we may not achieve the anticipated benefits of the acquisition. The IT hardware, software and services industry is intensely competitive, and actions of our competitors, including manufacturers and publishers of products we sell, can negatively affect our business. We have received an informal inquiry from the SEC and could be subject to stockholder litigation and other regulatory proceedings related to the Options Subcommittee s investigation of our historical stock option granting practices and the related restatement of our consolidated financial statements. Evaluation of internal control over financial reporting under the Sarbanes-Oxley Act of 2002 will continue to affect our results There are risks associated with international operations that are different than those inherent in the U.S. and our exposure to the risks of a global market could hinder our ability to maintain and expand international operations. The acquisition of Software Spectrum utilized the majority of our cash balances, increased our outstanding debt and interest expense and lowered the availability on our financing facilities, all of which could have a material adverse effect on our results of operations and financial condition International operations expose us to currency exchange risk and we cannot predict the effect of future exchange rate fluctuations on our business and operating results. Sales of software licenses are subject to seasonal changes in demand and resulting sales activities. We depend on certain key personnel. If purchased goodwill or amortizable intangible assets become impaired, we may be required to record a significant charge to earnings. The failure to comply with the terms and conditions of our public sector contracts could result in, among other things, fines or other liabilities. We have very limited experience in outsourcing business functions to India. Rapid changes in product standards may result in substantial inventory obsolescence. We may not be able to protect out intellectual property adequately, and we may be subject to intellectual property infringement claims. We issue equity-based awards, such as restricted stock units, under our long-term incentive plans, and these issuances dilute the interests of stockholders. Some anti-takeover provisions contained in our certificate of incorporation, bylaws and stockholders rights agreement, as well as provisions of Delaware law and executive employment contracts, could impair a takeover attempt.

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932696--7/26/2007--INSIGHT_ENTERPRISES_INC