Key Marketing Initiatives Generate Strong Revenue and New Customer Growth

ALISO VIEJO, Calif., —February 2, 2006 —, the Internet Superstore, today reported revenues of $111.6 million for the quarter ended December 31, 2005, an increase of 27% from revenues of $88.2 million in the fourth quarter of 2004. The 2005 fourth quarter revenue growth was almost double the year-over-year growth rate achieved during the first nine months of 2005. New customers during the fourth quarter of 2005 increased 39% over the fourth quarter of 2004. For the year ended December 31, 2005, revenues increased to $345.6 million, or 19% over 2004 revenues of $290.8 million.

For the 2005 fourth quarter, net income was $7.7 million, compared to a loss of $(1.4) million in the fourth quarter of 2004. achieved record net income results for the year ended December 31, 2005 as the Company's net loss decreased to $(800,000), from a net loss of $(15.4) million for the full year 2004. Net income for the full year and fourth quarter of 2005 included $3.6 million of advertising expense related to the Company's national media campaign, which began in September 2005, and a $12.2 million gain from the sale of an investment.

"We believe that the acceleration in the growth rate of both revenues and new customers in the fourth quarter of 2005 is a result of our recently launched national media campaign. We intend to continue to invest in this campaign throughout 2006 to take advantage of additional growth opportunities," said Scott Blum, Chairman and CEO of

About is a leading e-commerce company focused on providing its customers with a positive shopping experience and a broad selection of high-quality technology and entertainment retail goods at competitive prices. offers over 2 million products in a range of categories including consumer electronics, computer hardware and software, cell phones, books, music, videos, games, digital music downloads, toys and sporting goods. Individuals and businesses can shop quickly and easily at 24 hours a day, 7 days a week., founded in June of 1997, is located in Aliso Viejo, California.® and The Internet SuperstoreTM are trademarks of Inc. has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents has filed with the SEC for more complete information about and this offering. You may get these documents for free by visiting EDGAR on the SEC website at In addition, the prospectus relating to this offering is available by clicking on the following link

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