December 22, 2010

NEWEGG LAUNCHES CONSUMER ELECTRONICS RECOMMERCE PROGRAM

With many hot, new gadgets wrapped as gifts, waiting under trees, consumers will soon be faced with the dilemma of what to do with their used, out-of-date electronics. Coming to the rescue, Newegg, the largest pure-play technology-focused retailer online, is teaming up with Gazelle to launch an electronics trade-in and recycling program for their customers. The program will enable Newegg consum...

With many hot, new gadgets wrapped as gifts, waiting under trees, consumers will soon be faced with the dilemma of what to do with their used, out-of-date electronics. Coming to the rescue, Newegg, the largest pure-play technology-focused retailer online, is teaming up with Gazelle to launch an electronics trade-in and recycling program for their customers. The program will enable Newegg consumers to turn-in qualifying used electronics, such as cell phones, cameras and MP3 players, and redeem them for Newegg gift cards that are valid for online purchases at Newegg.com – perfect for picking up those remaining items on your wish list.

Gazelle, the nation’s largest RECOMMERCE™ service, accepts the trade-in of unwanted gadgets from more than 20 product categories, including cell phones, laptops, gaming consoles, and more. Electronic items that do not have value can still be sent to Gazelle for responsible recycling, but consumers will not receive any gift card value in return.

The program is free, easy to use and helps customers avoid the worry and hassle of selling their used items themselves. Interested customers can follow these easy steps to participate in the program:

  1. Visit www.newegg.gazelle.com.

  2. Get an offer on your used electronics by answering a few quick questions.

  3. Ship items. Shipping is free and many customers will also qualify for free packaging.

  4. Receive a Newegg gift card for the total value of your items as determined by Gazelle.

Bernard Luthi, vice president of marketing, web management and customer service for Newegg, said:

“Our trade-in program is a great option for our customers who are either looking to ‘de-clutter’ after the holidays or who want to more affordably trade up to the latest gadgets. We chose to work with Gazelle because they are the market leader with the best customer experience. They will ensure that approximately 90 percent of the used electronics received will be reused and that the remainder will be responsibly recycled.”

Every item that Gazelle receives during the trade-in transaction is hand inspected by a trained member of their gadget lab team. During this process, item value is confirmed, and all personal data is removed and destroyed, providing Newegg customers with the peace of mind that comes with a secure, online service. Payment to participants, in the form of Newegg gift card credit, will be determined by the type of product, its age and condition. Gift cards will be sent within approximately seven days of an item being received.

“With this program, Newegg customers can turn last year’s laptop into this year’s coolest gadgets,” said Israel Ganot, CEO of Gazelle. “This is the essence of the RECOMMERCE™ revolution and how it rewards consumers for responsible consumption, for helping to extend the life of products and for keeping electronics out of landfills. We applaud Newegg for their commitment to changing the way people think about buying and owning electronics and look forward to extending our industry-leading experience to their customers.”

  • ABOUT NEWEGG

Newegg Inc. is the second-largest online-only retailer in the United States. It owns and
operates Newegg.com (www.newegg.com) which was founded in 2001 and regularly earns
industry-leading customer service ratings. The award-winning website has more than 13
million registered users and offers customers a comprehensive selection of the latest high-tech
products, detailed product descriptions and images, as well as how-to information and customer
reviews. Using the site’s online tech community, customers have the opportunity to interact with
other computer, gaming and consumer electronics enthusiasts. Newegg Inc. is headquartered in
City of Industry, California.

ABOUT GAZELLE

Gazelle (www.gazelle.com), a service of Second Rotation, Inc., is committed to providing
an easy, fast, and safe way for consumers to get cash for selling unwanted electronics or to
recycle them responsibly. To date, more than 100,000 consumers have used the service as a
way to clean out closets, get cash and help out a good cause. In addition, Gazelle empowers
consumers to avoid time consuming and risky online experiences associated with peer-to-
peer selling. Consumers can rest assured that all personal information is thoroughly removed
from their item while benefiting from conveniences like free shipping and packaging. Based
in Boston, Gazelle is backed by premier venture capital firms Physic Ventures, Venrock
Associates and RockPort Capital Partners.

PRESS CONTACT:
Michael Schneider
RF|Binder Partners
(212) 994-7546
gazelle@rfbinder.com

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November 17, 2010

Gazelle’s New RECOMMERCE™ Report Predicts 2010 Holiday Sales Trends

Gazelle (www.gazelle.com), the nation’s largest RECOMMERCE™ service, today released its 2010 Holiday RECOMMERCE™ report, a forecast of which electronic gadgets the company anticipates will sell particularly well over the coming holiday season based on analysis of recent consumer electronics trade-in trends. Gazelle accepts hundreds of thousands of consumer electronic trade-ins each year, giv...

Gazelle (www.gazelle.com), the nation’s largest RECOMMERCE™ service, today released its 2010 Holiday RECOMMERCE™ report, a forecast of which electronic gadgets the company anticipates will sell particularly well over the coming holiday season based on analysis of recent consumer electronics trade-in trends.

Gazelle accepts hundreds of thousands of consumer electronic trade-ins each year, giving it unique insight into U.S. consumption habits. Prior to some of the major product launches over the past several years – including Apple iPhone launches and the launch of Microsoft Windows 7 – Gazelle saw trends of significant trade-in volume as people exchanged earlier models and similar models in order to upgrade. These trends have proven to be a valuable source for predicting the success or failure of product launches.

This year, the holiday shopping season looks bright for consumer electronics as a whole, but the data is showing some winners will be bigger than others.

Hot for the holidays:

- Set-top boxes: Set-top box trades are the big story this holiday season. After Steve Jobs’ Apple TV announcement, set-top boxes burst onto the scene with 300% growth in trade-in numbers, signaling a strong holiday season for not just Apple TV, but Google TV and Boxee as well.

-Tablets: With the success of the iPad and the launch of the Galaxy Tab, both netbook and ebook trades saw substantial spikes. This data suggests that even at high price points, tablets will be one of the most wanted gifts this holiday season.

-Gaming consoles: Typically one of the most static trade-in categories, consoles have seen a surprising 30% spike in trades during the past 2 months. Microsoft and Sony should both be ready for exceptional holiday sales.

- Video games: Heavy trade-in volumes for last year's hit games suggest that demand will be high for those games' latest versions, including: Call of Duty: Black Ops, and Assassin's Creed Brotherhood, Fallout: New Vegas and Star Wars: The Force Unleashed 2.

- Mobile: Phones running the new Windows Phone 7 operating system, including the HTC HD7 (T-Mobile) and Samsung Focus (AT&T), are poised to do well this holiday season. Gazelle has seen a recent uptick in BlackBerry trade-in rates, suggesting that business-minded smartphone users are eager to adopt phones powered by Microsoft's new mobile software.

- E-readers : Reduced price points for the Amazon Kindle, Barnes & Noble Nook and Kobo 2 will once again make dedicated e-readers a popular gift during the holiday season.

- MP3 Players: No surprise that iPods will continue to dominate MP3 sales this year, but specifically Gazelle predicts the iPod Touch will be the big winner since it is currently experiencing a 16% bump in trades, by far the largest of any digital music player.

- Camcorders : Camcorder trades have increased 30%, and Gazelle predicts that it’s a prelude to a great holiday season for pocket recorders such as the Kodak Playtouch and the Flip Ultra and MinoHD.

Might be sitting on the shelves:

- iPhone 4 : After a long-steady stream of iPhone trades since the launch of the iPhone 4, trades have recently dropped off the map. Gazelle predicts iPhone 4s will be sitting on the shelves while consumers wait it out for the rumored Verizon launch in early 2011.

- Verizon smartphones: While Verizon currently offers a number of top of the line Android phones such as the Droid Pro and Samsung Continuum, Gazelle anticipates muted demand for these phones as consumers wait for the Verizon iPhone launch next year.

- Digital cameras: Cameras have seen a sharp decline in trades, and with few exciting, affordable products for the average consumer, Gazelle predicts low camera sales this year across all manufacturers.

- Netbooks : As tablets like the iPad and Galaxy Tab become increasingly popular, Gazelle predicts that demand for netbooks will continue to slump through the holiday season. While trade-ins in this category remain high, Gazelle expects consumers to replace them with tablets and ultraportable laptops.

- Desktops : Though they remain popular with gamers and designers, desktops are becoming a thing of the past thanks to the rise of ultraportable laptops, such as the Macbook Air, and tablets like the iPad and Galaxy Tab.

“Analyzing trade-in data is a great way to predict consumer behavior, and this year we’re seeing some very clear trends,” said Anthony Scarsella, Chief Gadget Officer of Gazelle. “Apple’s suite of products is poised to dominate the consumer electronic market again this holiday season, but also expect to see mobile phones running Android and Windows Phone 7 platforms to perform well. With the release of Playstation Move and Microsoft Kinect, gaming consoles and titles should also continue as a rising trend.”

  • ABOUT GAZELLE

Gazelle (www.gazelle.com), a service of Second Rotation, Inc., is committed to providing
an easy, fast, and safe way for consumers to get cash for selling unwanted electronics or to
recycle them responsibly. To date, more than 100,000 consumers have used the service as a
way to clean out closets, get cash and help out a good cause. In addition, Gazelle empowers
consumers to avoid time consuming and risky online experiences associated with peer-to-
peer selling. Consumers can rest assured that all personal information is thoroughly removed
from their item while benefiting from conveniences like free shipping and packaging. Based
in Boston, Gazelle is backed by premier venture capital firms Physic Ventures, Venrock
Associates and RockPort Capital Partners.

PRESS CONTACT:
Michael Schneider
RF|Binder Partners
(212) 994-7546
gazelle@rfbinder.com

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September 20, 2010

Gazelle Partners with gdgt to Raise Funds for Boston-based Non-Profit, Strategies For Children

Boston-based Gazelle (www.gazelle.com), the nation’s largest reCommerce company, is teaming up with gdgt for their “Live in Boston” event at the Royale on 279 Tremont Street on September 22, 2010 at 7 P.M. to help Bostonians make the most of their used gadgets (Press hour from 6-7pm). Event attendees are invited to drop off used cell phones, digital cameras, MP3 players and GPS devices at the G...

Boston-based Gazelle (www.gazelle.com), the nation’s largest reCommerce company, is teaming up with gdgt for their “Live in Boston” event at the Royale on 279 Tremont Street on September 22, 2010 at 7 P.M. to help Bostonians make the most of their used gadgets (Press hour from 6-7pm). Event attendees are invited to drop off used cell phones, digital cameras, MP3 players and GPS devices at the Gazelle station that will be set up near the entrance. Gazelle will donate the total trade-in value of all gadgets received to Strategies For Children, a nonprofit that works to ensure that children in Massachusetts have access to high-quality early education and become proficient readers by the end of third grade.

Each gdgt live event nationwide is a gadget lover’s dream and is swarmed by tech-enthusiasts eager to scope out the hottest electronics about to hit stores. This year, gdgt and Gazelle are asking attendees to trade-in their gadgets, with a goal to collect 250 items on site. As an extra incentive to reach this goal, the first 50 people to donate an item at gdgt will receive one drink ticket for the official gdgt after-party, hosted by Gazelle and Bostinnovation at the W Boston on 100 Stuart Street.

“We are excited to partner with gdgt and give our customers the opportunity to support such a vital local organization like Strategies for Children,” said Dan Smith, Vice President of Marketing for Gazelle. “Our goal with this partnership and our Gazelle for Good program is to encourage customers to change the way they look at their used gadgets by donating them to support great causes, instead of letting them collect dust or throwing them away

"We love that Gazelle is going to be helping gdgt Live attendees recycle their used gadgets. It's a great way to help a worthy cause while checking out some amazing new gadgets from our sponsors," said gdgt co-founder Peter Rojas.

“We are thrilled that gdgt and Gazelle recognize the importance of high-quality early education and literacy as essential strategies to ensure our children’s future success and our state’s future vitality,” said Margaret Blood, president and founder of Strategies for Children. “Working with gdgt and Gazelle will give us extra support to raise awareness of these critical issues and to continue to advocate for policies that improve the well-being of young children and families and help develop the skilled workforce our knowledge-based economy demands.”

As part of the partnership, Gazelle has also created the site www.gdgtforgood.gazelle.com to provide people who are not attending the event the opportunity to turn their gadgets into support for Strategies for Children. By logging on to the site anytime from now until October 1, 2010, customers can choose to donate the cash value of their gadgets to the cause.

  • ABOUT GAZELLE

Gazelle (www.gazelle.com), a service of Second Rotation, Inc., is committed to providing an
easy, fast, and safe way for consumers to get cash for selling unwanted electronics or to recycle
them responsibly. To date, more than 100,000 consumers have used the service as a way to
clean out closets, get cash and help out a good cause. In addition, Gazelle empowers consumers
to avoid time consuming and risky online experiences associated with peer-to-peer selling.
Consumers can rest assured that all personal information is thoroughly removed from their item
while benefiting from conveniences like free shipping and packaging. Based in Boston, Gazelle
is backed by premier venture capital firms Physic Ventures, Venrock Associates and RockPort
Capital Partners.

ABOUT STRATEGIES FOR CHILDREN
Strategies for Children, Inc. (SFC), which was established as an independent 501c(3) non-profit
organization in 2001, works to ensure that all Massachusetts have access to high-quality early
education and become proficient readers. It was founded by Margaret Blood, a child policy
expert and advocate, who previously led the United Way of Massachusetts Bay Success By 6
initiative, served as Director of Community Programs for the Department of Pediatrics at Boston
City Hospital and Boston University School of Medicine, and was the founding Executive Director
of the Massachusetts Legislative Children’s Caucus. SFC led successful efforts that established
the nation’s first consolidated Department of Early Education and Care, secured more than $190
million in increased public investment in early education and care since 2005, created a grant
program for high-quality pre-kindergarten, and created a scholarship program that has helped
more than 4,200 early educators pursue college degrees.

PRESS CONTACT:
Michael Schneider
RF|Binder Partners
(212) 994-7546
gazelle@rfbinder.com

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September 02, 2010

Gazelle Ranks No. 24 on the 2010 Inc. 500 with Three-Year Sales Growth of more than 7000%

Inc. magazine ranked Gazelle NO. 24 overall and NO. 2 in terms of Boston-based businesses on its 29th annual Inc. 500, an exclusive ranking of the nation’s fastest-growing private companies. The list represents the most comprehensive look at the most important segment of the economy—America’s independent-minded entrepreneurs. Companies such as Microsoft, Zappos, Intuit, GoDaddy, Zipcar, Oracle,...

Inc. magazine ranked Gazelle NO. 24 overall and NO. 2 in terms of Boston-based businesses on its 29th annual Inc. 500, an exclusive ranking of the nation’s fastest-growing private companies. The list represents the most comprehensive look at the most important segment of the economy—America’s independent-minded entrepreneurs. Companies such as Microsoft, Zappos, Intuit, GoDaddy, Zipcar, Oracle, and many other well-known names gained early exposure as members of the Inc. 500.

Gazelle, the largest and fastest-growing player in the reCommerce industry, was recognized for achieving more than 7,000% growth between 2006 and 2009. In this time, Gazelle also built a leading consumer brand by providing the best experience for trading in or recycling used gadgets. Today the company has grown to serve more than 100,000 customers by enabling the trade in of more than 250,000 gadgets on gazelle.com. Gazelle’s aggressive growth also allowed the company to expand its retail partnerships, including relationships with walmart.com, Sears, Kmart, Office Depot, and Costco.

“Our Inc. 500 ranking takes us back three years and gives us an amazing opportunity to reflect on what we’ve achieved as well as consider the great opportunity that still lies ahead of us,” said Israel Ganot, co-founder and CEO of Gazelle. “Achieving the NO. 24 rank, and being the second company listed in the Consumer Product & Services industry, serves as a testament to our innovative business model and ambition to create real, global consumption change.”

“Fast growth at any time is a big achievement; fast growth during the past few years is just short of miraculous,” said Inc. editor Jane Berentson. “The Inc. 500 consists of these just-short-of miraculous companies, the ones that through ingenuity and ambition have increased revenue, hired employees, and grown fast in difficult economic times.”

The 2010 Inc. 500, unveiled in the September issue of Inc. magazine (available on newsstands August 24 to November 16 and on Inc.com), is a group of companies that are smaller but much faster-growing than last year’s crop. Aggregate revenue is $11.3 billion—down from last year's $18.4 billion—but median three-year growth is

1,231 percent, substantially up from last year’s 880.5 percent. The companies on this year's list employ more than 45,000 people. Complete results of the Inc. 500, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at Inc.com/500.

Despite the ongoing recession, the 2010 Inc. 500 offers a glimpse of the future of the U.S. economy. In the health sector, which saw aggregate revenue of $1.1 billion and a 917 percent median growth rate, businesses are moving forward on cancer and stem-cell research, clinical trials, and medication management. More than 25 percent of companies in the energy sector ($2.5 billion aggregate revenue; 942 percent median growth rate) focus on solar and other alternative sources. Fewer than a third of retailers ($356 million aggregate revenue; 914 percent median growth rate) have even a single brick-and-mortar store. And the number of companies providing technical services to the various branches of the federal government continues to rise.

  • ABOUT GAZELLE

Gazelle (www.gazelle.com), a service of Second Rotation, Inc., is committed to providing an easy, fast,
and safe way for consumers to get cash for selling unwanted electronics or to recycle them responsibly.
To date, more than 80,000 consumers have used the service as a way to clean out closets, get cash
and help out a good cause. In addition, Gazelle empowers consumers to avoid time consuming and risky
online experiences associated with peer-to-peer selling. Consumers can rest assured that all personal
information is thoroughly removed from their item while benefiting from conveniences like free shipping
and packaging. Based in Boston, Gazelle is backed by premier venture capital firms Physic Ventures,
Venrock Associates and RockPort Capital Partners.

ABOUT INC. MAGAZINE
Founded in 1979 and acquired in 2005 by Mansueto Ventures LLC, Inc. (www.inc.com) is the only
major business magazine dedicated exclusively to owners and managers of growing private companies
that delivers real solutions for today’s innovative company builders. With a total paid circulation of
712,647, Inc. provides hands-on tools and market-tested strategies for managing people, finances, sales,
marketing, and technology. Visit us online at www.inc.com.

PRESS CONTACT:
Michael Schneider
RF|Binder Partners
(212) 994-7546
gazelle@rfbinder.com

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August 04, 2010

Gazelle Adds 3 Industry Leaders to its Executive Team

Fresh off the heels of the announcement of a $12 million Series C round of investment, Boston-based Gazelle (www.gazelle.com), the nation’s largest reCommerce service, announced today that it had hired three industry leaders, Chris Sullivan, Ben Katz and Joseph Morrow as CFO, CTO and Executive Vice President respectively.Chris, Ben and Joe join Gazelle with storied track records of driving gr...

Fresh off the heels of the announcement of a $12 million Series C round of investment, Boston-based Gazelle (www.gazelle.com), the nation’s largest reCommerce service, announced today that it had hired three industry leaders, Chris Sullivan, Ben Katz and Joseph Morrow as CFO, CTO and Executive Vice President respectively.Chris, Ben and Joe join Gazelle with storied track records of driving growth and profitability and building singular customer experiences.

Chris Sullivan joins Gazelle as Chief Financial Officer with more than two decades of experience working with publicly traded and private technology companies including start-ups to large multinationals. Chris' strategic thinking, extensive M&A experience and inherent leadership skills as CFO have driven consistent high growth, profitability and improved cash flow at small, mid-sized and large companies including Pegasystems, Event Zero and DEC. Chris has also held senior finance roles at Compaq, Fisher Scientific and HR Access, a Fidelity owned, but independently operated company. During his career Chris also served as COO, overseeing functions including Human Resources, Legal, Sales Operations, Information Technology and facilities. Chris is a native Bostonian and received both his B.S. and MBA from Babson College.

Benjamin Katz joins Gazelle as Chief Technology Officer. A respected leader in technology, Ben was most recently CIO of RueLaLa, the leading “private sale” e-Commerce site where he introduced and developed the now ubiquitous model and experience of an online private sale. Benjamin is known for building high growth brands and explaining new internet retail concepts through technology. Prior to RueLaLa Ben was Vice President of Innovation at Allurent, where he was responsible for leading User-Experience projects from inception through post-deployment support. Ben is also responsible for building some of the most popular e-commerce retail sites including anthropologie.com and while serving as Director of Technology at ATG, Ben managed large-scale e-commerce sites including jcrew.com and sun.com. Ben resides in Cambridge where he can bike to the Gazelle offices in only 20 minutes.

Joe Morrow will spearhead Gazelle's operations and eCommerce strategy as EVP of Operations, bringing a new level of innovation and efficiency to the team. He has gained extensive experience in the field, serving as the President and COO of both ReCellular and Enlighten, a Managing Director at Morningstar Consulting Group and Partner at Diamond Management & Technology Consultants. Joe also held consulting roles with McKinsey & Co. as well as A.T. Kearney. Joe is a BGS graduate from University of Michigan and also holds a JD/MBA from the University of Chicago.

“It is a privilege to join Gazelle and what’s particularly exciting is the opportunity to be part of something gamechanging: helping to invent and establish the notion of reCommerce,” said Chris Sullivan. “I look forward to the challenge of taking this singular business opportunity and ensuring that our growth is scaled and profitable.”

“I am excited to join a company with such immense growth potential and a great business model,” said Benjamin Katz. “My goal is to help Gazelle continue providing a seamless user experience and to make reCommerce available to a critical mass of consumers. We want to educate all consumers and enable them to adopt this new mode of consumption.”

“Gazelle’s reCommercing services are changing the way consumers use and recycle their electronics,” said Joe Morrow. “Being a part of this company means being a pioneer in an innovative eCommerce industry that is not only enhancing environmental sustainability, but is also revolutionizing consumer behavior.”

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