Bidz.com, Inc. Announces Increase in Both Credit Facility and Share Repurchase Authorization

. February 21, 2008

CULVER CITY, Calif. – Bidz.com (NASDAQ:BIDZ), a leading online auctioneer of jewelry, announced today that it has received approval for an increase in its revolving credit line to $25 million, from $15 million, with Bank of America, as well as board authorization to significantly increase its share repurchase program to $20 million from $5 million. The increased board authorization is effective for the next 24 months and the Company intends to begin implementation of the repurchase after it reports earnings next Thursday, February 28, and the blackout period is over and the repurchase window opens. The Company currently has a zero balance outstanding on its current credit line of $15 million, and only $1.2 million has been utilized to repurchase shares to date. The Company feels the additional capacity from its untapped credit line, combined with its improvement in cash flow, low capital expenditures and 15 consecutive quarters of profitability, provides ample financial flexibility to both opportunistically repurchase shares, purchase inventory and continue to fund its working capital and infrastructure needs.

“Our business continues to grow profitably and we are very excited about our leading position in the online jewelry market place,” said Chairman & CEO, David Zinberg. “The increase in our share repurchase authorization will allow us to opportunistically purchase shares from time to time, when we believe the market is not appropriately valuing the strength of our business, or prospects. This increased repurchase flexibility reflects both management’s and the board of director’s ongoing commitment to further increasing shareholder value. As always, we remain intensely focused on driving strong and profitable growth.”

Lawrence Kong, Chief Financial Officer, said, “We continue to improve our financial position and balance sheet and are pleased to have the additional financial flexibility provided by the increase to our credit facility. While we currently have no borrowings on the line, and generate positive cash flow, the increased capacity provides additional opportunities.”

Outlook

Consistent with its press release on January 14, 2008, the Company still expects to exceed revenues of $56-$58 million, and pre-tax income of $5.6-$6.0 million for the fourth quarter 2007. For fiscal year 2007, the Company expects to exceed its previous revenue guidance range of $180-$182 million and pre-tax income of $18.0-$18.5 million.

The Company also reaffirmed its guidance for fiscal year 2008. The Company expects revenues to be in the range of $225-$230 million, pre-tax income of approximately $23.5-$25.5 million and gross margin of approximately 27-28%. The Company expects its effective tax rate to be approximately 40%. The Company expects fully taxed GAAP EPS of $0.47-$0.51, and expects to end the year with approximately 30.0 million fully diluted shares outstanding.

The Company’s will report its fourth quarter and fiscal year 2007 financial results on Thursday, February 28, 2008 after the close of market. The call will be open to all interested investors through a live audio Web broadcast via the Internet on the investor relations section of the Company’s website at www.bidz.com. For those who are not available to listen to the live broadcast, the call will be archived.

About Bidz.com

Bidz.com, founded in 1998, is an online auctioneer of jewelry. Bidz offers its products through a live auction format requiring only a $1 minimum opening bid. To learn more about Bidz.com visit its website at www.bidz.com.

Category: Auction News

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