E Com Ventures (ECMV)

Restatement

As previously reported, the Company has restated its financial statements for fiscal years 2006 and 2005, the three interim quarters in fiscal year 2007, and the four quarters in fiscal year 2006 to correct certain errors related to the Company’s retail store operating lease accounting and amortization of store leasehold improvements that were recently identified. The restatements do not affect the Company’s cash flows or revenues. The restatement results in a decrease to net income of $0.1 million in fiscal year 2006, an increase in net income of $1.0 million in fiscal year 2005 and a decrease in net income of $2.7 million for all years prior to fiscal year 2005, with a corresponding increase to the accumulated deficit as of January 29, 2005. The restated financial statements are included in the Company’s form 10-K for the year ended February 2, 2008, and a summary of the restatement is presented below.

Restatement

As previously reported, the Company has restated its financial statements for fiscal years 2006 and 2005, the three interim quarters in fiscal year 2007, and the four quarters in fiscal year 2006 to correct certain errors related to the Company’s retail store operating lease accounting and amortization of store leasehold improvements that were recently identified. The restatements do not affect the Company’s cash flows or revenues. The restatement results in a decrease to net income of $0.1 million in fiscal year 2006, an increase in net income of $1.0 million in fiscal year 2005 and a decrease in net income of $2.7 million for all years prior to fiscal year 2005, with a corresponding increase to the accumulated deficit as of January 29, 2005. The restated financial statements are included in the Company’s form 10-K for the year ended February 2, 2008, and a summary of the restatement is presented below.