Egghead.com Financial Analyst/Investor Advisory.Business Editors MENLO PARK Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , Calif.--(BUSINESS WIRE)--March 22, 2000 The following is a statement issued by Egghead.com to Egghead shareholders Dear Egghead shareholders: A recent article in Barron's on March 20 contained potentially misleading information about Egghead.com's projected cash position. This data, from a study conducted for Barron's by Pegasus Research International, was based on a snapshot in time of our published cash, cash equivalents and short term investments of $86.2 million at the end of the fourth quarter. Our fourth quarter run rate (which essentially included the separate costs of Egghead and Onsale for most of the quarter) was projected forward and two further months were deducted due to the date of the report in arriving at the months of cash available. The combined Company's ongoing operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. are substantially lower than the fourth quarter's rate as we have eliminated significant duplicated costs. With current cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. , based on the audit of our 1999 financial statements, the company anticipates that its auditors - PricewaterhouseCoopers - will issue an unqualified opinion Unqualified opinion An independent auditor's opinion that a company's financial statements comply with accepted accounting procedures. Antithesis of qualified opinion. unqualified opinion See clean opinion. on the company. This includes their view that the company has adequate cash reserves to fund at least the next full year of operations. The additional funding agreement Funding Agreement Illiquid insurance contracts that provide guaranteed principal repayment and interest payments for a predetermined period of time. Notes: Funding agreements are marketed to mutual fund companies and municipal reinvestments. with Acqua Wellington, announced February 18, will add to our available cash reserves and places us in a strong financial position. Our current cash, plus the expected funds from this financing facility should enable us to finance our business plans for the foreseeable future. We regret any concern the Barron's article may have caused among our investors. Sincerely, Jerry Kaplan, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Egghead.com, Inc. About Egghead.com The new Egghead.com is a leading Internet retailer specializing in technology products for the office and home. Egghead merged with Onsale, Inc. in November 1999, and offers a wide range of items from computer hardware and software to consumer electronics, sporting goods Noun 1. sporting goods - sports equipment sold as a commodity commodity, trade good, good - articles of commerce sports equipment - equipment needed to participate in a particular sport and vacation packages. Its auction site offers bargains on excess and closeout closeout, closure the finalization of a feeding program in a feedlot. The cattle are sold and a balance sheet is struck which includes the costs of feeding and housing or confining them. goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. . Egghead.com combines broad selection, low prices and excellent service to provide an outstanding online shopping experience for businesses and consumers. Egghead.com is located on the Internet at www.egghead.com. Note to Editors: Egghead.com and Onsale are registered trademarks of Egghead.com, Inc. All other companies and their brand names mentioned are trademarks or registered trademarks of their respective holders. This press release contains "forward-looking" statements, including projections about our business, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. For example, statements in the future tense, and statements that we "expect", "plan"', "estimate", "anticipate" or "believe", are forward-looking statements. These forward-looking statements are based on information available to us at the time of this release and we assume no obligation to update any such forward-looking statements. The statements in this release are not guarantees of future performance and actual results could differ materially from our current expectations as a result of numerous factors. For example: additional issuances of our common stock may have the effect of lowering the market price of our shares; it may be more difficult than we anticipate, as a result of continued strong competition, to increase our customer base, average spending, or gross margins; and we may encounter unexpected difficulties in implementing our business plans. These and other risks and uncertainties associated with our business are detailed in our most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Form 10-Q Form 10-Q See 10-Q. , and the prospectus and any supplements filed in connection with the registration statement covering this offering, which are on file with the SEC and available through www.sec.gov. |
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