Overstock.com Enhances Car-Shopping Portal with New Auto-Buying Program Powered by Zag

SALT LAKE CITY & SANTA MONICA, Calif.--Overstock.com, Inc. announced today that it is enhancing the company’s automotive portal by launching a new, exclusive auto-buying program powered by Zag, Inc. (www.Zag.com). The site improves the car-buying process for customers by connecting them with certified dealers who offer upfront, discounted pricing.

“By revamping the company’s current Cars program, we’re really reinforcing Overstock’s mission of providing great discounts to our millions of customers,” Overstock Chairman and CEO Patrick Byrne said. “We’re confident that Overstock’s Cars program will be as successful in saving customers money as the rest of our Web site.”

The Overstock Cars program is now powered by Zag, Inc., a business that operates a robust auto shopping, research, and pricing technology platform that connects consumers with a select nationwide network of pre-qualified dealers who have agreed to provide no-hassle pricing and delivery process. Overstock’s Director of Cars Tyler Anderson commented, “With Zag, Overstock enables car-buyers to shop for and configure a new vehicle online, and seamlessly integrate insurance and financing with new and used car purchases; ultimately improving the car-buying process.”

To help consumers buy used cars, Zag partners with Vast.com. With more than 3.5 million used cars, Vast provides the broadest inventory available, along with a rich set of search and filter tools that make it easy for consumers to find the used car they are looking for.

“Zag’s approach to car buying is unique within the industry,” said Scott Painter, Zag CEO. “Most car-shopping Web sites simply serve as lead-generation channels—selling their customers’ requests for price quotes or leads, often to multiple dealers. While that approach makes money for the company, it doesn’t serve buyers or sellers well because consumers think they’re being referred when they’re actually being sold; dealers pay for low-quality leads. Zag’s approach turns the industry on its ear—only charging dealers when the car sells, requiring new-car dealers to offer upfront prices guaranteed in writing, and monitoring the entire transaction to ensure quality and fairness every step of the way.”

“We are looking forward to working with Overstock because of the company’s commitment to ease, responsiveness, and transparency,” Painter added. “Zag’s focus to create a better way for customers to buy a car is met by carefully matching customers who are ready to buy with a certified network of exceptional dealers that are committed to an upfront price and a better shopping experience, and the Overstock brand and the unique attributes of the Overstock audience are a perfect fit for this mission.”

Overstock originally launched its Cars program in early 2007. New and used cars are available through the company’s Web site, http://cars.overstock.com.

About Overstock.com

Overstock.com, Inc. is an online "closeout" retailer offering discount, brand-name merchandise for sale over the Internet. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory liquidation distribution channel. Overstock.com, headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ Global Market System and can be found online at http://www.overstock.com.

Overstock.com® is a registered trademark of Overstock.com, Inc.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding improvement in the car-buying process for Overstock customers; that the program reinforces Overstock’s mission of providing great discounts; and that the program will be successful in saving customers’ money . Our Form 10-K for the year ended December 31, 2006, our subsequent quarterly reports on Form 10-Q, and our other subsequent filings with the Securities and Exchange Commission identify important factors that could cause our actual results to differ materially from those contained in our projections, estimates or forward-looking statements. SOURCE Overstock.com, Inc.

About Zag

Zag was founded on the simple premise that buying a car should be easier than it is. Zag operates a robust auto shopping, research and pricing technology platform that connects consumers with a select nationwide network of pre-qualified dealers that have agreed to provide upfront discounted pricing and a no-hassle delivery process. Zag provides its platform on a private-label basis to affinity buying groups, such as Capital One, for – www.capitaloneautobuying.com, and Automotive Invitational Services (AIS), an auto-buying program operator that serves members of 13 AAA clubs. These groups give Zag a combined total audience of more than 60 million members/consumers. Zag is fully operational for 65 percent of U.S. households and serves more than 93 percent of in-market car buyers. InfoWorld designated Zag’s platform as one of the 100 most innovative corporate IT solutions for 2006, and in June 2006 Zag was named in Entrepreneur Magazine’s “Hot 100” list of the fastest-growing companies. Zag is based in Santa Monica, Calif.