PFSweb Wins Additional Raytheon Aircraft Contract to Operate Western Hemisphere Parts Distribution Center

Business Wire, July 20, 2004

PLANO, Texas and WICHITA, Kan. -- Major Contract Follows Recent PFSweb Win of RAPID Center Serving Europe

PFSweb, Inc. (Nasdaq:PFSW) of Plano, Texas, and Raytheon Aircraft Company jointly announced today that PFSweb will perform fulfillment services at the Raytheon Aircraft Parts Inventory & Distribution (RAPID) facility in Grapevine, Texas.

Value of the five-year agreement -- with renewal options -- was not disclosed, but is expected to be larger than the RAPID contract PFSweb recently won in Europe. PFSweb, a global business process outsourcing (BPO) provider, is expected to employ approximately 75 people at the Grapevine facility and handle more than 60,000 different parts.

The Texas-based distribution center serves Raytheon Aircraft customers in North, Central and South America. It is ideally located adjacent to Dallas-Fort Worth International Airport, which is served by numerous air express cargo companies.

Raytheon Aircraft, a Wichita, Kan.-based subsidiary of Raytheon Co. (NYSE:RTN), designs, manufactures, markets and supports Beechcraft and Hawker aircraft for the world's commercial, military and regional airline markets.

"We're committed to raising the standard for aircraft parts delivery worldwide," said Ed Dolanski, Raytheon Aircraft vice president - Customer Support/RAPID. "Our No. 1 goal is to make customer service and satisfaction our most significant competitive advantage. We try to exceed customer expectations in every area of our business by delivering exceptional quality, on time, every time. PFSweb shares that commitment with us."

"We welcome this expanded Raytheon relationship in the Americas and fully recognize the importance of service and speed when maintaining valuable business jets," said Steve Graham, senior partner and chief technology officer at PFSweb. "We expect the transition to PFSweb to be complete by the end of the third quarter of this year.

"Driving superior customer satisfaction with high levels of quality and service requires world-class technology and a commitment to maximum flexibility. That's why Raytheon picked PFSweb and that has been the catalyst for our successful growth," Graham continued. "PFSweb's order fulfillment activities will include aircraft-on-ground (AOG) orders as well as replenishment of parts to other RAPID centers in Europe and Asia.

"We will install our proprietary and state-of-the-art Phoenix Warehouse Management System to bring Raytheon better performance at a lower cost while increasing daily capacity," he added.

The RAPID facility in Grapevine:

--Contains 205,000 square feet of space;

--Maintains 100,000 shelf/flow rack/static bin locations;

--Maintains 10,000 bulk/pallet locations;

--Utilizes Radio Frequency Deployment, Rapistan (Rapid Route) Conveyor and Automated Carrier Labeling/Manifesting.

In late May, Raytheon opened a new RAPID facility at PFSweb B.V.'s fully automated distribution center near the Liege, Belgium airport. Once fully operational, the PFSweb subsidiary will be providing improved delivery of aircraft parts to Raytheon's European customers.

The establishment of the European parts distribution center was part of an ongoing series of improvements in Raytheon Aircraft Customer Support. Since 2002, the organization has established a Platinum Standard for the company's fixed-base operations (FBOs) 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, then order parts from either source," Dolanski explained. "As a result of these and other innovations, areas such as AOG resolution, parts availability and same-day shipping rates have improved dramatically," he noted.

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 Suite(SM).

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 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 www.pfsweb.com.

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