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

It is now my pleasure to turn the call over to Mark Layton, Chairman and CEO of PFSweb. Mark, the floor is yours.

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

Thank you, Todd. Good afternoon, everyone. I’d like to welcome you to our 2008 first quarter financial conference call. As always with me here today are Tom Madden, our Chief Financial Officer and Mike Willoughby, President of our business services units. This afternoon we’ll give you an overview of our financial performance for the first quarter, some flavor on the events that are driving our momentum and then following our prepared remarks Tom, Mike and I will be available for questions.

As you can see from the results issued this afternoon we believe we’re off to a great start for 2008. For the March quarter we reported consolidated revenue growth of approximately 13.5% year-over-year and each of our reporting segments reported measurable growth individually.

We’re also pleased to report a consolidated adjusted EBITDA of $2.8 million and net income of $0.4 million for the quarter. This is the fourth quarter consecutive quarter of reporting a consolidated net profit for our business.

These strong results were driven by increased revenues and profit in our Service Fee Businesses through new client wins and expansion of existing client arrangements. Additionally we experienced strong top and bottom line improvements in our eCOST.com business year-over-year as well.

Allow me to briefly mention some key points about the overall health of our business, which Mike and Tom will discuss further in our prepared comments and illustrate that we believe we’re headed in the right direction to grow our operations profitably. First, eCOST.com increased its revenue in the first quarter by 29% year-over-year with gross margins at approximately 8%. Our focus for this business is to continue making strides towards increasing revenue, achieving cash flow breakeven by expanding into new product categories that offer higher gross margins.

Secondly, this quarter we experienced accelerated growth within our Services Businesses. PFSweb service fee revenue increase 23% over last year and its growth opportunities remain strong as our pipeline remains very solid at around $35 million of proposed business. In addition our end-to-end offering that Mike will explain further in his section of the call that we launched this past February alongside Demandware eCommerce is attracting outstanding market reaction.

Third, our improving overall financial results clearly show a business model with the opportunity to derive greater leverage and scale through our technology and operational infrastructure, while also maintaining a keen focus on quality and operational cost control. One metric that we believe properly communicates the growing scale of our business overall is a non-financial metric called merchandise sales. In the first quarter of 2008 we reported merchandise sales of $777 million. That’s a 20% increase compared to the $650 million for the first quarter of 2007. There’s a full definition of merchandise sales in our press release, but generally merchandise sales represents the total commerce of product that we move through our infrastructure, regardless as to whether we actually own the inventory or not. So we’re up about 20% year-on-year in that measurement as well.

So with this information as a broad backdrop on the great results for this quarter, I’d like now to turn the call over to Mike and let him give you some color on the Services Businesses. Mike?