96289--3/15/2006--RADIOSHACK

related topics

{product, market, service}

{customer, product, revenue}

{operation, natural, condition}

{condition, economic, financial}

{capital, credit, financial}

{loss, insurance, financial}

{acquisition, growth, future}

{operation, international, foreign}

{personnel, key, retain}

{competitive, industry, competition}

{regulation, change, law}

Our turnaround strategy may disrupt our business. In addition, the strategy may not be successful. Any reductions or changes in the growth rate of the wireless industry or changes in the dynamics of the wireless communications industry could cause a material adverse effect on our sales and financial results. The recent changes in our wireless carrier relationships may not be successful, which could cause a material adverse effect on our operations and financial results. Our inability to effectively manage our inventory levels, particularly excess or inadequate amounts of inventory, could adversely affect our financial results. We may not be able to maintain our historical gross margin levels. Changes in the financial markets or in our results of operations could reduce or eliminate our access to longer term capital or short-term credit availability, which could adversely affect our financial condition and liquidity. We may be unable to successfully execute our solutions strategy to dominate cost-effective solutions to meet everyone s routine electronics needs and families distinct electronics wants. Our competition is both intense and varied, and our failure to effectively compete could adversely affect our prospects. Adverse changes in national or regional U.S. economic conditions could negatively affect our financial results. Our inability to increase or maintain the level of sales in both our wireless and non-wireless platforms could adversely affect our results. The occurrence of severe weather events or natural disasters could significantly damage or destroy outlets or prohibit consumers from traveling to our retail locations, especially during the peak winter holiday shopping season. Any additional terrorist activities in the U.S., as well as the international war on terror, may adversely affect our sales and our stock price. If we fail to enter into, maintain and renew profitable relationships with providers of third-party branded products, our sales and gross margins could be adversely affected. Our inability to successfully identify and enter into relationships with developers of new technologies or the failure of these new technologies to be adopted by the market could impact our ability to increase or maintain our sales. Additionally, the absence of new services or products and product features in the merchandise categories we sell could adversely affect our sales. The inability to attract, retain and grow an effective management team or changes in the cost or availability of a suitable workforce to manage and support our operating strategies could cause our operating results to suffer. We have contingent lease obligations related to our discontinued retail operations that, if realized, could materially and adversely affect our financial results. Failure to comply with, or the additional implementation of, restrictions or regulations regarding the products and/or services we sell or changes in tax rules and regulations applicable to us, could adversely affect our business and our results of operations. Any potential tariffs imposed on products that we import from China, as well as the potential sudden strengthening of China s currency against the U.S. dollar, could reduce our gross margins and our overall profitability.

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96289--3/15/2006--RADIOSHACK_CORP