Beyond.com Discloses Restructuring Charges in 10K to Reflect New Company Direction.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--April 5, 2000

E-commerce services provider Beyond.com(TM) (Nasdaq:BYND) noted in its 10K filed with the U.S. Securities and Exchange Commission (SEC) today, that it will take a restructuring charge of between $11 million and $14 million in the first quarter of 2000. The restructuring charges include approximately $3 million in costs associated with employee severance and facilities consolidation, and $8 million to $9 million in termination fees and intangible and pre-paid asset write-offs associated with marketing agreements.

In January, Beyond.com eliminated approximately 75 full-time positions at all levels of the company (about 20 percent of its workforce) and consolidated its satellite offices. The company expected to take a one-time restructuring charge of between $2 million and $3 million for those facilities and severance payments. The additional restructuring charges reflected the company's termination of its marketing agreements.

"While our marketing agreements were important customer acquisition tools when we were a consumer-focused company, as a business-to-business (B2B) focused company, Beyond.com no longer needs to spend millions of dollars to build its consumer brand," said Rick Neely, interim chief executive officer of Beyond.com. "The savings from the resources previously committed to marketing agreements allow us to preserve our cash for improvements to our infrastructure and services offerings, consistent with our B2B direction."

Under the restructuring plan, which Beyond.com began implementing in the first quarter of 2000, the company built on the strength of its eStore and Government Systems Groups and de-emphasized its Website Group, which sells software and computer related products on the Web. While the company will still sell software and computer related products via the Beyond.com website, it does not intend to spend significant advertising dollars to attract new customers to the site as it has done in the past. Instead, the company plans to expand its existing consumer customer base through its affiliates program and direct email campaigns while leveraging its website to help promote and grow its eStore and Government Systems Groups.

Beyond.com's eStore Group offers software publishers, hardware manufacturers and systems OEMs full-service Web stores that can be rapidly implemented more economically than if they had developed a similar website internally. Businesses can choose from an array of services, including website design and construction, transaction processing, physical and electronic order fulfillment, customer support, marketing, and merchandising support.

Beyond.com's Government Systems Group provides digitally downloadable software and related services to a growing list of United States Government agencies including the Defense Logistics Agency (DLA), Department of Defense (DoD), Internal Revenue Service (IRS), National Imagery and Mapping Agency (NIMA) and several agencies within the Department of Treasury.

About Beyond.com

Beyond.com is an e-commerce services provider that builds and manages Web stores for businesses and sells software and computer related products to the government, corporate and consumer markets. The company's eStore division allows software publishers, hardware manufacturers and systems OEMs to launch a full-service e-commerce store in a few weeks. Businesses can choose from an array of offerings, including website design and construction, transaction processing, physical and electronic order fulfillment, customer support, marketing, and merchandising support and reporting. Customers include CADopia.com, Compaq Computer, Executive Software Inc., IntelliGolf, McAfee.com Inc., Palm Computing, SalesLogix, Symantec Corp., Systran Software Inc., Telex and Trend Micro. Beyond.com's government division provides digitally downloadable software and related services to a growing list of government agencies, including the Department of Treasury, Defense Logistics Agency (DLA), National Imagery and Mapping Agency (NIMA) and Patent and Trademark Office (PTO), a division of the Department of Commerce. Beyond.com also operates its own online store http://www.beyond.com/, where customers can find an expansive selection of software and computer related products. 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").