97745--3/1/2007--THERMO_FISHER_SCIENTIFIC

related topics

{cost, regulation, environmental}

{acquisition, growth, future}

{product, market, service}

{customer, product, revenue}

{property, intellectual, protect}

{regulation, government, change}

{product, liability, claim}

{condition, economic, financial}

{system, service, information}

{cost, operation, labor}

{operation, international, foreign}

{debt, indebtedness, cash}

{loss, insurance, financial}

We must develop new products, adapt to rapid and significant technological change and respond to introductions of new products in order to remain competitive. Development of our products requires significant investment; our products and technologies could become uncompetitive or obsolete. It may be difficult for us to implement our strategies for improving internal growth. The company may be unable to integrate successfully the legacy businesses of Thermo Electron Corporation and Fisher Scientific International Inc. and may be unable to realize the anticipated benefits of the merger. Our inability to protect our intellectual property could have a material adverse effect on our business. In addition, third parties may claim that we infringe their intellectual property, and we could suffer significant litigation or licensing expense as a result. Demand for most of our products depends on capital spending policies of our customers and on government funding policies. Our results could be impacted if we are unable to realize potential future benefits from new productivity initiatives. Our business is impacted by general economic conditions and related uncertainties affecting markets in which we operate. Adverse economic conditions could adversely impact our business in 2007 and beyond, resulting in: Changes in governmental regulations may reduce demand for our products or increase our expenses. If any of our security products fail to detect explosives or radiation, we could be exposed to product liability and related claims for which we may not have adequate insurance coverage. Our inability to successfully identify and complete acquisitions or successfully integrate any new or previous acquisitions could have a material adverse effect on our business. We have retained contingent liabilities from businesses that we have sold. As a multinational corporation, we are exposed to fluctuations in currency exchange rates, which could adversely affect our cash flows and results of operations. We are subject to laws and regulations governing government contracts, and failure to address these laws and regulations or comply with government contracts could harm our business by leading to a reduction in revenue associated with these customers. Because we compete directly with certain of our largest customers and product suppliers, our results of operations could be adversely affected in the short term if these customers or suppliers abruptly discontinue or significantly modify their relationship with us. Because we rely heavily on third-party package-delivery services, a significant disruption in these services or significant increases in prices may disrupt our ability to ship products, increase our costs and lower our profitability We are subject to regulation by various federal, state and foreign agencies that require us to comply with a wide variety of regulations, including those regarding the manufacture of products, the shipping of our products and environmental matters. We rely heavily on manufacturing operations to produce the products we sell, and our business could be adversely affected by disruptions of our manufacturing operations. We may be unable to adjust to rapid changes in the healthcare industry, some of which could adversely affect our business. We may incur unexpected costs from increases in fuel and raw material prices, which could reduce our earnings and cash flow. Unforeseen problems with the implementation and maintenance of our information systems could interfere with our operations. Our debt may adversely affect our cash flow and may restrict our investment opportunities or limit our activities.

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97745--3/1/2007--THERMO_FISHER_SCIENTIFIC_INC.