Beyond.com Announces Positive Results from Nasdaq Hearing; Nasdaq has Approved the Company's Plans to Achieve Compliance With Nasdaq Listing Requirements.

Business Editors/Technology Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 16, 2001

E-commerce service provider Beyond.com(TM) (Nasdaq:BYND) today announced that it has received a favorable ruling from the Nasdaq listing qualifications panel following a hearing that took place on March 29, 2001.

The ruling will allow Beyond.com stock to continue trading on the Nasdaq National Market while Beyond.com implements its compliance plan.

"We presented NASDAQ with a solid plan to bring our share price into compliance as we continue to drive towards our EBITDA profitability date of Q1, 2002," said Ron Smith, CEO of Beyond.com. "We believe that our Nasdaq listing is important. As such, we will continue to execute our business plan, and we will take additional steps as necessary to ensure that we remain compliant. We are pleased to announce that the Nasdaq has given us the additional time we need to do so."

Per the notification received, the company must demonstrate a closing bid price of at least $1 per share on or before July 3, 2001. Immediately thereafter, the company must evidence a closing bid price of at least $1 per share for a minimum of ten consecutive trading days. The company has agreed to conduct a reverse split of its stock if necessary, in order to bring the stock price up to a level that is acceptable to Nasdaq. A reverse stock-split would be consummated only after the approval of the company's shareholders at its next annual meeting, currently scheduled for the last week of June 2001.

About Beyond.com

Beyond.com(TM) is an e-commerce service provider that builds, manages and markets online stores (eStores) for businesses. The company provides a full suite of marketing programs and services to help maximize client's eStore sales activities and increase revenues. Beyond.com also sells software and computer related products to the government, corporate and consumer markets. Beyond.com Corporation trades on the Nasdaq National Market under the symbol "BYND". More information on the company can be found in the company's filings with the Securities and Exchange Commission (SEC), or by visiting www.beyond.com.

Safe Harbor Statement

Certain statements in this press release are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These include statements relating to (i) Beyond.com's ability to drive towards its EBITDA profitability date of Q1, 2002 (ii) Beyond.com executing its business plan, and (iii) Beyond.com's ability to achieve and maintain compliance with Nasdaq's listing requirements. Such statements are subject to substantial risks and uncertainties. Actual results could differ materially from any future performance suggested above. Factors that might cause such a difference include, but are not limited to the volatility of the trading prices of the company's stock and risks inherent in transitioning a corporation's business from e-tailing to e-commerce services and competitive responses to the transition Beyond.com's business is subject to other risks, including the company's ability to sign and ramp new eStores customers and market acceptance of the company's new profitability initiatives, as well as other risk factors described in the company's filings with the SEC. Beyond.com news and product/service information is available at the company's World Wide website located at http://www.beyond.com.