If we are unable to attract and retain key personnel our business could be materially adversely affected. We may not realize the improved operating results that we anticipate from past and future acquisitions and we  may experience difficulties in integrating acquired businesses. Our operating results depend in part on continued successful research, development and marketing of new and/ or improved products and services, and there can be no assurance that we will continue to successfully introduce  new products and services. ITEM 1B.uNrEsOlvEd sTAFF COMMENTs Our business substantially depends on the continued service of key members of our management. The loss of the services of a  significant number of members of our management could have a material adverse effect on our business. Our future success will also  depend on our ability to attract and retain highly skilled personnel, such as engineering, finance, marketing and senior management  professionals. Competition for these employees is intense, and we could experience difficulty from time to time in hiring and retaining  the personnel necessary to support our business. If we do not succeed in retaining our current employees and attracting new high  quality employees, our business could be materially adversely affected. We seek to grow, in part, through strategic acquisitions and joint ventures, which are intended to complement or expand our businesses,  and expect to continue to do so in the future. These acquisitions involve challenges and risks. In the event that we do not successfully  integrate these acquisitions into our existing operations so as to realize the expected return on our investment, our results of operations,  cash flow or financial condition could be adversely affected. The success of new and improved products and services depends on their initial and continued acceptance by our customers. Our  businesses are affected, to varying degrees, by technological change and corresponding shifts in customer demand, which could result  in unpredictable product transitions or shortened life cycles. We may experience difficulties or delays in the research, development,  production, or marketing of new products and services which may prevent us from recouping or realizing a return on the investments  required to bring new products and services to market. The end result could be a negative impact on our operating results. None. 10 THE TIMKEN COMPANY rIsK FACTOrs