12/21/06

LEGO Brand Retail Chooses PFSweb to Support Integrated Multi-Channel Direct to Consumer Initiative in North America

Kurt Peters , Executive Editor

PLANO, Texas, Dec 20, 2006 -- PFSweb, Inc. (NASDAQ: PFSW), a global provider of web commerce and business process outsourcing solutions, announced that it has signed a five-year agreement with LEGO Brand Retail, Inc., the direct to consumer sales division of the LEGO Group, one of the world`s largest toy manufacturers and the global leader in construction toys, to support order fulfillment of its online store, www.shop.lego.com, and its Shop at Home catalog in North America. Terms of the agreement were not disclosed.

PFSweb will leverage its advanced material handling systems and web commerce order management applications to provide a complete web commerce fulfillment solution for LEGO Brand Retail through tight integration of its technology platform with the LEGO web commerce application using the PFSweb Entente Integration Suite in order to fulfill LEGO(R) orders reaching online and catalog customers throughout the United States and Canada.

"We needed a proven, specialized business partner with the capability to deliver world-class services based on industry best practices and standards, specifically aimed at improving the quality, productivity and reliability of the inventory management and distribution of LEGO products," said Matt Harker, vice president operations, LEGO Brand Retail. "Critical to the selection process was finding a partner who offered value-added strategic thought leadership and a technology platform that would enhance our total channel performance through advanced warehouse management systems, and PFSweb rose to the top."

Known as "the brand behind the brand," PFSweb provides technology, customer care and supply chain solutions that are custom tailored to unique client requirements. PFSweb currently fulfills more than $2 billion on an annualized basis in merchandise and transactions from world-class distribution centers in; Southaven, Miss.; Memphis, Tenn.; Grapevine, Texas; Toronto, Canada; and Liege, Belgium.

"We are pleased to announce this contract for PFSweb," said Mark C. Layton, Chairman and CEO of PFSweb. "LEGO is a world-renowned brand that aligns well with our client portfolio and industry experience. We are honored to have the opportunity to support the LEGO brand and look forward to helping increase its flexibility and capacity, enabling them to address the dynamic needs of their growing business. We expect to complete our implementation during the next several months and anticipate being fully operational by April 2007."

"We are excited to add LEGO Brand Retail as a client. As we approach 2007, our pipeline remains robust and we are targeting to strengthen our presence in the online retail space," adds Michael Willoughby, President of PFSweb`s services division.

This agreement was included in the $12M (annual) of previously announced "new service fee contract relationships for 2006" recap that PFSweb, Inc. discussed in its 3rd quarter conference call.

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 e-commerce services. The company serves a multitude of industries and company types, including such clients as CHiA`SSO, FLAVIA(R) Beverage Systems, Hewlett-Packard, International Business Machines, Raytheon Aircraft Company, Rene Furterer USA, Roots Canada Ltd., The Smithsonian Institution 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 refurbished brand-name technology and consumer electronics for consumers and small to medium size business buyers. The eCOST.com brand markets more than 100,000 different products from leading manufacturers such as Apple, Canon, Citizen, Denon, Hewlett-Packard, Nikon, Onkyo, Seiko, Sony, and Toshiba 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, 2005 and Form 10-Q for the quarter ended September 30, 2006 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.

About LEGO Group
The LEGO Group is a privately held, family-owned company, based in Billund, Denmark. It was founded in 1932 and today the group is one of the world`s leading manufacturers of play materials for children, employing approximately 4,500 people globally. The LEGO Group is committed to the development of children`s creative and imaginative abilities. LEGO products can be purchased in more than 130 countries.

LEGO Brand Retail is the LEGO Group`s direct-to-consumer sales division; comprised of the world`s largest LEGO Shop, found online at www.shop.lego.com, and the LEGO Shop at Home catalog, in addition to 21 LEGO stores across the country.

LEGO and the LEGO logo are trademarks of The LEGO Group. (C)2006 The LEGO Group.

CONTACT:
PFSweb Inc.
Laura Osborne
972-881-2900
losborne@pfsweb.com

Topics:

Childhood, Embedded systems, Lego timeline, Lego train, Recreation

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