EX-99.1 4 d36760exv99w1.htm PRESS RELEASE exv99w1
 

EXHIBIT 99.1
(PFS WEB LOGO)
     
Contact:
    
Mark C. Layton
  Todd Fromer / Lewis Goldberg
Senior Partner and Chief Executive Officer
  Investor Relations / Media Relations
Or Thomas J. Madden
  KCSA Worldwide
Senior Partner and Chief Financial Officer
  (212) 896-1215 / (212) 896-1233
(972) 881-2900
  tfromer@kcsa.com / lgoldberg@kcsa.com
PFSweb Announces $5.0 Million Private Placement of Common Stock
PLANO, Texas, June 1, 2006 — PFSweb, Inc. (Nasdaq:PFSW), a global provider of business process outsourcing (BPO) solutions and web commerce retailer, today announced that it has sold to certain institutional investors 5,000,000 shares of common stock at $1.00 per share in a private placement, resulting in gross proceeds of $5.0 million.
“We believe this transaction will further strengthen PFSweb’s solid financial position as well as support our recent growth initiatives,” said Thomas J. Madden, Senior Partner and Chief Financial Officer. “We believe our strong management team and our world class service offerings clearly position us to capitalize on the opportunities ahead.”
The securities sold in this private placement have not been registered under the Securities Act of 1933 or any state securities laws and unless so registered may not be offered or sold except pursuant to an exemption from, or in a transaction applicable state securities laws. However, PFSweb has agreed to file a registration statement within 45 days for the resale of the shares of the common stock. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities.
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 Adaptec, CHiA’SSO, FLAVIA® Beverage Systems, Hewlett-Packard, International Business Machines, Nokia, Raytheon Aircraft Company, Rene Furterer USA, Roots Canada Ltd., Smithsonian Institute 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 merchandise for consumers and small 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.
For more information, please visit the company’s websites at http://www.pfsweb.com and http://www.ecost.com.

 

 

The matters discussed herein consist of forward-looking information under the Private Securities Litigation Reform Act of 1995 and 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 and Form 10-Q for the year ended December 31, 2005 and quarter ended March 31, 2006, respectively, 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 Report and Quarterly Report and the Risk Factors described therein. These factors include: our ability to retain and expand relationships with existing clients and attract and implement 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 dependence upon our agreements with IBM; our dependence upon our agreements with our major clients; our client mix, their business volumes 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 and supplier 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; our dependency on key personnel; the impact of new accounting standards and rules regarding revenue recognition, stock options and other matters; changes in accounting rules or the interpretations of those rules; our ability to raise additional capital or obtain additional financing; our ability and the ability of our subsidiaries to borrow under current financing arrangements and maintain compliance with debt covenants; relationship with and our guarantees of certain of the liabilities and indebtedness of our subsidiaries; whether outstanding warrants issued in a prior private placement will be exercised in the future; the transition costs resulting from our merger with eCOST; our ability to successfully integrate eCOST into our business to achieve the anticipated benefits of the merger: eCOST’s potential indemnification obligations to its former parent; eCOST’s ability to maintain existing and build new relationships with manufacturers and vendors and the success of its advertising and marketing efforts; and eCOST’s ability to increase its sales revenue and sales margin and improve operating efficiencies. 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.
# # #