We will auction one-of-a-kind items, some of our newest Sharper Image Design products, as well as established best sellers.

We are maintaining intense efforts on good merchandising, marketing and the gauging of customers' tastes and demands. We are focused on introducing many new products that we believe will be attractive to our customers.

We won't be knocked off from being the best-selling product in the category, ... At the same time, we're not sitting still or looking at the rearview mirror while running out business. Our air purifier is still in front of the pack and will stay there a long time.

With the success of our online sales we expect to report another record year of sales and earnings.

We will be aggressively expanding our Internet presence in 1999, ... Our new auction site comes online Feb. 22 (and) we will be substantially expanding our partnership advertising this year, which will drive more traffic to our sites.

We remain committed to our successful strategy of growth through multiple sales channels, driven by high-margin private label and Sharper Image Design proprietary products.

While we are encouraged by the sales results during this difficult economic climate, they were below our expectations, ... ... However, we remain strongly committed to our long-term strategy and believe this will continue to produce excellent financial results over time.

Selling more purifiers this year than last year.