uBid.com Holdings, Inc. Reports Third Quarter 2006 Results
–  Auction Events More Than Double from Last Year

Chicago, IL, November 14, 2006 – uBid.com Holdings, Inc. (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), 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) 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 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 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, a New York based law firm, focusing on strategic asset acquisitions and disposition, insolvency and corporate restructuring, distressed financings, and 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, 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 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. 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, watches, jewelry, travel, sporting goods, 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 OTC bulletin board (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 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 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 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.

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, 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.


uBid Contact:
Integrated Corporate Relations
Tel: 773-272-5000