that date we implemented procedures, training and security features designed to protect the privacy and integrity of such 
health information.   Other regulations have been published under HIPAA (such as those related to the standardization of 
information used in processing healthcare transactions which require compliance by October 2003 and those related to 
additional security measures that must be implemented by April 2005) and other regulations required by HIPAA have yet to 
be published.  In addition, various states, including Texas, have passed legislation that addresses medical record privacy and 
restricts the use and disclosure of individually identifiable health information, and other federal or state privacy legislation 
may be enacted at any time.  HIPAA subjects us, as a service provider and as an employer, to liability and monetary penalties 
for failure to comply with HIPAA regulations.  If we fail to comply with HIPAA regulations and applicable state laws, we 
could incur liability under these provisions, which could have a material adverse effect on our profitability and cash flow. 
Budget deficits at state and local governments and their agencies.  A substantial portion of our revenues are derived from 
contracts with state and local governments and their agencies. Currently, many state and local governments that we have 
contracts with are facing potential budget deficits.  While this has not had a material adverse impact on our results of 
operations through the fiscal year 2003, it is unclear what impact, if any, these deficits may have on our future business, 
revenues, results of operations and cash flow. 
International risks.  Recently we have expanded our international operations. International operations are subject to a number 
of risks including, but not limited to the following   fluctuations in foreign exchange currency rates; licensing and labor 
counsel requirements; staffing key managerial positions; data privacy laws adopted by various countries in which ACS does 
business, including but not limited to member states of the European Union; general economic conditions in foreign 
countries;  additional expenses and risks inherent in conducting operations in geographically distant locations; laws of those 
foreign countries; political instability; trade restrictions such as tariffs and duties or other controls affecting foreign 
operations, and other factors that may adversely affect our business, financial condition and operating results.  
Armed hostilities and terrorist attacks. Terrorist attacks and further acts of violence or war may cause major instability in the 
U.S. and other financial markets in which we operate.  In addition, armed hostilities and acts of terrorism may directly impact 
our physical facilities and operations, which are located in North America, Central America, South America, Europe, Africa, 
Australia, Asia and the Middle East, or those of our clients. These developments subject our worldwide operations to 
increased risks and, depending on their magnitude, could have a material adverse effect on our business.  
Failure to attract and retain necessary technical personnel and skilled management and qualified subcontractors. Our success 
depends to a significant extent upon our ability to attract, retain and motivate highly skilled and qualified personnel and to 
subcontract with qualified, competent subcontractors.  If we fail to attract, train, and retain, sufficient numbers of these 
technically skilled people or are unable to contract with qualified, competent subcontractors, our business, financial 
condition, and results of operations will be materially and adversely affected.  Our success also depends on the skills, 
experience, and performance of key members of our management team and on qualified, competent subcontractors.  The loss 
of any key employee or the loss of a key subcontract relationship could have an adverse effect on our business, financial 
condition, cash flow and results of operations and prospects.
Servicing Risks.  We service (for various lenders and under various service agreements) a portfolio of over $14 billion of 
loans made under the Federal Family Loan Education Loan Program, which loans are guaranteed by a federal government 
agency.  If a loan is in default, then a claim is made upon the guarantor.  If the guarantor denies the claim because of a 
servicing error, then under certain of the servicing agreements we may be required to purchase the loan from the lender.  
Upon purchase of the loan, we attempt to cure the servicing errors and either sell the loan back to the guarantor (which must 
occur within a specified period of time) or sell the loan on the open market to a third party.  We are subject to the risk that we 
may be unable to cure the servicing errors or sell the loan on the open market.  Our reserves, which are based on historical 
information, may be inadequate if our servicing performance results in the requirement that we repurchase a substantial 
number of loans, which repurchase could have a material adverse impact on our cash flow and profitability. 
Disruption in Utility or Network Services.  Our services are dependent on the companies providing electricity and other 
utilities to our operating facilities, as well as network companies providing connectivity to our facilities and clients.  While 
there are backup systems in many of our operating facilities, an extended outage of utility services may have a material 
adverse effect on our operations, revenues, cash flow and profitability.  



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