EBIZ Enterprises Completes Merger of LinuxMall.com; Companies Reinforce Leadership Position.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Oct. 11, 2000

EBIZ Enterprises Inc. (OTCBB:EBIZ), and LinuxMall.com Inc. Wednesday announced they have completed their merger.

The combined company becomes the country's largest vendor-neutral Linux solutions provider and offers the most comprehensive selection of Linux products and solutions, support, information and services.

The transaction was finalized effective Oct. 5, and all state filings completed today. Under the structure of the transaction, EBIZ will acquire all outstanding stock of LinuxMall.com, which will become a wholly owned subsidiary. The company remains headquartered in Scottsdale.

The merger combines the management teams of both companies: Dave Shaw is named as chief executive officer, Jeffrey Rassas is named as chairman and CSO, Ray Goshorn is named as CFO, Stephen Herman is named as COO and Chuck Mead is named as CTO. Mark Bolzern, the original founder of LinuxMall.com, will continue in his role as an open source community evangelist.

"Businesses that need Linux solutions and companies that develop solutions are looking to us for leadership," said Shaw. "With our strong roots in Linux, our extensive channels of distribution and our vendor-neutral status, we are ideally positioned to act as the facilitator who brings these separate communities together."

"The combination of EBIZ and LinuxMall creates a company with all the elements needed to become the leading solutions provider in the open-source marketplace," said Rassas. "This has been our vision from the beginning of our negotiations with LinuxMall and we are now better positioned to make that objective a reality."

About EBIZ Enterprises Inc.

EBIZ Enterprises Inc. is one of the fastest growing, leading vendor-neutral sources for Linux products, technical support and community services for the B2B market. Linux is noted for its extremely low maintenance cost and stability.

The Linux platform is known as a non-crashing operating system. The company's web destinations will be accessible through www.linuxmall.com and include: www.TheLinuxStore.com, a provider of B2B Linux technical solutions; www.TheLinuxLab.com, an interactive knowledge exchange providing technical support and compatibility database; www.LinuxWired.net, a Linux-based affinity and community services portal; and www.InfoMagic.com, an online open source distributor.

Further information is available on www.ebizshareholder.com, a recently launched Web site providing current investor relations and management information about EBIZ to the investment community.

This press release contains statements that are forward-looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995.

These statements are based on current expectations that are subject to risks and uncertainties. Actual results may differ materially from such statements due to numerous factors including those described in EBIZ's registration statements and periodic reports filed with the Securities and Exchange Commission.