changes in profit margins; the customer concentration of our business; the unknown effects of
possible system failures and rapid changes in technology; trends in government regulation both
foreign and domestic; foreign currency risks and other risks of operating in foreign countries;
potential litigation involving our e-commerce intellectual property rights; our dependency on key
personnel; our ability to raise additional capital or obtain additional financing; our relationship
with and our guarantees of the working capital indebtedness of our subsidiary, Supplies
Distributors; and our ability or the ability of our subsidiaries to borrow under current financing
arrangements and maintain compliance with debt covenants; whether outstanding warrants issued in a
prior private placement will be exercised in the future ; and with respect to the proposed merger,
the inability of eCOST.com and PFSweb to reach agreement on definitive terms for, and substantially
close, the transaction, and the ability of the companies to successfully integrate their business
to achieve the anticipated benefits of the transaction. A description of these factors, as well as
other factors, which could affect the Company’s business, is set forth in the Company’s Form 10-K
for the year ended December 31, 2004.
In addition, some forward-looking statements are based upon assumptions as to future events
that may not prove to be accurate. Therefore, actual outcomes and results may differ materially
from what is expected or forecasted in such forward-looking statements. We undertake no obligation
to update publicly any forward-looking statement for any reason, even if new information becomes
available or other events occur in the future. There may be additional risks that we do not
currently view as material or that are not presently known.
(Tables Follow)