PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
SAFE HARBOR COMPLIANCE STATEMENT FOR
FORWARD LOOKING STATEMENTS
MARKET RISKS AND OTHER BUSINESS FACTORS
In passing the Private Securities Litigation Reform Act of 1995 (the "Reform
Act"), 15 U.S.C.A. Sections 77z 2 and 78u 5 (Supp. 1996), Congress encouraged
public companies to make "forward looking statements" by creating a safe
harbor to protect companies from securities law liability in connection with
forward looking statements. Americas Power Partners, Inc. ("the "Company")
intends to qualify both its written and oral forward looking statements for
protection under the Reform Act and any other similar safe harbor provisions.
"Forward looking statements" are defined by the Reform Act. Generally,
forward looking statements include expressed expectations of future events
and the assumptions on which the expressed expectations are based. All
forward looking statements are inherently uncertain as they are based on
various expectations and assumptions concerning future events and they are
subject to numerous known and unknown risks and uncertainties which could
cause actual events or results to differ materially from those projected.
Due to those uncertainties and risks, the investment community is urged not
to place undue reliance on written or oral forward looking statements of the
Company. The Company undertakes no obligation to update or revise this Safe
Harbor Compliance Statement for Forward Looking Statements (the "Safe Harbor
Statement") to reflect future developments. In addition, the Company
undertakes no obligation to update or revise forward looking statements to
reflect changed assumptions, the occurrence of unanticipated events or
changes to future operating results over time.
The Company provides the following risk factor disclosure in connection with
its continuing effort to qualify its written and oral forward looking
statements for the safe harbor protection of the Reform Act and any other
similar safe harbor provisions. Important factors currently known
to management that could cause actual results to differ materially from
those in forward looking statements include the disclosures incorporated
herein by reference and set forth in Item 5, Other Information, Business
Plan, of Form 8-K/A, filed on October 29, 1999 with the Securities and
Exchange Commission ("SEC") and also include the following:
Liquidity
The Company is considering the sale of equity in connection with a secondary
offering later in 2000. The Company does not have any underwriting
commitments for such sale of equity. There can be no assurance that any such
sale will close by such date or at all or that the Company will continue to
consider such an offering.
Litigation And Government Investigations
Numerous federal and state civil and criminal laws govern power plant
operations, development and ancillary activities. In general, these laws
provide for various fines, penalties, multiple damages, assessments and
sanctions for violations.
Evolving Industry Standards; Rapid Technological Changes
The Company's success in its business will depend in part upon its continued
ability to enhance its existing techniques and services, to introduce new
techniques and services quickly and cost effectively to meet evolving client
needs and to respond to emerging industry standards and other technological
changes. There can be no assurance that the Company will be able to respond
effectively to new industry standards. Moreover, there can be no assurance
that competitors of Americas Power Partners, Inc. will not develop
competitive techniques, or that any such competitive techniques will not have
an adverse effect upon the Company's operating results.
Moreover, management intends to continue to implement "best practices" and
other established process improvements in its operations going forward. There
can be no assurance that the Company will be successful in refining,
enhancing and developing its operating strategies and systems going forward,
that the costs associated with refining, enhancing and developing such
strategies and systems will not increase significantly in future periods.
Volatility Of Stock Price
The Company believes factors such as liquidity and financial resources and
quarter to quarter and year to year variations in financial results could
cause the market price of the Company's common stock to fluctuate
substantially. Any adverse announcement with respect to such matters or any
shortfall in revenue or earnings from levels expected by management could have
an immediate and material adverse effect on the trading price of the Company's
common stock in any given period. As a result, the market for the Company's
common stock may experience material adverse price and volume fluctuations
and an investment in the Company's common stock is not suitable for any
investor who is unwilling to assume the risk associated with any such price
and volume fluctuations.
