Filed pursuant to Rule 424(b)(3) Registration No. 333-37872 PROSPECTUS 4,702,900 SHARES CYBERIAN OUTPOST, INC. (a/k/a OUTPOST.COM) COMMON STOCK -------------------- This prospectus covers the sale by the selling stockholders listed beginning on page 14 of 4,702,900 shares of our common stock. We will not receive any of the proceeds from the sale of common stock by the selling stockholders. Our common stock is listed on the Nasdaq National Market under the symbol "COOL." On June 12, 2000, the closing sale price of our common stock on the Nasdaq National Market was $4.625 per share. -------------------- INVESTING IN OUR COMMON STOCK INVOLVES A HIGH DEGREE OF RISK. SEE "RISK FACTORS" BEGINNING ON PAGE 4. -------------------- NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. -------------------- June 13, 2000 TABLE OF CONTENTS Outpost.com's Business................................................... 1 Risk Factors............................................................. 4 Special Note Regarding Forward-Looking Statements........................ 13 Selling Stockholders..................................................... 14 Plan of Distribution..................................................... 17 Legal Matters............................................................ 18 Experts.................................................................. 18 Where You Can Find More Information...................................... 19 Incorporation of Documents by Reference.................................. 19 ---------------------- YOU MAY RELY ONLY ON THE INFORMATION CONTAINED IN THIS PROSPECTUS. WE HAVE NOT AUTHORIZED ANYONE TO PROVIDE INFORMATION DIFFERENT FROM THAT CONTAINED IN THIS PROSPECTUS. THIS PROSPECTUS IS NOT AN OFFER TO SELL NOR IS IT SEEKING AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED. THE INFORMATION CONTAINED IN THIS PROSPECTUS IS CORRECT ONLY AS OF THE DATE OF THIS PROSPECTUS, REGARDLESS OF THE TIME OF THE DELIVERY OF THIS PROSPECTUS OR ANY SALE OF THESE SECURITIES. "Cyberian Outpost," "Outpost.com," "TruePrice," "OutpostAuctions.com," "Cyberian Express," "Transparent Personalization" and other trademarks and service marks of Cyberian Outpost, Inc. mentioned in this prospectus are the property of Cyberian Outpost, Inc. All other trademarks, trade names or service marks referred to in this prospectus are the property of their respective owners. The terms "Outpost.com," "Cyberian Outpost," "we" and "our" as used in this prospectus refer to Cyberian Outpost, Inc. i OUTPOST.COM'S BUSINESS We are a leading global Internet-only retailer featuring over 170,000 consumer technology and related products for the home and office. As of February 29, 2000, we had approximately 630,000 customers world-wide, the majority of which have shopped at Outpost.com during the last 24 months. We offer an online "superstore" at www.Outpost.com that provides one-stop shopping for domestic and international customers, 24 hours a day, seven days a week. Our superstore features computer hardware, software and accessories from the computer industry's foremost suppliers, and we are an authorized Internet reseller for leading manufacturers, including IBM, Apple, Compaq, Sony, Hewlett Packard, Acer and Toshiba. We also sell software for leading publishers including Microsoft, Symantec, Adobe, Apple Software and Intuit. Additionally, we offer a full range of consumer electronics in the Tweeter.Outpost.com store, unique and innovative consumer products in the Brookstone.Outpost.com store and a wide selection of photographic equipment and services offered via our unique partnership with Wolf Camera. Our online store features; o an easy to navigate, intuitive interface; o outstanding twenty-four hour customer service seven days per week; o free overnight delivery; o extensive product information; o powerful search capabilities; o competitive pricing; and o a flexible returns policy including pick-up from any location in the U.S. Since December 1998, our store has consistently received the top rating of 4.5 stars (out of 5) from Bizrate.com. Outpost.com has become one of the most widely known and used e-commerce sites. We have the #1 ranking in the Computing category of the Forrester PowerRankings, by Forrester Research. We were also named Best of the Web by Fortune Magazine, Favorite Destination by PC Magazine, and #1 Rated in Category by Fortune Magazine. We have expanded our business beyond the online "superstore" targeted to retail consumers to include our newly developed "Your Office at Outpost.com" specifically to address the needs of small and medium size businesses. The B2b sector of online retailing has distinct needs that diverge from the traditional consumer in both the quantity and pricing of the selections that businesses need to purchase. We have a dedicated team of sales and customer service professionals to assist corporate buyers in making their selections, creating accounts and managing payment and leasing terms. Additionally, our newly formed eBusiness Services unit, allows us to further diversify our revenue stream and create a new source of customers and products for our businesses. Our business has grown rapidly since we started in 1995. Net sales increased from $1.9 million for our fiscal year ended February 29, 1996 to $189 million for our fiscal year ended February 29, 2000. In addition, of the approximately 630,000 individual customers in over 150 countries who have purchased from us since we started, nearly 338,000 have become customers since March 1, 1999. We understand the key business challenges of the Internet retailing industry and we use this unique environment to address those challenges. Our online superstore was created to provide retail consumers, and now small and medium size businesses, with a convenient, compelling and enjoyable shopping experience in a Web-based retail environment. Key attributes of our business include: o Efficient economics of our "virtual" store. As an Internet-only merchant, we enjoy structural economic advantages that we believe will ultimately allow us to achieve greater operating margins relative to traditional computer retailers. These advantages include: low-cost unlimited "shelf space"; lower personnel requirements; scaleable technology; and our ability to serve a global customer base from a single, domestic location. o Broad array of product offerings. Our unlimited, low-cost "shelf space", allows us to offer more than 170,000 products. 1 o The ability to reach a global customer base. The global reach of the Internet allows us to deliver a broad selection of products to customers in international, rural or other locations that cannot support large scale physical stores or to which catalogs cannot be easily or cost effectively distributed. o The availability of value-added online content. To assist our customers, valuable information, including extensive product descriptions, is available on our Web site and through our free e-mail newsletter. o Convenient 24-hour shopping. Our online superstore which is available 24 hours a day, seven days a week, may be reached from the customer's home or office and features sophisticated browsing and search technology. Our goal is to become an e-commerce market leader for the Internet retail sale of a broad array of consumer technology products for individual consumers and small and medium size businesses, and to provide e-commerce solutions for a large cross section of businesses that have the need to implement an e-commerce strategy. Outpost.com has recently expanded its business model beyond Business to Consumer (B2C) to target small and medium size businesses (B2b) and eBusiness Services (eBS). We intend to build upon our current strengths by (a) expanding our efforts in online and off-line brand development, (b) expanding our product offerings with new, but related product categories, (c) developing a customized, personalized and transparent one-to-one marketing approach, and (d) diversifying into additional areas of Internet commerce. We believe that these steps support our strategy, which is to build an internationally known Internet brand and provide a unique and satisfying shopping experience for our domestic and international customers. Through eBusiness Services, Ouptost.com has been developing relationships with some of the country's premier retailers as well as building alliances with established Internet brands. We began our "Clicks & Mortar" partnership strategy in 1999 by combining forces with Tweeter Home Entertainment Group, Inc. in a joint venture company to sell consumer electronics on the Internet. This type of relationship allows us to develop and provide either end to end co-branded or private label sites. These partnerships include: Tweeter.Outpost.com: This site combines the strengths of two companies dedicated to providing unparalleled customer service and offers elite brands of consumer electronics products to customers that shop on the Web. Tweeter Home Entertainment Group, Inc. (Nasdaq: TWTR) operates 84 top quality merchandise stores throughout the United States. Innovations By Brookstone: Brookstone, Inc. (Nasdaq: BKST), with over 200 stores nationwide, is known for creating and marketing innovative products that appeal to the strong demographic customer base we attract. Brookstone is an eBS client for whom we are preparing a complete eCommerce solution (www.brookstone.com). Cameras by Wolf Camera: Wolf Camera appears on the Outpost.com site providing a vast selection of digital and traditional cameras as well as other photographic equipment and accessories that can be found in their over 1,000 retail stores around the country. We are also focusing our efforts on developing lasting e-commerce extensions on-line with established Internet companies. These extensions give us access to a broad audience. Our on-line relationships include Sandbox.com and Computer.com where Outpost.com delivers shopping content for these popular Websites. Finally, through eBusiness Services, we are always working to develop additional stores within our site to provide exciting new products for our customers. Our marketing strategy is to promote and increase our brand awareness, cost effectively acquire new customers, build customer loyalty, promote repeat purchases and increase our market share. We are implementing this strategy through the following channels: Online and Traditional Advertising. We have implemented a broad-based, multi-media advertising campaign that includes both online and traditional advertising, designed to drive high-value traffic to our Web site. Our current online advertising focuses on a variety of Web sites that have a proven ability to drive buyers to our site. We optimize the performance of our online efforts through the use of dynamic tools. 2 Customer Relationship Marketing. Jupiter Communications, a market research firm, projects that by 2002 consumer e-mail volume will rise by 58% to 576 million messages per day, up from 335 million per day in 1999. In order to expand our customer retention and acquisition efforts, we have developed a concentrated customer relationship marketing campaign. At Outpost.com, we believe that e-mail direct marketing offers significant advantages over traditional "snail" mail marketing including: ease of personalization; lower cost; and more rapid delivery and response. We developed and implemented technology-based systems that customize the content of targeted e-mails based on order history, platform of choice and other buying criteria. In addition, we are creating plans for increased loyalty programs beyond our current efforts to maximize the lifetime value of our customers. Outpost Affiliate Network Program. The Outpost affiliate program is an established network of Web sites that post links to Outpost.com and receive a commission on sales they generate on a direct click through to Outpost.com. We partner with LinkShare Corporation, a leading provider of affiliate program management. We believe this partnership has helped make the Outpost Affiliate Network one of the leading programs in the industry today. The affiliate network program was launched in December 1997 and since that time has experienced substantial growth. By the close of fiscal 2000, our network membership had grown to more than 85,000. Strategic Online Advertising Relationships. We continue to forge strategic relationships with selected Internet sites including CNET, MSN Shopper and DEJA.com to increase market share and attract new customers. We are also a founding member of ShopperConnection (www.shopperconnection.com), a network connecting some of the Internet's leading online specialty retailers and services. Market Intelligence and Research. We have created a group to study the productivity and behavior of our customer base in order to determine the effectiveness of our marketing efforts. The market intelligence program works with both our internal data, mining session behavior and retention programs as well as with syndicated third party data provided by research firms such as Forrester, Biz Rate.com and NetRatings. We have commissioned proprietary studies to gain better understanding of our customers and use data produced from these studies to help determine the likelihood that our customers will return to us to purchase again and again and to determine what other product selections might appeal to our established customers. We were incorporated in Connecticut in 1995 and reincorporated in Delaware in 1998. Our principal executive offices are located at 23 North Main Street, Kent, Connecticut 06757. Our telephone number is (860) 927-2050. Our Web site is located at http://www.Outpost.com. We do not intend the information found on our Web site to be a part of this prospectus. 3 RISK FACTORS You should carefully consider the following risk factors and all other information contained in this prospectus before purchasing our common stock. Investing in our common stock involves a high degree of risk. If any of the following risks actually occurs, we may not be able to conduct our business as currently planned and our financial condition and operating results could be seriously harmed. In that case, the market price of our common stock could decline, and you could lose all or part of your investment. See "Special Note Regarding Forward-Looking Statements." RISKS RELATING TO OUR BUSINESS WE HAVE A RELATIVELY SHORT OPERATING HISTORY SO THERE IS A LIMITED AMOUNT OF INFORMATION THAT YOU CAN USE TO EVALUATE OUR BUSINESS AND PROSPECTS FOR SUCCESS. We were founded in March 1995 and began selling computer products in May 1995. Accordingly, we have a limited operating history on which you can evaluate our business and prospects for success. Since our inception, we have devoted our efforts primarily to sales and marketing, financial planning, recruiting management and technical staff, acquiring operating assets and raising capital. You must consider the risks and uncertainties frequently encountered by companies in new and rapidly evolving markets, such as the market for online commerce. Some of these risks and uncertainties relate to our ability to: o anticipate and adapt to changes in the rapidly evolving online commerce market; o retain current customers and attract new customers; o implement and successfully execute our business strategy and sales and marketing initiatives; o attract, retain and motivate qualified personnel; o respond effectively to competitive and technological developments; o continue to develop and upgrade our technology and transaction-processing systems; and o effectively manage our anticipated growth. If we are not successful in addressing these risks, our business, prospects, financial condition and results of operations could be materially harmed. WE HAD AN ACCUMULATED DEFICIT OF $70 MILLION AS OF FEBRUARY 29, 2000 AND EXPECT TO CONTINUE TO INCUR SUBSTANTIAL OPERATING LOSSES AND NEGATIVE CASH FLOW FOR THE FORESEEABLE FUTURE AND MAY NEVER ACHIEVE OR MAINTAIN PROFITABILITY. We have had substantial operating losses and negative cash flow since our inception and may never achieve or maintain profitability. We have an accumulated deficit of $70 million as of February 29, 2000. We expect to continue to incur significant expenses as we continue to invest heavily in customer acquisition, retention and loyalty efforts, marketing and promotion, Web site development and technology and operating infrastructure development. As a result, we believe that we will continue to incur substantial operating losses for the foreseeable future. Though we have been steadily increasing our product gross margins, achieving profitability depends upon our ability to generate and sustain increased revenue levels, acquire our customers more economically and increase the life-time value of our customers. We believe that our success will depend in large part on our ability to (i) extend our brand position, (ii) provide our customers with outstanding value and a superior shopping experience, (iii) achieve sufficient sales volume to realize economies of scale, (iv) diversify our revenue stream by providing business to business services and products, and (v) expand our product offering and further diversify our income stream by adding eBS partners to whom we provide valuable e-Commerce solutions and services. During the early stages of our development, we experienced a significant revenue growth rate. As we mature, however, we expect our growth rate to plateau. We cannot assure you that we will continue to increase revenues or that we will ever achieve or maintain profitability or generate cash from operations. OUR OPERATING RESULTS MAY FLUCTUATE SUBSTANTIALLY WHICH MAY ADVERSELY AFFECT OUR STOCK PRICE. 4 Our results of operations have fluctuated in the past and we expect to experience significant fluctuations in our future operating results due to a variety of factors, many of which are outside our control. Factors that may adversely affect our operating results include: o our ability to retain existing customers, attract new customers at a steady rate and maintain customer satisfaction; o our ability to manage our fulfillment activities and maintain gross margins; o the announcement or introduction of new Web sites, services and products by us or our vendors, strategic partners and competitors; o the success of our strategic alliances; o price competition or higher wholesale prices in the industry; o our mix of product sales; o seasonality of sales typically experienced by retailers; o the level of use of the Internet and online services and consumer acceptance of the Internet and other online services for the purchase of consumer products such as those offered by us; o our ability to upgrade and develop our systems and infrastructure and attract new personnel in a timely and effective manner; o the level of traffic to our Web site; o technical difficulties, system downtime or Internet brownouts; o the amount and timing of operating costs and capital expenditures relating to expansion of our business, operations and infrastructure; o the level of merchandise returns we experience; o governmental regulation and taxation; and o general economic conditions and economic conditions specific to the Internet, online commerce and the industry. If the results of our operations, the businesses of our partners, or our other business results do not meet analysts' predictions or the market's expectations, then our stock price may decline. As a result, you could lose part or all of your investment. OUR FINANCIAL RESULTS MAY FLUCTUATE SEASONALLY WHICH MAY NEGATIVELY IMPACT OUR FINANCIAL RESULTS AND OUR STOCK PRICE. We expect to experience seasonality in our revenues and sales and gross margins as a result of seasonal fluctuations in Internet usage and traditional retail seasonality patterns. Sales in the traditional retail computer, consumer technology and photography industries are typically higher in the fourth calendar quarter of each year than in the preceding three quarters. To date, our limited operating history and rapid growth make it difficult to ascertain the effects of seasonality on our business. If we do not accurately predict our sales and revenues, we may not appropriately adjust our spending which could have a negative impact on our financial results and stock price. In addition, if our business results do not meet analysts' predictions or the market's expectations, then our stock price may decline. As a result, you could lose part or all of your investment. WE ANTICIPATE THAT WE MAY NEED TO RAISE ADDITIONAL FUNDING WHICH MAY NOT BE AVAILABLE ON TERMS ACCEPTABLE TO US, IF AT ALL. To date, our operations have consumed substantial amounts of capital. We expect our capital and operating expenditures to increase over the next several years as our sales volume increases and we expand our business through investments in marketing and promotion, Web site development and technology and operating infrastructure development. We may have to raise additional capital to support our business operations, including obligations to strategic partners and third-party manufacturers. In the event that such additional financing is necessary, we may seek to raise such funds through public or private equity or debt financing or other means. We may not be able to raise additional financing when we need it, or we may not be able to raise financing on terms acceptable us. In the event that adequate funds are not available, our business, prospects, financial condition and results of operations may be materially adversely affected. 5 IF WE ARE UNABLE TO SUCCESSFULLY COMPETE IN THE RETAIL TECHNOLOGY PRODUCTS INDUSTRY, OUR BUSINESS COULD BE MATERIALLY ADVERSELY EFFECTED. The retail technology products industry as a whole is intensely competitive. Many of our competitors have longer operating histories, larger customer bases, greater brand recognition, and significantly greater financial, marketing and other resources than we do. Our current or potential competitors include: o traditional electronics retailers such as CompUSA and Circuit City; o mail-order retailers such as CDW, Micro Warehouse, and PC Connection; o Internet-only retailers including Amazon.com, Buy.com and Crutchfield.com; o manufacturers that sell directly over the Internet or by telephone such as Dell and Gateway and many software companies; o a number of online service providers including America Online and the Microsoft Network that offer products directly or in partnership with other retailers; and o electronics manufacturers that may develop direct channels to the consumer market. WE MAY BE UNABLE TO EFFECTIVELY MARKET OUR SERVICES AND ATTRACT NEW CUSTOMERS TO OUR STORE IN A REASONABLY COST EFFECTIVE MANNER. OUR EBS CUSTOMERS MAY CHOOSE NOT TO RENEW OR EXTEND THE TERM OF THEIR RELATIONSHIPS WITH US. The online commerce market is new, rapidly evolving and intensely competitive. Current and new competitors can launch new sites quickly and inexpensively. In addition, online retailers may be acquired by, receive investments from, or enter into other commercial relationships with, larger, well-established and well-financed companies as use of the Internet and other online services increases. Certain of our online competitors have and may continue to adopt aggressive pricing or inventory availability policies and devote substantially more resources to Web site and systems development than we do. Moreover, companies that control access to Internet commerce transactions through network access or Web browsers currently promote, and will likely continue to promote, our competitors. New technologies and the expansion of existing technologies may increase competition. Increased competition may negatively impact our operating margins, market share and brand franchise, any of which would have a material adverse effect on our business, prospects, financial condition and results of operations. In addition, we may respond to competitive pressures by establishing pricing, marketing and other programs or seeking out additional strategic alliances or acquisitions that may be less favorable to us than we would otherwise establish or obtain, and thus could have a material adverse effect on our business, prospects, financial condition and results of operations. IF WE DO NOT ADAPT TO RAPID TECHNOLOGICAL CHANGE, WE WILL NOT BE COMPETITIVE IN THE MARKETPLACE. To remain competitive, we must continue to enhance and improve the responsiveness, functionality and features of our Web site. The online commerce industry in which we operate, is characterized by: o rapid technological change; o changes in user and customer requirements and preferences; o frequent new product and service introductions embodying new technologies; and o the emergence of new industry standards and practices that could render our existing Web site and proprietary technology and systems obsolete. Our success depends, in part, on our ability to license leading technologies useful in our business, enhance our existing services, develop new services and technology that address the increasingly sophisticated and varied needs of our customers, and respond to technological advances and emerging industry standards and practices on a cost-effective and timely basis. The development of Web site and other proprietary technology entails significant technical and business risks. We may not successfully adapt to new technologies or effectively adapt our Web site, proprietary technology and transaction processing systems to customer requirements or emerging industry standards. If we are unable, for technical, legal, financial or other reasons, to adapt in a timely manner in response to changing market conditions or customer requirements, our business, prospects, financial condition and results of operations would be materially adversely affected. 6 WE DEPEND ON DIGITAL ISLAND, INC. TO MANAGE OUR COMMUNICATIONS HARDWARE, AND A DELAY OR INTERRUPTION IN DIGITAL ISLAND'S SERVICE COULD RESULT IN OUR INABILITY TO RECEIVE CUSTOMER ORDERS OR PROVIDE HIGH-QUALITY CUSTOMER SERVICE. Our ability to successfully receive and fulfill customer orders and provide high-quality customer service, largely depends on the efficient and uninterrupted operation of our computer and communications hardware systems. Substantially all of our computer and communications hardware required for Web access is managed by Digital Island Inc., a third-party provider located in Staten Island, NY. We are dependent on the services of this provider, and its systems and operations are vulnerable to damage or interruption from fire, flood, power loss, telecommunications failure, break-ins, earthquake and similar events. Our disaster recovery plan may not be adequate to protect us against loss and we do not carry sufficient business interruption insurance to compensate us for losses that may occur. Despite our implementation of network security measures, our servers are vulnerable to computer viruses, physical or electronic break-ins and similar disruptions, which could lead to interruption, delays, loss of data or the inability to accept and fulfill customer orders. The occurrence of any of the foregoing events could have a material adverse effect on our business, prospects, financial condition and results of operation. WE DEPEND ON AIRBORNE LOGISTICS SERVICES FOR TIMELY AND ACCURATE ORDER FULFILLMENT, AND A DELAY OR INTERRUPTION IN AIRBORNE'S SERVICE COULD RESULT IN OUR INABILITY TO PROCESS CUSTOMER ORDERS OR PROVIDE HIGH-QUALITY CUSTOMER SERVICES. We house our inventory in a leased warehouse located in Wilmington, Ohio. In addition to warehousing services, Airborne Logistics Services Inc. also provides our order fulfillment services. We are dependent on Airborne Logistics Services for timely, accurate order fulfillment. Although Airborne operates a secure facility, its systems and operations are vulnerable to damage or interruption from fire, flood, power loss, telecommunications failure, break-ins, earthquake and similar events. We do not presently have redundant systems. Our disaster recovery plan may not be adequate to protect us against loss and we do not carry sufficient business interruption insurance to compensate us for losses that may occur. The occurrence of any of the foregoing events could have a material adverse effect on our business, prospects, financial condition and results of operations. WE RELY ON CERTAIN VENDORS, THE LOSS OF WHICH COULD LIMIT OUR ABILITY TO SOURCE SUFFICIENT QUANTITIES OF MERCHANDISE WHICH WOULD ADVERSELY AFFECT OUR REVENUES. While we purchase our merchandise from many different vendors, during fiscal 2000 a majority of our products were purchased through two vendors, Tech Data and Ingram Micro. If we fail to develop and maintain relationships with these and other vendors, we may not be able to source sufficient quantities of merchandise on acceptable commercial terms which would have a material adverse effect on our revenues and results of operations. IF WE FAIL TO CONTINUALLY DEVELOP AND UPGRADE OUR SYSTEMS, WE MAY EXPERIENCE DECREASED PERFORMANCE ON OUR WEB SITE WHICH WOULD ADVERSELY AFFECT OUR REPUTATION AND BUSINESS. A key element of our strategy is to generate a high volume of traffic on our Web site. Accordingly, the satisfactory performance, reliability and availability of our Web site, transaction-processing systems and network infrastructure are critical to our reputation and our ability to attract and retain customers and maintain adequate customer service levels. Our revenues depend on the number of visitors who shop on our Web site, the size of their orders and the volume of orders we fulfill. We use a variety of internally and externally developed software for our Web site, search engine, customer and product databases, and transaction processing and order management systems. If we do not continue to develop and upgrade our existing technology or network infrastructure to accommodate increased traffic on our Web site or increased sales volume through our transaction processing and order management systems, we may experience: o unanticipated system disruptions; o degradation in levels of customer service; o impaired quality and speed of order fulfillment; and o delays in reporting accurate financial information. 7 Any system interruptions that result in the unavailability of our Web site or reduced order fulfillment performance would reduce the volume of products sold and the attractiveness of our product and service offerings. While we continually review and seek to upgrade and expand our transaction processing and order management systems in a timely and effective manner, we could experience future systems overloads or failures. In addition, we can not assure you that we will be able to smoothly integrate any newly developed or purchased modules with our existing systems or prevent unauthorized access to our data. Any inability to do so could have a material adverse effect on our business, prospects, financial condition and results of operations. WE MAY NOT BE ABLE TO SUCCESSFULLY MANAGE OUR GROWTH, WHICH COULD ADVERSELY AFFECT OUR BUSINESS. We have rapidly and significantly expanded our operations in recent years. We expect to continue to experience significant growth in our customer base and market opportunities. Our growth has placed, and is expected to continue to place, a significant strain on our management and our operating systems. Our success will partly depend on the ability of our officers and key employees to continue to: o implement and improve our operational, management information and financial control systems; o expand, train and manage our work force; o improve existing transaction processing, operational and financial systems, procedures and controls; and o maintain and expand our relationships with various distributors, other Web site operators and Web service providers, and other third parties necessary to our business. We can not assure you that our current and planned personnel, systems, procedures and controls will be adequate to support our future operations. If we are unable to manage our growth effectively, our business, prospects, financial condition and results of operations will be materially adversely affected. WE MAY CHOOSE TO EXPAND OUR OPERATIONS BY ENTERING NEW BUSINESS AREAS, BUT WE MAY NOT BE SUCCESSFUL. We may choose to expand our operations by developing new Web sites, promoting new or complementary products or sales formats, expanding the breadth and depth of products and services offered or expanding our market presence through relationships with third parties. In addition, we may pursue the acquisition of new or complementary businesses, or technologies. Any new business or Web site that we launch may not be favorably received by consumers and could damage our reputation or the Outpost.com brand. Additionally, if we expand our operations in this manner, we would require significant additional expenses and resources which could strain our management, financial and operational resources. The lack of market acceptance of such efforts could have a material adverse effect on our business. IF WE FAIL TO RETAIN KEY PERSONNEL, OR HIRE, TRAIN AND RETAIN QUALIFIED EMPLOYEES, WE MAY NOT BE ABLE TO MANAGE OUR BUSINESS EFFECTIVELY. Our performance is substantially dependent on the continued services and performance of our senior management, particularly Robert A. Bowman, President and Chief Executive Officer. We maintain key person life insurance on the life of Mr. Bowman in the amount of $1,000,000. We have also entered into employment agreements with Mr. Bowman, as well as our Executive Vice President for Business Development and Chief Financial Officer. The loss of the services of any of our executive officers or other key employees could have a material adverse effect on our business. Our future success also depends on our ability to identify, attract, hire, train, retain and motivate other highly skilled technical, managerial, editorial, merchandising, marketing and customer service personnel. From March 1995 to February 29, 2000 we expanded from two full-time employees to 234 full-time and 5 part-time employees. Our new employees include a number of key managerial, technical and operations personnel and we expect to add additional key personnel in the future. Competition for such personnel is intense, and we may not be able to successfully attract, integrate or retain sufficiently qualified personnel. The failure to attract and retain the necessary technical, managerial, editorial, merchandising, marketing and customer service personnel could have a material adverse effect on our business. 8 IF WE ARE UNABLE TO PROTECT OUR INTELLECTUAL PROPERTY, OUR BUSINESS MAY BE ADVERSELY AFFECTED. We regard our service marks, trademarks, trade secrets and similar intellectual property as instrumental to our success, and we rely on trademark and copyright law, trade secret protection and confidentiality and/or license agreements with our employees, customers, strategic partners and others to protect our proprietary rights. We have registered our trademarks and service marks in the United States and internationally, and have applied for the registration of certain of our other trademarks and service marks. Effective trademark, service mark, copyright and trade secret protection may not be available in every country in which our products and services are available online. We are not aware of any material infringements of our trademarks and proprietary rights. However, our proprietary rights may not be adequate or third parties may infringe or misappropriate our copyrights, trademarks and similar proprietary rights. If we are unable to protect our intellectual property, our business may be adversely affected. WE MAY INADVERTENTLY INFRINGE UPON OTHER'S INTELLECTUAL PROPERTY RIGHTS EXPOSING US TO LITIGATION THAT COULD ADVERSELY AFFECT OUR BUSINESS. We believe that our success to date and our future success will depend in part upon our ability to provide information about the consumer technology products that we sell. We may face potential liability for copyright, trademark or patent infringement, defamation or other claims based on the nature and content of materials that we publish or distribute. Defending such claims, or liability arising out of such claims, could have a material adverse effect on our business. Moreover, because of the interconnectivity currently provided on our Web site, we could be exposed to liability with respect to content that we do not control. The insurance we carry may not be sufficient to offset the risks arising from these types of liabilities, and any liability in excess of such coverage could have a material adverse effect on our business. LICENSEES OF OUR INTELLECTUAL PROPERTY MAY TAKE ACTIONS OR FAIL TO TAKE ACTIONS THAT COULD DIMINISH THE VALUE OF OUR INTELLECTUAL PROPERTY RIGHTS OR REPUTATION. We have licensed in the past, and expect to license in the future, certain proprietary rights, such as trademarks or copyrighted material, to third parties. While we attempt to ensure that the quality of our brand is maintained by such licensees, it is possible that such licensees will not take or will omit to take actions that might materially adversely affect the value of our proprietary rights or reputation, which could have a material adverse effect on our business. RISKS RELATING TO THE ONLINE COMMERCE INDUSTRY WE DEPEND ON THE CONTINUED GROWTH OF ONLINE COMMERCE FOR OUR OWN GROWTH AND SUCCESS. Substantially all of our business is generated from our Web site. Therefore, our future revenues and any future profits depend on the willingness of consumers to accept the Internet as an effective medium of commerce. We are especially dependent upon the long-term acceptance of online commerce. Rapid growth in the use of and interest in online services is a recent phenomenon, and we can not assure you a sufficiently broad base of consumers will adopt and continue to use the Internet and other online services as a medium of commerce. We rely on consumers who have historically used traditional means of commerce to purchase merchandise. For us to be successful, these consumers must accept and utilize novel ways of conducting business and obtaining information. 9 EFFORTS TO REGULATE OR ELIMINATE THE USE OF MECHANISMS WHICH AUTOMATICALLY COLLECT INFORMATION ON USERS OF OUR WEB SITE MAY INTERFERE WITH OUR ABILITY TO TARGET OUR MARKETING EFFORTS AND TAILOR OUR WEB SITE OFFERINGS TO THE TASTES OF OUR USERS. Web sites typically place a tracking program on a user's hard drive. These programs automatically collect data on anyone visiting a Web site. Web site operators use these mechanisms for a variety of purposes, including the collection of data derived from users' Internet activity. Most currently available Web browsers allow users to elect to remove these mechanisms at any time or to prevent this information from being stored on their hard drive. In addition, some commentators, privacy advocates and governmental bodies have suggested limiting or eliminating the use of these tracking mechanisms. Any reduction or limitation in the use of this software could limit the effectiveness of our sales and marketing efforts. WE COULD FACE ADDITIONAL BURDENS ASSOCIATED WITH GOVERNMENT REGULATION OF AND LEGAL UNCERTAINTIES SURROUNDING THE INTERNET. Any new law or regulation pertaining to the Internet, or the application or interpretation of existing laws, could increase our cost of doing business or otherwise have a material and adverse effect on our business, results of operations and financial condition. Laws and regulations directly applicable to Internet communications, commerce and advertising are becoming more prevalent. The law governing the Internet, however, remains largely unsettled, even in areas where there has been some legislative action. It may take years to determine whether and how existing laws governing intellectual property, copyright, privacy, obscenity, libel and taxation apply to the Internet. In addition, the growth and development of online commerce may prompt calls for more stringent consumer protection laws, both in the United States and abroad. IF CONSUMERS DO NOT PURCHASE GOODS ONLINE DUE TO CONCERNS ABOUT ONLINE SECURITY RISKS, INCLUDING CREDIT CARD FRAUD, OUR REVENUES WILL BE ADVERSELY AFFECTED. The need to securely transmit confidential information (such as credit card and other personal information) over the Internet has been a significant barrier to online commerce and communications over the Web. Any well-publicized compromise of security could deter more people from using the Web or from using it to conduct transactions that involve transmitting confidential information, such as purchases of goods or services. Furthermore, decreased traffic and online sales as a result of general security concerns could cause consumers to reduce their amount of online spending. To the extent that our activities or the activities of third-party contractors involve the storage and transmission of information, such as credit card numbers, security breaches could disrupt our business, damage our reputation and expose us to a risk of loss or litigation and possible liability. We could be liable for claims based on unauthorized purchases with credit card information, impersonation or other similar fraud claims. Claims could also be based on other misuses of personal information, such as for unauthorized marketing purposes. To date, our losses due to credit card fraud have not been material. However, we can not assure you that we will not suffer significant losses as a result of fraudulent use of credit card information in the future, which could have a material adverse effect on our business. We may need to spend a great deal of money and use other resources to protect against the threat of security breaches or to alleviate problems caused by security breaches. WE ARE VULNERABLE TO NEW TAX OBLIGATIONS THAT COULD BE IMPOSED ON ONLINE COMMERCE TRANSACTIONS. We do not currently collect sales or other similar taxes in respect of shipments of goods into states other than Connecticut and Ohio. The United States Congress has passed legislation limiting for three years the ability of the states to impose taxes on Internet-based transactions. Failure to renew this legislation could result in the imposition by various states of taxes on online commerce. Nevertheless, various states or foreign countries may seek to impose sales tax obligations on us and other online commerce companies. A number of proposals have been made at the state and local levels that would impose additional taxes on the sale of goods and services through the Internet. These proposals, if adopted, could substantially impair the growth of online commerce and cause purchasing through our Web site to be less attractive to customers as compared to traditional retail purchasing. A successful assertion by one or more states or any foreign country that we should have collected or be collecting sales or other taxes on the sale of merchandise could have a material adverse effect on our revenues and results of operations. 10 RISKS RELATING TO THIS OFFERING WE HAVE VARIOUS MECHANISMS IN PLACE TO DISCOURAGE A TAKEOVER OF THE COMPANY THAT MAY ALSO BE ADVERSE TO SHAREHOLDERS. Our certificate of incorporation authorizes our Board of Directors to issue, without stockholder approval, 10,000,000 shares of preferred stock with voting, conversion and other rights and preferences that could adversely affect the voting power or other rights of the holders of common stock. The issuance of Preferred Stock or of rights to purchase preferred stock could be used to discourage an unsolicited acquisition proposal. In addition, the possible issuance of preferred stock could discourage a proxy contest, make more difficult the acquisition of a substantial block of our common stock or limit the price that investors might be willing to pay in the future for shares of common stock. Our certificate of incorporation also provides that: o the affirmative vote of the holders of at least 70% of the voting power of all of the then outstanding shares of our capital stock, voting together as a single class, shall be required for the stockholders to adopt, amend or repeal any provision of our bylaws; o stockholders may not take any action by written consent without a meeting; o the board of directors will be classified into three classes with staggered terms of three years each; and o members of the board of directors may be removed only for cause and after reasonable notice and an opportunity to be heard before the body proposing to remove such director. These provisions of the certificate of incorporation could have the effect of delaying, deterring or preventing a change in control of our company. Delaware law also contains provisions that may have the effect of delaying, deterring or preventing a non-negotiated merger or other business combination involving us. These provisions are intended to encourage any person interested in acquiring us to negotiate with and obtain the approval of our board of directors in connection with the transaction. Certain of these provisions may, however, discourage a future acquisition of Outpost.com that is not approved by the board of directors in which stockholders might receive an attractive value for their shares or that a substantial number or even a majority of our stockholders might believe to be in their best interest. As a result, stockholders who desire to participate in such a transaction may not have the opportunity to do so. WE EXPECT THE MARKET PRICE OF OUR COMMON STOCK TO BE VOLATILE AND THE MARKET PRICE COULD FALL BELOW THE PRICE YOU PAID FOR YOUR SHARES. AS A RESULT, YOU MAY LOSE ALL OR PART OF YOUR INVESTMENT. The trading price of our common stock has been highly volatile and subject to wide fluctuations in response to many factors, many of which are beyond our control, such as: o actual or anticipated variations in quarterly operating results; o announcements of technological innovations; o new sales formats or new products or services by us or our competitors; o changes in financial estimates and forecasts by securities analysts; o conditions or trends in the Internet and online commerce industries; o changes in the market valuations of other Internet online service or retail companies; o announcements that we will make significant acquisitions; o strategic partnerships; o joint ventures or capital commitments; o additions or departures of key personnel; and o sales of common stock. In addition, the stock market in general, and the Nasdaq National Market and the market for Internet-related and technology companies in particular, has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of such companies. The trading prices of many technology companies' stocks have been at or near historical highs and reflect price to earnings ratios substantially above historical levels. We cannot assure you that these trading prices, patterns and price earnings ratios will be sustained. These broad market and industry factors may materially and adversely affect the market price of our common stock, regardless of our operating performance. In the past, following periods of volatility in the market price of a company's securities, securities class-action litigation has often been instituted against the company. Such litigation, if instituted, could result in substantial costs and a diversion of management's attention and resources, which would have a material adverse effect on our business, prospects, financial condition and results of operations. 11 WE DO NOT INTEND TO PAY DIVIDENDS IN THE FORESEEABLE FUTURE. We have not paid cash dividends on our common stock to date and we do not anticipate paying cash dividends on the common stock in the foreseeable future. 12 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This prospectus and the documents incorporated by reference contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and within the meaning of Section 21E of the Securities Exchange Act of 1934. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements include, but are not limited to, statements regarding: o the structural benefits of electronic commerce; o the expected benefits of our systems in development that will customize our shopping experience; o our intention to pursue more branding and advertising campaigns; o our diversification into additional areas of Internet commerce; o our expectation that we will continue to incur substantial operating losses for the foreseeable future; o our expectation that we will experience significant fluctuations in future operating results and that our financial results will fluctuate seasonally; and o our expectation that our capital and operating expenditures will increase over the next several years. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of such terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks outlined under "Risk Factors" that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Before deciding to purchase our common stock you should carefully consider the risks described in the "Risk Factors" section in addition to the other information set forth in this prospectus and the documents incorporated by reference herein. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of such statements. We are under no duty to update any of the forward-looking statements after the date of this prospectus to conform such statement to actual results. 13 SELLING STOCKHOLDERS The common stock was originally issued by us and sold by C.E. Unterberg, Towbin, as the initial purchaser, in a transaction exempt from the registration requirements of the Securities Act to persons reasonably believed by the initial purchaser to be qualified institutional buyers or other institutional accredited investors. Selling stockholders, including their transferees, pledgees or donees or their successors, may from time to time offer and sell any or all of the common stock. The selling stockholders have represented to us that they purchased the common stock for their own account for investment only and not with a view toward selling or distributing the shares, except through sales registered under the Securities Act or exemptions. We agreed with the selling stockholders to file this registration statement to register the resale of the common stock. We agreed to prepare and file all necessary amendments and supplements to the registration statement to keep it effective until March 10, 2002. The following table shows information, as of May 1, 2000, with respect to the selling stockholders and the principal amounts of our common stock they beneficially own and the number of shares that may be offered under this prospectus. The information is based on information provided by or on behalf of the selling stockholders. The selling stockholders may offer all, some or none of the common stock. Thus, we cannot estimate the amount of the common stock that will be held by the selling stockholders upon termination of any sales. None of the selling stockholders has had any material relationship with us or our affiliates within the past three years, except that C.E. Unterberg, Towbin acted as the initial purchaser of the common stock. SHARES OWNED AFTER SHARES OWNED PRIOR TO MAXIMUM NUMBER OF COMPLETION OF THE OFFERING SHARES OFFERED OFFERING (2) ----------------------- ----------------- ---------------------- NAME OF SELLING STOCKHOLDER NUMBER PERCENT (1) NUMBER PERCENT (1) --------------------------- ------ ----------- ------ ----------- Ardent Research Partners, Ltd. 65,000 * 65,000 0 - Ardent Research Partners, L.P. 60,000 * 60,000 0 - Elliot Broidy, IRA 100,000 * 100,000 0 - Camelot Capital, LP 318,500 1.1% 318,500 0 - Camelot Offshore Fund Ltd. 167,300 * 167,300 0 - Camelot Capital II, LP 14,200 * 14,200 0 - Hathaway Partners Investment L.P. 150,000 * 60,000 90,000 * Duck Partners 125,000 * 125,000 0 - Kensington Partners L.P. 155,000 * 155,000 0 - Kensington Partners II L.P. 9,000 * 9,000 0 - Bald Eagle Fund, Ltd. 36,000 * 36,000 0 - Essex Performance Fund, LP 100,000 * 100,000 0 - PAW Partners LP 280,000 1.0% 280,000 0 - PAW Partners Offshore Fund Ltd. 280,000 1.0% 280,000 0 - FNY Securities Associates L.P. 70,000 * 70,000 0 - Alfred University 14,100 * 12,000 2,100 * Core Technology Fund 47,100 * 36,700 10,400 * Walt Disney Company Retirement Plan 114,900 * 88,100 26,800 * 14 SHARES OWNED AFTER SHARES OWNED PRIOR TO MAXIMUM NUMBER OF COMPLETION OF THE OFFERING SHARES OFFERED OFFERING (2) ----------------------- ----------------- ---------------------- NAME OF SELLING STOCKHOLDER NUMBER PERCENT (1) NUMBER PERCENT (1) --------------------------- ------ ----------- ------ ----------- Executive Technology LP 19,200 * 15,500 3,700 * Foundation Partners Fund GP 9,500 * 7,300 2,200 * Matrix Technology Group NV 10,700 * 8,300 2,400 * Rochester Institute of Technology 45,200 * 35,500 9,700 * Sci-Tech Investment Partners L.P. 35,300 * 27,300 8,000 * SG Partners LP 74,800 * 59,700 15,100 * Tampsco II Partnership 4,100 * 3,200 900 * Yale University 90,000 * 76,000 14,000 * Yale University Retirement Plan for Staff Employees 15,000 * 11,600 3,400 * Special Situations Private Equity Fund, L.P. 190,597 * 190,597 0 - Special Situations Fund III, L.P. 190,597 * 190,597 0 - Special Situations Cayman Fund, L.P. 63,532 * 63,532 0 - Straus Partners, LP 105,000 * 105,000 0 - Straus-Spelman Partners, LP 15,000 * 15,000 0 - Straus-GEPT 30,000 * 30,000 0 - Trellus Offshore Fund Limited 25,000 * 25,000 0 - Trellus Partners, LP 100,000 * 100,000 0 - Maple Row Partners, LP 250,000 * 250,000 0 - Maple Row Partners (Bermuda) 131,200 * 131,200 0 - Catalyst Partners 300,000 1.1% 300,000 0 - Edmund H. Shea, Jr. 250,000 * 250,000 0 - Valor Fund Ltd. 100,000 * 100,000 0 - Russell Saracheck 35,000 * 35,000 0 - Wellport Corp. NV 15,000 * 15,000 0 - Morton Collins 50,000 * 50,000 0 - C.E. Unterberg, Towbin Capital Partners 450,000 1.6% 250,000 200,000 * UT Technology Partners, LDC 157,000 * 100,000 57,000 * UT Capital Partners International, LDC 38,000 * 25,000 13,000 * Thomas I. Unterberg 85,000 * 50,000 35,000 * Elli Unterberg Celli 25,000 * 25,000 0 - Emily Unterberg Satloff 25,000 * 25,000 0 - Andrew Arno & Janis Koopersmith Arno 55,000 * 50,000 5,000 * JT WROS 15 SHARES OWNED AFTER SHARES OWNED PRIOR TO MAXIMUM NUMBER OF COMPLETION OF THE OFFERING SHARES OFFERED OFFERING (2) ----------------------- ----------------- ---------------------- NAME OF SELLING STOCKHOLDER NUMBER PERCENT (1) NUMBER PERCENT (1) --------------------------- ------ ----------- ------ ----------- Daniel Ries 2,500 * 2,500 0 - Daniel Ries Escrow Account 10,000 * 10,000 0 - Adam S. Frankfort-IRA 1,875 * 1,875 0 - Andrew M. Blum 500 * 500 0 - O. Lee Tawes 25,000 * 25,000 0 - Estelle Konvisor 10,000 * 10,000 0 - C.E. Unterberg, Towbin 401K Profit Sharing Plan DTD 10/26/90 FBO Robert M. Matluck; R. Matluck & T. Unterberg, TTEES 10,000 * 10,000 0 - Jeffrey Moskowitz 10,000 * 10,000 0 - A. Robert Towbin 35,899 * 35,899 0 - - ---------- * Less than one percent. (1) Percentage of ownership prior to the offering is based on 28,474,710 shares of common stock outstanding on May 1, 2000. (2) Number of shares and percentage after completion of the offering assumes that all of the shares held by the selling stockholders and being offered under this prospectus are sold, that the shares are sold to unaffiliated third parties and that the selling stockholders acquire no additional shares of common stock before completion of this offering. 16 PLAN OF DISTRIBUTION We are registering the shares of common stock on behalf of the selling stockholders. The shares of common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market prices, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected at various times in one or more of the following transactions, or in other kinds of transactions: o transactions on the Nasdaq National Market or on any national securities exchange or U.S. inter-dealer system of a registered national securities association on which our common stock may be listed or quoted at the time of sale; o in the over-the-counter market; o in private transactions and transactions otherwise than on these exchanges or systems or in the over-the-counter market; o in connection with short sales of the shares; o by pledge to secure debt and other obligations; o through the writing of options, whether the options are listed on an options exchange or otherwise; o in connection with the writing of non-traded and exchange-traded call options, in hedge transactions and in settlement of other transactions in standardized or over-the-counter options; or o through a combination of any of the above transactions. The selling stockholders and their successors, including their transferees, pledgees or donees or their successors, may sell the common stock directly to purchasers or through underwriters, broker-dealers or agents, who may receive compensation in the form of discounts, concessions or commissions from the selling stockholders or the purchasers. These discounts, concessions or commissions as to any particular underwriter, broker-dealer or agent may be in excess of those customary in the types of transactions involved. In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule 144 or Regulation S of the Securities Act may be sold under Rule 144 or Regulation S rather than pursuant to this prospectus. We entered into a registration rights agreement for the benefit of the selling stockholders to register our common stock under applicable federal and state securities laws. The registration rights agreement provides for cross-indemnification of the selling stockholders and us and our respective directors, officers and controlling persons against specific liabilities in connection with the offer and sale of the common stock, including liabilities under the Securities Act. We will pay substantially all of the expenses incurred by the selling stockholders incident to the offering and sale of the common stock. 17 LEGAL MATTERS The validity of the shares of common stock offered in this prospectus will be passed upon for Cyberian Outpost, Inc. by Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. of Boston, Massachusetts. Certain attorneys at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. beneficially own an aggregate of 8,500 shares of our common stock. EXPERTS The financial statements of Cyberian Outpost, Inc. as of February 29, 2000 and February 28, 1999, and for each of the years in the three-year period ended February 29, 2000 have been incorporated by reference in this registration statement in reliance on the report of KPMG LLP, independent certified public accountants, incorporated by reference in this registration statement, and upon the authority of said firm as experts in accounting and auditing. 18 WHERE YOU CAN FIND MORE INFORMATION We file annual, quarterly and special reports, proxy statements and other information with the SEC. You may inspect and copy such material at the public reference facilities maintained by the SEC at Room 1024, 450 Fifth Street, N.W., Washington, D.C. 20549, as well as at the SEC's regional offices at 500 West Madison Street, Suite 1400, Chicago, Illinois 60661 and 7 World Trade Center, Suite 1300, New York, New York 10048. You may also obtain copies of such material from the SEC at prescribed rates by wiring to the Public Reference Section of the SEC, 450 Fifth Street, N.W., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference rooms. Our filings are also available to the public from the SEC's web site at www.sec.gov. Our common stock is quoted on the Nasdaq National Market. You may inspect reports and other information concerning us at the offices of the National Association of Securities Dealers, Inc., 1735 K Street, N.W., Washington, D.C. 20006. This prospectus is only part of a Registration Statement on Form S-3 that we have filed with the SEC under the Securities Act and therefore omits certain information contained in the Registration Statement. We have also filed exhibits and schedules with the Registration Statement that are excluded from this prospectus, and you should refer to the applicable exhibit or schedule for a complete description of any statement referring to any contract or other document. You may inspect a copy of the Registration Statement, including the exhibits and schedules, without charge at the public reference room, or obtain a copy from the SEC upon payment of the fee prescribed by the SEC. You may also view the Registration Statement, including the exhibits and schedules, on the SEC's web site at www.sec.gov. INCORPORATION OF DOCUMENTS BY REFERENCE The SEC permits us to "incorporate by reference" the information that we file with it, which means that we can disclose important information to you by referring you to those documents. The information incorporated by reference is considered to be part of this prospectus, and information that we file with the SEC after the date of this prospectus will automatically update and supersede this information. We incorporate by reference the documents listed below and any future filings made with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934: 1. Definitive Proxy Statement, filed on June 28, 1999; 2. Current Report on Form 8-K for the March 7, 2000 event, filed on March 8, 2000; 3. Annual Report on Form 10-K for the year ended February 29, 2000, filed on May 18, 2000; and 4. The description of the common stock contained in our Registration Statement on Form S-1 filed with the SEC on June 2, 1998, including any amendments or reports filed for the purpose of updating such description. You may request a copy of these documents, which will be provided to you at no cost by contacting is in writing at: Investor Relations Cyberian Outpost, Inc. 23 North Main Street, P.O. Box 636 Kent, Connecticut 06757 or by contacting us via email at investors@outpost.com. or by telephone at (860) 927-2050. 19 CYBERIAN OUTPOST, INC.