The statements contained in this Form 10-Q include forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 ("PSLRA"). When used in this Form 10-Q and in future filings by the
Company with the Securities and Exchange Commission, in the Company's press releases, presentations to
securities analysts or investors, or in oral statements made by or with the approval of an executive officer of the
Company, the words or phrases "believes," "may," "will likely result," "estimates," "projects," "anticipates,"
"expects" or similar expressions and variations thereof are intended to identify such forward-looking statements.
Any forward-looking statement involves risks and uncertainties that may have a material adverse effect on the
business, results of operation, financial condition or prospects, financial or other, of the Company and may cause
the Company's actual results to differ materially from historical results or the results discussed in the forward-
The following discussions contain cautionary statements regarding the Company's business that investors and
others should consider. This discussion is intended to take advantage of the "safe harbor" provisions of the
PSLRA. In making these cautionary statements, the Company is not undertaking to address or update each
factor in future filings or communications regarding the Company's business or results.
DEPENDENCE ON CDR(TM)
To date the Company's revenues are primarily generated from sales of its CDR(TM) system and, to a lesser
extent, the CDRCam(TM), accuDEXA(TM) and the CDR Discovery 60/70 DC(TM). There can be no
assurance that any of these devices will not be rendered obsolete or inferior as a result of technological change,
changing customer needs or new product introductions, each of which would have a material adverse effect on
the Company. There can be no assurance that the Company's competitors will not succeed in developing or