uBid.com Holdings, Inc. Reports Third Quarter 2006 Results.Auction Events More Than Double from Last Year CHICAGO -- uBid.com Holdings, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : UBHI) whose uBid, Inc. subsidiary is one of the leading business-to-consumer and business-to-business online marketplaces in the U.S., today announced results for the third quarter ended September 30, 2006. Highlights for the third quarter of 2006 include: * Gross Merchandise Sales (GMS GMS Greater Mekong Subregion GMS Global Mobile (Communications) System GMS Guild Management System GMS General Medical Services GMS Global Management System (Sonicwall) GMS GroupWise Mobile Server ), a key business metric, were $26.5 million compared to $27.2 million one year ago.(1) * Gross Profit was $1.9 million or 13.5% of net revenues versus $3.1 million or 16.7% in the third quarter of fiscal 2005. The inventory reserve recorded during the quarter was $0.8 million or 5.6% of net revenues. Gross profit was 19.1% of net revenues before reserve adjustments to inventory. * Net Loss of $2.7 million, although adjusting for $0.8 in inventory reserves, $0.2 in severance costs and $0.2 in non-cash compensation, the net loss would have decreased by 44.4% to $1.5 million, compared to $2.0 million in the second quarter of 2006 and $1.8 million in third quarter of 2005. * uBid.com Certified Merchant Program (UCM UCM Universidad Complutense de Madrid (Spain) UCM University of Central Missouri (Warrensburg, Missouri) UCM Unified Change Management UCM Universal Content Management (Stellent, Inc. ) grew by 31.3% to 1,716 participating merchants at September 30, 2006 from 1,307 merchants reported at June 30, 2006. This also represents an increase of 328% from 401 participating merchants at the end of the third quarter of 2005. * Active Auction Participants totaled 289,000, while the number of Auction Events increased 17.6% to approximately 562,000. Auction Events have more than doubled from the same period in 2005. * Customer Registrations totaled approximately 54,000 in the third quarter of 2006 compared to approximately 52,000 in the second quarter of 2006. Robert H. Tomlinson Jr., 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. of uBid.com Holdings, Inc. commented, "Our third quarter results underscore continued progress in the transformation of uBid.com. We think there has been meaningful progress made to date and now hope to see a move toward profitability in the fourth quarter. To that point, we further streamlined our business over the last three months and focused our attention on the highest margin areas of our business. In addition, we have continued to grow our Certified Merchant program, while integrating the assets of last quarter's Bidville acquisition. The upshot of these initiatives is underlying momentum in our business thus far in the fourth quarter." Recent highlights include: On July 27, 2006 uBid announced the acquisition of certain auction assets of Bidville, Inc., a Nevada corporation A Nevada Corporation is a corporation chartered under the laws of the U.S. state of Nevada. Nevada, like the state of Delaware (See Delaware corporation), is well known as a corporate haven. founded in 1999 as an Internet auction alternative to eBay. Bidville, Inc. is well known for its innovative auction site user features, such as Storefronts, Watch Lists, Image Gallery, and fixed price listing options. The purchase price was $746,000. On August 3, 2006, uBid announced that Paul Traub was elected to the Board of Directors. Mr. Traub is a founding partner of Traub, Bonacquist & Fox, LLP LLP - Lower Layer Protocol , a New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of based law firm, focusing on strategic asset acquisitions and disposition, insolvency and corporate restructuring, distressed financings, and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . In September 2006, the "Traub Group" joined Dreier LLP, a New York full service law firm. In addition, Mr. Traub is an advisor to Petters Group Worldwide, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a principal shareholder of uBid.com. On August 24, 2006 uBid announced an affiliation with NetBank, Inc. whereby uBid.com customers will qualify for financial incentives upon opening and funding accounts. The affiliation allows uBid.com to bring a broader suite of services to enhance the customer experience. Conference Call uBid.com Holdings, Inc. will host a conference call to discuss third quarter 2006 financial results today at 4:30 P.M. ET. Hosting the call will be Robert H. Tomlinson Jr., President and Chief Executive Officer, and Mike Martinez Jr., Vice President Finance. The conference call can be accessed live over the phone by dialing 1-800-817-4887, or for international callers 1-913-981-4913. A replay will be available one hour after the call and can be accessed by dialing 1-888-203-1112 or 1-719-457-0820 for international callers; the conference ID is 3426400. The replay will be available until November 21, 2006. The call will be webcast live from uBid.com Holdings, Inc. website at www.uBid.com under the Investor Relations Investor relations The process by which the corporation communicates with its investors. section. About uBid.com Holdings, Inc. uBid.com Holdings, Inc. and subsidiaries (the "Company") operate a leading on-line business- to-consumer and business-to-business marketplace that enables itself, certified merchants, manufacturers, retailers, distributors and small businesses to offer high quality excess, new, overstock, close-out, refurbished and limited supply brand name merchandise to consumer and business customers primarily located in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Through the Company's website, located at www.ubid.com, the Company offers merchandise across a wide range of product categories including but not limited to computer products, consumer electronics, apparel, housewares house·wares pl.n. Cooking utensils, dishes, and other small articles used in a household, especially in the kitchen. , watches, jewelry, travel, 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 , home improvement products and collectibles. The Company's marketplace employs a combination of auction style and fixed price formats. uBid.com Holdings, Inc. is publicly traded on the NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). OTC bulletin board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. (UBHI). (1) This news release contains the non-GAAP financial measure gross merchandise sales ("GMS"). GMS represent the retail value of all sales transactions, inclusive of inclusive of prep. Taking into consideration or account; including. freight, which flow through the uBid.com platform, whether or not uBid.com is the seller of the merchandise, or records the full amount of such sales on its financial statements. We use gross merchandise sales as a metric for operating our business. We believe that investors will have a more thorough understanding of our historical revenue trends if they have visibility to GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net revenue as well as the non-GAAP financial measure gross merchandise sales. We believe that certain non-GAAP performance measures and ratios, which our management uses in managing our business, may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported operating results or cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses or any other measure of performance prepared in accordance with GAAP. In addition, our presentation of these measures may not be comparable to similarly titled measures other companies use. The table below is a reconciliation of GMS to the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . SEC Filings and Forward-Looking Statements Additional information about uBid.com Holdings, Inc. is available in the company's annual report on Form 10- K as amended, filed with the Securities and Exchange Commission. Certain statements made in this release are forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business of uBid.com Holdings, Inc. and the industries and markets in which uBid.com Holdings, Inc. operates. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements. Factors which may affect the forward looking statement identified above and uBid.com Holdings, Inc.'s business, financial condition and operating results generally include the effects of adverse changes in the economy, reductions in consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. , declines in the financial markets and the industries in which uBid.com Holdings, Inc. and its partners operate, adverse changes affecting the Internet and e-commerce, the ability of uBid.com Holdings, Inc. to develop and maintain relationships with strategic partners and suppliers and the timing of its establishment or extension of its relationships with strategic partners, the ability of uBid.com Holdings, Inc. to timely and successfully develop, maintain and protect its technology and product and service offerings and execute operationally, the ability of uBid.com Holdings, Inc. to attract and retain qualified personnel, the ability of uBid.com Holdings, Inc. to successfully integrate its acquisitions of other businesses, if any, and the performance of acquired businesses. uBid.com Holdings, Inc. expressly disclaims any intent or obligation to update these forward-looking statements, except as otherwise specifically stated by uBid.com Holdings, Inc. 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