ATTN: Egghead.com customers

[kumar2000]

Found this in my mailbox today:
"
Subject: IMPORTANT MESSAGE FROM EGGHEAD.COM CEO
Sent: Sat, 23 Dec 2000 09:43:41 -0800




Dear Customer,

Egghead.com has discovered that a hacker has accessed our computer
systems, potentially including our customer databases. While there
is no indication that any customer information has been compromised,
as a precautionary measure, we have taken immediate steps to protect
you by contacting the credit card companies with whom we work. They
are in the process of alerting card issuers and banks so that they
can take the necessary steps to ensure the security of cardholders
who may be affected.

We wish to underscore that we have taken these steps as precautions.
We have no information at this time to suggest that any credit card
information has been compromised. We are investigating this possibility,
and we are doing everything we can to proactively protect you. If you
would like further information, you may wish to contact the issuer of
your credit card to determine what steps they are taking. We regret any
inconvenience this may cause you.

We issued a press release on this matter earlier today. It is appended
below this message. If you have additional questions, please call our
customer service team at 1-800-EGGHEAD (344-4323).

Respectfully,

Jeff Sheahan
President & CEO
Egghead.com, Inc.



Press Release:

Contact:
Joanne Hartzell
Egghead.com, Inc (650) 470-2713
John Stodder, Shoreen Maghame
Edelman Worldwide, (323) 857-9100


Egghead.com Investigates Breach of Company Computer Systems
Company Undertakes Immediate Precautionary Measures
MENLO PARK, Calif., December 22, 2000 - Egghead.com ®, Inc. (Nasdaq:
EGGS), released the following statement today:
“Egghead.com has discovered that a hacker has accessed our computer
systems, potentially including customer databases. As a precautionary
measure, we have taken immediate steps to protect our customers by
contacting the credit card companies we work with. They are in the
process of alerting card issuers and banks so that they can take the
necessary steps to ensure the security of cardholders who may be affected.

“Simultaneously, we have retained the world’s leading computer security
experts to conduct a thorough investigation of our security procedures
and an analysis of this breach. We are also working with law enforcement
authorities, who are in the process of conducting a criminal investigation.

“For many months, we have been in the process of strengthening our security
systems in an effort to combat the increasing, industry-wide problem of
malicious hacking. We are committed to providing the highest security
standards in the industry, a process that has been ongoing and has
involved a considerable investment on the part of our company. Those
principles will continue to guide us going forward.”

About Egghead.com: Egghead.com is a leading Internet direct marketer of
technology and related products. With an emphasis on Small- to Medium-sized
Business (SMB) customers, Egghead.com offers a wide range of products from
computer hardware and software, consumer electronics and office products,
to sporting goods and vacation packages. Its Clearance, After Work and
Auction formats offer bargains on excess and closeout goods and services.
Egghead.com combines broad selection, low prices, and excellent service
to provide an outstanding online shopping experience for businesses and
consumers. Egghead.com is located on the Internet at [Only registered and activated users can see links. Either login above or Register Now]

This press release contains forward-looking statements that involve
risks and uncertainties, including but not limited to statements relating
to steps taken to protect our customers. These forward-looking statements
are based on information available to the company at the time of this
release and we assume no obligation to update any such forward-looking
statements. The statements in this release are not guarantees of future
performance. Actual results could differ materially from current expectations
as a result of numerous factors. For example, our ability to protect our
customers from potential misuse of private information is limited, and the
impact of compromised computed security on our business is unpredictable.
Other risks and uncertainties associated with the business are detailed in
our most recent Forms 10-K and 10-Q which are on file with the SEC and
available through [Only registered and activated users can see links. Either login above or Register Now]

Shoreen Maghame
Edelman Worldwide
(323) 857-9100 ext. 231
e-mail: [Only registered and activated users can see links. Either login above or Register Now]


Due to our desire to ensure every person who may be affected has been notified,
you may be receiving this message even if previously expressing a desire not to
receive email from Egghead.com. If this is the case, please be assured you will
not be receiving promotional emails from Egghead.com in the future.
"