eBags.com Announces GAAP Profitable Quarter

Online Retailer Says Holiday Sales up 101%

Jan 03, 2003, 00:00 ET from eBags.com

    DENVER, Jan. 3 /PRNewswire/ -- eBags.com announced its third straight
 positive cash flow quarter and its first ever GAAP profitable quarter
 (includes non-cash expenses such as depreciation and amortization).  The
 company also disclosed record holiday sales, up 101% versus the prior holiday
 period.  Luggage, business cases, travel accessories, and urban gear
 experienced the largest sales gains.
     Jon Nordmark, CEO of eBags.com, commented, "eBags is proud to be one of
 the few online retailers to achieve sustained profitability."  He continued,
 "to have sales increase over 100% during the holidays is a testament to a
 great team as well as a dynamic and scaleable business model, especially
 during such a disappointing holiday season for the overall retail sector."
     Mike Frazzini, Vice President of IT, added, "what was especially rewarding
 was that visitors to the eBags.com site purchased at a rate that was
 86% higher than last year, validating that the site enhancements we made led
 to a better shopping experience."
     In addition, eBags.com recently announced a partnership with TUMI, the
 leading brand of prestige luggage and accessories, to develop and maintain
 TUMI's e-commerce initiative ( www.tumi.com ).  eBags.com also recently
 launched a strategic alliance with Amazon.com whereby over 6,000 eBags
 products are currently sold on the Amazon.com apparel and accessories store.
     About eBags.com
     eBags.com is the world's leading online provider of bags and accessories
 for all lifestyles.  With over 150 brands and 7,000+ products, eBags.com has
 sold over 1.6 million bags since launching March 1999.  From luggage to
 backpacks, handbags to business cases, eBags.com offers well-known brands
 including Samsonite, JanSport, The North Face, Liz Claiborne, and Adidas.
 eBags.com was named "Website of the Year" by Catalog Age Magazine for the
 second year in a row and "Email Marketer of the Year" by ClickZ/MessageMedia.
 eBags.com is funded by Benchmark Capital, Technology Crossover Ventures, and
 Amerindo.  Additional information can be found at www.ebags.com .

SOURCE eBags.com