PFSweb Completes Merger with eCOST.com; Company Poised to Capitalize on Burgeoning Web Commerce Market

PFSweb, Inc. (Nasdaq: PFSW), a global provider of
integrated business process outsourcing (BPO) solutions, and eCOST.com
Inc., a leading online discount retailer, announced today the
completion of a definitive merger agreement.
   Under the terms of the merger agreement, each eCOST.com
shareholder is entitled to receive one PFSweb common share for each
outstanding share of eCOST.com in a tax-free, share-for-share
transaction where eCOST.com is now a wholly owned subsidiary of
PFSweb. Shareholders of both PFSweb and eCOST.com overwhelmingly
approved the merger at special meetings held last week.
   With the completion of the merger, PFSweb now has approximately
41.4 million shares outstanding. eCOST.com common stock will no longer
be listed on Nasdaq effective February 1, 2006.
   Mark Layton, CEO of PFSweb, said, "We are pleased to complete our
merger with eCOST.com on schedule following the strong support from
our shareholders. We are excited by the long-term growth opportunities
created by this merger and will focus now on the full-scale
integration process."
   "This merger represents a significant milestone for PFSweb,"
Layton added. "We plan to leverage our operational infrastructure and
technology expertise with eCOST's web commerce capabilities to
generate more profitable and consistent growth. Our three operating
divisions, Services, Supplies Distributors and eCOST.com, combined for
$528 million in revenue for the trailing 12 months ended September 30,
2005. We look forward to improving our growth traction and driving
future results as we complete the integration of our businesses
throughout this year."
   Adam Shaffer, CEO of eCOST.com, stated, "The combination of
eCOST's broad customer base and distinctive product offerings with
PFSweb's advanced technology and distribution platform should
strengthen our position in the multi-billion-dollar web commerce
marketplace. We are confident the strategic benefits that we are
targeting as a result of this merger, including the achievement of an
expected $4-5 million in annual cost savings, should optimize future
performance and enable shareholders to participate in a significant
growth opportunity."

   About eCOST.com

   eCOST.com is a leading multi-category online discount retailer of
high-quality new, "close-out" and refurbished brand-name merchandise
for consumers and small business buyers. eCOST.com markets over
100,000 different products from leading manufacturers such as Apple,
Canon, Citizen, Denon, HP, Nikon, Onkyo, Seiko, Sony, and Toshiba
primarily over the Internet (http://www.ecost.com) and through direct
marketing.

   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
(Nasdaq:ADPT), CHiA'SSO, FLAVIA(R) Beverage Systems, Hewlett-Packard
(NYSE:HPQ), International Business Machines (NYSE:IBM), Nokia
(NYSE:NOK), Pfizer, Inc. (NYSE:PFE), Raytheon Aircraft Company, Rene
Furterer USA, Roots, Inc., Smithsonian Institute and Xerox (NYSE:XRX).
   To find out more about PFSweb, Inc. (NASDAQ: PFSW), visit our
website at www.pfsweb.com.

   The matters discussed herein and, in particular, information
regarding the merger, 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 has
recently filed a Registration Statement on Form S-4 which 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 Registration Statement and the
Risk Factors described therein. Neither PFSweb nor eCOST undertakes
any 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.