$1,000,000 Software Giveaway to Internet Shoppers.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Nov. 24, 1998--

EBIZ's growing Internet e-commerce distribution activity;

and report of $4,911,626 in 1st quarter (9/30) revenues

(up over 300% from year earlier period)

CPU MicroMart Inc., (NASDAQ:EBIZ) Tuesday announced its $1,000,000 give away of free gaming and other software titles to promote secure e-commerce shopping and introduce its new dynamic e-commerce web site, www.cpumicromart.com, (the company's catalogue site targeting the VAR/Reseller computer hardware and software market and featuring CPU MicroMart's value priced Internet PC brand - M2 Systems).

"We hope the media will embrace and support this special $1,000,000 software giveaway to encourage public experience with a secure Internet shopping experience this holiday season," stated Jeffrey Rassas, chief executive officer.

This promotional offer is limited to Internet users purchasing directly through www.cpumicromart.com, CPU MicroMart's new secure web site. Visit www.cpumicromart.com for complete terms and conditions of this special promotion.

CPU MicroMart manufactures desktop computers under its "M2 Systems" brand, a nationally distributed Internet brand of value point business and consumer desktop computer systems using high quality components from major manufacturers such as Intel, Microsoft, AMD, Seagate, Western Digital, Quantum, & others, and is emerging as an e-commerce leader based on its Internet product distribution experience.

"We cut our Internet distribution teeth as a direct ship vendor to Zauction and OnSale shipping in excess of 1000 orders daily on many occasions," stated Stephen Herman, president.

"We now have multiple Internet distribution channels open. Since moving away from support of auction format Internet sites such as OnSale, we are experiencing rapid improvement in our overall margin performance and the quality of our customer set.

"It became clear to us that the Internet auction format is not likely, long term, to be a significant distribution medium for the majority of Internet shoppers - our real growth opportunities lie elsewhere on the net with portal, community and entertainment sites.

"Most importantly, our experience suggests you cannot build a flat organization effectively and control costs vis-a-vis your competitors with significant true auction model exposure," stated Herman.

"Our early success this past quarter with a more direct selling model to our substantial database has been very exciting. Over 75 percent of our approximate $4,911,000 in revenues for the quarter ending September 30, 1998 derived from other than Internet auction channels - essentially a complete flip from last year's revenue allocation which was highly concentrated on sales through auction sites such as Z Auction.com and OnSale.com," added Herman.

Certain matters discussed within this press release may be forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are inherently uncertain, and actual results and activities may differ materially from those estimated or projected.

Although the company believes the expectations reflected in any forward looking statement are based upon reasonable assumptions, it can give no assurances that its expectations will be attained. The company has no obligation to update the statements contained in this report and may modify plans or actions described herein.

CPU MicroMart Inc.'s, office and warehouse is located in the Scottsdale Airpark at 15685 N. Greenway Hayden Loop, Scottsdale, AZ 85260, 602/850-4100 and fax [phone].