PLANO, Texas--Feb. 23, 2004--PFSweb, Inc. (Nasdaq:PFSW), a global provider of integrated business-process solutions announced today five new clients and three key client contract renewals. These contract renewals also included incremental services which are expected to result in overall business expansion. Neither PFSweb nor the clients disclosed the value of any of the individual contracts.
"I am extremely pleased with the recent results generated by our sales and marketing team, which has aggressively pursued some of these client opportunities and strategic partnerships for many months," said Mark Layton, senior partner and chief executive officer of PFSweb.
"We estimate that these new and expanded client relationships will produce more than $4 million of annual service fee revenues and approximately $20 million of annual product revenues, once fully implemented," Layton stated. "Some of these new and expanded contracts are now contributing to our operations, while the others are in the implementation and start-up process, which typically requires 90 to 180 days from the time of engagement."
Among the new clients are:
-- A major telecommunications firm. A full-line of services will
be rendered including e-commerce, order management, customer
service and fulfillment.
-- A new government client. Services include customer service and
support for an e-commerce initiative.
-- A high-tech manufacturer. Solution includes Vendor Managed
Inventory services.
-- A contemporary home furnishings and decor cataloger. The
full-service direct marketing solution will include customer
service as well as web commerce, fulfillment and reverse
logistics.
-- An on-line retailer of premium food products. PFSweb will
provide customer service and support.
Clients extending and expanding their contracts with PFSweb include:
-- IBM Printing Systems Company extended for two-years (through
March 2006) its contract services for North America (Mexico
excluded) and EMEA (Europe, Middle East and Africa). PFSweb`s
European subsidiary, PFSweb B.V., based in Liege, Belgium
handles the EMEA operations. In addition, an incremental
product category has been added.
-- Xerox and PFSweb are in the process of completing a three-year
extension (through December 2006) of the existing U.S.
contract for PFSweb support and services. The new agreement
includes additional multiyear options and expansion of
business.
-- An existing government contract has been extended for one year
with incremental service offerings.
"In addition to the new client activity announced today, PFSweb continues to generate solid new business lead opportunities and currently has approximately $30 million in its sales proposal pipeline," Layton added. "We also are pleased to announce that we have received non-binding acceptance of certain of these proposals, with both new and existing clients, which are now in the contracting stage."
"In addition to absorbing some of our excess capacity, this addition of new business further demonstrates our capabilities as a leader in the evolution of outsourcing, as well as our commitment to continued and steady growth of our client list and our revenues," Layton emphasized.
PFSWeb`s list of clients includes Adaptec, Avaya Communications, Dupont Fluoroproducts, Hewlett-Packard, IBM, Lancome, a cosmetics division of L`Oreal International; iGo/Mobility Electronics; NokiaUSA.com, Roots, Inc., Pfizer, Inc., Shell Energy Services Company, Smithsonian Institution and Xerox, among other undisclosed clients.
About PFSweb, Inc.
PFSweb provides comprehensive outsourcing solutions to provide proven, fast and secure business infrastructure to enable traditional and e-commerce strategies. The PFSweb team of experts designs diverse solutions for clients around a flexible core business infrastructure. PFSweb solutions include: professional consulting services, e-marketplace logistics, order management, Web-enabled customer contact centers, customer relationship management, international distribution and fulfillment services, reverse logistics, billing and collection services, kitting and assembly services and ERP information interfacing utilizing its Entente Suite(SM).
To find out more about PFSweb, Inc. (Nasdaq:PFSW), visit our website at www.pfsweb.com.
The matters discussed in this news release, particularly information regarding future revenue, earnings, business plans and goals, consist of forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to and involve risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. Such statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management`s assumptions and the Company`s future performance are both subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially. The Company undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking information contained herein is subject to the risk factors and uncertainties described in the Company`s filings with the Securities and Exchange Commission, which risk factors and uncertainties are incorporated by this reference as though fully set forth herein.
This release can be found at the company Web site -- www.pfsweb.com -- which is not a part of this release. PFSweb is a registered trademark. Entente Suite is a service mark of PFSweb. All rights reserved.
CONTACT: PFSweb Inc.
Laura Osborne, 972-881-2900 x3574
losborne@pfsweb.com
Michael Burns & Associates Inc.
Public Relations
Preston F. Kirk, APR, 830-693-4447
kirk@281.com
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