CAUTIONARY STATEMENT UNDER SAFE HARBOR PROVISIONS OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Lance, Inc. (the Company), from time to time, makes "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements, which may be written or oral, reflect
expectations of management of the Company at the time such statements are made. The Company is filing this
cautionary statement to identify certain important factors that could cause the Company's actual results to differ
materially from those in any forward-looking statements made by or on behalf of the Company.
PRICE COMPETITION AND CONSOLIDATION
The sales of most of the Company's products are subject to intense competition primarily through discounting and
other price cutting techniques by competitors, many of whom are significantly larger and have greater resources
than the Company. In addition, there is a continuing consolidation by the major companies in the snack food
industry which could increase competition.
The Company's cost of sales can be adversely impacted by changes in the cost of raw materials, principally flour,
peanuts and peanut butter. While the Company obtains substantial commitments for the future delivery of certain
of its raw materials and engages in limited hedging to reduce the price risk of these raw materials and engages in
limited hedging to reduce the price risk of these raw materials, continuing long-term increases in the costs of raw
materials could adversely impact the Company's cost of sales.
The Company's plans for profitable sales growth depend upon the ability of the Company to develop and execute
effective marketing and sales strategies for its products.
There are other important factors not described above which could also cause actual results to differ materially
from those in any forward-looking statement made by or on behalf of the Company.