Liquidity Services Inc. Ranked for Second Consecutive Year on Forbes List of America’s 200 Best Small Companies

Ranked by Forbes Magazine, Liquidity Services Inc. (LSI), is one of America’s 200 Best Small Companies for the second consecutive year. As the leading online marketplace for surplus goods, LSI ranks #88 on this year’s list as a result of its strong performance over the past twelve month and five year periods. LSI’s growth stems from the increased value it delivers clients and buying customers through its transparent and innovative online marketplaces and integrated services. LSI has helped leading retailers, manufacturers and government agencies achieve higher financial returns, improved cycle times and superior oversight in the sale of large volumes of surplus assets. This year, LSI is also uniquely featured as one of eight companies on this year’s list still led by founding members.

"We are honored to again be recognized by Forbes Magazine for the outstanding growth our team has achieved while serving a roster of prestigious Fortune 500 clients and over 2,400 government agencies,” said Bill Angrick, Chairman and CEO of LSI. "Our relentless focus on improving the breadth and quality of service we provide our clients and buyers has positioned us well for long term profitable growth and continued market leadership. In our fiscal year 2009, we have enhanced our business by investing in our infrastructure and marketplace innovation, driving operational efficiencies and enhancing the quality of our new business pipeline as commercial and government clients seek more value in the reverse supply chain during these difficult economic times. In addition, we have expanded the size of our buyer base to nearly 1.2 million professional and end-user buyers resulting in the most liquid and competitive marketplace for surplus assets in the industry.”

Total sales, or Gross Merchandise Volume (GMV) across LSI’s marketplaces, including www.liquidation.com, www.govliquidation.com, www.govdeals.com and www.liquibiz.com, have grown 304% over the past five fiscal years from $89 million in 2004 to $360 million in 2008. During the 12 months ended June 30, 2009, LSI recorded GMV of $363.5 million, or approximately 14% growth versus the prior year period. In addition, LSI has achieved 27 consecutive quarters of profitability, has zero debt and over $61 million in cash as of June 30, 2009.

Forbes annual list of America's 200 Best Small Companies features outfits that have annual revenue between $5 million and $750 million, have been publicly traded for at least a year and have a stock price no lower than $5. Rankings are based on earnings growth, sales growth and return on equity in the past 12 months and over five years. Researchers also compared the stock performance of each company with that of its peers. Shares of last year's list members outpaced the Russell 2000 small-cap index by 10 percentage points.

About Liquidity Services, Inc. (LQDT)

Liquidity Services, Inc. (NASDAQ:LQDT) and its subsidiaries enable corporations and government agencies to market and sell surplus assets quickly and conveniently using online auction marketplaces and value-added services. The company is based in Washington, D.C. and has approximately 700 employees. Additional information can be found at: www.liquidityservicesinc.com.