eBags growth as of May 2008, nine years after March 1999 launch, and about ten years after start up.

1. May 2008
1

2. 2

3. Big Picture
Compelling Business Model
.
• 33% CAGR between 2000 and December 2007 (after original rapid growth)
• 9.2M items shipped since inception
• 80% direct ship from manufacturer; 21 inventory turns per year
Good
• No capital raised since ‘99; no debt Balance
Sheet
• Negative cash conversion cycle (-10 to -25 days) financed growth
• Cash flow positive annually from 2002 onward
3

4. Big Picture
Award Winning e-Commerce Expertise
.
• National website of the year 2001, 2002, 2004, 2006, 2007
(Multi Channel Merchant … among 200 to 400 e-retailers)
Extendable Platform .
• Run partner sites (and customer care) for Tumi, Case Logic
• Integrated footwear site (sold site three years later)
• Operating Tumi in Europe and Japan
Blended Product Model .
• Branded products: 93% of revenues
• Private Label products: 7% of revenues, #1 brand, growing fast
4

5. Big Picture
Major Innovations .
• One of first five retailers to solicit customer reviews, starting 1999
• Pioneered drop-ship (wide selection) model within bag industry
Blended Distribution Model .
• Drop-ship from 500 supplier warehouses
• Distribute “inventoried products” through one 3PL in Texas
Experienced Leadership .
• Management: Samsonite, Case Logic
• Investors: Benchmark, TCV, angels from Goldman Sachs, Merrill Lynch
5

6. Large Global Market
• $22B USA market (see below)
• $25B European market (estimate)
• $14B Japanese market (estimate, $10B handbags in 2007)
• $61B+
6

7. USA Competitive Position for eBags
wide selection
of bags
eBags distribution partner
eBags: ultimate bag specialist
NEW eBags distribution partner
with widest selection and
highest level of expertise
eBags distribution partner
specializes
sells all
in bags
products
limited selection
of bags 7

8. Compelling Business Model
eBags
Bag Retail
.
.
• Inventory 2.0 turns 21.0 turns
• Brands 50 550
• Designers Few Many (discovery)
• IMU 38% to 55% 55%
• Cash Conversion Rate +90 days with terms Negative 10 to 25 days
• Financials 500+ closings (US)
200+ (.de) since 9/11
1800Luggage BNKRPT
LuggageGiant BNKRPT
Bag-N-Baggage BNKRPT
-- May 2008
• Customer’s Voice No 1.5M reviews
• Big box retailers No (eBags)
8

9. Shopping Experience

10. Shopper Ratings
Netpromoter score: 58
Average NPS: 13
2007 scores: Apple 66 ------- eBags ------- Intuit 58 Cisco 57 Federal Express 56 Southwest Airlines 51
American Express 50 Commerce Bank 50 Dell 50 Adobe 48 Electronic Arts 48
Award for 2007
10

11. eBags Handbags
56% revenue growth in FY’08, 64% in Q1 FY’09
11

12. Consumer Preferred Brand Offering
Price
May 2008
550
Brands
40,000
SKUs
Fashion 12

13. Little Things Matter
Video tab (125 videos)
• throughout site, too
Auto-fill search
Similar items, easy
comparisons
Live chat
1.5M reviews
• 20% response rate
Free returns
Colors
Advanced zoom
• With multiple pictures
Behavioral targeting
Predictive arrival
Up to 7 photos per
item
13

14. Monitor Popular Activities
See Similar Items, Add to Comparison Chart, Tell a Friend, Zoom
86 clicks on Komen
• Six hours of activity
– Click activity shows recent
changes to key navigation
elements are popular
• Mega picture 682 clicks
• Zoom 549 clicks
• Add to cart 381 clicks
• See similar items 363 clicks
• Add to comp chrt 337 clicks
• Tell a friend 35 clicks
– We want to encourage
this more by tying in
rewards program
33 clicks on
the 6 BT
placements
180 clicks
57 clicks on
40 clicks
JanSport’s logo 14

15. Growth

16. Growth Since Inception
$90
Revenues Recession
******** Sold 6PM.com
so eBags
$80 could focus on
our core business
$70
$60
$50 6PM (shoes)
$40 eBags
$30 Recession
Terrorist Attack
***********
$20 Dot Bomb
************
$10
Greater than
4% EBITDAA
$0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Fiscal years
July through June
16