this doesnt mean that we wont do things outside those segments, but our marketing efforts are
going to be more targeted there with an eye towards improving our marketing effectiveness and
driving a larger proposal pipeline and more frequency in client wins for 2006.
We continue to maintain a new business pipeline that today includes outstanding proposals totaling
approximately $25 million in annual service fees on a scale thats probably in the middle of the
range that weve seen over the last couple of years in terms of proposal size (INAUDIBLE)
proposal pipeline size. Were happy to have started off 2006 on a better foot in the business area
with the addition of an agreement with an undisclosed Web-based customer to provide call center
services including e-mail and phone support. As is true with many of our customers, due to
contractual obligations and other considerations we are not at liberty to announce any further
information about this agreement. But I can tell you that the win is in line with our strategy to
better leveraging our expertise in the BPO area and in the Web commerce arena where we believe our
infrastructure and skill-set drive a really clear and strong return on investment message for our
customers.
The services model remains a critical element to our overall business strategy. As we evaluate our
business strategically, its our belief that the primary value elements lay in our world-class
operational, customer management, and Web technology infrastructure that we possess. We believe
these capabilities have scale capacity and can be leveraged in many different ways. While the
services business continues to provide us an outstanding market to deploy these capabilities with
attractive financial rewards, we did recognize during 2005 a strategic need to seek additional
deployment opportunities that can help us overcome the unpredictable peaks and value growth
trends, as Ive described, within our service business and for it to become a catalyst to unlocking
the true value we confidently believe lies in these world-class capabilities that weve developed.
So with this as a strategic backdrop we pursued and recently completed a merger transaction with
eCOST.com. Now, Ill move along now to give you a little bit of background on that and how were
doing on the integration efforts. As background, eCOST is a young, multi-category Web commerce
retailers of more than 100,000 high-quality new close-out, and refurbished products, primarily
brand-name technology and consumer electronics products. eCOST.com offers products for
approximately from approximately 1,500 manufacturers. And youll know all these names, but
Apple, Canon, HP, Nikon, Sony, Toshiba, and obviously many more. Its revenue is generated from a
strong Web presence at eCOST.com where sophisticated online and direct marketing capabilities
currently serve a total customer base of more than 1.3 million business and individual consumers.
Before I provide some specific updates on the integration activities, I feel it important to remind
everyone its only been eight weeks since the close of the merger. Eight weeks. The eCOST
integration project is a major turnaround event, and any results will not materialize overnight.
We have a dedicated and significant group of project management technology, operational and
financial professionals from PFSweb who are working feverishly both in Torrence (ph) and here in
Plano on this integration project. Along the way we continue to uncover numerous opportunities for
improvement across the spectrum of cCOSTs operation. There is much work to do in order to drive
the improvement in technology functionality, customer service, revenue
4