BRIGHT HORIZONS FAMILY SOLUTIONS INC.

We are, from time to time, subject to claims, suits, proceedings, governmental reviews and matters arising in the ordinary course of business. Such claims have in the past generally been covered by third-party insurance for amounts above our self-insured retention level, but there can be no assurance that our insurance will be adequate to cover all liabilities that may arise out of claims or matters brought against us. While we believe the resolution of such legal matters will not have a material adverse effect on our financial position or liquidity, in light of recent safeguarding matters, including in the U.S. and U.K., we may experience higher than average claims and settlements that may not be fully covered by insurance and we cannot predict the ultimate outcome of any such actions.