For customers, from the President and CEO of Egghead -- Deadline Sept. 21, 2001




Dear Valued Customer,

As you know from my previous letter, has filed for Chapter 11 bankruptcy protection and is in the process of selling its ongoing business.  As part of the sale process, has entered into an Asset Purchase Agreement with Fry's Electronics but other companies will be given the opportunity to outbid Fry's.  As a result, another company might be approved by the court as the actual buyer.  We plan to complete the sale soon and in no event later than September 30, 2001.

Among the assets being transferred to the successful buyer are the website, the ability to service customer contracts going forward through the website and's customer information.  In order for Fry's, or another buyer approved by the court, to be able to properly service your needs going forward, your customer information must be transferred to the buyer.  Under the purchase contract, the buyer agrees to only use this information under the same terms that apply now, as described in the privacy policy on our website.  This policy will not be changed without giving you notice and the opportunity to consent to any changes.  The ultimate successful buyer of the business must agree to honor and fulfill the terms of the privacy policy.

If you do NOT wish to have your customer information included with the assets to be transferred to the buyer, simply click Here: and follow the instructions.  You must do so by 9:00a.m. Pacific Daylight Time on September 21, 2001 or your customer information will be part of the assets transferred under the proposed sale.Please note that if you remove your customer information and then want to shop at you will have to re-register and retype pertinent information in order to make purchases.

You are our most valued asset.  We believe this sale will allow your needs to be serviced in the future.

Jeff Sheahan
President & CEO, Inc.