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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Daisytek International Corporation and PFSweb, Inc.:
We have audited the accompanying combined balance sheets of PFSweb
(representing the business operations of certain subsidiaries of Daisytek
International Corporation -- see Note 1) as of March 31, 1999 and 1998, and the
related combined statements of operations, shareholder's equity and cash flows
for each of the three years in the period ended March 31, 1999. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of PFSweb as of March 31, 1999
and 1998, and the results of its operations and its cash flows for each of the
three years in the period ended March 31, 1999, in conformity with generally
accepted accounting principles.
ARTHUR ANDERSEN LLP
Dallas, Texas,
September 22, 1999 (except with respect to the
matters discussed in Note 10, as to which the
date is October 29, 1999)
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