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This excerpt taken from the SMG 10-K filed Dec 14, 2006. Products
Perceptions that the products we produce and market are not safe
could adversely affect us and contribute to the risk we will be
subjected to legal action. We manufacture and market a number of
complex chemical products, such as fertilizers, growing media,
herbicides and pesticides, bearing our brand names. On occasion,
allegations are made that some of our products have failed to
perform up to expectations or have caused damage or injury to
individuals or property. Based on reports of contamination at a
third party supplier’s vermiculite mine, the public may
perceive that some of our products manufactured in the past
using vermiculite are or may also be contaminated. Public
perception that our products are not safe, whether justified or
not, could impair our reputation, involve us in litigation,
damage our brand names and have a material adverse affect on our
business.
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