SALT LAKE CITY, Oct 12, 2005 /PRNewswire-FirstCall via COMTEX/ -- Overstock.com, Inc. (Nasdaq: OSTK) today filed an amended complaint in its lawsuit against Gradient Analytics, Inc., Rocker Partners LP, Rocker Management LLC, Rocker Offshore Management Company, Inc., David Rocker, Marc Cohodes, James Carr Bettis, Donn Vickrey, and Matthew Kliber.

Overstock.com's original complaint, filed on August 11 in the Superior Court of California in Marin County, California, alleged that the Defendants conspired to denigrate Overstock.com's business for personal profit. The amended complaint filed today outlines additional causes of action and articulates in greater detail the evidence against the Defendants. Overstock.com, in the amended complaint, also added to its legal team two prominent San Francisco Bay Area law firms -- Freitas, McCarthy, MacMahon & Keating, LLP, and Stein & Lubin LLP.

Patrick Byrne, president and chairman of Overstock.com, said, "With the filing of this beefed-up complaint, I fully expect that the defendants will perceive it to be in their interests to see more disinformation and smears spread regarding the lawsuit, the declarants, and Overstock. Fortunately for the defendants, it seems that a group of compliant reporters provide them such service (a bit of Google research can confirm the wondrous correspondence among Rocker's positions and their shilling). I therefore encourage anyone interested in this suit to read the amended complaint and the sworn declarations for themselves, without benefit of filtering by any hedge fund quislings, and thus I will make them available on our website."

The amended complaint and three relevant declarations will be available for download on the Overstock.com Investor Relations website sometime within the next 24 hours.

Byrne added, "On an unrelated note, but one that may affect Overstock shareholders, I feel obliged to share the following information: on August 8 I bought 25,000 shares of OSTK (as has been filed). My broker was unable to settle the trade: according to them, Morgan Stanley refused to deliver. All attempts by my broker to force Morgan to deliver were met with Morgan statements to the effect that, 'You have to understand, this is a very hot stock.' (I missed the part of the regulations that say, 'You have to settle promptly, unless it is a hot stock.') Incidentally, by 'hot' they did not mean, 'likely to go up': apparently they mean, 'stock in which cheating is being allowed.' On September 29, a full 50 days after the trade, Morgan delivered. Copies of email correspondence confirming this story are posted on the Motley Fool message board. I have filed a complaint with the NASD. Incidentally, I know of another 200,000 share trade that has had similar difficulty clearing for over a month. I urge shareholders to check and double check whatever their brokers are telling them about their positions in OSTK or other stocks, in case other brokerages think their stocks are 'hot' too."

About Overstock.com

Overstock.com, Inc. is an online "closeout" retailer offering discount, brand-name merchandise for sale over the Internet. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory liquidation distribution channel. Overstock.com, headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ National Market System and can be found online at http://www.overstock.com.

Overstock.com is a registered trademark of Overstock.com, Inc. All other trademarks are the property of their respective companies.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding the actions of certain reporters, the timing the posting of the amended complaint and the declarations, and such other risks as identified in our Form 10-K for the year ended December 31, 2004, and all our subsequent filings with the Securities and Exchange Commission, which contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.

SOURCE Overstock.com

Media, Scott Blevins, +1-801-947-3133, sblevins@overstock.com, or Investors, Kevin
Moon, +1-801-947-3282, kmoon@overstock.com, both of Overstock.com, Inc.

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