Exhibit 99.1

Investor Contact:
Kevin Moon
Overstock.com, Inc.
+1 (801) 947-3282
kmoon@overstock.com

Media Contact:
Scott Blevins
Overstock.com, Inc.
+1 (801) 947-3133
sblevins@overstock.com

OVERSTOCK.COM REPORTS THIRD QUARTER 2005 FINANCIAL RESULTS

SALT LAKE CITY, October 28, 2005 — Overstock.com® (NASDAQ: OSTK) today reported financial results for the quarterly period ending September 30, 2005, including:

• Revenue growth: 64%

• Gross Profit growth: 80%

• Growth in G&A:

• Technology (which includes depreciation): 257%

• Other than technology: 96%

• GAAP Operating loss: $11.2 million

• GAAP Net loss: $14.2 million

Dear Owners,

Gomen nasai.

Q3 was rough. My bad. I bit off more technology projects than my colleagues could chew. The last bite, an ERP implementation, was one bite too many, and we choked on it. This mistake resulted in two kinds of unfortunate results:

1. Unexpected bad things happened. We tested our new ERP system as much as time allowed, but in mid-August I cut-over earlier than I should have. We anticipated that a small number of background processes would fail, but we had more trouble than expected. Rather than pass the problem to the customer in the form of bad service, we ate the cost by doing a great many things manually that would normally be done automatically. Of course, customer-facing issues (shipping products, processing credit cards, and handling returns) trumped internal issues. One internal issue was our inability to post new products: this gradually reduced the number of products on our site (especially best-sellers). This weakened sales (though we offset this for some time by running $1 shipping). When we were able to upload new products in mid-September, sales snapped back to previous levels.

2. Expected good things did not happen. Some IT projects that were supposed to lift margins through improved efficiencies in logistics or customer service were either late or remain incomplete: some of these projects have since been delivered, some (e.g., a professional customer service application) have been scaled down and partially delivered, and some have been shifted to Q1. Other IT projects that were supposed to yield

marketing gains went unfinished. One example: Project Propeller’s test results are extremely encouraging, but only rarely has it been turned on because the A/B test system required to fine tune the system has been low resolution and inconsistent. These projects did not get delivered because the work required to address the ERP problems eventually monopolized development resources and crowded out all other progress (until quite recently).

While I will give more detail on our call, the story behind our results is this: I put off doing things I wanted to do to pursue things that we had to do to prepare for the future; the implementations (and their expected benefits) came in late and rough; and stumbling on the last and most important one set us back a country mile.

Humbly submitted,

Patrick Byrne

P.S. Some will criticize me for taking my eye off the ball to pursue a jihad, or will simply wish to discuss our lawsuit. I am comfortable addressing either point on the call. I suggest that any who wishes to raise these issues on the call should read the affidavits and complaint posted on our investor relations website, as background to meaningful discussion.

Key financial and operating metrics

Total revenue—Overstock.com reported third quarter total revenue of $169.3 million, a 64% increase from the $103.4 million in 2004. For the nine months ended September 30, 2005, total revenue was $485.8 million, a 78% increase from the $273.3 million reported in 2004.

Gross profit and gross margins—Overstock.com reported third quarter gross profit of $24.8 million, an 80% increase over the $13.7 million recorded for the same period a year ago. Overstock.com reported third quarter gross margins of 14.6%, up from 13.3% in Q3 2004. For the nine months ended September 30, 2005, gross profit totaled $71.8 million, a 124% increase from $32.1 million reported in 2004. Gross margins for the first nine months of 2005 were 14.8% versus 11.7% in 2004.

Net income (loss)—For Q3 2005, Overstock.com reported net loss of $14.2 million, or 75 cent loss per share, compared to a net loss of $3.0 million and 16 cent loss per share a year earlier. For the nine months ended September 30, 2005, our net loss was $20.9 million, or $1.08 loss per share, compared to $7.5 million, or 44 cent loss per share reported last year.

Overstock.com had cash and marketable securities of $76.8 million and working capital of $97.5 million on September 30, 2005.

Gross bookings (excluding auctions and travel)—Overstock.com reported gross bookings of $196.4 million for the third quarter 2005, a 72% increase over the $114.4 million in gross bookings reported for the third quarter 2004. For the nine months ended September 30, 2005, gross bookings totaled $544.4 million, a 79% increase from the $304.4 million reported last year.

# # #

About Overstock.com

Overstock.com, Inc. is an online “closeout” retailer offering discount, brand-name merchandise for sale over the Internet. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory liquidation distribution channel. Overstock.com, headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ National Market System and can be found online at http://www.overstock.com.

Overstock.com® is a registered trademark of Overstock.com, Inc. All other trademarks are the property of their respective companies.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, the level of additional detail to be given on the call, and such other risks as identified in our Form 10-K for the year ended December 31, 2004, and all our subsequent filings with the Securities and Exchange Commission, which contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.

Overstock.com, Inc.

Consolidated Statements of Operations

(in thousands, except per share amounts)

	Three months ended															Nine months ended
	Sept. 30, 2004			Dec. 31, 2004			Mar. 31, 2005			Jun. 30, 2005			Sept. 30, 2005			Sept. 30, 2004			Sept. 30, 2005
Revenue
Direct	$	43,928		$	89,589		$	67,884		$	60,064		$	68,449		$	123,621		$	196,397
Fulfillment partner	59,516			131,732			97,997			90,574			100,874			149,693			289,445
Total revenue	103,444			221,321			165,881			150,638			169,323			273,314			485,842

Cost of goods sold
Direct	38,594			75,194			58,153			52,154			60,939			110,196			171,246
Fulfillment partner	51,103			112,458			82,857			76,375			83,589			131,010			242,821
Total cost of goods sold	89,697			187,652			141,010			128,529			144,528			241,206			414,067
Gross profit	13,747			33,669			24,871			22,109			24,795			32,108			71,775

Operating expenses:
Sales and marketing	9,398			20,153			16,825			14,495			17,960			20,380			49,280
Technology	2,267			2,980			4,095			6,094			8,082			9,567			18,271
General and administrative	5,109			8,061			7,333			7,531			9,989			9,627			24,853
Amortization of stock-based compensation	18			84			20			53			(8		)	276			65
Total operating expenses	16,792			31,278			28,273			28,173			36,023			39,850			92,469

Operating income (loss)	(3,045		)	2,391			(3,402		)	(6,064		)	(11,228		)	(7,742		)	(20,694		)

Interest income	168			780			644			896			(1,690		)	393			(150		)
Interest expense	(77		)	(636		)	(1,445		)	(1,517		)	(1,264		)	(139		)	(4,226		)
Other income (expense), net	3			(54		)	—			4,170			11			5			4,181
Net income (loss)	(2,951		)	2,481			(4,203		)	(2,515		)	(14,171		)	(7,483		)	(20,889		)
Deemed dividend related to redeemable common stock	(47		)	(47		)	(46		)	(47		)	(43		)	(141		)	(136		)

Net income (loss) attributable to common shares	$	(2,998	)	$	2,434		$	(4,249	)	$	(2,562	)	$	(14,214	)	$	(7,624	)	$	(21,025	)

Net income (loss) per share
- basic	$	(0.16	)	$	0.13		$	(0.21	)	$	(0.13	)	$	(0.75	)	$	(0.44	)	$	(1.08	)
- diluted	$	(0.16	)	$	0.12		$	(0.21	)	$	(0.13	)	$	(0.75	)	$	(0.44	)	$	(1.08	)
Weighted average common shares outstanding
- basic	18,284			19,016			19,862			19,709			18,844			17,517			19,468
- diluted	18,284			20,780			19,862			19,709			18,844			17,517			19,468

Other data:
Shopping bookings (in 000s)	$	114,381		$	237,021		$	184,152		$	163,775		$	179,480		$	304,420		$	527,407
Travel bookings (in 000s)	$	—		$	—		$	1,649		$	2,759		$	9,666		$	2,299		$	14,074
Auction gross merchandise volume (in 000s)	$	—		$	7,148		$	5,602		$	7,362		$	7,302		$	—		$	20,266
Average customer acquisition cost (shopping)	$	18.30		$	16.90		$	19.50		$	22.10		$	22.92		$	15.03		$	21.40
Average registrant acquisition cost (auctions)	NA			$	7.41		$	8.26		$	7.51		$	6.61		NA			$	7.48

Overstock.com, Inc.

Consolidated Balance Sheets

(in thousands, except per share amounts)

	December 31, 2004				September 30, 2005
Assets
Current assets:
Cash and cash equivalents	$		198,678		$	2,575
Marketable securities	88,802				74,225
Cash, cash equivalents and marketable securities	287,480				76,800
Accounts receivable, net	5,715				7,551
Inventories, net	45,279				94,601
Prepaid inventory	12,322				12,606
Prepaid expenses & other assets	3,444				9,319
Total current assets	354,240				200,877
Restricted cash	1,602				633
Property and equipment, net	16,122				59,561
Goodwill	2,784				13,168
Other long-term assets, net	1,516				15,336
Total assets	$	376,264			$		289,575

Liabilities, Redeemable Securities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	64,060			$		47,070
Accrued liabilities	22,917				45,278
Short-term borrowings	—				4,368
Capital lease obligations, current	595				6,638
Total current liabilities	87,572				103,354
Capital lease obligations, non-current	743				6,907
Convertible senior notes	116,251				84,596
Total liabilities	204,566				194,857

Redeemable common stock	3,166				3,306

Stockholders’ equity:
Common stock	2				2
Additional paid-in capital	243,131				209,742
Accumulated deficit	(73,005			)	(94,030			)
Unearned stock-based compensation	(1,301			)	(493			)
Treasury stock	(100			)	(24,212			)
Accumulated other comprehensive loss	(195			)	403
Stockholders’ equity	168,532				91,412
Total liabilities, redeemable securities and stockholders’ equity	$	376,264			$		289,575

Overstock.com, Inc.

Consolidated Statements of Cash Flows (unaudited)

(in thousands)

	Three months ended September 30,							Nine months ended September 30,							Twelve months ended September 30,
	2004			2005				2004			2005				2004			2005
Cash flows from operating activities:
Net loss	$	(2,951	)	$	(14,171		)	$	(7,483	)	$	(20,889		)	$	(10,628	)	$	(18,408	)
Adjustments to reconcile net loss to cash provided by (used in) operating activities
Depreciation and amortization	1,061			4,901				2,707			9,466				3,429			10,696
Realized gain (loss) from marketable securities	(1		)	(1,946			)	(1		)	(2,361			)	(2		)	(1,973		)
Loss on disposition of property and equipment	—			—				—			—				—			34
Amortization of unearned stock-based compensation	18			(8			)	276			65				438			149
Stock options issued to consultants for services	25			(312			)	594			(338			)	701			(43		)
Issuance of common stock from treasury	—			91				—			402				—			402
Amortization of debt discount and deferred financing fees	—			179				—			602				—			749
Gain from retirement of convertible senior notes	—			—				—			(4,170			)	—			(4,170		)
Changes in operating assets and liabilities:
Accounts receivable, net	4,101			6,969				7,705			6,972				1,641			3,736
Inventories, net	(3,943		)	(34,818			)	(4,865		)	(49,322			)	(11,373		)	(59,810		)
Prepaid inventory	(5,137		)	(2,196			)	3,059			(284			)	(1,476		)	(284		)
Prepaid expenses and other assets	(2,980		)	(1,124			)	(13,606		)	(5,760			)	1,963			(6,337		)
Other long-term assets, net	102			(424			)	(1,268		)	(435			)	(1,251		)	(523		)
Accounts payable	954			6,663				(7,887		)	(17,911			)	14,020			23,674
Accrued liabilities	7,824			19,503				8,419			21,997				5,795			27,177
Net cash provided by (used in) operating activities	(927		)	(16,693			)	(12,350		)	(61,966			)	3,257			(24,931		)

Cash flows from investing activities:
Increase (decrease) in restricted cash	—			200				(1,875		)	969				(1,875		)	1,242
Investments in marketable securities	(15,675		)	(21,552			)	(27,917		)	(183,543			)	(29,920		)	(248,503		)
Sales of marketable securities	1,470			38,846				3,944			201,034				12,206			212,463
Expenditures for property and equipment	(3,805		)	(12,190			)	(5,404		)	(36,466			)	(7,744		)	(39,796		)
Acquisition of Ski West	—			(24,620			)	—			(24,620			)	—			(24,620		)
Proceeds from the sale of property and equipment	—			—				—			—				—			20
Expenditures for other long-term assets	—			—				—			—				(172		)	—
Net cash provided by (used in) investing activities	(18,010		)	(19,316			)	(31,252		)	(42,626			)	(27,505		)	(99,194		)

Cash flows from financing activities:
Payments on capital lease obligations	(153		)	(182			)	(507		)	(3,234			)	(532		)	(3,386		)
Borrowings on line of credit	—			4,368				1,000			4,368				1,000			3,368
Issuance of common stock, net of issuance costs	—			—				37,857			—				37,857			75,207
Issuance of convertible senior notes	—			—				—			—				—			116,251
Payments to retire convertible senior notes	—			—				—			(27,935			)	—			(27,935		)
Purchased call options	—			—				—			(47,507			)	—			(47,507		)
Purchase of treasury stock	—			—				—			(24,133			)	—			(24,133		)
Exercise of stock options and warrants	596			2,973				3,555			6,881				3,848			7,615
Net provided by (used in) financing activities	443			7,159				41,905			(91,560			)	42,173			99,480
Effect of exchange rate changes on cash	2			75				7			49				6			64
Net increase (decrease) in cash and cash equivalents	(18,492		)	(28,775			)	(1,690		)	(196,103			)	17,931			(24,581		)
Cash and cash equivalents, beginning of period	45,648			31,350				28,846			198,678				2,950			27,156
Cash and cash equivalents, end of period	$	27,156		$		2,575		$	27,156		$		2,575		$	20,881		$	2,575