The dialysis industry has been undergoing significant consolidation through the acquisition by certain major dialysis chains of smaller chains and independents. In December 2004, DaVita Inc.(�DaVita�), the second-largest dialysis chain in the United States, announced that it entered into a definitive agreement to acquire the U.S. renal care business of Gambro Healthcare, Inc.(�Gambro�). In addition, in May 2005, Fresenius Medical Care AG (�Fresenius�), the largest dialysis chain in the United States and a provider of single-use dialyzer products, announced that it entered into an agreement to acquire Renal Care Group, Inc.(�RCG�). DaVita, Gambro, and RCG are significant customers of the Company�s dialysis reuse products. If Fresenius�s acquisition is consummated, and if Fresenius converts all or substantially all of the dialysis clinics of RCG into single-use facilities, the Company�s sales of dialysis products could be adversely affected. In addition, the consolidation of dialysis providers could result in greater buying power by the larger resulting entities and thereby a reduction in the Company�s net sales due to reduced average selling prices of dialysis products. However, given the uncertainty of the post-acquisition operating strategies with respect to these two transactions, the Company is currently unable to determine the impact on its future sales of dialysis products and services.