INFORMATION RELATING TO FORWARD LOOKING STATEMENTS
This Annual Report includes forward-looking statements. These are subject to certain risks and uncertainties, including those identified below, which could cause actual results to differ materially from such statements. The words "believe," "expect," "anticipate," "optimistic," "intend," "aim," "will" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forwardlooking statements, which speak only as of the date on which they are made. American Express Company undertakes no obligation to update publicly or revise any forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements, including the company’s goals referred to herein, include but are not limited to the inability of American Express Company to: (i) employ the appropriate marketing strategy and product mix to extend the value of the American Express brand to the financial services industry, (ii) succeed in its ongoing reengineering efforts and in achieving best-in-class economics while also maintaining high service levels, (iii) increase distribution channels and cross-selling for financial, travel, card and other products and services, and manage the potential conflicts inherent in a growing, multichannel delivery system, (iv) invest successfully in, and compete at the leading edge of, technology across all businesses, (v) increase consumer and/ or business spending on its credit and charge cards, and gain market share, in part from developing new or enhanced products that capture a greater share of customers’ total spending on American Express Cards and other cards issued on its network, both in the U. S. and in its international operations, (vi) retain Cardmembers in consumer lending products after low introductory rate periods have expired, (vii) sustain premium discount rates, increase merchant coverage and reduce suppression, all of which will depend in part on its ability to maintain a customer base that appeals to merchants and to develop deeper merchant relationships through creation of new products and services, (viii) manage effectively consumer debt, business loans and other credit exposures in the U. S. and abroad, including unseasoned balances in its new lending portfolios, all of which could be affected by general economic conditions, including interest rates, consumer credit trends, the rate of bankruptcies and movements in currency valuations, (ix) sustain product sales and asset values at AEFA in a financial market crash or longer term market decline, (x) provide the right platform structure and other support to increase AEFA’s field force, attract and retain the personnel to improve its mutual fund performance and create the appropriate incentives and value proposition to successfully sell proprietary and non-proprietary products to its clients, (xi) adequately address its Y2K issues, successfully identifying its systems containing two-digit codes, the nature and amount of programming required to fix the affected systems and the costs of labor and consultants related to such effort, continuing to have access to such resources and ensuring that third parties that interface with the company successfully address their Y2K issues and (xii) successfully develop and implement a single company-wide interactive strategy, including making the online experience desirable, more reliable and less awkward for customers; successfully leveraging the company’s assets and skill in the internet environment, such as its brand, customer base, international presence and marketing and data base management skills; maintaining flexibility in its approach and use of resources to meet customers’ needs in a quickly changing and extremely competitive environment; viewing its businesses according to economic models not yet fully developed relating to investment costs, revenue streams, customer acquisition costs and other financial considerations and effectively managing the company’s online strategy in accordance with such models to generate profitable results; effectively using its resources to balance available investment spending with the earnings and revenue goals of the company and properly trade off time-to-market considerations with the desire to provide full service online capabilities; and attracting and retaining qualified personnel necessary to develop and execute the company’s internet strategy. Other factors include competition, unforeseen litigation or compliance costs and changes in laws or government regulations.
