SEER ANNOUNCES PRELIMINARY FISCAL FOURTH QUARTER RESULTS
CARY, N.C.--Oct. 31, 1996--Seer Technologies, Inc. (NASDAQ:SEER) today announced that based upon a
preliminary review of its results for the fiscal fourth quarter ended Sept. 30, 1996, the Company expects to report
total revenue of approximately $20 to $21 million and a net loss of approximately $16 to $17 million, or $1.39 to
$1.47 per share. For the same quarter a year ago, the Company posted revenue of $33.5 million and net income of
$2.4 million, or $.18 cents per share. Factors contributing to the loss include an approximately $7 million loss on
a write-down of assets resulting from a recent re-assessment of current operations by new management and the
fact that with the revenue shortfall, expenses for the period were out of alignment with the revenue base.
These are preliminary results. The Company plans to release final results for the quarter and the year on
November 7, 1996, which are subject to the completion of the independent annual audit.
"It is extremely disappointing to have to report these types of results," said Thomas A. Wilson, Seer's newly
appointed president and chief executive officer. "Lack of clear market definition, product plans and corporate
positioning over the past year has had a direct negative impact on sales."
"However, I have spent a great deal of time over the last six weeks meeting with customers, trade and financial
analysts, reviewing the current state of the business and analyzing the Company's performance for this past year.
We have begun our financial restructuring process to realign expenses with revenue and are working with
prominent trade analysts in defining our market position and strategy. The result of these efforts has given me a
high level of confidence about Seer's long-term future. I look forward to presenting more details about our plans
for next year in November," concluded Wilson.
Rob Minicucci, chairman of the board and general partner of Welsh, Carson, Anderson and Stowe, Seer's
majority stockholder, commented, "We are most supportive of Thomas' assessment of the business and are
confident that these initial steps, coupled with his future plans, will position the Company for success."
Except for any historical information contained herein, this news release contains forward looking statements that
involve risks and uncertainties, including the timely development, release and acceptance of new products and
alliances, the impact of competitive products and pricing, and the other risks detailed from time to time in the
Company's SEC reports, including the report on Form 10-K for the year ended September 30, 1995 and each of
the Company's 10-Qs filed in 1996. In particular, at its present stage of growth where its results depend upon a
small number of relatively large contracts, the Company is susceptible to potential significant variations in
quarterly revenues and net income as a result of the timing of contract closings.
CONTACT: Seer Technologies, Inc. Addie Kline, 919/380-5234
Cerplex announces third quarter results
TUSTIN, Calif.--Oct. 31, 1996-- The Cerplex Group Inc. (NASDAQ:CPLX), a leading provider of high
technology outsourcing services, on Thursday released results for the third quarter ended September 29, 1996.
Net sales increased 42.9% to $50.6 million from $35.4 million in the same quarter of fiscal 1995.
For the nine months ended September 29, 1996, net sales increased 40.1% to $142.8 million from $101.9 million
for the same period of fiscal 1995.For the third quarter ended September 29, 1996, the company reported a net
loss of $12.9 million or $.96 per share compared to a net loss of $25.0 million or $1.91 per share for the same
period of fiscal 1995.
For the nine months ended September 29, 1996, the company reported a net loss of $13.8 million or $1.04 per
share compared to a net loss of $23.9 million or $1.83 per share compared to the same period of fiscal 1995. The
losses reported for the same three months and nine months ended in fiscal 1995 include losses from discontinued
operations of $15.6 million and $15.4 million respectively.
The third quarter reflects, to a certain degree, the final resolution of several matters that have adversely impacted
the Company. In particular, the Company closed its unprofitable Texas operations and reached a settlement with
respect to the SpectraVision bankruptcy. The Company closed several other unprofitable operations and
businesses, resulting in restructuring charges and asset write downs.
Due to changes in the Company's business, or the business of third parties, the Company recorded charges for
inventory writedowns, uncollectable receivables and other assets. The losses in the third quarter are also
attributable to higher interest expenses and a variety of other factors.
Sales growth is primarily attributable to acquisitions completed earlier this year. North American sales
experienced a drop-off, primarily due to closing of unprofitable operations, product lines and related facility
consolidations.
As previously disclosed in its filings with the Securities and Exchange Commission, Cerplex also announced that
it was in violation of certain financial covenants under its senior credit agreement and subordinated note
agreements which constitutes an event of default under such agreements.
The Company has received waivers from these lenders through November 30, 1996, while the Company
negotiates amendments to these agreements. Further, the Company's tangible net worth has fallen below the
minimum requirements for listing on the Nasdaq National Market. Discussions have been initiated between
Cerplex and the NASD regarding this matter.
William A. Klein, Cerplex's Chairman, President and Chief Executive Officer, stated: "During 1995 and 1996,
the Company has been in the process of revising its service model. In 1995, the Company discontinued its
end-of-life business. During 1996, we began refocusing our operations on providing services which were less
inventory intensive while downsizing or closing unprofitable operations.
"In addition, due to collection problems with SpectraVision, which filed for bankruptcy, and several other
customers, we began tightening our credit standards and revising our targeted customer profile. While we believe
that these changes have provided the Company with an enhanced model and a more efficient platform to service
our customers, operational issues based on our former business model, and other factors have impacted, and will
in the near term continue to impact, our financial condition and results of operations."
Klein continued: "We strongly believe in the fundamentals of our industry and believe that our refocusing on a
revised service model to top quality customers is paying off. In the last quarter we have brought on-line our new
Ontario, Calif., hub with Hewlett-Packard as our anchor customer. We have commenced operations in our new
Louisville, Ky., hub and have started servicing new customers.
"We have also entered into a new agreement with Digital Equipment Corp. and are negotiating several other
agreements with other high quality customers. We believe that these new opportunities will alone provide in
excess of $25 million in business in fiscal 1997."
About Cerplex
Cerplex is a leading independent provider of service outsourcing, including repair and remanufacturing, and parts
and logistics services. The company has developed extensive capabilities in these areas, focusing on the
computer and peripherals, telecommunications and office automation markets. Cerplex offers custom developed
programs to OEM and TPM customers that help to reduce their service costs, shorten response times, and
improve customer satisfaction. The Company's headquarters is located in Tustin, Calif., with service facilities
throughout the United States and Europe. Visit Cerplex's homepage at www.cerplex.com.
NOTE: This news story contains forward-looking statements that involve risks and uncertainties. The Company's
actual results may differ significantly from the results discussed in the forward-looking statements.
Forward looking statements include statements regarding Cerplex's projected revenues next year, the
renegotiation of the Company's credit facilities and discussions with the NASD. There can be no assurances the
Company will be able to generate projected revenues in 1997, renegotiate its credit facilities or maintain its
Nasdaq National Market listing.
Factors that might cause such differences include, but are not limited to, the effect of losses and other factors on
the Company's credit facilities, business and results of operations; the Company's limited capital resources and
its ability to fulfill its existing obligations and ongoing capital needs; risks associated with excess or obsolete
inventory; the potential impairment of assets; the Company's dependence on key customers and their financial
viability; the impact of competition; and the Company's ability to effectively manage growth.
These and other risk factors are discussed in the Company's filing on Forms 8-K, 10-Q, and 10-K.
Executives at Cerplex are available for interview.
THE CERPLEX GROUP INC.
and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Nine Months
Ended Sept. 29 Ended Sept. 29
1996 1995 1996 1995
Net Sales $ 50,636 $ 35,381 $142,821 $101,870
Cost of Sales 46,885 32,450 121,170 86,888
Gross Profit 3,751 2,931 21,651 14,982
Selling, general &
administrative expenses 12,233 13,191 27,872 22,502
Restructuring charges 2,084 2,084
Operating income (loss) (10,566) (10,260) (8,305)
(7,520)
Equity in earnings from
joint venture -- 347 357 1,506
Gain on Sale of InCirT
Division -- 450
Interest expense 1,811 1,295 4,980 3,740
Income (loss) from
continuing operations
before taxes (12,377) (11,208) (12,478)
(9,754)
Income taxes 563 (1,775) 1,333
(1,281)
Income (loss) from
continuing operations (12,940) (9,433) (13,811)
(8,473)
Discontinued operations,
net of income taxes:
Income (loss) from operations -- (2,118)
-- (1,965)
Estimated loss from liquidation
of discontinued operations -- (13,446) -- (13,446)
Income (loss) from
discontinued operations -- (15,564) -- (15,411)
Net income (loss) $(12,940) $(24,997) $ (13,811)
$(23,885)
Income (loss) per share:
Continuing operations $ (0.96) $ (0.72) $ (1.04) $
(0.65)
Discontinued operations -- (1.19)
-- (1.18)
Net income (loss)
per share $ (0.96) $ (1.91) $ (1.04) $
(1.83)
Weight average common and
common equivalent shares 13,422 13,108 13,332 13,081
-0-
THE CERPLEX GROUP, INC.
and Subsidiaries
CONSOLIDATED BALANCE SHEET
(in thousands, except per share data)
Sept. 29, Dec. 31,
1996 1995
ASSETS
Current Assets:
Cash and cash equivalents $ 26,521 $ 3,807
Accounts receivable, net 23,301 30,102
Inventories 22,674 27,789
Net assets of discontinued
operations 412 2,597
Prepaid expenses and other 7,116 2,267
Total current assets 80,024 66,562
Property, plant and equipment, net 28,390 17,988
Investment in joint venture --- 7,723
Goodwill 5,682 6,647
Other long-term assets 3,804 2,973
Total assets $117,900 $101,893
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts and notes payable $ 24,410 $ 17,024
Accrued liabilities 24,990 13,622
Short-term borrowings 45,188
Current portion of long-term debt 241 536
Income taxes payable 1,296 2,161
Total current liabilities 96,125 33,343
Long-term debt, less current portion 18,033 68,382
Other long-term liabilities 6,214
Stockholders' Equity:
Convertible Series B preferred stock,
par value $.001; 8,000 shares
authorized and outstanding 7,859
Common stock, par value $.001; 13 13
30,000,000 shares authorized;
13,440,011 and 13,127,680
issued and outstanding in 1996
and 1995
Additional paid-in capital 50,645 47,528
Notes receivable from stockholders (139) (226)
Unearned compensation (90) (143)
Accumulated deficit (60,837) (47,026)
Cumulative translation adjustments 77 22
Total stockholders' equity (2,472) 168
Total liabilities and stockholders'
equity $117,900 $101,893
CONTACT: Cerplex, Tustin Ray Robidoux, Senior Vice President, Marketing 714/258-5644
rrobidou@cerplex.com
Eljer Industries announces record third quarter results and extension of debt agreement to 1998
DALLAS, TX--Oct. 31, 1996--Eljer Industries, Inc. (NYSE:ELJ) today reported record earnings for the third
quarter and nine months ended September 29, 1996.
For the third quarter, net income reached $7,390,000, or $1.03 per share, compared with net income in the third
quarter of 1995 of $4,522,000, or $0.63 per share. Income from operations increased 72% to $10,412,000 in the
third quarter of 1996 from $6,060,000 in the third quarter of 1995, excluding a one-time nonrecurring gain of $2.7
million resulting from pension plan amendments recorded in the third quarter of 1995. Net sales for the 1996
third quarter of $103,973,000, increased $1.2 million compared with $102,752,000 reported in the third quarter
of 1995.
For the first nine months of 1996, net income was $10,328,000, or $1.43 per share, on net sales of $290,370,000,
compared with net income of $2,434,000, or $0.34 per share, on net sales of $294,223,000 in the same period of
1995. Operating income was $21,509,000 compared with $14,378,000 in the first nine months of 1995.
Third quarter sales were favorably affected by continued strong U.S. housing starts, partially offset by the
lingering impact of the 11-week strike at our Salem, Ohio, cast iron facility earlier this year. The strike and
related shut-down resulted in a delay in the plant's ability to return to full capacity, negatively impacting
shipments of our cast iron product. Newly introduced products are proving to be very successful both in terms of
additional volume and higher margins. The QestPEX line of flexible plumbing systems introduced earlier this
year remains one of our strongest new products. We are successfully cross-marketing our products into existing
retail channels. Sales of our HVAC products through the retail market improved 82% in the third quarter of 1996
compared to the 1995 third quarter primarily as a result of selling these products to existing plumbingware retail
customers. Gross profit margins also improved as a result of a more stable raw material market and price
increases implemented last year in response to the substantially higher raw material prices experienced in early
1995.
Litigation costs decreased approximately $1.6 million in the third quarter of 1996 compared to the same period in
1995 due to reduced legal activity, including the settlement reached with Household International, Inc. in the
second quarter.
In Octob er the Bankruptcy Court for the bankruptcy proceedings of United States Brass Corporation, our indirect,
wholly-owned subsidiary, ordered deadlines for filing amendments or supplements to previous plans or for filing
new plans. New plans of reorganization and new disclosure statements or amendments to previously filed plans
of reorganization or disclosure statements are to be filed on or before November 29, 1996. Objections to any
amended or supplemental information contained in the disclosure statements must be filed by December 31, 1996
and a hearing will be held on the submitted disclosure statements on January 22, 1997. U.S. Brass is currently
preparing a Third Amended Brass Plan and Disclosure Statement embodying the terms of the tentative settlement
reached in connection with the previously disclosed national class action settlement agreement.
In addition, on October 30, 1996, the Company successfully completed negotiation of an amendment to the U.S.
term debt agreement extending the maturity of the debt to January 1998 from January 1997. At September 29,
1996, the Company had outstanding term debt of $50.9 million. Under the terms of the amendment, scheduled
principal payments totaling $5.0 million are due in 1997 with the balance becoming due on the January 31, 1998,
maturity date. A fee equal to approximately 1% of the outstanding loan balance was paid by Eljer at the closing
of the amendment to the agreement.
Scott Arbuckle, Chairman and Chief Executive Officer, commented: "We are very pleased with the strong
performance of all our business units during the quarter. The cross-marketing of our products into the retail and
wholesale channels are proving effective in expanding volume potential. In addition, the order rate of new
products continues to help our sales in the highly competitive U.S. market. We are pleased as well with our bank
group's ongoing cooperation evidenced by their extending the maturity date an additional year. Our primary goal
now is the final resolution of the U.S. Brass issues while continuing the momentum of improved earnings
performance."
Eljer Industries, Inc. is a leading manufacturer and marketer of high quality building products, including
plumbing, heating and ventilation products, for the residential and commercial construction, remodeling and
repair, and do-it-yourself markets.
ELJER INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF INCOME
(unaudited)
(In thousands, except per share amounts)
For the Three Months For the Nine Months
Ended Ended
9/29/96 10/1/95 9/29/96 10/1/95
NET SALES $103,973 $102,752 $290,370
$294,223
COST OF SALES 73,138 74,016 213,124
219,279
GROSS PROFIT 30,835 28,736 77,246
74,944
SELLING & ADMINISTRATIVE
EXPENSES 18,744 17,679 56,373 56,098
LITIGATION COSTS (SETTLEMENTS),
net 299 1,869 (2,868) 6,362
UNUSUAL ITEM - U.S. BRASS
BANKRUPTCY ADJUSTMENT 1,380 348 2,232 (1,894)
INCOME FROM OPERATIONS 10,412 8,840 21,509
14,378
OTHER EXPENSE, net 186 321 418
1,252
INTEREST EXPENSE, net 2,221 3,441 8,184
10,106
INCOME BEFORE INCOME
TAXES 8,005 5,078 12,907 3,020
INCOME TAX EXPENSE 615 556 2,579
586
NET INCOME $ 7,390 $ 4,522 $ 10,328 $
2,434
NET INCOME PER SHARE $ 1.03 $ 0.63 $ 1.43 $
0.34
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES 7,204 7,137 7,206 7,132
CONTACT: Eljer Industries, Inc. Brooks Sherman Chief Financial Officer (972) 407-2600 or Linda Pankewicz
(972) 407-2604 or Morgen-Walke Associates Lynn Morgen / June Filingeri Stan Froelich, Media Contact (212)
850-6500
Egghead announces second-quarter results
SPOKANE, Wash.--Oct. 31, 1996--Egghead Inc. (NASDAQ:EGGS) today reported results for its second quarter
ended Sept. 28, 1996. These results exclude the discontinued operations of the Corporate Government and
Educational division (CGE), which was sold on May 13, 1996.
The company's consolidated revenue from continuing operations for the second quarter was $80.0 million, a
decrease of 21% from the $100.6 million last year. Net loss for the second quarter from continuing operations
was $4.7 million, or $0.27 per share, compared to a net loss of $3.1 million, or $0.17 per share last year.
For the six months, the company's consolidated revenue from continuing operations was $158.6 million, a
decrease of 14% from the $185.3 million from last year. Net loss from continuing operations for the six months
was $12.2 million, or $0.70 per share, compared to a net loss of $6.3 million, or $0.37 per share last year.
Comparable store sales for the second quarter decreased 22.2% from last year. For the six months comparable
store sales decreased 15.1% from last year. Comparable store sales results only include Egghead's retail stores.
Excluded are sales through Direct Response and the Egghead Internet site (www.egghead.com).
Total and comparable store sales performance for the quarter was adversely affected by the launch of Windows
95 last year and a reduction in the average number of stores in operation this year. For the second quarter
comparable store sales decreased 17.2% excluding the sales of Windows 95 in both periods but not Windows 95
related products introduced during the Windows 95 launch period.
Analogously for the six months comparable store sales decreased 12.2% excluding the sales of Windows 95 in
both years. The average number of stores in operation during the second quarter this year was 157, down from
164 stores last year. At Sept. 28, 1996, there were 154 stores in operation.
During the second quarter Egghead formalized plans to remodel 12 of the company's previous new format (C-3)
stores to its C-4 format and convert one store to the C-4 format and open three new C-4 format stores in existing
markets. The C-4 format is a more open store whose fixture arrangement holds more merchandise and affords
greater flexibility in displaying and organizing each category. The company is also modifying an additional 12
stores, 10 of which consist of C-3 stores in new markets.
All 28 of these stores will carry broader merchandise assortments, including hardware, than the company's
traditional store. Several of them also serve as pilot sites for upgrade and installation departments and walk-in
sales from surrounding businesses. The hardware assortments include computer systems, notebook computers,
monitors, printers, scanners, and digital imaging devices. Management expects to effect these changes prior to the
upcoming holiday selling season.
As the company has previously stated, the performance of the remodeled and expanded stores in existing markets
is better on balance than that of new stores in new markets. Egghead's Chairman George P. Orban said, "With this
initiative we are moving to reposition some key stores in time for the holiday season. We are focusing our
attention on our new format stores which may serve as the model for redeveloping the rest of the chain as the
majority of the company's leases come up for renewal in the next 18 months."
Total gross margin for the quarter was $8.2 million or 10.2% of sales compared to $11.2 million or 11.1% of
sales last year. For the six months gross margin was $14.8 million or 9.3% of sales compared to $21.2 million or
11.4% of sales last year. For the quarter and six months the initial margin ratio was higher by 1.4 and 0.8
percentage points respectively, however, gross margin contribution was lower primarily due to the sales
decrease. Initial margin ratio in the prior year was negatively affected by the low gross margin associated with
Windows 95.
The company's selling, general and administrative expense (SG&A) for the quarter was $15.0 million, a decrease
of $0.3 million from the $15.3 million last year. The company has reduced its administrative and corporate
headquarters expenses, however, the recognition of co-op advertising reimbursements was below last year's
level.
For the six months SG&A expense was $33.0 million, an increase of $3.5 million from the $29.5 million last
year. Consistent with the results for the quarter, reduction in administration and corporate headquarters expense
were offset by lower co-op advertising reimbursements. Six-months results also include several one-time
restructure costs that were recorded in the first quarter this year.
The company's balance sheet remains strong primarily due to a cash balance of $81.9 million at Sept. 28, 1996.
For the six months the company's cash position has improved by $32.3 million primarily as a result of the sale of
CGE in the first quarter and the subsequent of collection of accounts receivable.
These improvements in the cash balance was partially offset by an increase in inventory as the company prepares
for the important upcoming holiday selling season, and a decline in accounts payable.
Egghead also announced that Edward S. Wozniak, the company's Vice President, Chief Financial Officer and
Secretary has accepted a position as Vice President, Chief Administrative Officer of another company. Egghead
is in discussion with a highly qualified candidate to replace Wozniak and expects to make an announcement
shortly.
This news release contains forward-looking statements that involve risks and uncertainties, including risks
related to the highly competitive nature of the computer software, hardware and other related products retailing
industry, the seasonality and quarterly fluctuation of financial results, the early stage of the company's new store
format, the dependence of the company's sales on the purchase and use of personal computers and software, and
the development stage of the company's subsidiary ELEKOM, and the risks detailed in the company's SEC
reports, including the report on Form 10-K for the year ended March 30, 1996 and the report on Form 10-Q for
the quarter ended June 29, 1996. Actual results may differ materially.
EGGHEAD INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Amounts in thousands, except per-share data)
13 Weeks Ended 26 weeks Ended
(unaudited) (unaudited)
Sep 28, Sep 30, Sep 28, Sep 30,
1996 1995 1996 1995
Net sales $79,971 $100,617 $158,617 $185,307
Cost of sales, including
certain buying, occupancy,
and distribution
costs 71,786 89,418 143,822 164,136
Gross margin 8,185 11,199 14,795 21,171
Selling, general, and
administrative expense 15,015 15,256 32,949 29,542
Depreciation and
amortization expense, net
of amounts included in
cost of sales 1,766 1,815 3,513 3,616
Operating income (loss) (8,596) (5,872) (21,667)
(11,987)
Other income (expense):
Interest income 992 890 1,791 1,583
Interest expense (9) (16) (22)
(37)
Other, net (23) 13 (154) 68
Loss from continuing
operations before income
taxes (7,636) (4,985) (20,052)
(10,373)
Income tax benefit 2,978 1,933 7,820 4,035
Net loss from continuing
operations before effects of
discontinued operations and
cumulative effect
of change in accounting
principle (4,658) (3,052) (12,232)
(6,338)
Discontinued operations:
Income (loss) from
discontinued
operations, net of tax (462) (14,548)
(338)
Gain on disposal of
discontinued operations,
net of tax 22,286
Income from discontinued
operations (462) 7,738
(338)
Net income before cumulative
effect of change in
accounting principles (4,658) (3,514) (4,494)
(6,676)
Cumulative effect of change
in accounting principles
net of tax (711)
Net Income (loss) $(4,658) $(3,514) $(5,205)
$(6,676)
Earnings (loss) per share:
Continuing operations (0.27) (0.17) (0.70)
(0.37)
Discontinued operations:
Income (loss) from
discontinued operations (0.03) (0.83)
(0.02)
Gain on disposal of
discontinued operations 1.27
Change in accounting
principle (0.04)
Earnings (loss) per
share $(0.27) $(0.20) $(0.30) $
(0.39)
Weighted average common
shares and common
equivalent
shares outstanding 17,567 17,490 17,561 17,331
EGGHEAD INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in thousands)
ASSETS
Sep 28, 1996 Mar 30, 1996
Current assets:
Cash and cash equivalents $ 81,920 $ 49,590
Non-trade accounts receivables,
net of allowance for
doubtful accounts of
$3,472 and $2,098,
respectively 17,534 24,079
Merchandise inventories, net 99,232 84,712
Prepaid expenses and other current
assets 13,129 9,455
Current deferred income taxes 5,612 4,859
Discontinued operations - net current
assets 2,392 74,473
Total current assets 219,819 247,168
Property and equipment, net 24,950 29,495
Non-current deferred income taxes 4,221 4,221
Other assets 512 1,621
Discontinued operations -
net long-term assets -- 1,727
$ 249,502 $ 284,232
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable to banks $ -- $ --
Accounts payable 82,722 119,341
Accrued liabilities 12,895 15,817
Current portion of capital
lease obligations 307 295
Liabilities related to CGE disposal 18,559 8,327
Total current liabilities 114,483 143,780
Capital lease obligations,
less current portion 95 280
Deferred rent 709 903
Total liabilities 115,287 144,963
Commitments and contingencies -- --
Shareholders' equity :
Common stock, $.01 par value:
50,000,000 shares authorized;
17,573,920 and 17,546,548 shares
issued and outstanding,
respectively 176 176
Additional paid-in capital 124,295 124,104
Retained earnings 9,744 14,989
Total shareholders' equity 134,215 139,269
$ 249,502 $ 284,232
CONTACT: Egghead Inc. Ed Wozniak, CFO, 509/891-4851 or Bob Sundmacher, Corporate Communications,
206/728-1778