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PFSweb Announces Strategic Relationship with transcosmos and Receives $14.7 Million Equity Investment

  PFSweb Announces Strategic Relationship with transcosmos and Receives $14.7
  Million Equity Investment

    PFSweb and transcosmos to offer extensive global footprint to support
                       Omni-Channel Commerce solutions

Business Wire

ALLEN, Texas -- May 15, 2013

PFSweb, Inc. (Nasdaq: PFSW), an international provider of end-to-end eCommerce
solutions, today announced that it has entered into a strategic relationship
with transcosmos inc. (TSE: 9715) (“TCI”), including signing a definitive
agreement for an equity investment. TCI is a leading outsourcing provider of
call center, business process and digital marketing services based in Tokyo,
Japan with operations primarily in Japan, South Korea and China.

“Executing on this opportunity with TCI will differentiate PFSweb as a truly
global end-to-end multi-channel eCommerce service provider,” said Mike
Willoughby, CEO of PFSweb. “Through this relationship, PFSweb will be able to
leverage its iCommerce omni-channel commerce solution to immediately seek to
enable selected current TCI clients to launch their brands in North America
and Europe. We will also look to combine our iCommerce solution with TCI’s
Asian market capabilities, including best-of-breed strategy and analytics,
interactive marketing services, eCommerce web site development and customer
care services to enable current and prospective PFSweb clients to efficiently
and effectively move into these valuable Asian markets.”

As part of the agreement, TCI will acquire 3,214,369 shares of PFSweb common
stock, equivalent to 19.99% of shares outstanding post transaction, at a price
of $4.57 per share, representing a 7.5% premium to the Company’s closing price
on May 14, 2013. In addition, a TCI representative will join PFSweb’s Board of
Directors. Pursuant to the terms of the transaction, TCI is permitted to
acquire up to an additional 5% of the Company's outstanding Common Stock, is
subject to a two year lock-up and a customary standstill. The Company and TCI
also entered into a customary registration rights agreement.

“We believe that by making an equity investment in PFSweb, TCI has
demonstrated its commitment to making this alliance a success. This is
important for us as we look to expand our clients’ eCommerce solutions into
Asia, as well as the expansive portfolio of TCI clients seeking to utilize
PFSweb’s solutions to expand their eCommerce solutions into the U.S. and
Europe,” continued Mr. Willoughby.

Key strategic benefits of the TCI relationship include:

  *TCI’s Asian-based Clients: PFSweb seeks to develop new client
    opportunities from TCI’s clients seeking to expand their eCommerce
    programs into North America and Europe.
  *Global Expansion: The  ability to provide existing PFSweb clients with
    services in Japan, China and South Korea, and potential engagements with
    brands in Brazil, India and Russia where PFSweb currently does not have a
    presence.
  *Financial Flexibility: PFSweb will use the cash proceeds to accelerate its
    growth initiatives, including domestic and global expansion and potential
    investments and acquisitions.
  *Expanded eCommerce Services Bandwidth: PFSweb will be able to draw upon
    TCI’s pool of 800+ web developers to augment PFSweb’s global Demandware
    practice as well as TCI’s 2,500+ digital marketing specialists in Asia.
  *Expanded Call Centers Capabilities: PFSweb will have the opportunity to
    utilize TCI’s global footprint of world-class call centers to complement
    its existing call center capabilities, and expand the capability to 10
    different languages, including Japanese, Chinese, Korean, English, French,
    German, Italian, Spanish, Portuguese and Dutch.

First Quarter 2013 Conference Call

Management will provide additional details on the transaction during its first
quarter 2013 earnings conference call, which is scheduled for 11:00 am Eastern
Time (10:00 am Central Time) on Wednesday, May 15, 2013.

To listen to the call, please dial (888) 562-3356 and enter pin number
69039308 at least five minutes before the scheduled start time. Investors can
also access the call in a “listen only” mode via the Internet at the Company’s
website, www.pfsweb.com or www.kcsa.com. Please allow extra time prior to the
call to visit the site and download any necessary audio software.

A digital replay of the conference call will be available through June 14,
2013 at (855) 859-2056, pin number 69039308. The replay also will be available
at the Company’s website for a limited time.

About transcosmos Inc. (TSE: 9715) (“TCI”)

transcosmos launched operations in 1966. Since then it has combined superior
“human resources” with the most up-to-date “technological” capabilities to
enhance the competitive strength of its corporate clients by providing them
with high value added and superior services. It provides overall IT
outsourcing services such as Call Center Services, Business Process
Outsourcing Services, and Digital Marketing Services either as standalone
solution or as combined services to its corporate clients to optimize their
marketing efficiencies, to expand sales and gain new customers in EC business,
and to reduce clients operational cost. Further, these services have been
expanded beyond Japan, globally, centered in Asia. transcosmos aims to be the
“Global IT Partner” of its corporate clients to provide them with high quality
outsourcing services on a global scale.

About PFSweb, Inc.

PFSweb is engaged by iconic brands to enable and manage customized eCommerce
and omni-channel commerce initiatives. PFSweb’s iCommerce Hub(SM) technology
ecosystem offers retailers a multi-channel order management system that allows
partner/client data integration and international payment processing. PFSweb’s
iCommerce Professional Service(SM) provides interactive marketing services,
eCommerce web site development and support services, IT development services,
content management, customer intelligence and relationship and account
management services. PFSweb’s iCommerce Centers of Excellence(SM) provides
global fulfillment and logistics, high-touch customer care, client financial
services and technology hosting.

Together, PFSweb’s iCommerce Solutions allows for international reach and
expertise in both direct-to-consumer and business-to-business initiatives.
PFSweb supports organizations across multiple industries including Procter &
Gamble, L’Oreal, LEGO, Columbia Sportswear, Sorel, Carter’s, AAFES, Riverbed,
Ricoh, Hawker Beechcraft Corp, Roots Canada Ltd., Diageo, BCBGMAXAZRIA,
BCBGENERATION and HERVÉ LÉGER BY MAX AZRIA. PFSweb is headquartered in Allen,
TX with additional locations in Tennessee, Mississippi, Canada, Belgium, and
the Philippines.

To find out more about PFSweb (NASDAQ: PFSW), visit the company’s website at
http://www.PFSweb.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 for the year ended December 31, 2012 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
and Quarterly Reports and the Risk Factors described therein. 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.

Contact:

PFSweb, Inc.
Mike Willoughby, Chief Executive Officer
Thomas J. Madden, Chief Financial Officer
972-881-2900
or
Investor Relations
KCSA Strategic Communications
Todd Fromer / Garth Russell
212-896-1215 / 212-896-1250
tfromer@kcsa.com / grussell@kcsa.com