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

<A — Mark Layton>: They should be concurrent, yes, because we’re acquiring the products right away. So what we pay today to acquire a customer that buys a product today, so you should see margin mix. But again, understand this is a — we’re greenfielding the category in here and it’s still small today. So if we can get 3 to $5 million worth of incremental sales in this category during 2008 at 20 plus point margins, it’ll have a nice impact for us in terms of our overall financial plans.

<Q — George Walsh>: Okay. Also, the other initiative in the proxy was the change of auditors. If you could just, one, I’m presuming the vote went through for that, and just how that will proceed, and two, the reasons for that.

<A — Mark Layton>: It’s relatively simple. It’s a price issue more than anything else. We had a required partner roll happening because of time requirements on our lead partner in the deal, which just simply opened up the process in terms of evaluating people in that because the team was going to change anyways because of the required rules. So we opened it up and talked to three firms, KPMG also re-bid on the deal as well, and price became a factor in the proposal process. So it was relatively simple. We were going to deal with the people change anyway so cost kind of became a factor in the decision process.

<Q — George Walsh>: Okay. All right. And, Mark, I just would like to add I am very pleased actually fundamentally with how you guys have done. This is what a turnaround takes. You make the kind of progress. You control your costs. Sometimes you’re faced with a difficult economy. But I do — see and I’m a bit concerned with the reverse split. I think it takes away a bit from the message. I understand on the fundamental side it’s starting to impact your business, so you do have to pay attention to that. But I would just add that the more you get your message out, it’s important. The other factor will be here now is I think the liquidity in the stock. You want to keep that as healthy as you can and that’s a very strong communication effort that will — you’ll have to follow through on, which you started last year in a more vigorous manner. But that will be very important to make sure the liquidity is still vital as you change the number of shares outstanding. So I just wanted to let you know. Thanks.

<A — Mark Layton>: Thank you.

Operator: [Operator Instructions] Next in queue is Alex Silverman from Special Situations.

<Q — Alex Silverman>: Hi, guys. How are you?

<A — Mark Layton>: Good, Alex.

<Q — Alex Silverman>: Good. I’d like to applaud you and your team for a phenomenal quarter and I guess we stand in the minority as your largest shareholder. We think the reverse split is the right idea with your pending de-listing. So I’d like to leave it at that.

<A — Mark Layton>: Thank you, Alex.

Operator: And you have a question from Jon Hickman of MDB Capital.

<Q — Jon Hickman>: Hi. Just a quick follow-up. On eCOST, are you seeing any new competition out there as far as the technology side goes? Or is it pretty status quo?

<A — Mark Layton>: I’ve not seen anybody new specifically in the last year. I would say that’s relatively stable at this point. It’s a tough category to get into. It’s very, very price competitive and if you’re going to spend the money to climb into this business, unless you had a history in the products it’d be a real difficult category to get into. It’s very competitive and not a lot of margin potential.