Overstock.com Applauds SEC's Courage in Addressing Naked Short Selling Issue

SEC Chairman Christopher Cox Takes Steps to Reduce the Frequency of

Unsettled Stock Transactions, an Illegal Stock Trading Strategy

Jul 12, 2006, 01:00 ET from Overstock.com

    SALT LAKE CITY, July 12 /PRNewswire-FirstCall/ -- Overstock.com(R)
 (Nasdaq:   OSTK) CEO Patrick Byrne issued the following statement today in
 regards to the Securities and Exchange Commission's open meeting held this
 morning on proposed amendments to Regulation SHO.
     (Logo: http://www.newscom.com/cgi-bin/prnh/20030520/LATU020LOGO-a)
     "I congratulate the SEC for the courage they showed today, and I am
 grateful for the leadership of Chairman Cox. It is clear he understands the
 severity of the problem, and the Commissioners can be proud of the steps
 they are taking to end the blight of abusive naked short selling upon our
 capital markets."
     Regulation SHO went into affect in January 2005 and was supposed to
 stop illegal naked short selling -- the practice of deliberately selling
 shares of stock without first locating available shares to sell (also
 referred to as "failure to deliver"). In the open meeting today, SEC
 Chairman Christopher Cox said it is apparent that there is a serious
 problem with abusive naked short selling. The Commission candidly
 acknowledged the shortcomings of Regulation SHO and that proposed
 amendments to the regulation are the result of thorough analysis. The SEC
 has also commissioned two academic studies looking into the effects of
 failed stock trades.
     About Overstock.com
     Overstock.com, Inc. is an online "closeout" retailer offering discount,
 brand-name merchandise for sale over the Internet. The company offers its
 customers an opportunity to shop for bargains conveniently, while offering
 its suppliers an alternative inventory liquidation distribution channel.
 Overstock.com, headquartered in Salt Lake City, is a publicly traded
 company listed on the NASDAQ National Market System and can be found online
 at http://www.overstock.com.
     Overstock.com is a registered trademark of Overstock.com, Inc. All
 other trademarks are the property of their respective companies.

SOURCE Overstock.com