PFSW Pfsweb Inc

Dutton Associates updates its coverage of PFSweb (Nasdaq:PFSW) maintaining a Strong Speculative Buy rating, and a $2.00 price target. The 12-page report by Dutton senior analyst David P. Soetebier, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals. PFSweb, Inc. is a global provider of integrated business process outsourcing (BPO) solutions. On February 1, 2006 the Company acquired eCOST Inc., an online retailer, for an exchange of shares. The acquisition offers the potential to accelerate growth but comes with the risk of a need to make the operation profitable. To date the integration of eCOST into PFSweb has been more challenging than we earlier expected. Because of these near-term uncertainties the stock has pulled back and we believe it is sharply undervalued. However, we have reduced our 12-month target to $2.00 from $3.00 until eCOST is approaching profitability or we are confident that eCOST will be profitable shortly. We have a Strong Speculative Buy rating on the shares. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs, and have expertise in many industries. Dutton & Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $39,500 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton & Associates received $33,000 from the Company for 4 Research Reports with coverage commencing on 2/28/2005. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.