PFSweb Broadens Entente Suite with Supply Chain Management Tool

PLANO, Texas--Jan. 7, 2003--PFSweb, Inc. (Nasdaq:PFSW), a leading provider of business process outsourcing solutions, announced today its selection of V-Order Management -- Vcommerce`s distributed order management solution -- to enhance PFSweb`s current Entente Suite(SM) offering of supply chain operations and management solutions.

"Historically, our clients` limited visibility into their supply chains has not enabled them to proactively detect unexpected performance exceptions from their suppliers or customers," said Mark Layton, Senior Partner and Chief Executive Officer, PFSweb. "We determined that by expanding our technology reach upstream and downstream in the chain on behalf of our clients, we would fill gaps in their visibility and provide a great value-add to our clients. However, in the process of adding supply chain event management functionality, we did not want to turn our system architecture upside down or replace existing systems of record in order to deliver the added value.

"We needed a solution that would quickly give PFSweb and its clients proven performance management capability without displacing existing technology. This was a critical requirement for us. We considered several vendors, but Vcommerce of Scottsdale, Ariz., provided us with a team with whom we wanted to work and a solution that could meet both our system and functional needs," Latyon added.

The PFSweb Entente Suite of collaboration tools will be enhanced by incorporating Vcommerce`s V-Order Management, a Web-based solution that enables trading partner connectivity, extended supply chain visibility, trading partner collaboration, business process management, exception management and resolution and performance measurement. The solution also aggregates transaction data from internal and external sources and provides event-driven, closed-loop communications that extend order management outside the four walls. The result is a cost-effective supply chain execution application that leverages existing technology and complements existing systems of records.

Entente is a powerful technology platform, a dynamic consortium of software and services that both heightens and simplifies the ability of PFSweb clients to complete real-time inventory, order management and payment transactions; to offer extensive shopping security, perform catalog merchandising, access shipping and receiving confirmations, and to have superior visibility into the PFSweb system for real-time customer order information to do business analysis.

The new PFSweb solution monitors the process and progress of inbound and outbound orders, inventory, shipments and supplier performance throughout the supply chain; provides exception-based alerts, and enables timely resolution. This powerful combination of event management, performance measurement and supply chain visibility now gives PFSweb`s Fortune 1000 and Global 2000 clients in North America and Europe the tools they need to proactively manage their extended supply chains and to reduce operational costs.

"PFSweb launched a comprehensive buying cycle to license the optimal solution for their needs and the needs of their customers," said Mark Jensen, Chief Executive Officer of Vcommerce. "Vcommerce was selected for three key reasons:

"First, Vcommerce solutions work in concert with existing systems of record so implementations are far less disruptive and time-intensive for both PFSweb and its customers. Second, Vcommerce`s migration-friendly delivery model of MSP-to-ASP-to-ISV reduces time-to-market and mitigates risk by permitting the end user to phase in the solution to fit its technology resources and requirements," Jensen noted. "Third, Vcommerce`s supply chain execution domain expertise was evident in the scope of relevant functionality `out of the box`."

PFSweb provides a comprehensive suite of solutions, including order management, e-marketplace logistics, managed hosting, Web creative development and enabled customer contact systems, and postponed manufacturing to such clients as Avaya Communications, Hewlett-Packard, IBM, Lancome, Mobility Electronics, NokiaUSA.com, Pharmacia&Upjohn;, RCA.com, The Smithsonian Institution, the U.S. Mint and Xerox.

About Vcommerce Corporation

Vcommerce gives customers command and control over their extended trading networks through a scalable technology platform and an extensive suite of supply chain execution software and services. The company`s solutions deliver extended supply chain visibility, performance monitoring and exception notification to improve order and inventory management, reduce operational costs, and optimize performance across the supply chain and outside the enterprise.

Customers across a variety of industries are successfully using Vcommerce solutions to effectively manage orders, improve customer satisfaction, reduce operational costs and enhance performance across the supply chain. The Company`s growing installed-base includes enterprises such as GE, Gateway, Sony, eBay, Borders and Walden Books. A privately held company, Vcommerce is headquartered in Scottsdale, AZ.

About PFSweb, Inc.

When the world`s brand names need proven, fast and secure business infrastructure and technology to enable traditional and e-commerce strategies, they choose PFSweb for comprehensive outsourcing solutions. The PFSweb team of experts designs diverse solutions for clients around a flexible core business infrastructure. PFSweb provides solutions that include: professional consulting services, order management, web-enabled customer contact centers, customer lifecycle management, kitting and assembly services, international distribution services, billing and collection services, and ERP information interfacing utilizing the Entente Suite(SM).

The matters discussed in this news release (except for historical information) and, in particular, information regarding future revenue, earnings and business plans and goals, consist of forward-looking information under the Private Securities Litigation Reform Act of 1995 and are subject to and involve risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, our ability to retain and expand relationships with existing clients and attract new clients; our reliance on the fees generated by the transaction volume or product sales of our clients; our reliance on our clients` projections or transaction volume or product sales; our client mix and the seasonality of their business; our ability to finalize pending contracts; the impact of strategic alliances and acquisitions; trends in the market for our services; trends in e-commerce; whether we can continue and manage growth; changes in the trend toward outsourcing; increased competition; our ability to generate more revenue and achieve sustainable profitability; effects of changes in profit margins; the customer concentration of our business; the unknown effects of possible system failures and rapid changes in technology; trends in government regulation both foreign and domestic; foreign currency risks and other risks of operating in foreign countries; potential litigation involving our e-commerce intellectual property rights; our dependency on key personnel; our ability to raise additional capital; our guarantees of the working capital indebtedness of our affiliate, Supplies Distributors; the continued listing of our common stock on the NASDAQ SmallCap Market; and our relationship with and separation from Daisytek, our former parent corporation. A description of these factors, as well as other factors, which could affect the Company`s business, is set forth in the Company`s Prospectus dated December 2, 1999 and Form 10-K for the nine-month transition period ended December 31, 2001.