Excerpt from Googles 2010 Annual Corporate Report (Item 1A, pp 9-20) Risks Related to Our Business and

Industry 1-- We face intense competition. 2-- If we do not continue to innovate and provide products and services that are useful to users, we may not remain competitive, and our revenues and operating results could suffer. 3-- Our ongoing investment in new business strategies and new products, services, and technologies is inherently risky, and could disrupt our ongoing businesses. 4-- We generate our revenues almost entirely from advertising, and the reduction in spending by or loss of advertisers could seriously harm our business. 5-- We expect our revenue growth rate to decline and anticipate downward pressure on our operating margin in the future. 6-- We are subject to increased regulatory scrutiny that may negatively impact our business. 7-- We are involved in legal proceedings that may result in adverse outcomes. 8-- Our business depends on a strong brand, and failing to maintain and enhance our brand would hurt our ability to expand our base of users, advertisers, Google Network members, and other partners. 9-- Acquisitions and investments could result in operating difficulties, dilution, and other harmful consequences that may adversely impact our business and results of operations. 10-- A variety of new and existing U.S. and foreign laws could subject us to claims or otherwise harm our business. 11-- Privacy concerns relating to our technology could damage our reputation and deter current and potential users from using our products and services. 12-- If our security measures are breached, or if our services are subject to attacks that degrade or deny the ability of users to access our products and services, our products and services may be perceived as not being secure, users and customers may curtail or stop using our products and services, and we may incur significant legal and financial exposure. 13-- We are, and may in the future be, subject to intellectual property or other claims, which are costly to defend, could result in significant damage awards, and could limit our ability to use certain technologies in the future. 14-- Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products, services, and brand. 15-- Our operating results may fluctuate, which makes our results difficult to predict and could cause our results to fall short of expectations. 16-- More individuals are using devices other than personal computers to access the internet. If users of these devices do not widely adopt versions of our web search technology, products, or operating systems developed for these devices, our business could be adversely affected. 17-- Web spam and content farms could decrease our search quality, which could damage our reputation and deter our current and potential users from using our products and services. 18-- Interruption or failure of our information technology and communications systems could hurt our ability to effectively provide our products and services, which could damage our reputation and harm our operating results. 19-- Our business and operations are experiencing rapid growth. If we fail to effectively manage our growth, our business and operating results could be harmed. 20-- Our international operations expose us to additional risks which could harm our business, operating results, and financial condition. 21-- If we were to lose the services of Larry, Sergey, Eric, or other members of our senior management team, we may not be able to execute our business strategy. 22-- We rely on highly skilled personnel and, if we are unable to retain or motivate key personnel, hire qualified personnel, or maintain our corporate culture, we may not be able to grow effectively. 23-- Our business depends on continued and unimpeded access to the internet by us and our users. Internet access providers may be able to block, degrade, or charge for access to certain of our products and services, which could lead to additional expenses and the loss of users and advertisers. 24-- New technologies could block our ads, which would harm our business. 25-- We are exposed to fluctuations in the market values of our investment portfolio. 26-- We may have exposure to greater than anticipated tax liabilities. Risks Related to Ownership of Our Common Stock 27-- The trading price for our Class A common stock may continue to be volatile. 28-- The concentration of our stock ownership limits our stockholders ability to influence corporate matters. 29-- Provisions in our charter documents and under Delaware law could discourage a takeover that stockholders may consider favorable.