More Merchants Choose FairMarket to Power eBay Sales; Second Wind PCs and Hanover Direct Employ FairMarket's MarketSelect Service

Business Wire, Dec 3, 2001

Business/Technology Editors

WOBURN, Mass.--(BUSINESS WIRE)--Dec. 3, 2001

FairMarket(SM), Inc. (Nasdaq: FAIM), a provider of excess inventory solutions for businesses, today announced that Second Wind PCs and Hanover Direct have chosen FairMarket's MarketSelect(SM) solution as the infrastructure to sell goods on eBay (Nasdaq: EBAY).

MarketSelect is a selling tool that enables merchants and manufacturers to easily sell large quantities on eBay. Leveraging eBay's APIs, this solution provides a seamless way for merchants with or without their own site to list their items on the eBay site through FairMarket.

Second Wind PCs, a division of nationally recognized distributed processing equipment lessor M/C Leasing, provides late model off-lease computing technology to small businesses, schools, non-profit organizations and consumers in the United States and Canada. It had been selling on eBay prior to coming to FairMarket, with a number of its employees manually managing the eBay selling process. After turning to FairMarket's MarketSelect service, significant portions of the process have been automated and Second Wind PCs has significantly increased its sales capacity without adding staff.

"We had been selling on eBay for a period of time when we realized that we could easily sell higher volumes but it would have required more staff to do so," said Bob Amori, executive vice president at Second Wind PCs. "After deploying MarketSelect, we were able to double our sales volume on eBay while still using the same number of employees."

Hanover Direct, Inc. (AMEX: HNV) provides quality, branded merchandise through a portfolio of catalogs and e-commerce platforms to consumers as well as a comprehensive range of Internet, e-commerce and fulfillment services to businesses. Hanover Direct was using eBay as another outlet for the company's clearance merchandise and, after looking at several alternatives, decided that FairMarket was the best choice to help them streamline the process.

"We looked at several options when deciding that we would benefit from moving surplus inventory on eBay," said John Kapplow, corporate Internet marketing manager at Hanover Direct. "However, once we became aware of the sophisticated automation of FairMarket's MarketSelect service, they became the obvious choice for our business needs."

Second Wind PCs and Hanover Direct join a growing list of merchants using FairMarket's MarketSelect service. "Having quality merchants choose MarketSelect as the preferred method of selling on eBay has been a powerful proof point for FairMarket," said Mark Sutton, director of marketing at FairMarket. "MarketSelect's ease of integration and sophisticated technology will help these merchants optimize their results on eBay."

About FairMarket

FairMarket provides technology and services that help businesses harness online efficiencies to speed the rate of sales and maximize price margins on excess inventory. FairMarket's customers include Dell, CompUSA, SAM'S CLUB and Zales. Headquartered in Woburn, Mass., FairMarket also has offices in the U.K. The company can be reached at 800-531-7871 or on the Web at www.fairmarket.com.

FairMarket, MarketSelect and the FairMarket logo are service marks of FairMarket, Inc. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

This press release contains information about future expectations, plans and prospects of FairMarket, Inc. that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including but not limited to market acceptance of FairMarket's online auction and other e-commerce services; growth of the market for dynamic e-commerce services; the competitive nature of the online markets in which FairMarket operates; economic conditions; FairMarket's ability to generate significant revenue to reach profitability; FairMarket's ability to attract and retain qualified personnel; FairMarket's ability to retain existing customers and to obtain new customers; the operation and capacity of FairMarket's network system infrastructure; FairMarket's ability to expand its operations in its geographic markets and the currency, regulatory and other risks associated with doing business in international markets; FairMarket's limited operating history; and the other risks and uncertainties discussed under the heading "Factors that May Affect Results of Operations and Financial Condition" in FairMarket's Annual Report on Form 10-K for the year ended December 31, 2000 and other reports filed by FairMarket from time to time with the Securities and Exchange Commission. FairMarket assumes no obligation to update any of the information included in this press release.