CAUTIONARY STATEMENT REGARDING  FORWARD-LOOKING INFORMATION Certain statements contained in “Management’s Dis- cussion and Analysis of Financial Condition and Results of Operations,” “Letter to Shareholders” and elsewhere in this report constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based upon management’s current expectations, estimates, assumptions and beliefs concerning future events and conditions and may discuss, among other things, antici- pated future performance (including sales and earnings), expected growth, future business plans and the costs and potential liability for environmental-related matters and the lead pigment and lead-based paint litigation. Any statement that is not historical in nature is a for- ward-looking statement and may be identified by the use of words and phrases such as “expects,” “anticipates,” “believes,” “will,” “will likely result,” “will continue,” “plans to” and similar expressions. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking state- ments are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company, that could cause actual results to differ materially from such statements and from the Compa- ny’s historical results and experience. These risks, uncer- tainties and other factors include such things as: (a) general business conditions, strengths of retail and man- ufacturing economies and the growth in the coatings industry; (b) competitive factors, including pricing pres- sures and product innovation and quality; (c) changes in raw material availability and pricing; (d) changes in the Company’s relationships with customers and suppliers; (e) the ability of the Company to attain cost savings from productivity initiatives; (f) the ability of the Com- pany to successfully integrate past and future acquisi- Readers are cautioned that it is not possible to pre- dict or identify all of the risks, uncertainties and other factors that may affect future results and that the above list should not be considered to be a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company under- takes no obligation to update or revise any forward- looking statement, whether as a result of new information, future events or otherwise. tions into its existing operations, as well as the perform- ance of the businesses acquired, including the acquisi- tions of Duron, Inc. and Paint Sundry Brands Corporation; (g) changes in general domestic economic conditions such as inflation rates, interest rates and tax rates; (h) risks and uncertainties associated with the Company’s expansion into and its operations in China, South America and other foreign markets, including inflation rates, recessions, foreign currency exchange rates, foreign investment and repatriation restrictions, unrest and other external economic and political factors; (i) the achievement of growth in developing markets, such as China, Mexico and South America; (j) increas- ingly stringent domestic and foreign governmental regu- lations including those affecting the environment; (k) inherent uncertainties involved in assessing the Compa- ny’s potential liability for environmental remediation- related activities; (l) other changes in governmental policies, laws and regulations, including changes in accounting policies and standards and taxation require- ments (such as new tax laws and new or revised tax law interpretations); (m) the nature, cost, quantity and out- come of pending and future litigation and other claims, including the lead pigment and lead-based paint litiga- tion and the affect of any legislation and administrative regulations relating thereto; and (n) unusual weather conditions. 20