Liquidity Services, Inc. Acquires National Electronics Service Association (NESA)

  Liquidity Services, Inc. Acquires National Electronics Service Association
  (NESA)

 Acquisition enhances reverse logistics services in U.S. and Canada for large
                  retailers, manufacturers and telecom firms

Business Wire

WASHINGTON -- November 01, 2012

Liquidity Services, Inc. (NASDAQ: LQDT), today announced it has acquired
National Electronics Service Association (NESA) in an all-cash transaction. A
Canadian provider of returns management, refurbishment and reverse logistics
services for high-value consumer products, NESA provides expertise and focused
services to Fortune 1000 companies in the management of Consumer Electronics,
Telecommunications and Information Technology products.

The acquisition of NESA enhances Liquidity Services’ ability to deliver large
retailers and OEMs across Canada and the U.S. a full-service, reverse
logistics solution for consumer electronics and technology products, including
returns management, repair services and multi-channel inventory disposition.

Headquartered in Toronto, Ontario, NESA establishes Liquidity Services’ first
client service and distribution center in Canada and enables the company to
cross-sell services with existing and prospective clients in both the U.S. and
Canada. NESA’s current service offering is supported by NESALive, a cloud
based application that supports returns management, repair and refurbishment
services in hundreds of product categories, including satellite TV boxes,
laptops, game consoles, tablets, and e-books.

"With the proliferation of technology causing complexity and shorter life
cycles across thousands of products, our comprehensive reverse logistics
solution, encompassing returns management, refurbishment and multi-channel
disposition and re-sale services, enables us to reduce costs and increase
recovery value for retailers and OEMs,” said Bill Angrick, Chairman and CEO of
Liquidity Services. “We are delighted to add NESA’s experienced team and
capabilities to our business and look forward to providing NESA’s client base
the opportunity to utilize our existing multi-channel asset recovery services
for surplus and refurbished consumer electronics and technology products. The
Liquidity Services’ solution leverages over 2.2 million global buyers as well
as our experience completing the sale of over $3.0 billion in Gross
Merchandise Volume.”

"We are excited to join Liquidity Services and combine our respective services
to create a comprehensive reverse logistics solution for electronic and
technology products,” said Dominic Renda, President and Founder of NESA.
“Liquidity Services brings us a leading market position, expertise and
resources to help NESA reach the next level, representing an even brighter
future for our growth, innovation and value for our clients and employees.”

Liquidity Services expects the deal to add approximately US$20 to US$25
million of annual Revenue and, excluding one-time deal expenses, to be $0.02
to $0.03 cents accretive to its fiscal year 2013 earnings results.

Terms of the deal include an upfront payment of approximately CA$18 million in
cash plus additional cash payments based on NESA’s future revenues and
earnings before interest, taxes, depreciation and amortization (EBITDA)
performance 24 to 36 months after closing.

About Liquidity Services, Inc.

Liquidity Services, Inc. (NASDAQ: LQDT) provides leading corporations, public
sector agencies and buying customers the world's most transparent, innovative
and effective online marketplaces and integrated services for surplus assets.
On behalf of its clients, Liquidity Services has completed the sale of over
$3.0 billion of surplus, returned and end-of-life assets, in over 500 product
categories, including consumer goods, capital assets and industrial equipment.
The company is based in Washington, D.C. and has nearly 1,200 employees.
Additional information can be found at: http://www.liquidityservicesinc.com.

About National Electronics Service Association

NESA’s mission is to provide repair and warranty services for electronic
products, as well as refurbishment and re-manufacturing for a full range of
consumer and business electronic products. Founded in 1986 in Toronto, NESA
provides comprehensive reverse and forward logistics solutions, procurement,
repair, refurbishment and remanufacturing services to leading electronics
manufacturers, distributors and service providers in Canada through a
distributed national service network. Located in Toronto, Ontario, NESA and
its team of nearly 130 employees are proud of their 26-year history of service
excellence serving corporate and consumer clients across Canada. Additional
information can be found at: www.nesacanada.com.

Forward-Looking Statements

This document contains forward-looking statements made pursuant to the Private
Securities Litigation Reform Act of 1995, including, without limitation,
statements regarding the potential benefits, impact on fiscal 2013 operating
results. The outcome of the events described in these forward-looking
statements is subject to known and unknown risks, uncertainties and other
factors that may cause our actual results to differ materially from any future
results expressed or implied by these forward-looking statements. You can
identify forward-looking statements by terminology such as "expects," or the
negative of these terms or other comparable terminology. We cannot guarantee
future results, levels of activity, performance or achievements. There are a
number of risks and uncertainties that could cause our actual results to
differ materially from the forward-looking statements contained in this
document. Important factors that could cause our actual results to differ
materially from those expressed as forward-looking statements are set forth in
the Company's Annual Report on Form 10-K for the fiscal year ended September
30, 2011, including, but not limited to, those set forth in Part I, Item IA
(Risk Factors). There may be other factors of which we are currently unaware
that may cause our actual results to differ materially from the
forward-looking statements. All forward-looking statements apply only as of
the date of this document and are expressly qualified in their entirety by the
cautionary statements included in this document. Except as may be required by
law, we undertake no obligation to publicly update or revise any
forward-looking statement occurring after the date of this document.

Contact:

Liquidity Services, Inc.
Julie Davis, 202-558-6234
julie.davis@liquidityservicesinc.com
 
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