IMPORTANT MESSAGE FROM EGGHEAD.COM CEO (fwd)

[InfoSec News <isn () C4I ORG>]

-----Original Message-----
From: Egghead.com Special Update
[mailto:specialdeals () PROMO1 EGGHEADLIST COM]
Sent: Saturday, December 23, 2000 9:44 AM
Subject: IMPORTANT MESSAGE FROM EGGHEAD.COM CEO


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 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

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.

To be removed from our mailing list please go to:
http://promo2.eggheadlist.com/blist.asp?

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