PFSweb, Inc. Company▲			PFSW Ticker▲			Q1 2008 Earnings Call Event Type▲			May 13, 2008 Date▲

This latter reduction was due to a temporary cash flow benefit from the modified contract structure with our large client previously discussed. This allowed us to maintain a relatively consistent level of cash in the business while reducing our debt. We do not expect for the same level of cash benefit applicable to this relationship to continue as we look ahead to future quarters.

As far as other working capital components, our accounts receivable DSO performance, inventory turnover and accounts payable days to pay remain healthy throughout our businesses.

Now I’d like to turn the call back over to Mark for some closing comments. Mark?

Mark C. Layton, Chairman, Senior Partner — Chief Executive Officer

Okay. Thanks, Tom. As an update, I’m extremely satisfied, happy as I know Tom and Mike are with our results for the March quarter. And in particular the improvement in our bottom line performance.

Our results for the quarter reflect continued execution in our Service Fee Business to develop and implement best-in-class solutions and a solid base to expand upon the eCOST.com business.

In the face of a difficult retail environment in ‘08, 2008, we believe our performance will be driven by existing strong client and customer base as well as new clients that we have signed and fully implemented over the last 12 months.

Moving forward, as we look out to the rest of 2008, we’re proud today to say that we are maintaining the consolidated guidance that we stated last quarter. For 2008, we’re currently targeting consolidated revenue, excluding pass-through revenue, to be in the range of $445 million to $475 million.

As Tom stated earlier, we believe that adjusted EBITDA is a key measure to gauge the profitability of our business, so we provide guidance on an adjusted EBITDA basis.

For 2008, we are targeting consolidated adjusted EBITDA in the range of $10 to $12 million. This adjusted EBITDA guidance reflects the impact of the restructuring of one client contract that Tom has discussed. We expect this restructuring will result in lower Service Fee revenue under the contract and reduce capital asset charges on related equipment.

We estimate non-GAAP net income for 2008 to be approximately 1 to $3 million. Achieving these targets will depend upon, among other things, achieving and maintaining the significant improvement in operations that we’ve been able to show at eCOST.com and also continued strong performance from our Service Fee and Supplies Distributors Business segments on a year-on-year basis.

Okay. Before I complete the prepared remarks, let me just take a moment to discuss the current market valuation and our announcement today on the reverse stock split that we plan to move forward with.

As I’ve stated on the last couple of conference calls, we remain quite disappointed with the current valuation of our stock, particularly in light of our improved financial performance over the past 12 months.

Our primary focus over the past year has been on improving the financial fundamentals of each of our business segments, and it was our belief that the price of our shares would simply take care of themselves as our performance improved.