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July 24, 2002 at 12:00 AM EDT
Overstock.com Announces Strategic Marketing Alliance with iVillage to Create Co-Branded Shopping Site
SALT LAKE CITY--(BUSINESS WIRE)--July 24, 2002--Overstock.com Inc. (Nasdaq: OSTK - News), the Internet liquidation leader, Wednesday announced a marketing alliance with iVillage Inc. (Nasdaq: IVIL - News), a leading women's media company and the No. 1 source for women's information online, to provide co-branded shopping services to iVillage visitors.

The co-branded site (http://ivillage.overstock.com) delivers the broad selection of name-brand discounts available at Overstock.com, with special promotions offered exclusively to iVillage shoppers. Customers of the shopping site will now benefit from the convenience of staying within the iVillage community for trusted content while also enjoying shopping online.

Under the terms of the agreement, Overstock.com will provide the inventory, fulfillment, site content, customer service, Web site hosting and e-mail marketing for the co-branded site. Through Overstock's proprietary, Web-based reporting interface, iVillage will also be supplied with real-time sales, click-thrus and conversion rates.

iVillage will market the new shopping services through its vast online network via direct e-mail campaigns, homepage placements and links within relevant content on its site.

This alliance provides iVillage with additional revenues and Overstock.com access to a new audience. iVillage is the 22nd most visited site in the United States, with more than 15 million unique visitors (comScore Media Metrix, June 2002).

Overstock.com is the Web's most popular discount shopping site, attracting millions of shoppers per month, the majority of which are female and within the same age group as visitors to iVillage.

"This agreement allows iVillage to provide visitors with the ability to purchase brand-name, discounted products without having to control back office transactional functions and also adds new revenues for our company," said Douglas McCormick, chairman and chief executive officer of iVillage Inc.

"iVillage is an ideal partner for growing our customer base," said Patrick Byrne, chief executive officer of Overstock.com. "Female shoppers are our highest-converting visitors, and iVillage is the premier site for women on the Internet. This co-branded site will extend our reach to more value-conscious shoppers online."

"Powered by Overstock.com"

The agreement by Overstock.com to power this iVillage shopping Web site follows other alliances Overstock has formed recently with popular consumer brands like Safeway, Priceline.com and ShopNBC.com that value extending discounts to their customers online or offline.

For example, Overstock.com has been working with Safeway, one of the largest food and drug retailers in North America, on its national roll-out of Safeway Club Exclusives, its first foray into selling non-food items.

For more information about Overstock's "Powered by" program or the company's other affiliate programs, please contact marketing@overstock.com.

Overstock.com's Award-Winning Marketing Initiatives

Overstock.com's affiliate marketing program, which currently supports thousands of active partners, was rated one of the top 10 best affiliate programs on the Web by ReferIt for the level of customer service Overstock.com provides and the return on revenue the company's affiliate program generates for its participants.

One way Overstock.com has extended a similar loyalty program to all of its stakeholders is by maintaining a low, flat shipping fee, which keeps prices low for customers, including those from its "Powered by" sites, and profit margins high for both Overstock.com and its partners.

About Overstock.com

Overstock.com delivers the best values for name-brand consumer merchandise. Since launching the site in October 1999, Overstock.com calculates that it has saved consumers more than $100 million off manufacturer suggested retail prices.

Founded on the principles of fair dealing and value investing, Overstock.com is a publicly traded company, headquartered in Salt Lake City, and can be found online at www.overstock.com.

About iVillage

iVillage Inc. is a leading women's media company and the No. 1 source for women's information online. iVillage includes iVillage.com, Women.com, Business Women's Network, Lamaze Publishing, The Newborn Channel, iVillage Solutions, Promotions.com and Astrology.com.

iVillage.com is a leading online women's destination providing practical solutions and everyday support for women 18 and over. Lamaze Publishing produces advertising-supported educational materials for expectant and new parents. The Newborn Channel is a satellite television network in approximately 1,100 hospitals nationwide.

iVillage.com is organized into branded communities across multiple topics of high importance to women and offers interactive services, peer support, content and online access to experts and tailored shopping opportunities.

Content areas include Astrology, Babies, Beauty, Diet & Fitness, Entertainment, Food, Health, Home & Garden, Lamaze, Money, Parenting, Pets, Pregnancy, Relationships, Shopping, and Work.

Established in 1995 and headquartered in New York, iVillage Inc. is recognized as an industry leader in developing innovative sponsorship and commerce relationships that match the desire of marketers to reach women with the needs of iVillage.com members for relevant information and services.

Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995:

Overstock.com Inc. has included in this press release certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning Overstock.com's business, operations and financial condition.

The words or phrases "can be," "expects," "may affect," "may depend," "believes," "estimate," "project" and similar words and phrases are intended to identify such forward-looking statements.

Such forward-looking statements are subject to various known and unknown risks and uncertainties and Overstock.com cautions you that any forward-looking information provided by or on behalf of Overstock.com is not a guarantee of future performance.

Actual results could differ materially from those anticipated in such forward-looking statements due to a number of factors, some of which are beyond Overstock.com's control, in addition to those factors discussed in Overstock.com's other press releases, public filings and statements by Overstock.com's management.

All such forward-looking statements are current only as of the date on which such statements were made. Overstock.com does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

iVillage Inc. has included in this press release certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning iVillage's business, operations and financial condition.

The words or phrases "can be," "expects," "may affect," "may depend," "believes," "estimate," "project" and similar words and phrases are intended to identify such forward-looking statements.

Such forward-looking statements are subject to various known and unknown risks and uncertainties and iVillage cautions you that any forward-looking information provided by or on behalf of iVillage is not a guarantee of future performance.

Actual results could differ materially from those anticipated in such forward-looking statements due to a number of factors, some of which are beyond iVillage's control, in addition to those discussed in iVillage's other press releases, public filings and statements by iVillage's management, including (i) the volatile and competitive nature of the media industry, (ii) changes in domestic and foreign economic, political and market conditions, (iii) the effect of federal, state and foreign regulation on iVillage's business, (iv) the impact of recent and future acquisitions and joint ventures on iVillage's business and financial condition, (v) iVillage's ability to establish and maintain relationships with advertisers, sponsors, and other third party providers and partners, and (vi) the impact of pending litigation on iVillage's business and financial condition.

All such forward-looking statements are current only as of the date on which such statements were made. iVillage does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

Overstock.com is a trademark of Overstock.com Inc. All other trademarks are the property of their respective companies.

iVillage, the iVillage logo, iVillage.com and similar marks used in this press release are trademarks or service marks of iVillage Inc. or its subsidiaries. All rights reserved. All other trademarks and service marks used in this press release are the property of their respective owners. Contact:

Overstock.com Inc.
Leslie A. Dotson, 415/377-4414
ladotson@earthlink.net
or
iVillage Inc.
Carl Fischer, 212/600-6502
cfischer@mail.ivillage.com