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

million shares. But if you’re going to do a reverse split, it’s more important to get it above the penny stock category than it is how many shares you have outstanding, okay?

So could you elaborate a little bit on what kind of safeguards you’re going to put in to defend yourself here against the bear rates that are going to come in here? I’d be very surprised if they didn’t. And the same institutions that you had chatted with, that they had expressed that fact that they couldn’t do anything under the present circumstances, have they, now under this circumstance, indicated that they’re going to be buyers of the stock here? So I’m more concerned about the safeguards here and how you came to 4.7 and not realized that it’s still left at technically in penny stock territory, Mark.

<A — Mark Layton>: Okay. I think I got the pieces of your question in here. I guess the first question on safeguard is we’ve got to continue doing what we’re doing, which is delivering financial performance.

<Q — John Fitzgerald>: Mark, you’ve done well on that but it hasn’t helped you till now. You’ve done very well on that. You’ve shown progress — I don’t mean to interrupt you. But the progress has been there and the share price decline continues, okay? What we’re worried about now is you’ve diluted this thing and put it squarely in the bull’s eye category of the shorts, whether your advisors might want to believe that or not, okay? But I’ve been doing this 40 years and I can tell you, that is the history of splits that do something like this, okay?

And that is extremely disconcerting to see you do that off such a very solid good quarter. It basically says to shareholders that we can’t get this stock above $1 off this kind of quarter. It makes no sense. And the guys that are telling you they might have an interest if you do a reverse split, I got to question their sincerity, okay? So now we’re exposed again here a little bit up at the $4 level on a 10 million share outstanding on the float side of it. Very disconcerting. Is there any — this is a done deal? Do we assume correctly that you’re going to do the 1-for-4.7?

<A — Mark Layton>: Yes. It’s a done deal. We had an approval for a maximum of 1-to-6 so we couldn’t make it a $10 stock regardless of where we were at.

<Q — John Fitzgerald>: No but you could have made it over five. That’s...

<A — Mark Layton>: John, let me finish, okay? There’s other callers waiting here.

<Q — John Fitzgerald>: No. I know that but I’ve been with you for three-and-a-half years on this and shareholders have been very patient and loyal here, Mark. And to see this occur at this stage is very disconcerting to them, I’ve got to tell you. Go ahead. I’ll let you finish now. Go ahead and tell me the rest what you’re going to do.

<A — Mark Layton>: Okay. So as I mentioned in my prepared comments, the competitive situation for us, particularly with the general public, who don’t understand the mechanics of share prices and splits and the fact that many of them paint us into a category of a company with financial difficulties because of the de-listing notice. Having that hang over there has created an atmosphere for us that makes the competitive environment more difficult. That was the number one factor for us in terms of the decision process that we went through in evaluating the pros and cons of the deal.

<Q — John Fitzgerald>: In spite of your balance sheet and everything?

<A — Mark Layton>: We’ve delivered the financial performance the last year now.

<Q — John Fitzgerald>: Correct.

<A — Mark Layton>: And the market hasn’t responded.