PFSweb Signs Extension with Two Large Service Fee Clients
PFSweb, Inc. (Nasdaq: PFSW), a global provider of end-to-end web commerce solutions for leading online retailers and manufacturers, today announced that it has signed extensions with two large brand name Service Fee clients. The estimated aggregate value of both deals is estimated to be worth approximately $18 million in service fees, based on current client projections, over the terms of the agreements. It is currently expected that both renewal agreements will utilize existing infrastructure and will not require additional capital investments.
First, PFSweb signed a three-year renewal of an existing contract with a Fortune 500 consumer products client. Under the terms of the extension, PFSweb will continue to provide inventory management, fulfillment, reverse logistics and transportation management from its distribution facility in Southaven, Mississippi.
Second, PFSweb signed a one-year extension of an existing contract with a large media client. Under the terms of the extension, PFSweb will provide inventory management, fulfillment and reverse logistics from its Southaven facility and call center support from its Plano, Texas headquarters.
Mike Willoughby, President of PFSweb's Services Division, stated, "The extension of these agreements validates our capabilities and Service Fee model. We are proud of our ability to establish long-term relationships with all of our clients, as it is a testament to our ability to implement proven solutions and help support the growth of Fortune 1,000 brands."
Known as "the brand behind the brand," PFSweb provides end-to-end web commerce solutions including professional services, technology, customer care and supply chain solutions that are custom tailored to unique client requirements. PFSweb fulfills more than $2.6 billion annually in merchandise and transactions from world-class distribution centers in Memphis, Tenn.; Southaven, Miss.; Grapevine, Texas; Toronto, Canada; and Liege, Belgium.
About PFSweb Inc.
PFSweb develops and deploys integrated business infrastructure solutions and fulfillment services for Fortune 1000, Global 2000 and brand name companies, including third party logistics, call center support and eCommerce services. The company serves a multitude of industries and company types, including such clients as LEGO, Riverbed, Fathead, CHiA'SSO, MARS Drinks North America (formerly FLAVIA® Beverage Systems), Hewlett-Packard, International Business Machines, Hawker Beechcraft Corp. (formerly Raytheon Aircraft Company), Rene Furterer USA, Roots Canada Ltd. and Xerox.
Through its wholly owned eCOST.com subsidiary, PFSweb also serves as a leading multi-category online discount retailer of high-quality new, "close-out" and manufacturer recertified brand-name technology and consumer electronics for consumers and small to medium size business buyers. The eCOST.com brand markets approximately 110,000 different products from leading manufacturers such as Sony, JVC, Canon, Hewlett-Packard, Denon, Onkyo, Garmin, Panasonic, Toshiba and Microsoft primarily over the Internet and through direct marketing.
To find out more about PFSweb, Inc. (NASDAQ: PFSW), visit the company's websites at http://www.pfsweb.com and http://www.ecost.com.
The matters discussed herein include forward-looking information under the Private Securities Litigation Reform Act of 1995, which is subject to and involves risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. PFSweb's Annual Report on Form 10-K for the year ended December 31, 2006 and Form 10-Q for the quarter ended September 30, 2007 identify certain factors that could cause actual results to differ materially from those projected in any forward looking statements made and investors are advised to review the Annual and Quarterly Reports and the Risk Factors described therein. These Risk Factors include the risk of contract terminations. PFSweb undertakes no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future. There may be additional risks that we do not currently view as material or that are not presently known.
SOURCE: PFSweb, Inc.
PFSweb, Inc. Laura Osborne, 972-881-2900 x3574 Corporate Communications Manager losborne@pfsweb.com or Investor Contact: KCSA Strategic Communications Todd Fromer / Garth Russell 212-896-1215 / 212-896-1250 tfromer@kcsa.com / grussell@kcsa.com