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EMachines Inc.

February 16, 2001

The Irvine provider of personal computers and Internet advertising, portal and software distribution services reported a net loss of $128.9 million, or 89 cents a share, for the fourth quarter, which included charges of $97.8 million. The net loss for the comparable quarter of 1999 was $343,000. Revenue fell 56% to $134.8 million. For the year, the net loss was $221.4 million, or $1.69 a share, compared with a net loss of $9.5 million, or 14 cents a share, for 1999. Revenue declined 17% to $684.1 million.

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