Torrance, California – August 5, 2009 — PC Mall, Inc. (NASDAQ:MALL), a leading IT solutions provider, today reported financial results for the second quarter and six months ended June 30, 2009. Consolidated net sales for Q2 2009 were $261.4 million, a decrease of 21%, from $331.2 million in Q2 2008. Consolidated gross profit for Q2 2009 decreased 22% to $35.8 million from $46.2 million in Q2 2008. Consolidated gross profit margin was 13.7% for Q2 2009 compared to 14.0% for Q2 2008. Consolidated GAAP operating profit for Q2 2009 decreased 67% to $2.0 million compared to consolidated GAAP operating profit of $5.9 million for Q2 2008. GAAP consolidated net income for Q2 2009 was $0.8 million compared to $3.0 million for Q2 2008, a decrease of $2.2 million or 73%. Non-GAAP consolidated net income for Q2 2009 decreased $2.6 million, or 74%, to $0.9 million, compared to non-GAAP consolidated net income of $3.5 million for Q2 2008. GAAP diluted EPS for Q2 2009 was $0.06 compared to GAAP diluted EPS of $0.22 for Q2 2008. Non-GAAP diluted EPS for Q2 2009 was $0.07 compared to non-GAAP diluted EPS of $0.25 for Q2 2008.

In Q2 2009, non-GAAP financial information excludes the impact of a $0.1 million income tax adjustment related to a dividend from an international subsidiary, which affected diluted EPS by $0.01 in Q2 2009. In Q2 2008, non-GAAP financial information excludes the impact of a $0.8 million pre-tax ($0.5 million after-tax) lawsuit settlement charge, which affected diluted EPS by $0.03 in Q2 2008. Information about PC Mall’s use of non-GAAP financial information is provided under “Non-GAAP Measures” below.

Our effective tax rate for Q2 2009 increased to approximately 50% compared to 38% for Q2 2008, primarily due to the income tax adjustment made in Q2 2009 related to a dividend from an international subsidiary. As a result, our effective YTD Q2 2009 tax rate was approximately 45%. While many factors will cause our effective tax rate to vary from quarter to quarter, we anticipate that this adjustment will continue to impact our effective tax rate for the remainder of 2009 and is not anticipated to recur in the years thereafter.

Frank Khulusi, Chairman, President and CEO of PC Mall, Inc. said, “Though the economy remained challenged in the second quarter, and IT spending, while stabilizing, has not yet recovered, I am pleased with our results and our progress to better position ourselves for growth as the economy rebounds. We grew the top line sequentially and reduced our operating expenses while we continued to make strategic investments. As I have stated previously, we believe that a recession is not the time to shy away from making strategic investments that we believe are essential for the long-term success of PC Mall, and we expect to continue making these investments for the foreseeable future. As an example, we are preparing to open a new call center and sales facility in downtown Chicago that will serve as a new hub for our SMB business where we intend to add new account executives. We will also consolidate our local MME office into the new facility, and plan to locate resources in the facility dedicated to our new healthcare initiative, which will be a part of our Public Sector business. In addition, we have continued adding talented professionals to our sales, marketing, IT and finance teams. We also continue to selectively pursue acquisitions. We believe that the investments we are currently making, when accompanied with an economic rebound, will position us very well for 2010 and beyond.”

Q2 2009 net sales for our SMB segment were $85.3 million, a decrease of $44.7 million, or 34%, from $129.9 million in Q2 2008 primarily due to ongoing economic weakness and the resulting softness in IT spending by small and medium sized businesses in North America and an $8.9 million decrease in lower margin volume iPod sales to certain customers.

SMB gross profit decreased by $4.5 million, or 28%, to $11.6 million in Q2 2009 compared to $16.1 million in Q2 2008 resulting primarily from decreased SMB net sales discussed above and a competitive pricing environment. SMB gross profit margin increased by 120 basis points to 13.6% in Q2 2009 compared to 12.4% in Q2 2008 primarily due to an increase in vendor consideration as a percentage of net sales and a reduction in lower margin volume iPod sales to certain customers discussed above, partially offset by the competitive pricing environment discussed above.

SMB operating profit in Q2 2009 decreased by $1.8 million, or 24%, to $5.8 million compared to $7.6 million in Q2 2008. The decrease in SMB operating profit in Q2 2009 was primarily due to the decrease in SMB gross profit discussed above, partially offset by a $2.1 million decrease in SMB personnel costs and a reduction in bad debt expense.

Q2 2009 net sales for our MME segment were $92.4 million compared to $104.4 million in Q2 2008, a decrease of $12.0 million, or 12%. This decrease was primarily due to ongoing economic weakness and the resulting softness in IT spending by customers in the mid-market and enterprise sector in Q2 2009. Product revenues declined by 17% in Q2 2009 compared to Q2 2008 while service revenues increased by 9% in Q2 2009 compared to Q2 2008. Service revenues represented 25% of MME net sales in Q2 2009 compared to 20% of MME net sales in Q2 2008. Our MME service revenues include services performed under our Abreon brand, which is primarily focused on change management and eLearning consulting, which declined 14% in Q2 2009 compared to Q2 2008 due to a reduction in projects associated with larger ERP migrations, offset by an 18% increase in MME’s Sarcom branded professional and managed services.

MME gross profit decreased by $3.0 million, or 16%, to $15.8 million in Q2 2009 compared to $18.8 million in Q2 2008, and MME gross profit margin decreased by 90 basis points to 17.1% in Q2 2009 compared to 18.0% in Q2 2008. The decrease in MME gross profit was primarily due to the decreased MME net sales discussed above and a decrease in vendor consideration in Q2 2009. The decrease in MME gross profit margin was primarily due to a decrease in MME’s selling margin and a decrease in vendor consideration in Q2 2009 as a percentage of net sales.

MME operating profit in Q2 2009 decreased by $0.2 million, or 4%, to $4.6 million compared to $4.8 million in Q2 2008. The decrease was primarily due to the decrease in MME gross profit discussed above, partially offset by a $2.4 million decrease in MME personnel costs, which resulted primarily from centralization of resources of $1.2 million to our Corporate & Other segment, and reductions in variable compensation costs and other expenses.

Q2 2009 net sales for our Public Sector segment were $38.0 million compared to $37.3 million in Q2 2008, an increase of $0.7 million, or 2%. This increase was primarily due to an increase in sales in our state and local business reflecting our increased business development efforts in that market, partially offset by reduced sales in our federal government business primarily relating to a decline in demand under our GSA Electronic Distribution and Delivery (EDD) contract during Q2 2009.

Public Sector gross profit decreased by $0.1 million, or 3%, to $3.8 million in Q2 2009 compared to $3.9 million in Q2 2008. Public Sector gross profit margin decreased by 40 basis points to 10.0% in Q2 2009 compared to 10.4% in Q2 2008. The decrease in our Public Sector gross profit and gross profit margin was primarily due to a decrease in vendor consideration.

Public Sector segment operating profit in Q2 2009 remained flat at $0.8 million compared to Q2 2008.

Q2 2009 net sales for our Consumer segment were $45.8 million compared to $59.5 million in Q2 2008, a decrease of $13.7 million, or 23%. This decrease was primarily due to continued weakness in the economic environment and a decrease in average selling prices resulting from a decrease in sales of higher priced items in the notebook computer category.

Consumer gross profit decreased by $2.7 million, or 37%, to $4.6 million in Q2 2009 compared to $7.4 million in Q2 2008. Consumer gross profit margin decreased by 230 basis points to 10.1% in Q2 2009 compared to 12.4% in Q2 2008. The decrease in our Consumer gross profit was primarily due to the decreased Consumer net sales discussed above. The decrease in our Consumer gross profit margin was primarily due to a very competitive pricing environment and a decrease in vendor consideration. We expect that our Consumer gross profit margin will continue to be negatively impacted by competitive pricing pressure in the current environment.

Consumer operating profit in Q2 2009 decreased by $2.3 million, or 83%, to $0.5 million compared to $2.8 million in Q2 2008 primarily due to the decrease in Consumer gross profit discussed above, partially offset by reductions in Consumer credit card related charges, advertising expenditures and Consumer personnel costs.

Corporate and Other selling, general and administrative (“SG&A”) expenses includes corporate related expenses such as legal, accounting, information technology, product management and other administrative costs that are not otherwise included in our reportable operating segments. Q2 2009 Corporate and Other SG&A expenses decreased by $0.5 million, or 4%, to $9.7 million from $10.2 million in Q2 2008. The decrease from Q2 2008 was primarily the result of cost cutting initiatives at the corporate level and a $0.8 million lawsuit settlement charge in Q2 2008, partially offset by an increase of $1.2 million attributable to centralization of certain resources from our MME segment.

Accounts receivable at June 30, 2009 of $131.9 million decreased by $16.7 million from December 31, 2008 primarily due to lower open account sales during Q2 2009 compared to Q4 2008. Our inventory of $47.6 million at June 30, 2009 represents a decrease of $20.2 million from December 31, 2008 reflecting the sell-through of seasonal and strategic purchases made in late 2008. Outstanding borrowings under our line of credit decreased by $15.0 million to $14.0 million at June 30, 2009 compared to December 31, 2008. Operating cash flow generated during the first six months of 2009 was $19.5 million compared to a negative operating cash flow of $25.0 million in the first six months of 2008.

Selected information for our reportable operating segments is as follows (in thousands, except headcount data):

	Three Months Ended June 30, 2009								Three Months Ended June 30, 2008
		Net Sales		Gross Profit		Operating Profit (Loss)			Net Sales		Gross Profit		Operating Profit (Loss)
SMB	$	85,267	$	11,598	$	5,789		$	129,930	$	16,112	$	7,604
MME		92,410		15,771		4,650			104,433		18,814		4,830
Public Sector		37,958		3,796		782			37,305		3,897		769
Consumer		45,776		4,625		468			59,521		7,361		2,829
Corporate & Other		1		47		(9,732	)		(7)		35		(10,182)
Consolidated	$	261,412	$	35,837	$	1,957		$	331,182	$	46,219	$	5,850

We are presenting certain consolidated financial measures on a non-GAAP basis, which excludes the impact of an international tax adjustment in Q2 2009 and a charge related to a litigation settlement in Q2 2008. We believe that the exclusion of the international tax adjustment and the litigation settlement charge, which are non-recurring year over year, from our results allows a more meaningful comparison of our operating performance trends to both management and investors that is more indicative of our consolidated operating results across reporting periods. We believe that such international tax adjustment and litigation settlement charge are not part of our ordinary business. We indicate the use of these non-GAAP consolidated financial measures within the discussions of our consolidated operating results, including earnings per share. A reconciliation of the non-GAAP consolidated financial measures is included in a table below.

Management will hold a conference call, which will be webcast, on Wednesday, August 5, 2009 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss second quarter results. To listen to PC Mall management’s discussion of its second quarter results live, access www.pcmall.com/investor.

The archived webcast can be accessed at www.pcmall.com/investor under “Calendar of Events.” A replay of the conference call by phone will be available from 7:30 p.m. ET on August 5, 2009 until August 12, 2009 and can be accessed by calling: (888) 286-8010 and inputting pass code 25232080.

PC Mall, Inc., together with its wholly-owned subsidiaries, founded in 1987, is a value added direct marketer of technology products, services and solutions, to businesses, government and educational institutions and individual consumers. We offer our products, services and solutions through dedicated account executives, various direct marketing techniques, and three retail stores. We also utilize distinctive full-color catalogs under the PC Mall, MacMall, PC Mall Gov and SARCOM brands and our websites pcmall.com, macmall.com, pcmallgov.com, gmri.com, sarcom.com, abreon.com and onsale.com, and other promotional materials. Customer product orders are rapidly filled by our distribution center strategically located near FedEx's main hub or by our extensive network of distributors, which is one of the largest networks in the industry.

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements regarding our expectations, hopes or intentions regarding the future, including, but not limited to, expectations or statements relating to the impact of strategic investments and cost reductions, including without limitation statements regarding a new call center and sales facility in downtown Chicago and our new healthcare initiative, and our expectations regarding our effective tax rate in the future. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Factors that could cause our actual results to differ materially include without limitation the following: risks related to our management information systems, uncertainties

relating to the relationship between the number of our account executives and productivity; decreases in revenues related to decreased sales related to any of our segments, including but not limited to, potential decreases in sales resulting from the loss of customer or a further downturn in the economy or continued economic recession; increased competition, including, but not limited to, increased competition from direct sales by some of our largest vendors and increased pricing pressures which affect our pricing strategy in any given period; the effect of the our pricing strategy on our operating results; risks related to our ability to retain key personnel; risks and uncertainties relating to our ability to identify suitable acquisition targets, to complete acquisitions of identified targets (including the challenges and costs of closing the transaction), and our ability to integrate companies we may acquire and our ability to achieve synergies expected from such acquisitions (including our acquisition of SARCOM); the impact of acquisitions on relationships with key customers and vendors; potential decreases in sales related to changes in our vendors products; risks of decreased sales related to the potential lack of availability of government funding applicable to our public sector contracts; availability of key vendor incentives and other vendor assistance; the impact of seasonality on our sales; availability of products from third party suppliers at reasonable prices; risks of business and other conditions in the Asia Pacific region and our limited experience operating in the Philippines, which could prevent us from realizing expected benefits from our Philippines operations; increased expenses, including, but not limited to, interest expense, foreign currency transaction gains/losses, and other expenses which may increase as a result of future inflationary pressures; our advertising, marketing and promotional efforts may be costly and may not achieve desired results; risks due to shifts in market demand or price erosion of owned inventory; risks related to foreign currency fluctuations; risks related to data security; litigation by or against us; and availability of financing, including availability under our existing credit lines. Additional factors that could cause our actual results to differ are discussed under the heading "Risk Factors" in Item 1A, Part I of our Form 10-Q for the quarter ended March 31, 2009, on file with the Securities and Exchange Commission, and in our other reports filed from time to time with the SEC. All forward-looking statements in this document are made as of the date hereof, based on information available to us as of the date hereof, and we assume no obligation to update any forward-looking statements.

		Three Months Ended June 30,			Six Months Ended June 30,
		2009		2008		2009		2008
Net sales	$	261,412	$	331,182	$	520,712	$	667,809
Cost of goods sold		225,575		284,963		447,380		576,255
Gross profit		35,837		46,219		73,332		91,554
Selling, general and administrative expenses		33,880		40,369		69,315		79,554
Operating profit		1,957		5,850		4,017		12,000
Interest expense, net		324		924		688		2,137
Income before income taxes		1,633		4,926		3,329		9,863
Income tax expense		818		1,893		1,503		3,834
Net income	$	815	$	3,033	$	1,826	$	6,029


Basic and Diluted Earnings Per Common Share
Basic	$	0.07	$	0.23	$	0.15	$	0.45
Diluted		0.06		0.22		0.14		0.43

Weighted average number of common shares outstanding:
Basic		12,296		13,311		12,356		13,287
Diluted		12,674		14,069		12,620		13,996

CONSOLIDATED OPERATING PROFIT, CONSOLIDATED OPERATING PROFIT MARGIN, CONSOLIDATED NET INCOME AND DILUTED EARNINGS PER SHARE

		Three Months Ended June 30,					Six Months Ended June 30,
		2009			2008			2009			2008
Consolidated Operating Profit and Operating Profit Margin:
Consolidated net sales	$	261,412		$	331,182		$	520,712		$	667,809

Consolidated operating profit	$	1,957		$	5,850		$	4,017		$	12,000
Non-GAAP adjustment:
Litigation settlement charge (a)		—			790			—			790
Non-GAAP consolidated operating profit	$	1,957		$	6,640		$	4,017		$	12,790

Consolidated operating profit margin		0.7	%		1.8	%		0.8	%		1.8	%
Non-GAAP consolidated operating profit margin		0.7	%		2.0	%		0.8	%		1.9	%

Consolidated Net Income:
Consolidated net income	$	815		$	3,033		$	1,826		$	6,029
Non-GAAP adjustment:
Income tax adjustment (b)		102			—			102			—
Litigation settlement charge, net of taxes (a)		—			467			—			467
Non-GAAP consolidated net income	$	917		$	3,500		$	1,928		$	6,496

Diluted Earnings Per Share:
GAAP diluted EPS	$	0.06		$	0.22		$	0.14		$	0.43
Non-GAAP diluted EPS		0.07			0.25			0.15			0.46

Diluted weighted average number of common shares outstanding		12,674			14,069			12,620			13,996

	June 30, 2009			December 31, 2008
ASSETS
Current assets:
Cash and cash equivalents	$	3,978		$	6,748
Accounts receivable, net of allowances of $4,011 and $4,241		131,881			148,547
Inventories, net		47,643			67,845
Prepaid expenses and other current assets		7,408			7,328
Deferred income taxes		4,747			4,820
Total current assets		195,657			235,288
Property and equipment, net		13,452			11,839
Deferred income taxes		3,647			4,173
Goodwill		18,781			18,781
Intangible assets, net		10,520			11,260
Other assets		880			1,044
Total assets	$	242,937		$	282,385

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	96,483		$	110,669
Accrued expenses and other current liabilities		19,154			29,262
Deferred revenue		10,998			14,462
Line of credit		14,042			29,010
Notes payable – current		1,038			1,038
Total current liabilities		141,715			184,441
Notes payable and other long-term liabilities		6,246			4,393
Total liabilities		147,961			188,834
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; none issued and outstanding		—			—
Common stock, $0.001 par value; 30,000,000 shares authorized; 13,996,285 and 13,839,609 shares issued; and 12,407,602 and 12,681,300 shares outstanding, respectively		14			14
Additional paid-in capital		100,695			99,732
Treasury stock, at cost: 1,588,683 and 1,158,309 shares, respectively		(5,270	)		(3,623	)
Accumulated other comprehensive income		1,545			1,262
Accumulated deficit		(2,008	)		(3,834	)
Total stockholders’ equity		94,976			93,551
Total liabilities and stockholders’ equity	$	242,937		$	282,385

	Six Months Ended June 30,
	2009			2008
Cash Flows From Operating Activities
Net income	$	1,826		$	6,029
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	2,622			2,926
Provision for deferred income taxes	570			215
Tax (expense) benefit related to stock option exercises	(298		)	788
Excess tax benefit related to stock option exercises	(278		)	(424)
Stock-based compensation	822			788
Change in operating assets and liabilities:
Accounts receivable	16,666			(7,655		)
Inventories	20,202			13,971
Prepaid expenses and other current assets	(80		)	(971		)
Other assets	164			468
Accounts payable	(11,241		)	(39,158		)
Accrued expenses and other current liabilities	(8,015		)	(6,827		)
Deferred revenue	(3,464		)	4,870
Total adjustments	17,670			(31,009		)
Net cash provided by (used in) operating activities	19,496			(24,980		)
Cash Flows From Investing Activities
Purchases of property and equipment	(3,135		)	(1,641		)
Net cash used in investing activities	(3,135		)	(1,641		)
Cash Flows From Financing Activities
Repayments under notes payable	(511		)	(387		)
Net (payments) borrowings under line of credit	(14,968		)	12,577
Change in book overdraft	(2,945		)	11,078
Payments of obligations under capital lease	(60		)	(93		)
Proceeds from stock issued under stock option plans	439			366
Excess tax benefit related to stock option exercises	278			424
Common shares repurchased and held in treasury	(1,647		)	—
Net cash (used in) provided by financing activities	(19,414		)	23,965
Effect of foreign currency on cash flow	283			(148		)
Net change in cash and cash equivalents	(2,770		)	(2,804		)
Cash and cash equivalents at beginning of the period	6,748			6,623
Cash and cash equivalents at end of the period	$	3,978		$	3,819
Supplemental Cash Flow Information
Interest paid	$	776		$	2,190
Income taxes paid	2,142			1,623
Supplemental Non-Cash Investing and Financing Activities
Purchase of infrastructure system	$	360		$	—
Goodwill related to acquisitions		—			306

Average Account Executive Headcount By Segment⁽¹⁾:	Three Months Ended June 30,
		2009	2008
SMB		353	410
MME		99	106
Public Sector		76	101
Consumer		99	121
Total		627	738