uBid Announces Q1 Revenues of $20 million and Profit of $2.9 million

[mandy]

uBid.com Reports First Quarter Results

Company Reports 9.6% Growth in First Quarter Gross Profit

Chicago, IL, May 15, 2006 – uBid.com Holdings, Inc. (OTCBB: UBHI) whose uBid, Inc. subsidiary is one of the leading business-to-consumer and business-to-business online marketplaces in the U.S., today announced results for the first quarter ended March 31, 2006.
Highlights for the first quarter of 2006 included:

# First quarter gross profit totaled $2.9 million, an increase of 9.6% from the first quarter of fiscal 2005.

# Customer orders increased 26.8% to 123,000 from 97,000 in the first quarter of last year.

# uBid.com Certified Merchant Program (UCM) grew participating merchants by more than 460% to 949 and 51.1% sequential growth from the 630 merchants reported at the end of Q4 2005.

# Active Auction Participants totaled 324,000, while the number of Auction Events increased 11% to 311,000.

# Customer Registrations totaled approximately 43,000 in the first quarter of 2006, an increase of 10% over the same period in 2005.

Commenting on the results for the period, Robert H. Tomlinson Jr., CEO of uBid.com Holdings, Inc. stated, “Having materially transformed our corporate structure, our balance sheet, and our business model, uBid.com is uniquely positioned to succeed in the $60 billion close-out and overstock merchandise market. In fact, by focusing on trust, security, and in-house customer support, we’re clearly differentiated in our space and have seen tangible strategic results from that advantage.” Tomlinson added, “In terms of the first 92 days since the merger, we were pleased with our accomplishments, particularly when our primary focus for the period was on raising capital, growing product supply through our merchant program and achieving public company status. We believe our first quarter performance bodes well for the future as we focus on driving long term shareholder value, particularly from these levels.”

Recent events for the period included:

On February 6, 2006 uBid announced that it raised an additional $13.5 million and sold 3,000,000 shares of common stock at $4.50 per share with 750,000 warrants exercisable at $5.85 per share as part of the closing. This was the second part of the private placement that initially closed on December 29, 2005. The total capital raise was $58.5 million.

On May 10, 2006 uBid.com announced it closed a new three year, $25 million secured revolving credit facility with Wells Fargo Bank, National Association. Management intends to use the facility to fund channel and category expansion and working capital needs.
About uBid.com Holdings, Inc.

uBid.com Holdings, Inc. operates an online marketplace located at www.uBid.com offering new, close-out, overstock and refurbished merchandise to both consumers and businesses through a trusted auction style and fixed price format. uBid.com provides consumers the opportunity to bid on or buy a wide variety of popular, brand name products at significant discounts. uBid.com's unique platform enables only certified suppliers and manufacturers a more efficient and economical channel for maximizing revenue of their surplus merchandise. Furthermore, uBid.com offers consumers a trusted buying environment, eliminating potential fraud by certifying all its merchants and processing 100% of all transactions between buyers and sellers. uBid.com Holdings, Inc. is a publicly traded on the Nasd OTC bulletin board (OTC BB:UBHI).

full press release: http://www.ubid.com/about/Press_room/press44.asp