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EXHIBIT 99.1
OFFICEMAX, INC.
STATEMENT REGARDING FORWARD-LOOKING INFORMATION
The Private Securities Litigation Reform Act of 1995 (the "Act")
provides a "safe harbor" for "forward-looking statements" (as defined in the
Act). The Form 10-K to which this exhibit is attached, the Company's Annual
Report to Shareholders, any Form 10-Q or any Form 8-K of the Company, or any
other written or oral statements made by or on behalf of the Company may include
or incorporate by reference forward-looking statements which reflect the
Company's current view (as of the date such forward-looking statement is made)
with respect to future events, prospects, projections or financial performance.
These forward-looking statements are subject to certain uncertainties and other
factors that could cause actual results to differ materially from those made,
implied or projected in such statements. These uncertainties and other factors
include, but are not limited to the following:
- the Company faces uncertainties relating to general economic
conditions;
- the Company faces intense competition from a variety of
retailers, dealers and distributors, including, other
high-volume office product chains that are similar in concept
to the Company in terms of store format, pricing strategy and
product selection; in particular, the Company faces intense
price competition in its sales of computers and related
products;
- continued decline in average selling prices of computers and
other electronic equipment or unanticipated declines in the
average selling price of other products could adversely affect
the Company's results;
- the Company faces potential competition from Internet-based
merchandisers;
- there could be malfunctions or failures of the Company's
information systems, including malfunctions or failures
associated with Year 2000 readiness problems;
- an integral part of the Company's business plan is an
aggressive store growth strategy; there can be no assurance,
however, that the Company will be able to find favorable store
locations, negotiate favorable leases, hire and train
employees and store managers and integrate the new stores in a
manner that will allow it to meet its expansion strategy;
- as the Company expands the number of its stores in existing
markets, sales at existing stores may be impacted;
- new stores typically take time to reach the levels of sales
and profitability of the Company's existing stores, and there
can be no assurance that new stores will be as profitable as
existing stores;
- there are operating and financial risks related to managing
rapid growth and integrating acquired businesses;
- fluctuations in the Company's quarterly operating results have
occurred in the past and may occur in the future based on a
variety of factors such as new store openings with their
concurrent pre-opening expenses, the extent to which new
stores are less profitable as they commence operations, the
effect new stores have on the sale of existing stores in more
mature markets, the pricing activity of competitors in the
Company's markets, changes in the Company's product mix,
increases and decreases in advertising and promotional
expenses, the effects of seasonality, acquisition of contract
stationers and stores of competitors;
- there can be no assurance that (1) the Company will not
require additional sources of financing as a result of
unanticipated cash needs, acquisitions or other opportunities
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or disappointing operating results or (2) any additional funds
required by the Company will be available to the Company on
satisfactory terms;
- while the Company continues to evaluate its distribution
strategy and methods in order to take advantage of new and
improved technology to increase inventory controls and reduce
expenses and delivery lead times, there can be no assurance
that changes in the Company's current distribution methods
will accomplish these goals;
- there is potential for rapid and significant changes in
technology which could adversely affect the Company's
operations;
- the Company is largely dependent on the services of Michael
Feuer, the Company's Co-Founder, Chairman and Chief Executive
Officer, and its senior management; the loss of Mr. Feuer or
any of the Company's other senior management could have a
material adverse impact on the Company;
- there are risks associated with international operations,
including lack of local business experience, foreign currency
fluctuations, language and other cultural barriers, political
and economic instability and, since the Company's foreign
operations are not wholly-owned, a lack of operating control;
and
- strikes or other labor disruptions could adversely affect the
Company's operations.
The words "believe," "expect," "anticipate," "project," "plan,"
"intend," and similar expressions, among others, identify "forward-looking
statements," which speak only as of the date the statement was made. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.