Overstock.com Obtains Another Positive Ruling in Prime Brokerage Litigation

Court Gives Overstock.com the Okay to Continue to Proceed on California's
Securities Anti-Fraud Cause of Action and Portions of California's Unfair
Business Practices Act Cause of Action

SALT LAKE CITY, Feb. 15 /PRNewswire-FirstCall/ -- Overstock.com, Inc.
(Nasdaq: OSTK) (http://www.overstock.com) announced today another favorable
ruling in the lawsuit pending in the Superior Court of California, County of
San Francisco against most of the largest prime brokerage firms in the
country, including Morgan Stanley & Co. Incorporated, Goldman Sachs & Co.,
Bear Stearns Companies, Inc., Bank of America Securities LLC, Bank of New
York, Citigroup Inc., Credit Suisse (USA) Inc., Deutsche Bank Securities,
Inc., Merrill Lynch, Pierce, Fenner & Smith, Inc., UBS Financial Services,
Inc. and Lehman Brothers Holdings Inc.
On February 15, 2008, Judge John Munter of the California Superior Court
for the City and County of San Francisco denied defendants' motion to strike
Overstock's claims under California's Securities Anti-Fraud statute. Judge
Munter also denied defendants' motion to strike Overstock's common law
punitive damages claims. Judge Munter granted in part the defendants' motion
to strike Overstock's claims under California's Unfair Business Practices Act,
but allowed Overstock's claims for injunctive relief under California's Unfair
Business Practices Act.
"This case continues forward for us," said Jonathan Johnson, Overstock
Senior Vice President of Legal. "We are eager to start the next round of
discovery and obtain trading records from the defendants, records which we
expect will expose in detail the defendants' misconduct."
"Our approach in this suit has been belt, suspenders and cummerbund," said
Patrick Byrne, Overstock Chairman and Chief Executive Officer. "Today the
court cinched tight the belt and suspenders, but took off the cummerbund. We
are well positioned to take this case to trial."
The suit alleges that the defendants, who control over 80% of the prime
brokerage market, participated in a massive, illegal stock market manipulation
scheme and that the defendants had no intention of covering such orders with
borrowed stock, as they are required to do, causing what are referred to as
"fails to deliver." The suit also alleges that the defendants' actions caused
and continue to cause dramatic distortions with regard to the nature and
amount of trading in the company's stock which have caused the share price of
the company's stock to dramatically drop. The suit asserts that a persistent
large number of "fails to deliver" creates large downward pressure on the
price of a company's stock and that the amount of "fails to deliver" has
exceeded the company's entire supply of outstanding shares. The company is
seeking damages of $3.48 billion.
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 Global Market System and can be found online at
www.overstock.com.
Overstock.com(R) is a registered trademark of Overstock.com, Inc. All
other trademarks are the property of their respective owners.
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 documents to be obtained in discovery
and what such documents will expose, the company's position for trial, as well
as all such other risks as identified in our Form 10-K for the year ended
December 31, 2006, 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, Inc.

Kirstie Burden, +1-801-947-3172, kburden@overstock.com, or investors, Kevin
Moon, +1-801-947-3282, kmoon@overstock.com, both of Overstock.com, Inc.