<HTML>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: â??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. â??Simultaneously, we have retained the worldâ??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. â??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.â?° 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 http://www.egghead.com 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 www.sec.gov Shoreen Maghame Edelman Worldwide (323) 857-9100 ext. 231 e-mail: shoreen.maghame@edelman.com </HTML>
Re: What to look for, on your The charges most people are seeing are: INETPLAT (Global Telecom) All from Moscow or Russia. Typically $5-15 per charge. Check your statements carefully. It's not isolated to just egghead.com, a lot of folks who've claimed to use amazon/paypal/drugstore.com have and not egghead have seen these charges too! Again: Russian charges, cancel your card now. Merry xmas hope you weren't hit!
