Bidz.com Announces Preliminary Second Quarter Results

• Company announces creation of Special Committee of Board of Directors to consider the implementation of stock buyback of up to $2.5 million
• As of June 30, 2010 the Company has more than $9.0 million in cash

CULVER CITY, Calif., July 14, 2010 (GLOBE NEWSWIRE) -- Bidz.com (Nasdaq:BIDZ), a leading online retailer of jewelry, today announced that it expects its second quarter revenue to be approximately $25.0 million, and expects a loss per share in the range of $(0.02)-$(0.03).

The Company also announced that a Special Committee composed of independent members of its Board of Directors has been formed to consider implementing a privately negotiated stock buyback of up to $2.5 million. A third party valuation firm was hired to evaluate the transaction and provide an independent valuation, and separate counsel has been retained by the Special Committee to assist in its review. A privately negotiated repurchase is consistent with, and helps achieve the goals of, the Company's previously announced share buyback program. Under the existing program implemented in June 2007, a total of $33.5 million has been authorized for repurchases, and to date, a total of 3.4 million shares have been repurchased for $18.5 million. The Company has approximately $15.0 million still available for additional share repurchases in open market transactions, subject to market conditions, share price and other considerations. Funds are being provided by available cash from operations for the repurchase of shares, and as of June 30, 2010, the Company has more than $9.0 million in cash. The Company considers privately negotiated repurchases of stock from time to time in conjunction with the share repurchase program. 

Assuming the buyback is implemented, it is expected that a block of shares will be sold by Marina Zinberg, sister of the Company's Chief Executive Officer, David Zinberg. Given the current low average daily volume in the stock, the Company believes that this is an efficient way to buy back a significant block of shares. Once the transaction is completed, the shares will be retired, reducing the Company's outstanding share count. As part of such a buyback, both David Zinberg and Marina Zinberg have proposed canceling their 10b5-1 Plans assuming the buyback is completed.