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

Also our program for Urban Brands Marianne and Ashley Stewart will be officially kicking off this month. Through our partnership with these two brands we will provide high touch customer care and order fulfillment solutions with a focus on extending a growing brick and mortar presence to reach online shoppers. As part of the agreement we’ll provide custom tailored fashion and apparel customer care services for these two brands from our contact center in Plano, Texas.

Since our last call we announced a new agreement with a national retailer of consumer specialty products. With this globally recognized brand new retailer we’ll provide an order management, product fulfillment, distribution and customer care solution to support the client’s direct-to-consumer initiative. We’ll be supporting this client at one of our Southaven, Mississippi campuses and with our customer contact center in Plano. The implementation for this custom warehouse and fulfillment solution is currently scheduled for completion during the first quarter of 2009.

Since we announced our end-to-end eCommerce solution with Demandware in February, 2008, and as Mark indicated earlier, we’ve received a very positive response from the industry and from existing clients and from potential new clients as well. This new offering supports retailers and branded consumer goods manufacturers with a total outsourcing solution that’s customized to their particular eCommerce. And we do this without losing the sight or brand control that’s been associated with earlier proprietary end-to-end outsourcing solutions. We believe this new offering makes a significant difference in our ability to compete for and win new clients and we’ve already started to experience in a short period of time since our announcement this significant difference and this improvement in our pipeline.

In addition to the positive buzz that’s created by our end-to-end offering, we continue to benefit from very positive working relationships with the other major eCommerce technology providers, such as IBM WebSphere, ATG, MarketLive and Fry. We share existing client relationships with each of these software providers and because of our existing world-class integrations with each technology platform and also as a result of our excellent reputation as a direct-to-consumer service provider, we’re frequently invited to jointly propose on new business with these partners.

Many times by partnering with multiple partners with integrity and with transparency we find ourselves included on multiple proposals for a given opportunity. This significantly improves our odds for winning each deal and we believe our strategy allows us to partner with best-of-breed technology providers, which offers us a degree of flexibility and generates a competitive advantage that wouldn’t be possible with an offering that’s built around an in-house developed proprietary eCommerce package.

As discussed last quarter, our international business continues to prosper. For almost a decade our global solutions have met many international companies needs to reach customers in new countries via the Internet without losing control of their brands and minimizing the risk of entering new markets.

While we’ve served the international markets for many years with our global technology infrastructure and our mature international presence, we have recently experienced an accelerated interest from companies in North America and Europe that are seriously evaluating online initiatives in Europe. This is an exciting market in which we’ll continue to aggressively seek new business since we believe we have a very strong competitive advantage compared to any of our direct competitors, none of which in my opinion have a truly global service offering.

We’ve also not seen any direct impact from a potential softening US economy in our business pipeline where overall client service fees, which I believe is due to three primary factors, which strengthen our competitive position against the threat of economic uncertainty. First, we enjoy a very diverse portfolio of strong direct-to-consumer and business-to-business clients; second, we offer a comprehensive end-to-end eCommerce solution for companies looking to increase their investments in domestic online channels that still show signs of sustained growth; and three, we