Playboy Enterprises (PLA)

1)

Foreign, national, state and local government regulations, actions or initiatives, including:

(a)

attempts to limit or otherwise regulate the sale, distribution or transmission of adult-oriented materials, including print, television, video and online materials,

(b)

limitations on the advertisement of tobacco, alcohol and other products which are important sources of advertising revenue for us, or

(c)

substantive changes in postal regulations or rates which could increase our postage and distribution costs;

2)

Risks associated with our foreign operations, including market acceptance and demand for our products and the products of our licensees;

3)

Our ability to manage the risk associated with our exposure to foreign currency exchange rate fluctuations;

4)

Changes in general economic conditions, consumer spending habits, viewing patterns, fashion trends or the retail sales environment which, in each case, could reduce demand for our programming and products and impact our advertising revenues;

5)

Our ability to protect our trademarks, copyrights and other intellectual property;

6)

Risks as a distributor of media content, including our becoming subject to claims for defamation, invasion of privacy, negligence, copyright, patent or trademark infringement, and other claims based on the nature and content of the materials we distribute;

7)

The risk our outstanding litigation could result in settlements or judgments which are material to us;

8)

Dilution from any potential issuance of common or convertible preferred stock or convertible debt in connection with financings or acquisition activities;

9)

Competition for advertisers from other publications, media or online providers or any decrease in spending by advertisers, either generally or with respect to the adult male market;

10)

Competition in the television, men’s magazine, Internet and product licensing markets;

11)

Attempts by consumers or private advocacy groups to exclude our programming or other products from distribution;

12)

Our television and Internet businesses’ reliance on third parties for technology and distribution, and any changes in that technology and/or unforeseen delays in its implementation which might affect our plans and assumptions;

13)

Risks associated with losing access to transponders and competition for transponders and channel space;

14)

The impact of industry consolidation, any decline in our access to, and acceptance by, DTH and/or cable systems and the possible resulting deterioration in the terms, cancellation of fee arrangements or pressure on splits with operators of these systems;

15)

Risks that we may not realize the expected increased sales and profits and other benefits from acquisitions, joint ventures and/or licensing arrangements;

16)

Any charges or costs we incur in connection with restructuring measures we may take in the future;

17)

Risks associated with the financial condition of Claxson Interactive Group, Inc., our Playboy TV-Latin America, LLC joint venture partner;

18)

Increases in paper, postage or printing costs;

19)

Effects of the national consolidation of the single-copy magazine distribution system; and

20)

Risks associated with the viability of our primarily subscription- and e-commerce-based Internet model.