Egghead.com is a leading online retailer and direct marketer of brand name technology products, including personal computers, software and electronics. Egghead.com's target markets include the Small Office/Home Office (SOHO) and Small to Medium-Sized (SME) business users, as well as individual consumers. The Egghead.com site features several online superstores where buyers can research, review and purchase products and services from popular manufacturers, suppliers and service providers. Egghead.com also offers products and services such as sporting goods and travel products through its Leisure Products section. Egghead.com provides convenient shopping aids, such as technical tutorials, advanced product search, bid/order status and order tracking, and 24/7 online customer service.

Through its wide range of product offerings, sales models and business services, Egghead.com is an excellent resource for its target market - the 7.4 million small businesses and 18.6 million income-generating home offices in the U.S.* Egghead.com is headquartered in Menlo Park, California, with additional operations in Vancouver, Washington.

Offerings
Egghead.com has combined two of the most effective and popular online sales models - fixed-price sales, and auctions- to offer customers a variety of products at a wide range of price points. Through its relationships with major distributors, the Egghead.com Computer, Software, Office Products and Electronics Superstores offer customers access to more than 70,000 leading-edge products at competitive prices. The company's highly trafficked online auction channel offers an ever-changing array of excess and closeout computer products, consumer electronics, sporting goods and vacation/travel packages, giving bidders the opportunity to set true market prices for goods and services. Egghead.com is the largest retail auction site on the Internet, offering surplus products from nearly 500 vendors. Through its Smart Deals sales channel, Egghead.com offers a similarly wide range of popular new and refurbished products at discounted rates, enabling customers to select and buy immediately at low, pre-established prices.

Egghead.com also offers office products to its customers through the company's relationship with e-NITED Business Solutions®, the e-commerce and fulfillment division of United Stationers, North America's largest business products wholesaler. Egghead.com customers can conveniently restock their supply rooms while selecting the computer and electronics products they need.

Business Center
Egghead.com's Business Center provides a range of specialty services for business customers, including business accounts and online account tracking, volume price discounts and leasing opportunities. Egghead.com is one of the few e-tailers to offer Business Accounts, allowing business customers to establish an open line of credit for ease of purchasing. Egghead.com has established an in-house team of Business Sales Professionals who are trained to service business accounts, as well as a Software Licensing Sales group, which provides open licensing services. Egghead.com also offers a "Business Specials" section with specially priced products for business operators; a "Manufacturer's Showcase" where businesses can get the latest news from top manufacturers; and a "Shop Talk" section where businesses can learn how technology can improve their productivity. Egghead.com has a 15-year track record of providing quality services for small to mid-sized companies and will continue to enhance its online business offerings through its Business Center.

HISTORY - THE NEW EGGHEAD.COM
Overview
The new Egghead.com was formed when retail giant Egghead.com and online auction pioneer Onsale, Inc. merged in November of 1999. Research conducted prior to the merger showed that Egghead had one of the most recognized brands on the Internet, so the combined company chose to operate under the strong Egghead brand name.

Egghead Software
Egghead Software began in 1984 as a retail storefront for computer software, which grew quickly to an extensive chain with more than 205 stores nationwide. In response to market changes, the company moved its business to the Internet in 1998, re-emerging as Egghead.com. This transition won the company the MIT Sloan School of Management Award in 1999 for Web Transformation.

Onsale, Inc.
Onsale, Inc., the pioneer of online auctions, launched the Internet's first auction site in May 1995. Initially the company specialized in selling excess merchandise, such as refurbished and closeout products. By January of 1999 Onsale had successfully entered the new technology product market with the launch of its atCost™ program.

BUSINESS STRATEGY
The merger of Egghead.com and Onsale, Inc. has created the leading small business and home office Internet destination for buyers of technology products. The new Egghead.com has the largest revenue, traffic and customer base in its market in addition to a strong brand, leading technology and world-class customer service. The combined company exited 1999 with annualized sales of almost $600 million and 3 million registered users. Egghead.com's business strategy is to continue growing its customer base of IT buyers through expanded product offerings and enhanced content, and to generate revenue from this audience through virtual and direct product sales, advertising and co-op revenue, service offerings and affiliate marketing agreements.

AWARDS & RANKINGS
Egghead.com is continually ranked as a top online retailer by leading e-commerce research firms. Some recent rankings include:

• No. 4 ranking for the Gomez Summer 2000 Internet Computer Store Scorecard™ (June 2000)
• No. 17 on the "Top 20 Online Retailers" list published by PC Data (May 2000)
• No. 10 on WebCriteria's list of the "Most Usable B-to-C Web Sites," based on Neilsen//NetRatings data (May 2000).
• Top site selling consumer electronics by Nielsen//NetRatings (February 2000)
• Top web retailer of technology products among U.S. home web users by to PC Data Online (February 2000)
• No. 1 ranking for the Gomez.com Internet Buying Services Scoreboard's Ease-of-Use category by Gomez Associates (February 2000)
• Top technology e-tailer by PC Data Online (January 2000)
• First in total spending per NextCard cardholder (1999 holiday shopping season)
• Most visits of any computer and software reseller web site by Nielsen//NetRatings (November 15 through December 19, 1999)

Forward-looking statement: This fact sheet may contain "forward-looking" statements, including projections about our business, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. For example, statements in the future tense, and statements that we "expect," "plan," "estimate," "anticipate" or "believe," are forward-looking statements. These forward-looking statements are based on information available to us at the time of this document and we assume no obligation to update any such forward-looking statements. The statements in this document are not guarantees of future performance and actual results could differ materially from our current expectations as a result of numerous factors. For example: additional issuances of our common stock under may have the effect of lowering the market price of our shares; it may be more difficult than we anticipate, as a result of continued strong competition, to increase our customer base, average spending, or gross margins; and we may encounter unexpected difficulties in implementing our business plans. These and other risks and uncertainties associated with our business are detailed in our most recent Form 10-K and Form 10-Q, and the prospectus and any supplements filed in connection with the registration statement covering this offering, which are on file with the SEC and available through www.sec.gov.

2000 Egghead.com, Inc. All Rights Reserved. Egghead.com and Onsale are registered trademarks of Egghead.com, Inc. All other companies and their brand names mentioned are trademarks or registered trademarks of their respective holders.