PFSweb Signs a 5 Year, $15.3 Million Services Contract with Army & Air Force Exchange Service (AAFES)

PFSweb, Inc. (Nasdaq: PFSW), an international business process outsourcing provider of end-to-end web commerce solutions today announced a five-year agreement with Army & Air Force Exchange Service (AAFES) to provide a comprehensive global fulfillment solution that supports the All Services Exchange Catalog and Online Store.

AAFES is a multi-channel retailer, offering products to authorized Exchange customers via retail stores, catalog and online. AAFES authorized customers include active duty and retired military personnel and their dependents. Over 18 million items are available through the Exchange Online Store and Exchange Online mall at aafes.com with an average savings of 10%-20%.

Under the agreement, PFSweb will support the printed Exchange AAFES catalog as well as the Exchange Online Store. PFSweb�s customized solution includes warehousing and order fulfillment utilizing its integrated OMS and WMS to receive, manage and safeguard inventory, fulfill direct-to-consumer orders and manage customer returns. PFSweb will also provide AAFES with the professional services required to create multiple technology interfaces with AAFES systems. PFSweb plans to utilize one of its Memphis, Tennessee facilities to support this new relationship.

The contract has been estimated by AAFES to generate a 5-year total of approximately $15.3 million in service fees to PFSweb, based on expected activities over the life of the contract.

Mike Willoughby, President of PFSweb�s services division, commented, �We are working with Army & Air Force Exchange Service to provide a custom logistics solution to support its catalog and website, which brings together over 32,000 warehoused products as well as inventories of numerous drop ship vendors. AAFES is a distinguished organization that offers products to active and retired U.S. military personnel and their families around the world, and we are pleased to have been selected to support these efforts. This contract is the previously unnamed client relationship that was referred to in our recent earnings release as the one new client relationship signed thus far since late-December 2008.�

About AAFES

The Army & Air Force Exchange Service (AAFES) is a joint command of the U.S. Army and U.S. Air Force, and is directed by a Board of Directors who is responsible to the Secretaries of the Army and the Air Force through the Service Chiefs of Staff. AAFES has the dual mission of providing authorized patrons with articles of merchandise and services and of generating non-appropriated fund earnings as a supplemental source of funding for military Morale, Welfare and Recreation (MWR) programs. To find out more about AAFES' history and mission or to view recent press releases please visit their Web site at http://www.aafes.com/pa/default.asp.

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 LEGO Riverbed, Hewlett-Packard, International Business Machines, Hawker Beechcraft Corp., Rene Furterer USA, Roots Canada Ltd. 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 manufacturer recertified brand-name merchandise for consumers and small to medium size business buyers. The eCOST.com brand markets approximately 200,000 different products from leading manufacturers such as Sony, JVC, Canon, Hewlett-Packard, Denon, Dyson, Sennheiser, Garmin, Panasonic, Toshiba and Microsoft 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 31,2008 identifies 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 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.

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