PFSweb, Inc.			PFSW			Q4 2006 Earnings Call			Apr. 2, 2007
		Company 5			Ticker 5			Event Type 5			Date 5

QUESTION AND ANSWER SECTION

Operator: Certainly. [Operator Instructions] Our first question comes from Frank Hayden from Hayden Investments. Please go ahead.

<A>: Frank?

Operator: Mr. Hayden, your line is live. Please go ahead. Our next question comes from Greg Fortuna [ph] from Carmen Equities [ph]. Please go ahead.

<Q>: Hello, gentlemen.

<A>: Good afternoon.

<Q>: I am a new shareholder and from where I am sitting I just want to let you know maybe how it sounds. You have a great service fee business and that business is clearly significantly undervalued compared to your competitor’s as I am sure you are aware of that, and you have a business in eCOST that I mean just to name a few highlights you have added a credit card fraud. It sounds like it’s taking up a lot of your time. You are writing down goodwill. If you look through your release, everything says ex- eCOST this will be better, ex- eCOST this will be better, ex-eCOST it’ll be better.

You have already stated, Mark, that you are running below your revenue and margin guidelines. If you announce on this call that you were getting rid of eCOST, the stock would be up a dollar. I think that — I guess my question is and follow-up — is what will it take for you to realize that you are only doing a disservice to shareholders by keeping eCOST and not closing it down?

<A>: Okay. We have made a lot of information about the eCOST business. The challenges that we have in the services business has to do with the consistency of the revenue growth model due to the long lead times in that business. Shareholders were quite vocal about the fact that we needed strategically to find ways to smooth out the growth of that business. We’ve looked at our strengths in technology and in our infrastructure capability and the products segments, us selling products direct was a way for us to be able to address those concerns. We went through a very significant transition period with a business that was in trouble last year. Going forward, we think it will be able to be a business that will contribute significantly. So that’s the strategic plan that we’re on with the business and where we plan to go from there.

<Q>: Okay, but that being said, at this point, there’s probably not too many shareholders who would be unhappy. I mean, right now you’re around four times EBITDA, which is not even — most deals are getting done at double that rate in your space, in your service space. You are killing your business. This is costing money, every call you — I can’t imagine how much time you’re spending on this. I could hear it in all of your voices when you talk about your — the service business is very exciting, even more [audio gap]. When you talk about eCOST it sounds like you just can’t wait to get off the call. [indiscernible] to me, and you know this environment. Your stock is cheap and a lot of shares outstanding, it doesn’t take much for a few shareholders or one shareholder to get together and force a hand. So I still — you didn’t really answer my question. What is it going to take for you to get — close this up, write it off, try to sell it, get rid of it? At what point [indiscernible] make a decision?

<A>: Thank you. Next caller, please.

Operator: Our next question comes from George Walsh from Guilford Securities. Please go ahead.