Bidhit.com Extends the Life of Products with Supercharged Service Plan; On-line Auction Customers Benefit From Increased Product Satisfaction.

Business Editors, High-Tech Writers

BOTHELL, Wash.--(BUSINESS WIRE)--April 17, 2000

Continually improving services and benefits for customers, Bidhit.com, Inc. (OTCBB:BHIT) (Frankfurt:BHC), a rapidly growing Internet auction and e-commerce company now offers an extended service plan to protect electronic and consumer products from electrical or mechanical breakdowns.

The addition of this service will provide Bidhit.com customers substantial value, while increasing the company's revenue and gross margins on consumer electronic products.

The agreement provides a turnkey operation to Bidhit.com and its customers by VAC Service Corporation the oldest company offering warranty administration and total customer service for the manufacturing and retail industries. VAC will directly handle all elements of the claims management process including warehousing and payments. Bidhit.com will promote the benefits of the plan to its users and will receive a commission on sales of the Plan.

Bidhit.com's customers will be able to purchase an extended service plan that will become effective upon expiration of the manufacturer's warranty. Labor and replacement parts are provided as necessary to maintain the product in operating condition. If the product requires repair for the same problem three times, it will be replaced free of charge. Spotlighting customer service, Bidhit.com brings the often-avoided subject of product maintenance from behind the auction block and into the virtual display window. "By extending quality service to customers even after the sale, we solidify relationships with our patrons," said Tim Black, Bidhit.com CEO. "The relatively faceless nature of on-line shopping makes it imperative that Bidhit.com customers know there are real live people behind their products, committed to excellent service. This extended service plan is just one example of our drive to completely satisfy our customers," Black added.

"In addition to increasing customer satisfaction, Bidhit.com has also tapped into a service that offers their company the greatest ROI," commented Ed Hamowy, VAC Service Corp. director of corporate communications. There is no tangible product, no inventory and no warehousing. Extended service plans represent the largest source of profit for retailers today. It's pure margin without expense," Hamowy concluded.

Customers who sign on for the Bidhit.com extended service plan gain 24-hour access to trained professionals who can help troubleshoot their repairs and guide them through simple service steps. More complicated repairs can be quickly addressed through the convenient on-site service option that summons a repair professional to the customer's location. If the repair can't be made on-site, the technician will pick up the broken item and deliver it repaired and ready to go. Local service centers are also available for carry-in service.

In addition to service access at all hours, Bidhit.com customers never have to pay a deductible, and repair coverage is unlimited. If the product is deemed a "lemon" after needing service more than three times for the same repair, Bidhit.com will replace the product. When it comes time to file a claim, customers can identify themselves by name, phone number or Agreement number so they don't have to find old receipts to get service. Coverage is renewable and transferable throughout the lifetime of the product.

About Bidhit.com

Bidhit.com (www.bidhit.com) is an Internet auction and e-commerce company. The company provides its registered users with the opportunity to bid on quality brand name products in such categories as computers and peripherals, camera equipment, sporting goods, household goods, home electronics and sports memorabilia.

Since 1997, Bidhit.com, Inc. has been a pioneering leader of Internet auctions. It differentiates itself from its competition by its strong customer care focus. The company's customer service focus, certified vendors, extended warranty program, industry leading Live Help for customers, and easy to use Web site set it apart from other online auction sites. Bidhit.com is a member in good standing of the Better Business Bureau (BBB) and the BBB Online.

Bidhit.com recently announced it has signed a letter of intent to acquire EZbid.com, a wholly-owned subsidiary of Systemax Inc. Upon completion of the transaction Systemax Inc. will own 30% of Bidhit.com. Systemax Inc., located in Port Washington, New York, is a Fortune 1000 PC direct marketer of computer hardware and software. Systemax reported sales of $1.75 Billion in 1999.

About VAC Service Corp.

VAC Service Corp., headquartered in Middletown, NY, is the oldest company offering warranty administration and total customer service for the manufacturing and retail industries. Celebrating a 20-year anniversary, VAC Service Corp. repairs consumer products through 52,000 factory-authorized service centers located throughout the United States and the Caribbean. Specializing in extended service for items that are electrically or battery powered, VAC is fully insured and provides immediate troubleshooting over the phone, 24 hours a day, 365 days a year.

About the Online Auction Segment

According to Jupiter Communications (Vision Report, Volume 1, March 7, 2000), online B2C auction revenues are expected to increase at an annual rate of 46% per year through 2004, reaching $4.5 billion sales per year. Jupiter projects that other forms of dynamic pricing, such as group buying, will increase even faster, at 70 percent per year, reaching $7 billion in 2004. The success of online auction sites such as eBay, Inc. (Nasdaq:EBAY), uBid, Inc. (Nasdaq:UBID), Onsale Inc. (Nasdaq:ONSL), has been well documented. Bidhit.com is focused on growing its online auction presence in both the B2C and B2B markets.