PFSweb Launches New eCommerce Outsourcing Solution, Redefining End-to-End eCommerce

PFSweb Launches New eCommerce Outsourcing Solution, Redefining End-to-End eCommercePLANO, Texas, Feb 11, 2008 (BUSINESS WIRE) --

PFSweb, Inc. (Nasdaq: PFSW), a leading business process outsourcing firm specializing in multi-channel commerce and high-touch customer experience delivery, today announced the launch of its next-generation solution for end-to-end eCommerce. As part of this solution, PFSweb has integrated its world-class services for contact center management, warehousing, logistics and fulfillment with Demandware eCommerce, a leading on-demand eCommerce platform, to provide a single, flexible best-of-breed solution spanning the eCommerce storefront, delivery of goods and ongoing customer care. This new offering redefines end-to-end eCommerce by enabling retailers and branded consumer goods manufacturers with the ability to employ a total outsourcing solution customized to their particular eCommerce strategy, without the loss of site or brand control associated with earlier end-to-end outsourcing solutions.

"Both PFSweb and Demandware are recognized as best-in-class for their capabilities, serving some of the world's most recognizable market leading brands," said Mike Willoughby, President PFSweb Services Division. "Today we brought our collective capabilities together in order to deliver a single, unified solution that is purposely architected to deliver precisely what the marketplace is asking for: one source for maximum performance, complete control, and on-demand flexibility and scalability across the online channel."

"PFSweb sets itself apart by having more flexible components, increased control over merchandising and marketing functions, and the ability to move areas in house if need be," said Robert Garf, Vice President and General Manager of Retail Strategies in the February 2008 AMR Article, "PFSweb + Demandware."

Roots.com to Leverage PFSweb's End-to-End Solution

As part of this launch, PFSweb is pleased to announce that Roots.com, an Internet Retailer Top 500 site, will migrate to this new end-to-end solution. A valued PFSweb client since 1999, Roots has become an integral, strategic part of the PFSweb story. Roots.com has become a rich, brand centric consumer experience that is an excellent representation of the Roots store experience and lifestyle that ships to Roots customers world-wide. PFSweb has proven to be an incredibly scalable and stable partner, allowing Roots to fully capitalize on extreme peaks in business, including several Olympic games.

"I'm excited to have the opportunity to move Roots.com to the Demandware platform to allow us to continue to innovate and enhance our online property. By joining the forces of two companies who lead in their respective fields we feel that we're positioning ourselves to be able to capitalize on the opportunity to grow Roots.com to its fullest potential," said James Connell, Director of E-Commerce, Digital Marketing & New Media for Roots.

Best-of-Breed Solution Redefines End-to-End eCommerce Outsourcing

In contrast to older outsourcing solutions, which locked customers onto proprietary limited-functionality technology platforms, PFSweb's solution is architected from best-in-class business processes and technology solutions that deliver ultimate flexibility and portability in an outsourced solution. As a result, clients can deploy an optimum solution for their specific business requirements, retain control over any selected business processes and even migrate the solution in-house over time if desired.

Available immediately, PFSweb's solution includes:

-- eCommerce Technology: industry-leading merchandising capabilities, ongoing innovation of new functionality, full control over eCommerce merchandising and consumer site experience, and elimination of dependence on an outsourcer for proper site merchandising

-- Interactive Marketing Services and Demand Generation: established portfolio of proven eMarketing agencies, professionals and technologies that can be integrated into a total solution to support user experience design, customer acquisition, analytics, customer retention and revenue generation objectives

-- Logistics and Fulfillment: state-of-the-art global infrastructure with an emphasis on client-specific solutions including brand-centric fulfillment and optimized accuracy

-- Contact Center and Customer Care: high-touch service, deep product expertise and personalized care across global markets

-- Payment Processing and Financial Services: complete suite of eCommerce financial services including authorization and settlement of a wide variety of electronic payments, traditional house credit accounts with credit limit management and collections support and comprehensive fraud management capabilities.

"Time after time, customers are asking for a new end-to-end ecommerce solution, one that provides them with the freedom and flexibility to control their brands and customer site experiences, while enjoying the benefits of end-to-end process outsourcing," said Stephan Schambach, Chairman and Founder, Demandware. "With PFSweb, the market now has a best-in-class solution -- full control over the ecommerce storefront, with the backing of a leading end-to-end provider."

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.

About Demandware

Demandware drives the success of high-growth brands with its breakthrough On-Demand eCommmerce Platform that empowers merchandising and marketing talent with total control over the shopping experience and continuous competitive differentiation. Leading brands such as Bare Escentuals, Playmobil, Playboy, Sally Beauty and Timberland leverage Demandware's best-in-class eCommerce functionality and automatic upgrades to help achieve higher conversion rates, increase average order size, and improve customer retention. Demandware is the only on-demand eCommerce solution that enables the rapid rollout of new sites, provides ubiquitous access to business and technical users and is backed by a patented grid computing architecture that delivers capacity as needed for performance and reliability that exceeds industry standards. For more information about Demandware, visit www.demandware.com, call 888-553-9216 or info@demandware.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 Investors: KCSA Worldwide Todd Fromer / Garth Russell 212-896-1215 / 212-896-1250 tfromer@kcsa.com / grussell@kcsa.com

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