This\ue000 report\ue000 and\ue000 the\ue000 exhibit\ue000 furnished\ue000 with\ue000 it\ue000 contain\ue000 statements\ue000 made\ue000 by\ue000 Bidz\ue000 that\ue000 are\ue000 forward-looking\ue000 statements\ue000 within\ue000 the\ue000 meaning\ue000 of
Section\ue000 21E\ue000 of\ue000 the\ue000 Securities\ue000 Exchange\ue000 Act\ue000 of\ue000 1934,\ue000 as\ue000 amended,\ue000 including\ue000 forward-looking\ue000 statements\ue000 about\ue000 the\ue000 Company\u2019s\ue000 estimated
revenue,\ue000 gross\ue000 margins,\ue000 earnings\ue000 and\ue000 tax\ue000 rates.\ue000 \ue000 All\ue000 statements\ue000 other\ue000 than\ue000 statements\ue000 of\ue000 historical\ue000 facts\ue000 contained\ue000 in\ue000 this\ue000 Current\ue000 Report\ue000 on
Form\ue000 8-K\ue000 and\ue000 \ue000 exhibit,\ue000 including\ue000 statements\ue000 regarding\ue000 the\ue000 Company\u2019s\ue000 future\ue000 financial\ue000 position,\ue000 business\ue000 strategy\ue000 and\ue000 plans\ue000 and\ue000 objectives\ue000 of
management\ue000 for\ue000 future\ue000 operations,\ue000 are\ue000 forward\ue000 looking\ue000 statements.\ue000 \ue000 The\ue000 words\ue000 \u201cbelieve,\u201d\ue000 \u201cmay,\u201d\ue000 \u201cwill,\u201d\ue000 \u201cestimate,\u201d\ue000 \u201ccontinue,\u201d\ue000 \u201canticipate,\u201d
\u201cintend,\u201d\ue000 \u201cexpect,\u201d\ue000 and\ue000 similar\ue000 expressions,\ue000 as\ue000 they\ue000 relate\ue000 to\ue000 the\ue000 Company,\ue000 are\ue000 intended\ue000 to\ue000 identify\ue000 forward\ue000 looking\ue000 statements.\ue000 \ue000 Bidz\ue000 based
these\ue000 forward-looking\ue000 statements\ue000 largely\ue000 on\ue000 current\ue000 expectations\ue000 and\ue000 projections\ue000 about\ue000 future\ue000 events\ue000 and\ue000 financial\ue000 trends\ue000 that\ue000 Bidz\ue000 believes
may\ue000 affect\ue000 its\ue000 financial\ue000 condition,\ue000 results\ue000 of\ue000 operations,\ue000 business\ue000 strategy\ue000 and\ue000 financial\ue000 needs.\ue000 \ue000 Risks\ue000 and\ue000 uncertainties\ue000 include\ue000 the\ue000 ability\ue000 of
the\ue000 Company\ue000 to\ue000 attract\ue000 customers\ue000 to\ue000 its\ue000 website\ue000 and\ue000 offer\ue000 attractive\ue000 products;\ue000 to\ue000 maintain\ue000 its\ue000 website,\ue000 electronic\ue000 data\ue000 processing\ue000 systems,\ue000 and
systems\ue000 hardware;\ue000 to\ue000 forecast\ue000 accurately\ue000 net\ue000 revenue\ue000 and\ue000 plan\ue000 for\ue000 expenses;\ue000 to\ue000 protect\ue000 our\ue000 intellectual\ue000 property\ue000 rights;\ue000 to\ue000 respond\ue000 to\ue000 the\ue000 SEC
investigation\ue000 and\ue000 any\ue000 potential\ue000 litigation\ue000 and\ue000 government\ue000 enforcement\ue000 actions\ue000 that\ue000 may\ue000 result\ue000 from\ue000 our\ue000 prior\ue000 securities\ue000 offerings.\ue000 \ue000 All\ue000 forward-
looking\ue000 statements\ue000 are\ue000 qualified\ue000 in\ue000 their\ue000 entirety\ue000 by\ue000 reference\ue000 to\ue000 the\ue000 factors\ue000 described\ue000 in\ue000 Part\ue000 I,\ue000 Item\ue000 1A,\ue000 \u201cRisk\ue000 Factors\u201d\ue000 in\ue000 Bidz\u2019\ue000 2008\ue000 Annual
Report\ue000 on\ue000 Form\ue000 10-K\ue000 that\ue000 could\ue000 cause\ue000 the\ue000 actual\ue000 results\ue000 of\ue000 Bidz\ue000 to\ue000 differ\ue000 materially\ue000 from\ue000 those\ue000 projected\ue000 in\ue000 such\ue000 forward-looking\ue000 statements.

\ue000 All\ue000 subsequent\ue000 forward-looking\ue000 statements,\ue000 whether\ue000 written\ue000 or\ue000 oral\ue000 and\ue000 whether\ue000 made\ue000 by\ue000 or\ue000 on\ue000 behalf\ue000 of\ue000 Bidz,\ue000 also\ue000 are\ue000 expressly\ue000 qualified\ue000 by
these\ue000 cautionary\ue000 statements.\ue000 Any\ue000 forward-looking\ue000 statement\ue000 speaks\ue000 only\ue000 as\ue000 of\ue000 the\ue000 date\ue000 on\ue000 which\ue000 such\ue000 statement\ue000 is\ue000 made,\ue000 and\ue000 Bidz\ue000 undertakes
no\ue000 obligation\ue000 to\ue000 update\ue000 any\ue000 forward-looking\ue000 statement\ue000 to\ue000 reflect\ue000 events\ue000 or\ue000 circumstances\ue000 after\ue000 the\ue000 date\ue000 on\ue000 which\ue000 such\ue000 statement\ue000 is\ue000 made\ue000 or\ue000 to
reflect\ue000 the\ue000 occurrence\ue000 of\ue000 unanticipated\ue000 events.\ue000 New\ue000 factors\ue000 emerge\ue000 from\ue000 time\ue000 to\ue000 time\ue000 and\ue000 it\ue000 is\ue000 not\ue000 possible\ue000 for\ue000 Bidz\ue000 to\ue000 predict\ue000 all\ue000 such\ue000 factors,
nor\ue000 can\ue000 it\ue000 assess\ue000 the\ue000 impact\ue000 of\ue000 each\ue000 such\ue000 factor\ue000 or\ue000 the\ue000 extent\ue000 to\ue000 which\ue000 any\ue000 factor,\ue000 or\ue000 combination\ue000 of\ue000 factors,\ue000 may\ue000 cause\ue000 results\ue000 to\ue000 differ
materially\ue000 from\ue000 those\ue000 contained\ue000 in\ue000 any\ue000 forward-looking\ue000 statement.

The\ue000 information\ue000 contained\ue000 in\ue000 this\ue000 Current\ue000 Report\ue000 shall\ue000 not\ue000 be\ue000 deemed\ue000 \u201cfiled\u201d\ue000 for\ue000 purposes\ue000 of\ue000 Section\ue000 18\ue000 of\ue000 the\ue000 Securities\ue000 Exchange\ue000 Act\ue000 of
1934,\ue000 as\ue000 amended\ue000 (the\ue000 \u201cExchange\ue000 Act\u201d),\ue000 or\ue000 incorporated\ue000 by\ue000 reference\ue000 in\ue000 any\ue000 filing\ue000 under\ue000 the\ue000 Securities\ue000 Act\ue000 of\ue000 1933,\ue000 as\ue000 amended,\ue000 or\ue000 the
Exchange\ue000 Act,\ue000 except\ue000 as\ue000 shall\ue000 be\ue000 expressly\ue000 set\ue000 forth\ue000 by\ue000 specific\ue000 reference\ue000 in\ue000 such\ue000 a\ue000 filing.

\u2022\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue0002008\ue000 revenues\ue000 increase\ue000 10.8%\ue000 year-over-year\ue000 to\ue000 $207.4\ue000 million
\u2022\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue0002008\ue000 pre-tax\ue000 income\ue000 increases\ue000 16.1%\ue000 year-over-year\ue000 to\ue000 $24.0\ue000 million
\u2022\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue0002008\ue000 cash\ue000 flow\ue000 from\ue000 operations\ue000 of\ue000 $18.6\ue000 million
\u2022\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000Strong\ue000 financial\ue000 position\ue000 with\ue000 approximately\ue000 $4.5\ue000 million\ue000 in\ue000 cash,\ue000 $32.8\ue000 million\ue000 in\ue000 positive\ue000 working\ue000 capital\ue000 and\ue000 zero\ue000 debt
\u2022\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000Authorized\ue000 a\ue000 significant\ue000 increase\ue000 in\ue000 its\ue000 share\ue000 buyback\ue000 program\ue000 to\ue000 $33.5\ue000 million

\u201cGiven\ue000 the\ue000 unprecedented\ue000 challenges\ue000 that\ue000 we\ue000 and\ue000 most\ue000 companies\ue000 faced\ue000 over\ue000 the\ue000 holiday\ue000 season,\ue000 we\ue000 are\ue000 very\ue000 pleased\ue000 to\ue000 report\ue000 EPS\ue000 in-line
with\ue000 our\ue000 previously\ue000 issued\ue000 EPS\ue000 guidance\ue000 range,\u201d\ue000 said\ue000 Leon\ue000 Kuperman,\ue000 the\ue000 Company\u2019s\ue000 President.\ue000 \u201cImportantly,\ue000 we\ue000 increased\ue000 our\ue000 fourth
quarter\ue000 gross\ue000 margins\ue000 by\ue000 320\ue000 basis\ue000 points.\ue000 We\ue000 believe\ue000 our\ue000 ability\ue000 to\ue000 deliver\ue000 these\ue000 positive\ue000 results\ue000 in\ue000 this\ue000 environment\ue000 reflect\ue000 both\ue000 the
strength\ue000 and\ue000 flexibility\ue000 of\ue000 our\ue000 business\ue000 model\ue000 and\ue000 the\ue000 tremendous\ue000 value\ue000 we\ue000 offer\ue000 to\ue000 consumers.\ue000 While\ue000 the\ue000 retail\ue000 spending\ue000 environment
remains\ue000 exceedingly\ue000 difficult\ue000 and\ue000 we\ue000 expect\ue000 will\ue000 continue\ue000 to\ue000 be\ue000 so\ue000 through\ue000 2009,\ue000 we\ue000 believe\ue000 that\ue000 our\ue000 focus\ue000 on\ue000 profitability\ue000 and\ue000 gross\ue000 margins
combined\ue000 with\ue000 our\ue000 ongoing\ue000 cost\ue000 cutting\ue000 initiatives,\ue000 will\ue000 allow\ue000 us\ue000 to\ue000 remain\ue000 profitable\ue000 and\ue000 financially\ue000 strong\ue000 while\ue000 increasing\ue000 our\ue000 market\ue000 share

\u201cLooking\ue000 ahead,\ue000 we\ue000 remain\ue000 intensely\ue000 focused\ue000 on\ue000 executing\ue000 on\ue000 our\ue000 strategic\ue000 initiatives\ue000 that\ue000 will\ue000 continue\ue000 to\ue000 enhance\ue000 the\ue000 Bidz.com\ue000 customer
experience\ue000 in\ue000 all\ue000 areas,\u201d\ue000 continued,\ue000 Mr.\ue000 Kuperman.\ue000 \u201cIn\ue000 times\ue000 of\ue000 rapid\ue000 change,\ue000 the\ue000 right\ue000 execution\ue000 model\ue000 is\ue000 imperative\ue000 and\ue000 we\ue000 are\ue000 acting\ue000 quickly
to\ue000 ensure\ue000 we\ue000 have\ue000 the\ue000 proper\ue000 structure\ue000 in\ue000 place\ue000 to\ue000 manage\ue000 and\ue000 maximize\ue000 our\ue000 business\ue000 in\ue000 the\ue000 current\ue000 environment.\u201d