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ergo sum

11/10/06 7:07 PM

#3610 RE: janice shell #3599

from: OVERSTOCK.COM, INC: 8-K, Sub-Doc 2, Page 4


WHATDOES THE FUTURE LOOK LIKE?
I have been unsuccessful at predicting the future for a while, but hereare my thoughts on the subject.
The IT problem that developedlast September, which we have discussed at length in prior communications, hashad lingering effects that ran well into this year. In fact, while we viewed itinternally as a 2005 Q4 — early 2006 Q1 problem (which is what it wastechnologically), I see now that in terms of affecting customer behavior it wasmore of a 2005 December — 2006 April problem. It has taken an enormous amountof work to recover, but our operations and infrastructure are now healthy andstrong. In the past we ran at an A- and regularly generated 100% growth: now Ithink we are running at an A+ but seeing no growth. I am not entirely sure whatto make of that. I anticipate (at least in the sense of, “am prepared for”) aslow, steady updraft in growth as we get into the holiday season (but mentionthat this could be offset by other factors, and repeat that, as noted above,we’ve not yet seen a lift in early Q4 results).