eHobbies Delivers Great Value to Its Members With New Auction Stores; eHobbies.com Adds B-to-C Auctions to Successful C-to-C Auctions Feature

Business Wire, March 7, 2000

Business Editors & High-Tech Writers

SANTA MONICA, Calif.--(BUSINESS WIRE)--March 7, 2000

eHobbies(SM), the ultimate online destination for hobbyists, announced today the launch of its new business-to-consumer Auction Stores, giving hobbyists great values on a variety of new hobby merchandise that has been returned, discontinued, opened or is missing minor pieces.

Now, hobbyists can buy their favorite products at a discount from the most highly respected manufacturers in the industry within eHobbies' key auction categories at www.eHobbies.com or http://auctions.eHobbies.com. This new auctions initiative expands on the successful eHobbies Auctions, which launched approximately three months ago.

The new eHobbies Auction Stores bring a new feature to eHobbies' e-commerce model by allowing manufacturers, distributors and eHobbies to sell a variety of discounted items within seven groups: model trains, radio control, diecast, models, rocketry, hobby supplies and general hobbies.

Some of the products offered at the Auction Stores have minor imperfections or a box that is scratched or dented. Some are missing a few small pieces or a manual. Others are merely discontinued items. As with all eHobbies Auctions listings, complete product descriptions are available on the site.

This new form of business-to-consumer auctions allows for a continual flow of inventory and an added revenue stream. And, consumers receive great deals on brand-name hobby products with this new eHobbies Auctions forum.

"The addition of the eHobbies Auction Stores is a great way for our members to get real values on hobby products from some of the top manufacturers out there," said Brad Sobel, co-founder and CEO, eHobbies. "This also presents a new revenue stream for eHobbies. One of the biggest issues in the retail business is excess inventory.

"With our new eHobbies Auction Stores, we're able to prevent that problem and benefit our members, plus manufacturers and distributors."

eHobbies Auction Stores are designed for ease of use, allowing shoppers to find their favorite hobby category quickly rather than sifting through hundreds of general auction categories. The themed stores include:

-- Train Depot: Scale Model Railroad Products (G, HO, N, O, S and Z scales),
Tinplate & Highrail, Railroadiana & Railroad Paper, Books & Publishing and
General.

-- R/C Speedzone: Cars, Airplanes, Helicopters, Boats, Parts & Accessories,
Radio Systems and General.

-- Diecast Derby: Aircraft, Vehicles, Collectibles, Figures and General.

-- Model Merchant: Aircraft, Vehicles, Military and General.

-- Rocketry Launch Pad: Kits and General.

-- Tool Shed: Parts & Accessories, Tools, General.

Throughout March, most bidding will begin at $1, and eHobbies members will enjoy free ground shipping. The first 100 high bidders will also receive a free eHobbies baseball cap.

eHobbies Auctions, Great Source for New Members

According to Forrester Research, e-commerce auctions are expected to generate $52.6 billion in revenues by the year 2002. With multiple online auction choices, eHobbies' tailored approach offers an attractive alternative to existing services.

"Since we added auctions to our destination site in mid-November last year, it's been very successful for increasing traffic, attracting new members and building loyalty among hobbyists," said Rob Master, director of auctions, eHobbies.com. "About 90 percent of our auction users are new to the eHobbies site."

Powered by FairMarket Inc., a leading provider of private-label auction technology and services, eHobbies Auctions provide a hobby-specific forum for buyers and sellers in key hobby categories, rather than hundreds of general categories that don't appeal to hobbyists. The feature has proven to be highly effective in increasing the site's "stickiness," with the average user session topping 10 minutes.

About eHobbies

Founded in March 1999 by two hobbyists -- Brad Sobel, a train and rocketry buff, and Brent Cohen, an avid plastic modeler and rocketeer -- eHobbies is creating a new world for hobbyists at www.eHobbies.com, AOL Keyword: eHobbies.

The company is dedicated to providing a unique experience for millions of hobbyists in a "vertical destination" with hobby-specific communities, compelling content, one-stop shopping including auctions, all while also introducing the joy of hobbies to a new generation.

The company was chosen as one of the top 100 Web sites in 1999 by PC Magazine and was selected as one of the Feedback 50(TM), a register of the best online companies for customer service in 1999.

eHobbies is the first consumer investment from eCompanies Venture Group, formed in June 1999 by Sky Dayton, founder and chairman of EarthLink, and Jake Winebaum, former chairman of Buena Vista Internet Group. eHobbies has headquarters in Santa Monica.