Beyond.com Announces Results of Annual Stockholders' Meeting; CEO Outlines Company Strategy.

Business Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 7, 2000

E-commerce services provider Beyond.com(TM) (Nasdaq:BYND) announced that stockholders approved all three matters submitted at the company's annual meeting held today, September 7, 2000. The passing resolutions were:

-- Election of four directors to serve until the 2000 annual meeting of
stockholders. The four approved directors are William S. McKiernan, Ronald S.
Smith, Richard Scudellari, and Mark W. Bailey.

-- Approval of an amendment to increase the number of shares of common stock,
which the company is authorized to issue, from 70,000 shares to 120,000 shares.


-- Ratification of the appointment of Ernst & Young LLP as the Company's
independent auditors for the fiscal year ending December 31, 2000.

After the formal meeting, Beyond.com President and CEO Ron Smith, outlined the company's strategy to grow its core eStores and Government Services businesses. A copy of the presentation can be found on the company's Web site, http://www.beyond.com by clicking on "Investor Relations" and then "Presentations." Smith also commented on the company's various goals in terms of its path to profitability, research and development (R&D) spending, and sales and marketing spending and strategy. Smith noted that:

-- The management team is committed to achieving profitability as

quickly as possible. The company's previous goal was to reach

operational break even by Q4 2002. But Smith said that

management is working on a new business model that would pull

that date in. Smith anticipates unveiling that plan in Q4

2000.

-- R&D expenses as a percentage of revenue will likely increase

as Beyond.com continues to invest in its technology

infrastructure to grow its eStores and Government Systems

businesses. At the same time, sales and marketing expenses as

a percentage of revenue are expected to continue to decline

-- The company's new marketing strategy for its eStores business

is to focus on a limited number of large branded

manufacturers, software developers and systems OEMs with

higher average selling prices (ASPs).

"We have an experienced management team focused on becoming a profitable company," Smith said. "By building the eStore prospect pipeline, by continuing our momentum in government enterprise sales, by streamlining our internal processes and by reducing our operating expenses, we hope to provide solid evidence that our eCommerce services model is a valuable and sustainable one.

"Additionally, the company is currently speaking to a number of parties about new types of financing," Smith explained. "While we cannot predict the outcome of these efforts, the company's goal is to continue to improve its working capital and financial performance.

"Beyond.com is well positioned to bring branded manufacturers, software developers and system OEMs the services and infrastructure they need to rapidly engage in eCommerce," Smith said. "The demand for premium eCommerce services has barely been tapped, and we are excited about the chance to capitalize on this opportunity."

About Beyond.com

Beyond.com(TM) is an e-commerce services provider that builds, manages and markets online stores for businesses. The company also sells software and computer-related products to consumers and U.S. Government agencies. The company's BuyDirect Group provides eStores by Beyond.com, a suite of services that enables software developers, systems OEMs and hardware manufacturers to market and sell over the Internet. Beyond.com's Government Systems Group provides digital distribution of software and related services to a growing list of U.S. Government agencies. 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").

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 competitive position and intended expansion of its eStores and Government businesses, (ii) Beyond.com's ability to continue to lower its expenses, (iii) Beyond.com's ability to achieve profitability, (iv) Beyond.com's ability to raise sufficient financing on satisfactory terms, (v) Beyond.com's belief that it can grow its R&D spending as a percentage of revenues and decrease its sales and marketing spending as a percentage of revenue; and (vi) the success of Beyond.com's new eStore marketing strategy that targets large, branded manufacturers, software developers and system OEMs with higher ASPs. Such statements are subject to substantial risks and uncertainties. Actual results for the third quarter of 2000 and subsequent quarters could differ materially from any future performance suggested above. Factors that might cause such a difference include, but are not limited to, the risks inherent in transitioning a corporation's business from a consumer focus to an e-commerce services focus successfully and competitive responses to the transition. The service offerings for eStores may differ materially from Beyond.com's current expectations. Beyond.com's Government Group is subject to risks inherent in government sales, including long sales and collections cycles. Beyond.com's business is subject to other risks, including the company's ability to ramp its eStores and Government Groups and infrastructure, market acceptance of the company's new initiatives, the company's ability to retain and attract key management and employees, and 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.