•		Total reported revenue was $85.6 million compared to $109.9 million for the third quarter of 2008;
	•		Adjusted EBITDA (as defined) was $1.2 million versus $2.5 million for the third quarter of 2008;
	•		Net loss was $846,000, or $0.09 per basic and diluted share, compared to net income of $43,000, or $0.00 per basic and diluted share, for the third quarter of 2008;
	•		Non-GAAP net loss (as defined) was $723,000, or $0.07 per basic and diluted share, compared to non-GAAP net income of $354,000, or $0.04 per basic and diluted share, for the third quarter of 2008; and
	•		Total cash, cash equivalents and restricted cash equaled $17.8 million as of September 30, 2009 compared to $18.1 million as of December 31, 2008.

Summary of consolidated results for the nine months ended September 30, 2009:

	•		Total reported revenue was $256.9 million, compared to $339.1 million for the nine months ended September 30, 2008;
	•		Adjusted EBITDA (as defined) was $3.1 million versus $7.7 million for the nine months ended September 30, 2008;
	•		Net loss was $3.6 million, or $0.36 per basic and diluted share, compared to net income of $0.5 million, or $0.05 per basic and diluted share, for the nine month period ended September 30, 2008;
	•		Non-GAAP net loss (as defined) was $3.2 million, or $0.33 per basic and diluted share, compared to non-GAAP net income of $1.6 million, or $0.16 per basic and diluted share, for the nine months ended September 30, 2008;

Summary of results by business:

Service Fee Business:

For the third quarter of 2009, Service Fee revenue was $13.1 million, compared with $22.9 million for the same period in 2008. This decline was primarily due to the non-renewal of a U.S. Government agency client relationship and lower activity among existing clients as a result of the economy, partially offset by increased service fees generated from new service contract relationships. The Service Fee business reported Adjusted EBITDA of $(0.8) million for the third quarter of 2009, compared to Adjusted EBITDA of $1.5 million for the same period last year.

For the nine months ended September 30, 2009, Service Fee revenue was $42.6 million, compared with $65.0 million for the same period in 2008. This decline was primarily due to the non-renewal of a U.S. Government agency client relationship and lower activity among existing clients as a result of the economy, partially offset by increased service fees generated from new service contract relationships. The Service Fee business reported Adjusted EBITDA of $(0.5) million for the nine months ended September 30, 2009, compared to $4.2 million for the same period last year.

Mike Willoughby, President of PFSweb’s Services division, commented, “After experiencing a set back with the non-renewal of a U.S. Government agency client, which officially ended in the second quarter of 2009, we have been focused on winning new service fee agreements and implementing a number of disciplined cost reduction initiatives. The Service Fee revenue and operating results for the September 2009 quarter reflect an improvement compared to the June 2009 quarter. We are excited about several additional new Service Fee client programs being rolled out in the fourth quarter of