EBIZ Enterprises to Launch Linux-based Personal Internet Appliance `PIA' that Shatters Price Barriers June 29, 1999 EBIZ Enterprises, Inc. (OTC BB:EBIZ), a leading manufacturer and e-commerce distributor of Linux and Windows-based computer systems, announced today their plans to introduce the first true Linux-based Personal Internet Appliance, the PIA™. The PIA, priced at $199, establishes a new entry-level category for Linux computer systems, which brings the performance and reliability benefits of Linux to the consumer market. "The PIA is designed to provide Internet access and basic computing power to the 20,000,000 households in the U.S., not yet serviced and hooked up to the Internet," stated EBIZ president, Stephen Herman. "We specialize in building the sub $500 computer, and have reached a point where the most expensive component is the operating system. By leveraging our manufacturing strengths and utilizing our Linux engineering staff expertise at TheLinuxStore.com, we have further reduced the price and increased the performance of entry-level computing, making Internet access an affordable reality for everyone." The system comes complete with 2.1 G.B hard drive or greater, 32 MB RAM, AMD processor, video card, speakers, a keyboard and a mouse (monitor not included). Along with Internet capability via Netscape, the PIA will include word processing, spreadsheet and database software capabilities. Because the full Linux operating system is installed, thousands of freeware and low-cost software programs, from 3-D modeling packages, office productivity, graphics and accounting packages, will run on the new PIA platform. "We have taken a quantum step forward in being able to provide reliable, low-cost computing and Internet access to every home, student and business professional," added Jeffrey Rassas, CEO of EBIZ. "Linux has proven its strength, performance and reliability in the technical community, and within the server market where it has an estimated 17% market share, according to International Data Corporation. We are pioneering the market's efforts to bring it to mainstream America." The company is in final negotiations with a number of major national Internet Service Providers, retail chains, and financial institutions to launch a low-cost, bundling program, to introduce the PIA system to their subscribers for as low as $19.95 per month. The PIA, will also be available via www.onsale.com (Nasdaq:ONSL) or through the Company's e-commerce web site, www.TheLinuxStore.com. About EBIZ Enterprises EBIZ Enterprises, Inc., is a manufacturer and e-commerce distributor of computer systems that are Accelerating the Alternatives™ in personal and business computing. These alternatives include their nationally recognized Element-L Systems™ - Linux-based, Internet-ready, multimedia workstations and servers, and M2 Systems™ - Windows-based, Internet-ready multimedia PC's which continue to re-define the low-cost pricing landscape. These systems are distributed through strategic partnerships with key online players, including egghead.com; onsale.com; Yahoo.com and others, as well as the Company's web sites, thelinuxstore.com and ebizmart.com. Thelinuxstore.com offers "Everything Linux"™, including notebook PCs, workstations, servers and Beowulf Supercomputer Clusters at the lowest possible price. The Linux Store is the value leader in the Linux market, furthering the vision of Linux being a low-cost, high performance alternative to conventional computing solutions.