December, 2001      Diablo Blue     Page 7

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As we communicated to all of you in an earlier e-mail which we sent out in mid-August, since August 15, 2001 Egghead has been operating as a debtor- in-possession under Chapter 11 bankruptcy protection. Our plan had been to sell the assets of the business as a going concern and continue providing Egghead customers with great value and selection. Unfortunately, we have reached a point where we are unable to continue active operations. As a result, as of 5:00PM  PST on October 25, 2001 we have ceased active operations and suspended all commercial activity until further notice. The Egghead URL and web site will still be accessible at www.egghead.com but the shopping and fulfillment functionality will be disabled effective as of the date and time noted above.

Please Note: Egghead continues to have active discussions with several interested parties who are intent on re-activating an Egghead web site and once again operating the business as a vibrant going concern. Please continue to monitor the web site for further developments and updates.

Please refer to the Egghead web site for further information and for answers to some basic order processing questions that may be of concern to you.

Egghead appreciates and values all that you have done for us over the years and we would very much like the opportunity to serve you again in the future.

I'm going to upgrade. Yep, I'm breaking one of Bass International's number one rules, but I think it's going to be worth it. I'm can't give you all the details because it's coming out in December's PC World Home Office column (hey, they pay the mortgage). What I can do, however, is share parts of my upgrade experience, things that I didn't have space to say in the PCW column.

DOS Programs: Every legacy application I tried worked. A 1988 version of FoxBASE+ 2.10, WordStar 7.0, Norton Commander, and even a 1984 copy of Autodex 1.0, something few of you could possibly remember. More intriguing is Win XP's ability to run these programs better — faster and with more stability — than Win 9x. Why? Who knows, folks, magic maybe, but it does. I had trou

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