Overstock.com Announces Redemption of 3.75% Senior Notes Due December 1, 2011

Overstock.com, Inc.

announced today that it will redeem for cash all of its outstanding 3.75% Senior Convertible Notes due December 1, 2011. The redemption date will be September 21, 2011. The redemption price will be 100% of the principal amount of the Notes, plus any accrued and unpaid interest to September 21, 2011. As of September 1, 2011, the outstanding balance of the Notes was $24.5 million. The Company will fund the redemption of the Notes with a combination of cash on hand and a $17 million draw under its Financing Agreement with U.S. Bank National Association.