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

<Q — Jon Hickman>: And so how come notebooks were so strong?

<A — Mark Layton>: It was just a mix issue in the quarter. We had some good deals on it that helped drive volume out there. And I think that one of the things that was down a little bit that we were doing was our LCD TV category was good but not as strong as it had been in the previous couple of quarters. And we make better margins than that product so I think that some of the acquisition of everybody upgrading to HD television has kind of begun to slow out there a little bit. So we’re shifting our focus now into some of these new categories that I described out there and portable GPS continues to be a very strong category for us as price points of those products come down as well. But just mix and I don’t see it as a mix item that should continue long term.

<Q — Jon Hickman>: Okay. Thank you.

Operator: Your next question — I apologize, it’s from George Walsh of Gilford Securities.

<Q — George Walsh>: Just a bit of an update on Demandware and the — how that relationship is developing in terms of real business and pipeline?

<A — Michael Willoughby>: Sure. I think we indicated in the prepared comments and maybe hinted at it in the release that we’re on track with that roll out. We’re very pleased with the results, especially the traction that we have in our pipeline. Even though it’s just been a relatively short period of time since we announced that relationship and really sort of formally took it to the marketplace, the response that we’ve gotten from research analysts and from prospects in our pipeline, from existing clients and probably most importantly, from new prospects that have come into the pipeline since we made that announcement has been overwhelmingly positive. So I think if you look at the value proposition that we were intending to generate from that relationship by having a best-of-breed technology partner that came to market with a model that really gives us a lot of scalability and leverage, that value proposition is being perceived and been responded to. And I expect that we’ll see the results of that as we’re able to announce wins over the next six months, but even more than that, I think we’ll see the fruit born from this relationship coming in into 2009 just because of the nature of the sales cycle. It is four to six months of sales cycle typically on a end-to-end deal. So good results I think coming from the relationship in ‘08, even better as we look to the future, but very positive.

<Q — George Walsh>: And are there joint development costs? I mean are you guys developing product together or is it really kind of customer-by-customer?

<A — Michael Willoughby>: Well there is an integration that we’re leveraging. Part of which is already been done as part of the relationship we had with them before we made the announcement, but we obviously have to create an integration between us that’s leveragable with multiple clients. So the intention is to do a lot of the work once and then repeat many times by leveraging that core work over and over again. So there’s some investment that we’re making in rolling this out which we had planned and we’re very much on budget with that planned capital expenditure. And then there will somewhere in the neighborhood of maybe 20% with each new client that we’re doing because of custom requirements or unique requirements each client has, but it’s very leveragable once you have the first client up and running. And you might remember the first client, the first official end-to-end client that we’re doing with Demandware is our existing Roots relationship, which we’ve had for almost I guess six or seven years now. And that’s going well at this point and then there’s several in the pipeline to follow as well.

<Q — George Walsh>: Okay and how did the marketing efforts develop? Is that something where they go out and bring it to you or you bring it to them? Or is there a joint effort where you both go calling on a new customer or try to develop one?