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

We continue to monitor for new and more effective advertising and marketing methods. This is including putting a much greater emphasis on email and viral marketing activities, as I’ve already described, through the advertising of our limited time and limited quantity deals.

Now just a couple of minutes on some operating metrics for eCOST for the quarter ended March 31st, 2008. In that quarter eCOST had approximately — or at the end of the quarter had approximately 1.8 million total customers compared to 1.67 million total customers in the prior-year period. New customers for the first quarter of 2008 totaled 22,939 versus 27,735 a year ago.

For the three months ended March 31, 2008 eCOST reported a total of 61,000 orders shipped with an average order value of $450 compared to 66,000 orders shipped in Q1 of ‘07 when our average order value was $326. Inventory turns were approximately 15 times and accounts receivable days outstanding remained steady at approximately ten days.

Ad expenses for the first quarter were $190,000. That compared to $300,000 for the first quarter of ‘07. The estimated cost to acquire a new customer for the first quarter of ‘08 was $7.10, excluding our catalog costs, compared to $10.50 on the same basis for the first quarter of 2007. This is a great example of our focus on acquiring customers in a more cost effective manner.

Our estimated cost to acquire a new customer is calculated by taking total ad expenses during the period, dividing it by the total number of new customers during that same period and excluding catalog costs. We’re closely monitoring the macroeconomic issues that may affect consumer buying patterns. We read all the same reports you do. However, our first quarter results continued to show strong year-on-year growth in both our business-to-business and business-to-consumer segments.

April’s business-to-consumer year-on-year results were somewhat softer, however. We will continue to monitor revenue activity and will make appropriate adjustments in our advertising spend and other variable costs as the situation may warrant.

Now for some more details on the overall financial picture I’ll turn the phone over to Tom Madden. Tom?

Thomas J. Madden, Senior Partner — Chief Financial Officer and Chief Accounting Officer

Thank you, Mark. Let me first start by providing a brief overview of our consolidated operating results for the quarter ended March 31, 2008. Then I will provide some select operating highlights for certain business segments, as well as an overview of key balance sheet items.

As reported in our press release, our consolidated revenues for PFSweb for the quarter ended March 31, 2008 were $118.5 million, a 13.5% increase compared to $104.4 million for the first quarter of 2007.

Gross profit for the first quarter of 2008 was $13.3 million or 11.9% of net revenues, excluding pass-through revenues, as compared to $10 million or 10.2% of net revenues, excluding pass-through revenues again in the first quarter of 2007. The increase of consolidated gross profit is primarily attributable to improved performance in our Services Business.

As we have discussed previously, we utilize adjusted EBITDA as a key metric in evaluating our operational performance. In the first quarter of 2008 our consolidated adjusted EBITDA was $2.8 million versus $0.8 million in the prior-year period. For the first quarter net income was $0.4 million or $0.01 per basic and diluted share as compared to a net loss of $2.4 million or $0.05 per basic and diluted share for the same period last year.