"2004 was a fantastic year for Vendio as we introduced several new services that enabled our growing merchant base to expand their online businesses and increase their sales and profits," said Rodrigo Sales, CEO of Vendio. "We are delighted to see our customers' success translate into our own as we expanded our team and significantly increased our profits, all while maintaining the industry's lowest fee structure."

Since 2002, Vendio has achieved 13 consecutive quarters of positive EBITDA and nine quarters of GAAP profitability. Vendio's financial health is the result of launching innovative new services, the continued improvement of existing services, and a dramatic rise in new customers and subscriptions. Despite expanding headcount by 50 percent over the past 12 months and scaling up its investment in future products, Vendio's profits continue to rise.

Vendio's 2004 record financial performance includes:

• GAAP Net income increase of 525 percent
• EBITDA increase of 50 percent
• Cash increase of 150 percent (no corresponding increase in liabilities or equity investment)
• 40,000 new subscriptions for paid services

During 2004, Vendio invested its profits in new sales management services designed to meet the operating and merchandising needs of its broad merchant base. The company also added more than 20 new members to its team, further strengthening its ability to innovate on an already comprehensive platform.

Key new services Vendio released in 2004 includes:

• Vendio Gallery - an eye-catching cross-promotion vehicle that helps sellers increase the visibility of their eBay auction and Store items to increase sales. Vendio Gallery sellers have experienced twice the listing traffic, 50 percent more bidding activity, and an 18 percent increase in conversions.
• Sales Manager Inventory Edition - a powerful online sales management service that automates and simplifies inventory-based selling for eBay's largest sellers.
• Tickets Manager - the first online sales management service designed specifically around the needs of eBay ticket sellers.

"Since I started using Sales Manger Inventory Edition my sales have increased by more than 100 percent," said eBay Powerseller Patty Davidson. "It is so much easier to control my listings and launch times, and I love being able to edit several listings at once. It's obvious that Vendio continues to create programs for an ever-changing market and as a customer I really appreciate knowing that fact. Vendio offers the best dollar value for the number of services offered AND for their dependable service."

Marie Ellis, another eBay Powerseller, is extremely pleased with the Vendio Gallery, "Vendio Gallery is the easiest program I have ever activated. All I do is register and boom - it's there! All eBay Store owners should have this."

In 2005, Vendio will continue investing in services that meet the growing demands of online merchants as they expand their sales through all available channels, including search engines, comparison shopping sites, and other online marketing vehicles. During Q2, Vendio will launch a new web hosting service (www.vendioweb.com) designed to offer merchants their own space on the web to market their brand and products. Continued development will make selling through all channels as efficient as Vendio has made selling on eBay and other marketplaces. The company will continue to enhance its existing services and expand internationally with the launch of the industry-leading Vendio Gallery in several new international markets.