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Creative Computers, Inc., to be Renamed IdeaMall; Intensifying Focus on Internet and Business-to-Business Opportunities

TORRANCE, Calif.--Jan. 25, 2000--Creative Computers, Inc., today announced that it plans to intensify its focus on the Internet and business-to-business markets. The company's strategy involves the following:

-- Focusing the existing core business around three separate business units - PC (including, Business Solutions and CCIT - to better align these significant businesses with their target markets;

-- Exploring new Internet opportunities - as evidenced by the announcement of, launched on the heels of the success of and;

-- Changing the company name to IdeaMall to better reflect our new direction and our ability to transform ideas into new businesses.

"As a result of these changes and exciting new Internet ventures, the company has developed a growing portfolio of Web site properties," said Frank Khulusi, Chairman and CEO of Creative Computers ("Creative / IdeaMall").

The company's portfolio currently consists of: ( -- A newly formed subsidiary that intends to provide products, news, discussion groups, services and support to the Linux community (see related 1/25/00 press release); ( -- A separate subsidiary launched in April 1999 which has quickly become one of the fastest-growing multi-category Internet retailers of computer products and consumer electronics; Business Solutions -- A leading business-to-business marketer focused on IT sales of servers, desktops and network equipment to businesses with 100 or more employees. Each business customer is able to obtain a dedicated PCM Client Access Page or CAP, reflecting custom pricing, access levels, purchase order approval requirements, and account history for that business customer; ( -- A leading business-to-business marketer of computers and related products for small businesses with fewer than 100 employees and high-end consumers. intends to become a single source for all small business needs by continuing to expand its service, product and information offerings and the functionality of its Web site; ( -- A leading marketer to the rapidly-growing Apple community, offers service, support and one-stop shopping for everything related to Macintosh. is the most comprehensive source of computers, peripherals and software for the Macintosh market.

The company also operates a field sales organization under the name CCIT (, which is focused on Fortune 1000 companies.

The company's positioning of the core business into separate business units is intended to enable them to be more focused on their target markets.

"I am very excited about the direction in which we're moving," stated Khulusi. "To reflect our new strategic focus, the company announced a proposed name change to IdeaMall, pending shareholder approval. The name IdeaMall reflects the premium we place on innovation, creativity, and entrepreneurship," he explained, "while speaking to our core offering and our excellent marketing, fulfillment, call center, systems technology and other capabilities that are the engines of growth and differentiation for our Internet businesses."

"Because of the revolutionary changes taking place in our business, the name Creative Computers no longer captures the essence of our organization," added Scott Klein, President of Creative / IdeaMall. "The new name, IdeaMall, should demonstrate to the world that we are an organization dedicated to taking great ideas and turning them into business realities."

Creative Computers, Inc., soon to be renamed IdeaMall ("Creative / IdeaMall"), is focused on the Internet and business-to-business markets. Creative / IdeaMall has a growing portfolio of Web site properties and will continue to pursue additional Internet opportunities. The company's current portfolio includes,, Business Solutions, and

The company drives traffic to its Web sites and call centers via its distinctive "clicks and catalogs" strategy, outbound telemarketing, and marketing on the web. The company also operates a field sales organization under the name CCIT, which is focused on Fortune 1000 companies.

All of the statements, expectations and assumptions contained in the above are forward-looking statements. The realization of any or all of these expectations is subject to a number of risks and uncertainties and it is possible that the assumptions made by management may not materialize. There can be no assurances that the intensified focus on the Internet, the name change to IdeaMall, separating into business units and launching of new businesses will be successful, will achieve market acceptance or become profitable. In addition to the factors set forth above, other important factors that could cause actual results to differ materially from our expectations include; competition from companies either currently in the market or entering the market; competition from other catalog and retail store resellers and price pressures related thereto; uncertainties surrounding the supply of and demand for products; difficulty in executing strategic plans; inability of its subsidiaries to become successful companies; and risks due to shifts in market demand and/or price erosion of owned inventory. This list of risk factors is not intended to be exhaustive. Reference should also be made to the risk factors set forth from time to time in the Company's SEC reports, including but not limited to those set forth in the section entitled "Certain Factors Affecting Future Results" in its Annual Report on Form 10-K for 1998.

Linux is a registered trademark of Linus Torvalds.

CONTACT: Creative Computers, Inc.
Frank Khulusi/Ted Sanders, 310/354-5600