EZ Inc. Reports Second Quarter and Six Months Results; Review of Company Highlights Exponential Revenue Growth in Second Quarter

Business Wire, Oct 10, 2000

Business Editors

SEATTLE--(BUSINESS WIRE)--Oct. 10, 2000

EZ Inc. (BHIT-US / Frankfurt:BHC), formerly Bidhit.com, an Internet transactional marketing and e-commerce company, today announced second quarter and six months results for the period ended June 30, 2000, and a review of the Company's accomplishments.

In announcing the results for the quarter and six month period, Timothy Black, President and Chief Executive Officer, said, "The developments for our Company during the previous six months were pivotal to the growth of EZ Inc.

We have developed security for transactions and the elements to build and market our brand. With major pieces of our infrastructure in place, including a substantial customer base, certified vendors, customer relations management and service and fulfillment services, we believe we can now concentrate on accelerating the growth of our Company."

Financial Results

For the second quarter and six months ended June 30, 2000, the Company reported revenues of $178,885 and $182,502, respectively. an increase of $175,681 and $179,298, respectively, when compared to second quarter and six months ended June 30, 1999. The Company reported a net loss of $(1,482,468) or $(0.09) per basic and diluted share for the quarter, and a loss of $(2,832,647) or $(0.20) per basic and diluted share for the six months ended June 30, 2000.

The net loss for the Company is primarily attributable to the acquisition of EZbid in the second quarter and to expenses necessary to build the Company's infrastructure.

                                EZ Inc.
                           Financial Summary

                      Three Months Ended        Six Months Ended
                            June 30,                 June 30,
                       2000         1999          2000        1999

Total revenues    $  178,885 $      3,204  $    182,502     $ 3,204
Net loss         $(1,482,468)   $(158,316)  $(2,832,647) $ (257,816)
Net loss per
 share (basic
 and diluted)    $     (0.09)   $   (0.04)    $   (0.20)    $ (0.11)(a)
Weighted Average
 number of shares 16,031,757    3,776,099    13,852,852   1,960,635

(a) Includes one-time gain on the forgiveness of debt of $44,500,
or $0.02 per share.

Company Highlights

-- The Company completed the acquisition of EZbid, Inc., a subsidiary of
Systemax, Inc. (NYSE: SYX), a Fortune 1000 PC direct marketer of computer
hardware and software. In addition, the Company signed a cooperative marketing
agreement to market the EZ Bid site through existing Systemax channels.

-- Bidhit.com changed its name to EZ Inc.

-- Hollinger International (NYSE: HLR) invested a total of $3.4 million,
largely in the form of advertising credits to receive a 7.8 percent stake in
the Company. Hollinger is a leading global newspaper publisher. As part of its
agreement, Hollinger is providing advertising and co-branding in
Hollinger-owned publications.

-- The Company engaged the services of BDO Seidman, LLP as its independent
auditors.

About EZ Inc.

EZ Inc., formerly Bidhit.com, is the holding company for EZbid, EZbuy, and other "EZ" trademarks. The Company is an e-commerce entity focusing on the Business-to-Consumer and Business-to-Business genres. An active online Internet auction company since 1997, the Company through its EZbid division provides registered users with the opportunity to bid on quality brand name products such as computers, peripherals, camera equipment, sporting goods, household goods, home electronics and sports memorabilia.

The Company's strong customer care focus differentiates it from its competitors. Customer service, certified vendors, extended warranty program, industry leading Live Help for customers, and easy to use Web site set it apart from other online auction sites. EZ Inc is a member in good standing of the Better Business Bureau (BBB) and the BBB Online.

EZ Inc. associates include Systemax (NYSE:SYX) and Hollinger International (NYSE:HLR). Systemax Inc. sells private label and name brand PC hardware, related computer products, and industrial products to businesses in North America and Europe. Systemax is a Fortune 1000 company. Hollinger International Inc. (NYSE: HLR) is a global newspaper publishing company with English language newspapers in the United States, United Kingdom, Canada and Israel. Included among its paid daily newspapers are The Daily Telegraph, Chicago Sun-Times, and Canada's National Post. In addition, the company owns non-daily newspapers, as well as magazines and other leading publications.

Forward-Looking Statements:

This news release includes certain forward-looking statements. Forward-looking statements include, but are not limited to, projections of revenue, income or loss and capital expenditures, statements regarding future operations, financing needs, plans relating to products or services of the Company, assessments of materiality, and predictions of future events, as well as assumptions relating to the foregoing. In addition, when used in this discussion, the words "anticipates," "believes," "estimate," "expects," "intend," "plan" and variations thereof and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to various risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors, including but not limited to the Company's ability to manage rapid growth as a result of internal expansion and strategic acquisitions, the impact of competitive products and pricing, demand and market acceptance of our products and services, new product development and service offerings, reliance on key strategic alliances the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the EZ Inc.'s filings with the Securities and Exchange Commission.