EBIZ Enterprises Posts 40 Percent Revenue Increase for Second Fiscal Quarter; Company Positioned for Growth and Profitability as a Result of Acquisitions.

Business Editors

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Feb. 22, 2001

EBIZ Enterprises Inc. (OTCBB:EBIZ), the country's largest vendor-neutral Linux solutions builder, recently announced a 40 percent increase in revenues of $894,702, from $2,264,949 to $3,159,651, during the second fiscal quarter this year vs. the same period last year, gross profit increased $610,596 from $27,419 (1.2 percent gross profit) to $638,015 (20.2 percent gross profit).

The company reported a net loss of $4,804,508 or $0.22 per diluted share, vs. $0.26 per diluted share from a year ago.

"EBIZ enters 2001 as a substantially innovative and aggressive company with excellent growth potential," said EBIZ Chief Executive Officer Dave Shaw. "We are extremely proud of our unparalleled sales and marketing infrastructure and VAR (Value Added Resellers) channel relationships and have recently restructured the company to compete in the more clearly defined NAS and Web Appliance market sectors."

"We are very secure with the rising and continued future of EBIZ and its significant role in the future of new generation solutions. Most importantly, for our shareholders and our customers, our expectation is that EBIZ will become cash flow positive by year-end June 30, 2001," Shaw said.

EBIZ is headquartered in Scottsdale, with its primary production facilities located in Stafford, Texas. The company's primary sales focus continues to migrate to configuring and selling server-based computer solutions for a variety of business applications.

About EBIZ Enterprises Inc.

EBIZ Enterprises Inc. is an Open Source solutions builder for the new generation of IT professionals. The company is one of the fastest growing, vendor-neutral sources for Linux products, technical support and community services for the B2B market. EBIZ is uniquely positioned to lead the delivery of cutting-edge Open Source applications to the business marketplace through reseller channels.

The EBIZ Web presence includes LinuxMall.com(R), TheLinuxStore.com, LinuxNews.com and LinuxGuru.com. EBIZ's wholly owned subsidiary, PartnerAxis.com, is an information exchange center that specializes in bringing together hardware companies, software manufacturers, VARs and end users to deliver Open Source solutions to the business world.

For more information about EBIZ Enterprises Inc., visit our Investor Relations Web site at www.ebizshareholder.com.

This press release contains statements that constitute "forward-looking statements" as that term is defined by the United States Private Securities Litigation Reform Act of 1995 (the "Reform Act"). EBIZ Enterprises Inc. claims the protection of the safe harbor for forward-looking statements contained in the Reform Act.

These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," or "anticipates," and do not reflect historical facts. Specific forward-looking statements contained in this press release include, but are not limited to, growth projections, cash flow projections, maximizing returns on opportunities and competitive advantages.

Forward-looking statements involve risks, uncertainties and other factors, which may cause actual results, performance or achievements of EBIZ Enterprises Inc. to be materially different from those expressed or implied by such forward-looking statements.

Factors that could affect the results of EBIZ Enterprises Inc. and cause them to materially differ from those contained in the forward-looking statement include shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological shifts and other variables.

Other factors include those risk factors and cautionary statements made in EBIZ Enterprises Inc.'s annual report on Form 10-KSB for the period ended June 30, 2000 and the quarterly report on Form 10-QSB for the period ended Dec. 31, 2000. Other factors that EBIZ Enterprises Inc. is currently unable to identify or quantify, but may arise or become known in the future.

In addition, the foregoing factors may affect generally EBIZ Enterprises Inc.'s business, results of operations and financial position. Forward-looking statements speak only as of the date the statement was made. EBIZ Enterprises Inc. does not undertake and specifically disclaims any obligation to update any forward-looking statement.