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Exhibit 99.1
  Item 1A.  Risk Factors, such items excerpted in its entirety from Hanover Compressor Companys Form 10-K for the year ended December 31, 2006 as filed with Securities and Exchange Commission on February 28, 2007.  Item 1A.
    Risk
    Factors  We
    have a substantial amount of debt, including our compression
    equipment lease obligations, that could limit our ability to
    fund future growth and operations and increase our exposure
    during adverse economic conditions.
      
    make it more difficult for us to satisfy our contractual
    obligations;
    increase our vulnerability to general adverse economic and
    industry conditions;
    limit our ability to fund future working capital, capital
    expenditures, acquisitions or other general corporate
    requirements;
    increase our vulnerability to interest rate fluctuations because
    the interest payments on a portion of our debt are at, and a
    portion of our compression equipment leasing expense is based
    upon, variable interest rates;
    limit our flexibility in planning for, or reacting to, changes
    in our business and our industry;
    place us at a disadvantage compared to our competitors that have
    less debt or fewer operating lease commitments; and
    limit our ability to borrow additional funds.  We
    will need to generate a significant amount of cash to service
    our debt, to fund working capital and to pay our debts as they
    come due.
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The
    documents governing our outstanding debt, including our
    compression equipment lease obligations, contain financial and
    other restrictive covenants. Failing to comply with those
    covenants could result in an event of default which, if not
    cured or waived, could have a material adverse effect on
    us.
    
    incur additional debt or issue guarantees;
    create liens on our assets;
    engage in mergers, consolidations and dispositions of assets;
    enter into additional operating leases;
    pay dividends on or redeem capital stock;
    enter into derivative transactions;
    make certain investments or restricted payments;
    make investments, loans or advancements to certain of our
    subsidiaries;
    prepay or modify our debt facilities;
    enter into transactions with affiliates; or
    enter into sale leaseback transactions.       2




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We
    have significant leverage relative to our total capitalization,
    which could result in a downgrade in our credit rating or other
    adverse consequences if we do not reduce our
    leverage.
    StandardMoodys

& PoorsOutlook


Positive



PositiveSenior implied rating


B1



BB−Liquidity Rating


SGL-3



2001A equipment lease notes,
    interest at 8.5%, due September 2008


Ba3, LGD 3



B+2001B equipment lease notes,
    interest at 8.8%, due September 2011


Ba3, LGD 3



B+4.75% convertible senior
    notes due 2008


B3, LGD 5



B4.75% convertible senior
    notes due 2014


B3, LGD 5



B8.625% senior notes due 2010


B2, LGD 4



B9.0% senior notes due 2014


B2, LGD 4



B7.5% senior notes due 2013


B2, LGD 4



B7.25% convertible junior
    subordinated notes due 2029*


B3, LGD 6



B−     *
    
    Rating is on the TIDES Preferred Securities issued by Hanover
    Compressor Capital Trust, a trust that we sponsored.    Our
    ability to substitute compression equipment under our
    compression equipment leases is limited and there are risks
    associated with reaching that limit prior to the expiration of
    the lease term.
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SubstitutionLimitation asValue of


Percentage of





Percentage ofSubstituted


Termination


Termination


Termination


Lease TerminationLease

Equipment


Value(1)


Value(1)


Value


Date(Dollars in millions)2001A compression equipment lease

$
20.2



14.7
%

$
137.1



25
%


September 20082001B compression equipment lease


54.0



21.0
%


257.7



25
%


September 2011Total

$
74.2






$
394.8     (1)
    
    Termination value assumes all accrued rents paid before
    termination.    A
    prolonged, substantial reduction in oil or gas prices, or
    prolonged instability in U.S. or global energy markets,
    could adversely affect our business.
      There
    are many risks associated with conducting operations in
    international markets.
    
    difficulties in managing international operations, including our
    ability to timely and cost effectively execute projects;
    unexpected changes in regulatory requirements;
    tariffs and other trade barriers that may restrict our ability
    to enter into new markets;
    governmental actions that result in the deprivation of contract
    rights;
    changes in political and economic conditions in the countries in
    which we operate, including civil uprisings, riots, kidnappings
    and terrorist acts, particularly with respect to our operations
    in Nigeria;
    potentially adverse tax consequences; 4




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
    restrictions on repatriation of earnings or expropriation of
    property without fair compensation;
    difficulties in establishing new international offices and risks
    inherent in establishing new relationships in foreign
    countries; and
    the burden of complying with the various laws and regulations in
    the countries in which we operate.    Local
    unrest and violence in Nigeria has adversely affected our
    financial results and could result in possible impairment and
    write-downs of our assets in Nigeria if the political situation
    in Nigeria does not improve.
        Further
    changes to the laws and regulations of Venezuela could adversely
    impact our results of operations and require us to write-down
    our investments in Venezuela.
    Fluctuations
    in currency exchange rates in international jurisdictions could
    adversely affect our business.
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Our
    proposed merger with Universal is subject to the receipt of
    consents and approvals from various government entities that may
    impose conditions on, jeopardize or delay completion of the
    mergers or reduce the anticipated benefits of the
    merger.  Hart-Scott-Rodino non-U.S.
    While
    the merger is pending, we will be subject to business
    uncertainties and contractual restrictions that could adversely
    affect our business.    Failure
    to complete the merger could negatively impact our stock price
    and our future business and financial results because of, among
    other things, the disruption that would occur as a result of
    uncertainties relating to a failure to complete the
    merger.   6




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
    being required to pay Universal a termination fee of up to
    $70 million in certain circumstances, as described further
    in the next risk factor; and
    having had the focus of our management directed toward the
    merger and integration planning instead of on our core business
    and other opportunities that could have been beneficial to us.      The
    merger agreement limits our ability to pursue an alternative
    acquisition proposal and may require us to pay a termination fee
    of up to $70 million if we do.      Many
    of our compressor leases with customers have short initial
    terms, and we cannot be sure that the leases for these rental
    compressors will be renewed after the end of the initial lease
    term.
    We
    operate in a highly competitive industry.
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Natural
    gas operations entail inherent risks that may result in
    substantial liability to us.
    Our
    ability to manage our business effectively will be weakened if
    we are unable to attract and retain qualified
    personnel.
    Our
    business is subject to a variety of governmental
    regulations.
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Our
    stock price may experience volatility.
    We are
    dependent on particular suppliers and are vulnerable to product
    shortages and price increases.
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