Egghead Secures Exclusive RecSport Marketing Agreement with Boeing Employees and Retirees; Outstanding Opportunity to Expand Sales.

SPOKANE, Wash.--(BUSINESS WIRE)--Oct. 20, 1997--The Boeing Company's official discount source, RecSport(TM), selected Egghead Computer as its exclusive marketing partner for retail sales of computers, software, and related merchandise to Boeing employees and retirees in the Puget Sound region.

The annual agreement, part of a Boeing employee benefit program, is effective immediately.

"For the first time ever, Boeing is allowing approved companies direct access to the company's employee base, exclusively through its RecSport Card(TM) program," said Roger Blier, spokesman for RecSport. The program will give Egghead direct exposure to Boeing's 100,000 employees, 20,000 retirees, and their families -- for a total base of more than 400,000 in the Puget Sound region."

Egghead merchandising Vice President Jim Kalasky called the agreement an outstanding opportunity for Egghead to expand sales initially through its Western Washington retail stores and, later, through Egghead's website (www.egghead.com) and Egghead's direct sales program (1-800-EGGHEAD). In 1998, Boeing employees and retirees nationwide will be able to make discounted purchases through the website and direct sales channels.

Originally, any Boeing employee discount programs were geared toward companies that offered only recreation, leisure, or hobby events. In recent years, there has been a dramatic increase in other reputable companies desiring to develop a relationship with the Boeing community by offering special incentives on their respective products or services.

"We have gone to great lengths to accommodate both the desires of the businesses in our community and the needs of the vast Boeing family," Blier said. "In addition to Egghead, similar alliances have been formed with Coldwell Banker, WorldCom, Blockbuster Video, GTE, QLube, AirTouch, the Seattle Mariners and others."

"For Egghead, the association with Boeing is a very important step toward greater utilization of our website," Kalasky said. "In the coming months, the Boeing employees and retirees everywhere will see that the Egghead website and direct sales program are fully integrated with all of Egghead's inventory. Egghead is the only major computer retailer supporting an expanded online product offer, including electronic software downloads, rebates, and liquidation items."

Egghead CEO George Orban said the agreement is particularly noteworthy because it creates a strong bond between two well known Northwest companies. "Boeing employees are coveted customers," Orban said. "We have the full range of computer products they want." Egghead Inc., with revenues of $415 million for fiscal year 1997, including recently acquired Surplus Direct, is a reseller of personal computer hardware, software and accessories through 83 storefronts, two warehouse stores, direct mail catalogs (1-800-EGGHEAD) and its Internet site (www.egghead.com). Egghead, in combination with Surplus Direct, a recently acquired subsidiary, is committed to developing the most comprehensive computer products web shopping site in the industry. On the web, the combined companies sell both previous and current version computer hardware and software as well as offer electronic software downloading and a "build-to-suit" computer configuration center, in a variety of venues that include an auction site (www.surplusauction.com) and web warehouses (www.egghead.com and www.surplusdirect.com).

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