PFSweb to Support Raytheon Aircraft’s New European Parts Distribution Center

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Raytheon Aircraft Company will open a new parts facility for timely Beechcraft and Hawker parts service to its European customers. The distribution -- drawing on up to 10,000 individual parts will be at the highly automated facility of PFSweb B.V., the Liège, Belgium-based subsidiary of PFSweb, Inc. (NASDAQ: PFSW) of Plano, Texas, a global business process outsourcing (BPO).

Raytheon Aircraft Company announced today the opening of a new parts facility at PFSweb B.V.’s fully automated distribution center near the Liège, Belgium airport. http://www.raytheonaircraft.com/press/files/05-24-04_RAPID%20European%20site1.pdf) The arrangement will provide more timely Beechcraft and Hawker parts service to Raytheon’s European customers.

PFSweb B.V. is the Liège-based subsidiary of PFSweb, Inc. (NASDAQ: PFSW) of Plano, Texas, a global business process outsourcing (BPO) provider that develops and deploys integrated business infrastructure solutions and fulfillment services for Fortune 1000, Global 2000 and brand name companies. Raytheon Aircraft designs, manufactures, markets and supports Beechcraft and Hawker aircraft for the world’s commercial, military and regional airline markets.

Raytheon Aircraft Parts Inventory & Distribution (RAPID) will stock approximately 10,000 different parts at the PFSweb facility. The center is ideally located near Liège Airport, which is served by several air express cargo companies.

“Our new distribution site in Liège will raise the standard for aircraft parts delivery in Europe,” said Ed Dolanski, Vice President – Customer Support/RAPID for Raytheon Aircraft. “With PFSweb handling the warehoused inventory and express carriers providing same-day and next-day shipping, our customers throughout Europe will see a dramatic improvement in parts availability for their Beechcraft and Hawker aircraft.”

“PFSweb’s services will include warehouse management, product receipt and inspection, order fulfillment and IT integration,” said Steve Graham, senior partner and chief technology officer at PFSweb. “We recognize the importance of service and speed when maintaining high value business jets. Our five-year-old European operation will leverage its advanced pick-to-light warehouse capability to ensure accuracy, rapid response and high service standards that meet Raytheon’s critical logistics challenge.”

The PFSweb facility in Liège:

•    Contains 150,000 square feet of space;

•    Maintains 15,000 shelf/flow rack/static bin locations;

•    Maintains 8,000 bulk/pallet locations;

•    Has a capacity of 10,000 lines per eight-hour shift;

•    Features a JD Edwards Warehouse Management System;

•    Provides Radio Frequency Deployment;

•    Provides Rapistan (Rapid Route) Conveyor and (Rapid Pick) Pick-to-Light Systems;

•    Features Automated Carrier Labeling/Manifesting.

The establishment of a European parts distribution center is part of series of improvements in Raytheon Aircraft Customer Support. During the past two years the organization has established a Platinum Standard for the company’s fixed-base operations and Authorized Service Centers and created such innovations as the Worldwide Inventory Network (WIN), a Web-based system.

WIN allows customers to view the company’s entire parts inventory -- and nearly 100,000 additional part numbers from WIN partners – and order parts from either source.

As a result of these innovations and others, areas such as Aircraft-on-Ground resolution, parts availability and same-day shipping rates have improved dramatically, Dolanski emphasized.

“We’re getting great feedback from our customers that confirms our efforts are raising industry standards,” said Dolanski. “Our goal is to offer such excellent service that customers will never go anywhere else to buy their aircraft.”

About PFSweb, Inc.

PFSweb’s comprehensive outsourcing solutions provide proven, fast and secure business infrastructure to enable traditional and e-commerce strategies. PFSweb solutions include: professional consulting services, e-marketplace logistics, order management, web-enabled customer contact centers, customer relationship management, international distribution and fulfillment services, reverse logistics, billing and collection services, kitting and assembly services and ERP information interfacing utilizing its Entente SuiteSM.

PFSweb is a global provider of business process solutions, including third party logistics, call center support and e-commerce services. The company serves such notable clients as Dupont Fluoroproducts, Hewlett-Packard, IBM, NokiaUSA.com, Pfizer, Inc., Roots Canada, Shell Energy Services Company, Smithsonian Institution, Xerox and other brand name companies.

To find out more about PFSweb, Inc. (NASDAQ: PFSW), visit our website at http://www.pfsweb.com.

This release can be found at the company Web site -- http://www.pfsweb.com -- which is not a part of this release. PFSweb and IBM are registered trademarks. All rights reserved.

The matters discussed in this news release, particularly information regarding future revenue, earnings, business plans and goals, consist of forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to and involve risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. Such statements are not

guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and the Company’s future performance are both subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially. The Company undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking information contained herein is subject to the risk factors and uncertainties described in the Company’s filings with the Securities and Exchange Commission, which risk factors and uncertainties are incorporated by this reference as though fully set forth herein.

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Preston F. Kirk, APR