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

§ QUESTION AND ANSWER SECTION

Operator: Yes, sir. [Operator Instructions] Your first question comes from Jon Hickman of MBD (sic) [MDB] Capital.

<A — Michael Willoughby>: Hello, Jon.

<Q — Jon Hickman>: Hi. Can you hear me?

<A — Thomas Madden>: Yes, we can.

<Q — Jon Hickman>: Okay. Can you explain — I mean, I appreciate the analysis of the — or the thought process behind the reverse split, but why the 4.7? Why that number?

<A — Thomas Madden>: We took a look at our share count outstanding and it’s about 46.5 million shares, and so conversion at 1-for-4.7 gives us about 10 million shares outstanding. In addition, when we took a look at the share price as it was trading last week, it was trading at about $0.85. You convert that into 4.7 amount and it gets you about $4 a share, which we felt was an appropriate price to utilize.

<Q — Jon Hickman>: Okay. So you’re not worried about illiquidity in the stock with only 10 million shares outstanding?

<A — Thomas Madden>: We’ve taken a look at it and we believe that if we can properly communicate the story, continue to drive the financial performance that we have and that we’ve got targeted, that we’ll be able to address that.

<Q — Jon Hickman>: Okay. And then could you just do me one more favor? Could you go through this one client that’s restructuring? I understand that because the assets are fully depreciated, you’re not going to be able to pass through those costs, so that’s not going to hit your revenue line. Is that the story?

<A — Thomas Madden>: Yes. There’s — the client arrangement that we talked about last conference call where the structure was being modified this year where because of some of the capital asset charges that we had previously in the business that were being amortized over the initial term of the contract, those are no longer repeating on a go-forward basis in conjunction with resigning the contract or renewing the contract this year.

<Q — Jon Hickman>: Okay, and then one last question and this might be for Mike. Can you kind of review that big-box retailer and exactly what you’re doing for them? I missed some of those comments I think.

<A — Michael Willoughby>: I can. So the services we’re providing for the big-box retailer had to do with supporting their online business in our call center. So we’re taking calls around ease of use and sort of transactional questions from the online store. Where is my order, what’s the order status, questions around orders having to do with the online store. And this is a business as we’ve indicated the past couple of quarters, that has grown pretty significantly. And we’re also pretty excited about the opportunities to expand that business as we continue to perform really well for this client and have the levels of customer satisfaction that we do with the client. So it’s a great opportunity for us and hopefully an expanding opportunity over the coming years.

<Q — Jon Hickman>: Any chance of us finding out who what big-box retailer is in the future?

<A — Michael Willoughby>: There’s always a chance. It’s one of those things with clients, particularly large ones. We have to work with them and their internal legal function and PR firms to