Ever-Glory (EVK) Reports 2010 Full Year Financial Results

NANJING, China, March 30, 2011 /PRNewswire-Asia-FirstCall/ — Ever-Glory International Group, Inc. (the “Company,” “Ever-Glory”) (NYSE Amex: EVK), a leading apparel supply chain manager and retailer based in China, today reported its financial results for its fiscal year ended December 31, 2010.

Full Year 2010 Highlights

• Total net sales increased 49.3% to $134.1 million
• Gross profit increased 42.9% to $26.2 million
• Income from operations increased 8.2% to $6.6 million
• Acquired the 40% non-controlling interest in LA GO GO, bringing the Company’s ownership of its retail segment to 100%

During the fiscal year ended December 31, 2010, net sales increased 49.3% to $134.1 million from $89.9 million in 2009. The increase in sales was primarily attributable to increased sales in Ever-Glory’s retail business as well as its wholesale business in China.

In 2010, retail sales from LA GO GO, the Company’s branded retail division, increased 122.1% to $29.3 million, compared to $13.2 million in 2009. This increase was primarily due to the increase of same store sales and new stores opened. Ever-Glory increased the number of LA GO GO stores from 185 at the end of last year to 293 stores as of December 31, 2010,

In 2010, sales generated from the Company’s wholesale business increased 36.7% to $104.8 million, compared to $76.7 million in 2009. The increase was mainly attributable to the increased sales in China. In response to the global economic uncertainty and political instability in fiscal year 2010, Ever-Glory shifted its wholesale marketing effort to develop its wholesale business in the Chinese market. Management believes that Ever-Glory’s expertise in supply chain management and years of experience in the wholesale business enabled the Company to quickly obtain significant orders in the Chinese wholesale market.

“In 2010, we were very pleased to see sales increase significantly in both our wholesale and retail segments,” commented Mr. Edward Yihua Kang, Chairman of the Board and Chief Executive Officer of Ever-Glory. “On behalf of our board and management, I extend my warmest thanks to our customers for their trust in us, and to our staff for their tireless efforts and devotion to our customers.”

In April 2010, Ever-Glory acquired the 40% non-controlling interest in LA GO GO from its joint venture partner, Shanghai La Chapelle, bringing the Company’s ownership stake in its retail business to 100%. In connection with such acquisition, and in order to focus on the Company’s core businesses, Ever-Glory sold the 10% equity interest in Shanghai La Chapelle which it acquired when Every-Glory and Shanghai La Chapelle originally formed the LA GO GO joint venture in 2008.

Following this acquisition, in 2010, Ever-Glory focused on the full integration of the LA GO GO business and management into the Company and continued to implement the Company’s brand strategy. Through these efforts, the retail business achieved strong performance, and management believes that going into 2011 and beyond, Ever-Glory has strong momentum with its retail strategy. The total number of LA GO GO stores in China increased from 185 at the end of 2009 to 293 stores as of December 31, 2010, and Ever-Glory expects to open additional 80-100 stores in 2011.

“In 2011, we plan to continue to develop LA GO GO through perfecting design styles, improving store management efficiency and opening more stores in desired locations,” continued Mr. Kang. “We are confident that, through these measures, we can enhance same-store sales, expand LA GO GO’s market penetration and increase its brand influence in China.”

Gross profit in Every-Glory’s wholesale business increased 19.6% to $16.1 million from $13.5 million a year ago. Gross margin for the wholesale business decreased to 15.4% in 2010 compared to 17.6% in 2009. The decrease was primarily due to an increase in raw material prices, outsourced production costs, and consequently decreased average margin on overseas orders. In response, the Company adjusted its wholesale strategy and started to vigorously develop the Chinese wholesale market in 2010.

Gross profit in Every-Glory’s retail business increased 107.6% to $10.1 million from $4.8 million a year ago. Gross margin for the retail business decreased to 34.3% in 2010 compared to 36.7% in 2009. The decrease in gross margin was primarily due to the lowered retail tag price that was implemented in an effort to increase sales volume.

Total gross profit in 2010 increased 42.9% to $26.2 million from $18.3 million a year ago. Gross margin decreased to 19.5% in 2010, compared to 20.4% in 2009.

Selling expenses increased 109.5% to $9.8 million in 2010, an increase of $5.1 million compared to 2009. As a percent of sales, selling expense accounted for 7.3% of our total sales in 2010, an increase of 2.1% compared to 2009. The increase was attributable to the enlarged number of retail employees and increased average salary, as well as the increased decoration and marketing expenses associated with the promotion of LA GO GO brand.

General and administrative expenses increased 29.8% to $9.8 million in 2010, an increase of $2.2 million compared to 2009. As a percentage of sales, general and administrative expenses accounted for 7.3% of our total sales in 2010, a decrease of 1.1% compared to 2009. The total general and administrative expenses increase was attributable to an increase in payroll for additional management and design and marketing staff as a result of our business expansion. The decrease in general and administrative expenses as a percentage of total sales was due to an increase in our sales.

As a result, income from operations in 2010 increased 8.2% to $6.6 million compared to $6.1 million in 2009.

For 2010, GAAP net income attributable to the Company was $6.7 million, or $0.45 per diluted share, an increase of 56.4% from $4.3 million, or $0.29 per diluted share in 2009. GAAP net income attributable to the Company results for 2010 include approximately $1.0 million, or $0.07 per diluted share, of non-cash income related to the change in fair value of a derivative liability compared to approximately $1.1 million, or $0.08 per diluted share, of non-cash expense related to the change in fair value of a derivative liability in 2009. Excluding these non-cash items for 2010 and 2009, non-GAAP diluted earnings per share were $0.38 in 2010 compared to $0.37 in 2009 (see “About Non-GAAP Financial Measures” below).

Balance Sheet and Cash Flow

As of December 31, 2010, the Company had approximately $3.7 million of cash and cash equivalents, compared to approximately $3.6 million as of December 31, 2009. Ever-Glory had working capital of approximately $24.5 million as of December 31, 2010, and outstanding bank loans of approximately $18.1 million as of December 31, 2010.

Business Outlook

For the first quarter of 2011, Every-Glory anticipates total net sales of $45 to $55 million and net income of $1.8 to $2.2 million. For full year 2011, Every-Glory anticipates total net sales between $180 and $215 million and net income between $7.3 and $9.0 million. The full year revenue forecast is comprised of $120 to $150 million in expected wholesale revenue and $60 to $65 million in expected revenue from retail operations.

About Non-GAAP Financial Measures

This press release and presentations of management related to the subject matter of this press release contains financial measures for earnings that are not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) in that they exclude the items arising from the change in fair value of a derivative liability. Ever-Glory believes that these non-GAAP financial measures are useful to investors because they reflect the essential operating activities of Ever-Glory. Readers are cautioned, however, that non-GAAP measures are subject to inherent limitations because they involve the exercise of judgment about which items are excluded in the determination of the non-GAAP financial measure.

The following table provides the non-GAAP financial measure and the related GAAP measure and provides a reconciliation of the non-GAAP measure to the equivalent GAAP measure.

Conference Call

The Company will hold a conference call today at 8:30 a.m. Eastern Time which will be hosted by Edward Yihua Kang, Chairman of the Board, President, and CEO, and Jason Jiansong Wang, Chief Financial Officer. Listeners can access the conference call by dialing #1-719-325-4802 and referring to the confirmation code 7957991. The conference call will also be broadcast live over the Internet and can be accessed at the Company’s web site at the following URL: http://www.everglorygroup.com.

A replay of the call will be available from 11:30 a.m. March 30, 2011 through April 6, 2011 Eastern Time by calling # 1-858-384-5517; pin number: 7957991.

About Ever-Glory International Group, Inc.

Based in Nanjing, China, Ever-Glory International Group, Inc. is a leading apparel supply chain manager and retailer in China. Ever-Glory is the first Chinese apparel Company listed on the American Stock Exchange (now called NYSE Amex), and has a focus on middle-to-high grade casual wear, outerwear, and sportswear brands. Every-Glory maintains global strategic partnerships in Europe, the United States, Japan and China, conducting business with several well-known brands and retail chain stores. In addition, Ever-Glory operates its own domestic chain of retail stores known as “LA GO GO.”

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this release and other written or oral statements made by or on behalf of Ever-Glory International Group, Inc. (the “Company”) are “forward looking statements” within the meaning of the federal securities laws. Statements regarding future events and developments and the Company’s future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including, without limitation, market acceptance of the Company’s products and offerings, development and expansion of the Company’s wholesale and retail operations, the Company’s continued access to capital, currency exchange rate fluctuation and other risks and uncertainties. The actual results the Company achieves (including, without limitation, the revenue, net income and new retail store projections set forth herein) may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties (many of which are beyond the Company’s control). These statements are based on management’s current expectations and speak only as of the date of such statements. Readers should carefully review the risks and uncertainties described in the Company’s latest Annual Report on Form 10-K and other documents that the Company files from time to time with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Onstream Media Signs Audio/Visual Industry Leader, SmartSource, as MarketPlace365(TM) Master Agent

3D Systems (TDSC) Announces Plans to Expand Its Rock Hill Operations

ROCK HILL, S.C., March 30, 2011 (GLOBE NEWSWIRE) — 3D Systems Corporation (Nasdaq:TDSC) announced plans to expand its in-house manufacturing activities to include additional personal and professional 3D printer models. In connection with its expansion plans the company also exercised an option to purchase an 11-acre parcel contiguous to its Rock Hill facility. Bolstered by its successful transition and subsequent expansion of its in-house manufacturing activities for its popular ProJet™ 3000 professional 3D printer and Accura^® print materials, the company is planning to manufacture additional 3D printer models in-house and to also expand its print materials blending facility. The company expects to carry out its next expansion phase within its current 80,000 square feet facility and has no immediate plans to develop its recently acquired parcel.

“We are pleased with our ability to continue to expand our in-house operations in support of our long term target operating model,” said Damon Gregoire, Senior Vice President and Chief Financial Officer for 3D Systems. “This initiative is consistent with our previously disclosed gross profit margin improvement program and closely mirrors our strategic growth plans.”

Forward-Looking Statements

Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as “believes,” “belief,” “expects,” “estimates,” “intends,” “anticipates” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings “Forward-Looking Statements,” “Cautionary Statements and Risk Factors,” and “Risk Factors” in the company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements.

About 3D Systems Corporation

3D Systems is a leading provider of 3D content-to-print solutions including 3D printers, print materials and custom part services. Its expertly integrated rapid prototyping and manufacturing solutions reduce the time and cost of designing new products and printing real parts directly from digital input. These solutions are used to design, communicate, prototype and produce functional end-use parts; customers create with confidence.

More information on the company is available at www.3DSystems.com, www.printin3D.com, www.quickparts.com, www.3Dproparts.com, www.bitsfrombytes.com, www.dpt-fast.com, www.toptobottomdental.com, blog.3Dsystems.com, or via email at moreinfo@3dsystems.com.

The 3D Systems Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4537

CONTACT: Investor Contact: Stacey Witten
         803-326-4010
         E-mail: WittenS@3dsystems.com

         Media Contact: Katharina Hayes
         803-326-3941
         Email: HayesK@3dsystems.com

Rural/Metro Corporation (RURL) to Be Acquired by Warburg Pincus for $17.25 per Share

SCOTTSDALE, AZ — (Marketwire) — 03/28/11 — Rural/Metro Corporation (NASDAQ: RURL) (the “Company”), a leading national provider of ambulance and private fire protection services, today announced it has entered into a definitive agreement for the acquisition of the Company by the private equity firm Warburg Pincus in an all-cash transaction.

Under terms of the agreement, Rural/Metro shareholders will receive $17.25 per share of common stock in cash, representing a 37% premium over the closing price on March 25, 2011 and a 28% premium over the volume weighted average share price over the previous month. The Company’s Board of Directors, acting on the recommendation of a Special Committee consisting of independent directors, unanimously approved the terms of the agreement and recommended that Rural/Metro shareholders approve the transaction. In addition to shareholder approval, the transaction is subject to the satisfaction of customary closing conditions and regulatory approvals. It is currently anticipated the transaction will be completed by the end of June 2011.

Christopher Shackelton, Chairman of the Board of Rural/Metro, said, “The Board believes that this transaction is an exceptional opportunity for Rural/Metro’s shareholders. We have worked diligently to maximize the long-term value in the business, and are pleased that our shareholders are being rewarded for their trust in the Company’s vision, business plan and management.”

Mr. Shackelton emphasized that, “Following careful consideration and the examination of various methods to enhance shareholder value, the Board of Directors believes that now is an advantageous time for the Company to move to the next stage of its development as a private company under the stewardship of Warburg Pincus.”

Michael DiMino, President and Chief Executive Officer, said, “I am excited by the transition of Rural/Metro to new ownership. Partnering with Warburg Pincus provides the resources and flexibility to fuel our organic and strategic growth initiatives, and to leverage our strength as the best-in-class operator in both the ambulance and private fire protection industries. For our employees, customers and patients, we are dedicated to maintaining the highest standards of care, and to enhancing our value as a key partner in every community we serve.”

Sean Carney, a Warburg Pincus Managing Director, said, “We believe an investment in Rural/Metro and this industry is a tremendous opportunity for Warburg Pincus. Rural/Metro is an expert provider of ambulance and private fire protection services with an experienced management team that has delivered excellent results and increased shareholder value. We are excited to work with the management team and the 8,000 dedicated employees under Michael DiMino’s leadership to enhance the Company’s technological capabilities and service for the long-term benefit of its customers.”

RBC Capital Markets and Moelis & Company are acting as financial advisors, and the law firm of Paul, Hastings, Janofsky & Walker is acting as legal advisor to Rural/Metro.

Citigroup Global Markets, Inc., Credit Suisse and Jefferies & Company, Inc. acted as financial advisors, and Cleary Gottlieb Steen & Hamilton is acting as legal advisor to Warburg Pincus.

About Rural/Metro Corporation

Rural/Metro Corporation is a leading national provider of emergency and non-emergency ambulance services and private fire protection services in 20 states and approximately 440 communities throughout the United States. For more information, please visit the Company’s web site at www.ruralmetro.com.

About Warburg Pincus

Warburg Pincus is a leading global private equity firm. The firm has more than $30 billion in assets under management. Its active portfolio of more than 110 companies is highly diversified by stage, sector, and geography. Warburg Pincus is a growth investor and an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 13 private equity funds which have invested more than $35 billion in over 600 companies in more than 30 countries. The firm has offices in Beijing, Frankfurt, Hong Kong, London, Mumbai, New York, San Francisco, Sao Paulo, and Shanghai. For more information, please visit www.warburgpincus.com.

Since inception, the firm has invested approximately $7.5 billion in healthcare companies, including investments in American Medical Systems (NASDAQ: AMMD), Bausch & Lomb, Coventry Health Care (NYSE: CVH), Euromedic International (acquired by Merrill Lynch Global Private Equity and Ares Life Sciences in 2008), Harbin Pharmaceuticals (SHA: 600664), InterMune (NASDAQ: ITMN), Lepu Medical Technology (SHE: 300003), RegionalCare Hospital Partners, ReSearch Pharmaceutical Services, and Tornier (NASDAQ: TRNX).

Additional Information and Where to Find It

In connection with the merger, Rural/Metro will prepare a Preliminary Proxy Statement to be filed with the SEC that will provide additional important information. When completed, a Definitive Proxy Statement will be mailed to stockholders of the Company. The Company’s stockholders will be able to obtain a copy of the Definitive Proxy Statement (when available) and other relevant documents filed with the SEC from the SEC’s website at http://www.sec.gov or from the Company’s website at http://www.ruralmetro.com. Stockholders also will be able to obtain a copy of the Definitive Proxy Statement and other documents related to the merger (when available) by written request to Rural/Metro Corporation, c/o Corporate Secretary, 9221 E. Via de Ventura, Scottsdale, AZ 85258.

Participants in Solicitation

The Company and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from its stockholders in connection with the proposed merger. Information concerning the interests of the Company’s participants in the solicitation will be set forth in the Company’s proxy statement relating to the merger when it becomes available.

Forward-Looking Statements
The foregoing reflects the Company’s views about its future financial condition, performance and other matters that constitute “forward-looking” statements as such term is defined by the federal securities laws. Many of these statements can be found by looking for words such as “believe,” “anticipate,” “expect,” “plan,” “intend,” “may,” “should,” “will likely result,” “continue,” “estimate,” “project,” “goals,” or similar words used herein in connection with any discussions of future operating or financial performance or business prospects. We may also make forward-looking statements in our financial reports filed with the SEC, investor calls and other investor communications. These forward-looking statements are subject to the safe harbor protection provided by federal securities laws. These forward-looking statements are subject to numerous risks, uncertainties and assumptions, including those relating to the Company’s risk that a condition to closing the transaction may not be satisfied or other risks that may cause the transaction not to be completed within the expected time period, future business prospects, uncompensated care, working capital, accounts receivable collection, liquidity, cash flow, EBITDA, adjusted EBITDA, capital expenditures, insurance coverage and claim reserves, capital needs, key operating metrics, future growth plans, future operating results, and future compliance with covenants in our debt facilities or instruments. In addition, the Company may face risks and uncertainties related to other factors that are listed in its periodic reports filed under the Securities Exchange Act. Although the Company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, because the statements are subject to risks and uncertainties, the Company can give no assurance that its expectations will be attained or that actual developments and results will not materially differ from those expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on the statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.

(RURL/F)

Contacts

For Rural/Metro Corporation
Liz Merritt
480-606-3337
Email Contact

For Warburg Pincus
Ed Trissel
(212) 878-9288
Email Contact

Rory Mackin
(212) 878-9322
Email Contact

API Technologies (ATNY) to Acquire Spectrum Control (SPEC)

Ocean Bio-Chem, Inc. (OBCI) Reports Record Net Income of Over $2 Million

FORT LAUDERDALE, FL — (Marketwire) — 03/28/11 — Ocean Bio-Chem, Inc. (NASDAQ: OBCI) today released financial results for 2010. The Company reported record net income for the year ended December 31, 2010 of approximately $2.0 million, compared to net income of $1.1 million for 2009, an increase of approximately 92%. Basic earnings per share were $0.26 per share compared to $0.14 per share for the year 2009. Diluted earnings per share were $0.24 per share compared to $0.14 per share for the year ended 2009. Record net sales, for the year ended December 31, 2010, were approximately $27.4 million compared to approximately $24.6 million for 2009, an increase of $2.8 million or 11%.

                                  (in thousands except per share & share data)

                                             Year Ended December 31,
                                           2010                   2009
                                  ---------------------  ---------------------
Net Sales                         $              27,404  $              24,633

Net Income                        $               2,018  $               1,054

Earnings per Share - Basic        $                0.26  $                0.14
Earnings per Share - Diluted      $                0.24  $                0.14

Avg. Shares (basic)                           7,789,699              7,673,438
Avg. Shares (fully-diluted)                   8,443,797              7,697,100

Ocean Bio-Chem President and CEO Peter Dornau stated, “Ocean Bio-Chem, Inc. reported its second consecutive year of record net sales. For the year 2010 net sales increased to approximately $27.4 million or 11.2%, compared to 2009 sales. The Company has continued to be successful in implementing its sales and marketing plans as previously disclosed. We have been successful in continuing to increase sales in marine markets as well as expanding sales in new and newer markets. In addition to the sales increases the Company also reported record gross margin percent of 34.2% and record gross margin dollars of $9.4 million. Our gross profit margin percent increased approximately 2.3%, compared to 2009 gross profit margin percent. The gross margin percent increase is a result of two significant factors; the first is increased sales of higher margin products, the second is due to increased production efficiencies and higher volume at our Kinpak manufacturing subsidiary. In addition, the Company has continued to control its operating expenses. Primarily as a result of the above factors, net income increased approximately 92% to over $2.0 million.”

Peter Dornau continued, “The Company’s balance sheet also continues to strengthen. The Company was able to fully pay off its borrowings under its revolving line of credit, at year end. The Company has reduced its line of credit borrowings by $2.8 million over the past two years. Shareholders equity also increased to approximately $11.2 million at year end.”

Peter Dornau concluded, “In 2010, we completed the joint venture Odorstar Technology, LLC. with unique patented products and delivery system to safely eliminate mold, mildew odors. We have completed EPA registrations of the products in all states (except California), expanded and improved manufacturing operations for the production of the Odorstar products, designed new consumer packaging for an easier, safer use of the product. These expenditures have all been reflected in the Company’s 2010 financial statements. The process to EPA registration of Odorstar products in all states has taken longer than anticipated. With the state EPA registrations complete, the Company has started shipping products to its larger customers in the marine market. We are optimistic that the Odorstar products will be accretive to sales in 2011, as we expand distribution in other markets including home care, auto and mold remediation companies. Our joint venture partner has been extremely successful in selling products in his designated markets.

“We have seen an increase in business activity in the first two months of 2011, with gross sales increases of 30% and we are cautiously optimistic we will have another successful year.”

About Ocean Bio-Chem
Ocean Bio-Chem, Inc. manufactures and markets a full line of maintenance and care products for marine, automobile, motorcycle, power sports, outdoor power equipment, RV, agriculture, hardware, lawn & garden and OEMs. Products are sold under the Starbrite, StarTron, Sea Safe, Sta-Put, Extend-a-Brush and Nos Guard names, as well as private label brands. The Company trades publicly under NASDAQ Capital Markets, Ticker Symbol: OBCI. The Company’s web sites are: www.oceanbiochem.com, www.Starbrite.com and www.Startron.com.

NOTE: The foregoing is news relating to Ocean Bio-Chem, Inc. (OBCI or “the Company”) and contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect” and similar expressions as they relate to the Company or its management, including without limitation the Company’s other subsidiaries, are intended to identify such forward-looking statements. The Company’s actual results, performance or achievements could differ materially from the results expressed in, or implied by these forward-looking statements. For more detailed information the reader is referred to the Company’s 10-K and other documents filed with the United States Securities and Exchange Commission. This does not constitute an offer to buy or sell securities by, the Company or its subsidiaries and is meant purely for informational purposes.

Contacts:

Peter Dornau
President & CEO
954-587-6280
pdornau@starbrite.com

Jeff Barocas
CFO
954-587-6280
jbarocas@starbrite.com

eBay Inc. to Acquire GSI Commerce (GSIC)

Mar. 28, 2011 (Business Wire) — eBay Inc. (NASDAQ: EBAY) announced today that it has agreed to acquire GSI Commerce (NASDAQ: GSIC), a leading provider of ecommerce and interactive marketing services, for $29.25 a share, or total consideration of approximately $2.4 billion. The acquisition, which will be financed with cash and debt, is expected to close in the third quarter of 2011.

The merger consideration represents a 51 percent premium over GSI’s March 25, 2011, closing price and a 47 percent premium over the average closing price of GSI Commerce common stock over the 30 trading days prior to March 28, 2011. The acquisition is subject to regulatory and GSI shareholder approval, as well as other customary closing conditions.

“We intend to lead the next generation of commerce innovation. The acquisition of GSI, which offers the most comprehensive integrated suite of online commerce and interactive marketing services available, will significantly strengthen our ability to connect buyers and sellers worldwide,” said John Donahoe, eBay Inc. President and CEO. “Combined with eBay Marketplaces and PayPal, we believe GSI will enhance our position as the leading strategic global commerce partner of choice for retailers and brands of all sizes.”

With more than 180 customers across 14 merchandise categories, GSI has long-term commerce services relationships with leading retailers and brands. We expect that GSI will benefit from eBay’s global platform and technology capabilities, and its clients will be able to leverage eBay Marketplaces and PayPal services.

“Technology is changing how consumers shop, and retailers and brands are changing how they compete,” Donahoe said. “With its complementary strengths, GSI will extend the power of our portfolio. With eBay, PayPal, GSI and our global platform capabilities, we are focused on delivering new ways for retailers and brands of all sizes – from sole proprietors to large merchants – to drive innovation, engage customers and help people shop anytime, anywhere and on any device.”

As part of the transaction, eBay will divest 100 percent of GSI’s licensed sports merchandise business and 70 percent of ShopRunner and Rue La La. eBay believes these businesses are not core to its long-term growth strategy. These assets will be sold to a newly formed holding company, which will be led by GSI founder and CEO Michael Rubin.

eBay expects the transaction to result in synergies of approximately $60 million by 2013; the company expects the transaction to be EPS neutral in 2011 and accretive in 2012. As part of the divestiture, eBay will loan the holding company $467 million and retain a 30 percent stake in Rue La La and ShopRunner. In addition, Michael Rubin will invest additional cash of $31 million in the holding company.

Under the terms of the merger agreement, GSI Commerce may solicit acquisition proposals from third parties for a 40-day “go-shop” period continuing through May 6, 2011. It is not anticipated that any developments will be disclosed with regard to this process unless GSI Commerce’s Board of Directors makes a decision with respect to a potential superior proposal. The merger agreement provides eBay with a customary right to match a superior proposal. There is no guarantee that this process will result in a superior proposal.

Goldman, Sachs & Co. and Peter J. Solomon Company are acting as financial advisers to eBay, while Dewey & LeBoeuf LLP is acting as its legal adviser with regard to the transaction. Morgan Stanley & Co. Incorporated is acting as financial adviser to GSI Commerce and Davis Polk & Wardwell LLP is acting as legal adviser to the special committee of the GSI Commerce Board of Directors. Morgan, Lewis & Bockius LLP is acting as legal adviser to GSI Commerce.

Business Outlook

Assuming its acquisition of GSI closes mid-third quarter, eBay said it expects the deal to be immaterial to its 2011 non-GAAP EPS guidance which it announced January 19, and have a negative impact of $0.30 – $0.34 to its 2011 GAAP EPS guidance, including a GAAP charge primarily related to the divested GSI businesses.

Conference Call

eBay will host a conference call at 8 am Pacific Time/11 am Eastern Time today to discuss this announcement. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information, can be accessed through the company’s Investor Relations web site at http://investor.ebayinc.com. In addition, an archive of the webcast will be accessible for 90 days through the same link.

Transaction website

For more information on the transaction, including background information and factsheets, visit http://changingshopping.ebayinc.com.

About eBay Inc.

Founded in 1995 in San Jose, Calif., eBay Inc. (NASDAQ:EBAY) connects millions of buyers and sellers globally on a daily basis through eBay, the world’s largest online marketplace, and PayPal, which enables individuals and businesses to securely, easily and quickly send and receive online payments. We also reach millions through specialized marketplaces such as StubHub, the world’s largest ticket marketplace, and eBay classifieds sites, which together have a presence in more than 1,000 cities around the world. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.

About GSI Commerce

GSI Commerce® enables ecommerce, multichannel retailing and digital marketing for global enterprises in the U.S. and internationally. GSI’s ecommerce services, which include technology, order management, payment processing, fulfillment and customer care, are available on a modular basis or as part of an integrated solution. GSI’s Global Marketing Services division provides innovative digital marketing products and services comprised of database management and segmentation, marketing distribution channels, a global digital agency to drive strategic and creative direction and an advanced advertising analytics and attribution management platform. Additionally, GSI provides brands and retailers platforms to engage directly with consumers through RueLaLa.com, an online private sale shopping destination, and ShopRunner.com, a members-only shopping service that offers unlimited free two-day shipping and free shipping on returns for a $79 annual subscription.

Forward-Looking Statements

This press release contains forward-looking statements relating to, among other things, the future performance of eBay and its consolidated subsidiaries that are based on the company’s current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include, but are not limited to, statements regarding eBay and GSI Commerce and the expected impact of the transaction on eBay’s expected financial results for full year 2011. The company’s actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to: the receipt and timing of regulatory approval for the transaction, the possibility that the transaction may not close, and the reaction of consumers and GSI Commerce’s customers; the future growth of GSI Commerce; the reaction of competitors to the transaction; the possibility that integration following the transaction may be more difficult than expected; the company’s need and ability to manage regulatory, tax, IP and litigation risks (including risks related to the transaction itself) as its services are offered in more jurisdictions and applicable laws become more restrictive; the after effects of the global economic downturn, changes in political, business and economic conditions, including any conditions that affect ecommerce growth; fluctuations in foreign currency exchange rates; the company’s ability to profitably integrate, manage and grow businesses that have been acquired recently or may be acquired in the future; the company’s need to increasingly achieve growth from its existing users, particularly in its more established markets; the company’s ability to deal with the increasingly competitive ecommerce environment, including competition for its sellers from other trading sites and other means of selling, and competition for its buyers from other merchants, online and offline; the company’s need to manage an increasingly large enterprise with a broad range of businesses of varying degrees of maturity and in many different geographies; the effect of management changes and business initiatives; any changes the company may make to its product offerings; the competitive, regulatory, credit card association-related and other risks specific to PayPal and Bill Me Later, especially as PayPal continues to expand geographically and grow its open platform initiative and as new laws and regulations related to financial services companies come into effect; the company’s ability to upgrade and develop its systems, infrastructure and customer service capabilities at reasonable cost; and the company’s ability to maintain site stability and performance on all of its sites while adding new products and features in a timely fashion. The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.

More information about factors that could affect the company’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting the company’s Investor Relations web site at http://investor.ebayinc.com or the SEC’s web site at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to the company on the date hereof. eBay assumes no obligation to update such statements.

Cautionary Statement Regarding Forward-Looking Statements

This document includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, are forward-looking statements. These forward looking statements address, among other things activities, events or developments that we expect, believe or anticipate will or may occur in the future, including our statements relating to the anticipated effects of the proposed merger with eBay and its anticipated benefits if consummated. These forward-looking statements are subject to a number of risks that could cause actual results to differ materially from those contained in the forward-looking statements, including the risk that our stockholders may not approve the merger and that the regulatory approvals and any other required approvals in connection with the merger may not be obtained on the proposed terms or at the times anticipated, as well as the risk factors described Item 1A of our 2010 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”).

Currently unknown or unanticipated risks, or risks that emerge in the future, could cause actual results to differ materially from those described in forward-looking statements, and it is not possible for us to predict all such risks, or the extent to which this may cause actual results to differ from those contained in any forward-looking statement. Except as required by law, we assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events, or otherwise.

Important Merger Information

This communication may be deemed to be solicitation material in respect of the proposed acquisition of GSI Commerce by eBay. In connection with the proposed acquisition, GSI Commerce intends to file a proxy statement on Schedule 14A with the Securities and Exchange Commission, or SEC, and GSI Commerce and eBay intend to file other relevant materials with the SEC. Stockholders of GSI Commerce are urged to read all relevant documents filed with the SEC when they become available, including GSI Commerce’s proxy statement, because they will contain important information about the proposed transaction. A definitive proxy statement will be sent to holders of GSI Commerce stock seeking their approval of the proposed transaction. This communication is not a solicitation of a proxy from any security holder of GSI Commerce.

Investors and security holders will be able to obtain the documents (when available) free of charge at the SEC’s web site, http://www.sec.gov. In addition, GSI Commerce stockholders may obtain free copies of the documents filed with the SEC when available by contacting GSI Commerce’s Investor Relations at 610-491-7068.

Such documents are not currently available. You may also read and copy any reports, statements and other information filed with the SEC at the SEC public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 or visit the SEC’s website for further information on its public reference room.

GSI Commerce and its directors and executive officers, may be deemed to be participants in the solicitation of proxies from the holders of GSI Commerce common stock in respect of the proposed transaction. Information regarding the directors and executive officers of GSI Commerce is available in the 2010 Annual Report on Form 10-K, filed with the SEC on March 1, 2011, and the proxy statement for GSI Commerce’s 2010 Annual Meeting of Stockholders, filed with the SEC on April 13, 2010. Additional information regarding the interests of such potential participants will be included in the proxy statement and the other relevant documents filed with the SEC when they become available.

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eBay Inc. Corporate Communications

John Pluhowski

press@ebay.com

http://www.ebayinc.com/news

or

eBay Inc. Investor Relations

Jennifer Ceran, 408-376-7493

http://investor.ebayinc.com

ZAGG Inc. (ZAGG) Announces Filing of Form 10-K Annual Report

Mar. 25, 2011 (Business Wire) — ZAGG® (NASDAQ: ZAGG) (www.ZAGG.com), a market leader in innovative mobile device accessories, reported the filing of its Form 10-K for 2010. The Company will file its Proxy Statement by April 30, 2011.

Biostar Pharmaceuticals, Inc. (BSPM) Reports Record 2010 Results

CryptoLogic (CRYP) Announces Strategic Review

CryptoLogic Limited
Chairman and Interim CEO
+353 (0) 1 234 0400

CryptoLogic Limited
CFO
+353 (0) 1 234 0400

www.cryptologic.com

Financial Adviser:
Jonathan Hinton/David Smith
+44 (0) 20 7936 3000

Corfin Public Relations

+44 (0) 207 596 2860

Ashley I. Bush, M.D., Ph.D., Joins Adeona’s (AEN) Scientific Advisory Board

Charming Shoppes, Inc. (CHRS) Reports Fourth Quarter Results

BENSALEM, Pa., March 24, 2011 /PRNewswire/ — Charming Shoppes, Inc. (Nasdaq: CHRS) a leading multi-brand apparel retailer specializing in women’s plus-size apparel, today reported sales and operating results for the three and twelve month periods ended January 29, 2011. Additionally, the Company announced the alignment of its Lane Bryant and Lane Bryant Outlet divisions, and the further rationalization of its store base during 2011. In separate news, the Company announced the appointment of Anthony M. Romano as the Company’s President and Chief Executive Officer and a member of the Company’s Board of Directors and the appointment of Brian Woolf as Group President – Lane Bryant.

Commenting on the results for the quarter, Anthony M. Romano, President and Chief Executive Officer of Charming Shoppes, Inc. said, “During the fourth quarter of 2010, we stabilized our businesses, generated positive comparable store sales and improved our operating performance. The improvement in our fourth quarter results was driven by a more targeted holiday fashion assortment, an improved in-stock inventory position in our intimate apparel and core bottoms programs, and a more aggressive promotional and advertising program than in previous holiday seasons. Our holiday assortments were well received, and drove strong results in categories such as fashion knit tops and sweaters, novelty t-shirts, year-round wear-to-work bottoms, and core denim. Our assortments drove a 9% increase in our comparable store sales, including an 11% increase at Lane Bryant, and sales at our online businesses increased 41% for the quarter. While we have made progress, we recognize that our results follow double-digit negative same-store sales performance over the previous two holiday seasons.

“Our gross profit dollars increased by $12.2 million and operating expenses decreased by $11.9 million (excluding impairment and other charges, refer to GAAP to non-GAAP reconciliation below), and decreased as a percent of sales by 520 basis points during the period.

“As to our profitability, we have made progress, increasing adjusted EBITDA by $23.6 million compared to the year-ago quarter. Our leverage on operating expenses was primarily driven by higher sales volume and decreased store operating expenses, which included lower rent expense as a result of the operation of fewer stores and lease negotiations. We also drove additional credit card promotions in order to incentivize our customer to use our private label credit cards, which resulted in increased income from our card programs.

“Sharp increases in cotton-based raw materials pricing were not a factor in our fourth quarter results; however, as we look to 2011, we do expect a modest increase in product costs for our Spring season, further increasing as we enter the Summer season, with the biggest challenges in Fall and Holiday. To mitigate these increases, each brand is planning to selectively increase pricing across its product assortments, while being aware of the competitive environment and the price sensitivity of our customers.”

Fourth Quarter Consolidated Results

• Net sales for the three months ended January 29, 2011 increased $36.8 million or 6.8% to $575.8 million, compared to $539.0 million for the three months ended January 30, 2010. The increase in sales was related to a 9% increase in comparable store sales and an increase in e-commerce sales, partially offset by the impact of operating 85 fewer stores than in the year-ago period. E-commerce sales increased 41% to $39.0 million in the fourth quarter, compared to $27.8 million in the year ago period. The Company’s Figi’s food and gifts division, which is primarily a fourth quarter business, delivered a 7% net sales increase, which was driven by increased catalog circulation during the period.
• Gross profit increased $12.2 million to $247.6 million in the quarter, compared to $235.4 million in the same quarter last year, related to higher sales volume and partially offset by a modest decrease in the gross margin. The gross margin decreased by 70 basis points to 43.0% for the quarter ended January 29, 2011, compared to 43.7% for the quarter ended January 30, 2010, related to the Company’s increased promotional activity throughout the quarter.
• Total operating expenses, excluding impairment charges and restructuring and other charges, decreased $11.9 million to $255.1 million or 44.3% of sales in the quarter, compared to $267.0 million or 49.5% of sales in the same quarter last year (refer to GAAP to non-GAAP reconciliation below). Selling, General and Administrative expenses decreased by $7.7 million and improved by 320 basis points, primarily resulting from lower store expenses and an increase in income from the Company’s private label credit card program. Additionally, Occupancy and Buying expenses decreased by $3.7 million and improved by 180 basis points, resulting from lower rent expense as a result of the operation of fewer stores and lease negotiations. Both SG&A expenses and Occupancy and Buying expenses leveraged on higher sales volume.
• The quarter ended January 29, 2011 included impairment charges of $17.1 million and restructuring and other charges of $4.0 million. As a result of the Company’s impairment review, 157 stores were identified as having asset carrying values in excess of such stores’ respective forecasted cash flows, which resulted in a non-cash impairment charge. Restructuring and other charges for the quarter ended January 29, 2011 were primarily related to the Company’s strategic decision as announced today to close all 30 Catherines stores located in outlet centers. The quarter ended January 30, 2010 included store impairment charges of $15.7 million, charges of $0.9 million related to the sale of the Company’s proprietary credit card receivables program, and restructuring and other charges of $0.5 million.
• Adjusted EBITDA for the fourth quarter was $10.7 million, compared to negative adjusted EBITDA of $(12.9) million in the prior-year period (refer to GAAP to non-GAAP reconciliation below), reflecting an improvement of $23.6 million.
• Loss from operations, excluding impairment charges and restructuring and other charges, was $7.5 million or (1.3)% of sales in the fourth quarter. The year over year loss was narrowed by $24.1 million compared to loss from operations of $31.6 million or (5.9)% of sales for the prior-year period, which excluded store impairment charges, restructuring charges, and charges related to the sale of the Company’s proprietary credit card receivables program, (refer to GAAP to non-GAAP reconciliation below).
• Net loss on a GAAP basis was $30.4 million, (5.3)% of sales, or $(0.26) per diluted share for the fourth quarter, compared to net loss on a GAAP basis of $28.0 million, (5.2)% of sales, or $(0.24) per diluted share in the fourth quarter of the prior year.
• On a non-GAAP basis, net loss per diluted share was $(0.08), compared to net loss per diluted share of $(0.36) in the fourth quarter of the prior year. Both periods’ results on a non-GAAP basis exclude impairment charges, restructuring and other charges, charges related to the sale of the Company’s proprietary credit card receivables program and gain on the repurchase of debt. Results for the fourth quarter of the prior year exclude the impact of an income tax benefit from a tax law change. These items aggregate $(0.18) net loss per diluted share for the quarter ended January 29, 2011, and $0.12 net income per diluted share for the quarter ended January 30, 2010. (Refer to GAAP to non-GAAP reconciliation below.)
• The Company’s cash position for the quarter ended January 29, 2011 was $117 million, compared to $187 million for the period ended January 30, 2010. Total liquidity was $271 million, including $117 million in cash and $154 million of net availability under the Company’s committed and undrawn line of credit. (Refer to comments below for additional information.)
• The Company did not repurchase any of its 1.125% Senior Convertible Notes due 2014 (the “Notes”) during the quarter ended January 29, 2011. During the year ended January 29, 2011, the Company repurchased Notes with an aggregate principal amount of $49.2 million for an aggregate purchase price of $38.3 million. Since 2009, the Company has repurchased Notes with an aggregate principal amount of $134.5 million for an aggregate purchase price of $88.9 million.

Commenting on the Company’s performance and liquidity, Eric M. Specter, Executive Vice President and Chief Financial Officer said, “Our liquidity has remained at very healthy levels throughout the year, and included $117 million in cash and net availability of $154 million on our fully committed and undrawn revolving line of credit at year end. During the fourth quarter, our cash position increased by $13 million compared to the end of the third quarter as a result of our improved adjusted EBITDA results, and improved sell-throughs of our merchandise at each of our brands. Year over year decreases in our cash balances are primarily attributable to repurchases of our 1.125% Senior Convertible Notes, and increases in investment in inventory net of accounts payable at year end.”

The Company’s Fiscal 2011 capital expenditures plan, net of $2 million in landlord allowances, is approximately $37 million. This capital is to be deployed, after satisfying the Company’s return on investment criteria, for approximately 5-7 new store openings, 10-13 relocations, store remodeling and refurbishment, and to fund fixtures for new merchandise assortments.

Twelve Months Consolidated Results

• Net sales for the twelve months ended January 29, 2011 decreased $2.8 million or 0.1% to $2.062 billion, compared to $2.065 billion for the twelve months ended January 30, 2010. The year over year decrease is related to 85 net store closings over the previous 12 months.
• Comparable store sales increased 3% for the twelve months, compared to a comparable store sales decrease of 13% in the prior-year period. E-commerce sales increased 38% to $131.4 million, compared to $95.1 million in the year-ago period. The Company’s Figi’s food and gifts division, which is primarily a fourth quarter business, delivered a 9% net sales increase for the twelve months, which was driven by increased catalog circulation.
• Gross profit decreased $8.6 million to $1.015 billion for the twelve months, compared to $1.024 billion in the same period last year. The gross margin decreased by 40 basis points from 49.6% of sales to 49.2% of sales for the twelve months ended January 29, 2011, primarily attributable to increased promotional activity during the fourth quarter.
• Total operating expenses, excluding impairment, restructuring and other charges, and charges related to the sale of the Company’s proprietary credit card receivables program decreased $16.3 million to $1.033 billion or 70 basis points to 50.1% of sales during the twelve months, compared to $1.049 billion or 50.8% of sales in the same period last year, (refer to GAAP to non-GAAP reconciliation below).
• The year ended January 29, 2011 included impairment charges of $17.1 million, restructuring and other charges of $8.8 million and gain on repurchase of debt of $1.9 million. The year ended January 30, 2010 included restructuring and other charges of $31.7 million, store impairment charges of $15.7 million, charges of $14.2 million related to the sale of the Company’s proprietary credit card receivables program, and gain on the repurchase of debt of $14.0 million.
• Adjusted EBITDA (refer to GAAP to non-GAAP reconciliation below) was $50.2 million or 2.4% of sales during the twelve months, reflecting a decrease of $0.3 million compared to $50.5 million or 2.4% of sales in the prior year.
• Net loss on a GAAP basis was $54.0 million, (2.6)% of sales, or $(0.47) per diluted share for the twelve months, compared to net loss on a GAAP basis of $78.0 million, (3.8)% of sales, or $(0.67) per diluted share in the prior year.
• On a non-GAAP basis, net loss per diluted share was $(0.26), compared to net loss per diluted share of $(0.52) in the prior year. Both periods’ results on a non-GAAP basis exclude impairment charges, restructuring and other charges, charges related to the sale of the Company’s proprietary credit card receivables program and gain on the repurchase of debt. Results for the fourth quarter of the prior year exclude the impact of an income tax benefit from a tax law change. These items aggregate $(0.21) net loss per diluted share for the year ended January 29, 2011, and $(0.15) net loss per diluted share for the year ended January 30, 2010. (Refer to GAAP to non-GAAP reconciliation below.)

Sales results for the three and twelve month periods ended January 29, 2011 and January 30, 2010 were:

Looking Ahead

Romano stated, “Following our improvements in sales and operating performance in the fourth quarter, now is the appropriate time to challenge our business model and further position ourselves for a return to profitability.

“Four areas that I plan to emphasize are:

• Intensify our focus on our primary target customers specific to each of our brands
• Improve our overall profitability by brand and at the enterprise level
• Increase inventory productivity both qualitatively and quantitatively
• Build a ‘winning’ culture”

Intensify our focus on our primary target customers

The Company, as a plus-sized specialty retailer, believed size was its differentiating characteristic, focusing on fit and in-stock inventory position and without appropriate emphasis on fashion, outfitting and the emotional connection with its customers.

Romano said, “Our customer has many facets to her, just like every other customer segment in retail. We are re-committing ourselves to listening more intently to her, including through focus groups, online surveys and analyses of demo-graphic and psycho-graphic data to appropriately segment and target our customers. She wants and deserves to look and feel her best.”

Improve overall profitability by Brand and at the Enterprise level

Romano continued, “We are taking a number of steps to leverage our flagship brand, Lane Bryant, including aligning the full-price and outlet divisions and maximizing our Cacique intimate apparel opportunity throughout our entire brand portfolio. Brian Woolf has been appointed Group President – Lane Bryant, with responsibility for the Lane Bryant, Lane Bryant Outlet and Cacique® intimate apparel brands. These initiatives will strengthen and support our ‘One Brand – One Vision’ strategy for the Lane Bryant brand, including consistency of product, design, sourcing, marketing and pricing strategies. Our new structure will ensure that we do not disappoint her while we simultaneously benefit from operating efficiencies through the alignment of the two retail store concepts.”

At Fashion Bug, the customer clearly wanted a return to separate Missy and Plus store presentations. Accordingly, the selling floor has been reset so that the Plus customer has a separate and unique approach to her shopping experience, including all of the options presented to Fashion Bug’s Missy customers and more. Easier to shop, the new visual and merchandising presentation now includes more compelling outfitting looks, as well as the opportunity to showcase key fashion trends.

The Company will continue to rationalize its store base and accordingly, will be closing approximately 240 unprofitable stores in 2011. More than half of these stores are at Fashion Bug. Catherines Plus Sizes will be closing all their 30 stores operating in outlet locations over a two-year period. These stores in outlet centers have not met the Company’s profitability objectives and as a group, are generating negative EBITDA.

Increase inventory productivity both qualitatively and quantitatively

Romano continued, “Quantitatively, the Company became accustomed to lower inventory turns because we were serving a size intensive array of customers by providing them with three fits in three lengths in eight sizes. While the approach was right, our execution has been weak. We will improve our inventory management through tiered inventory investments so as to maximize our returns.

“Qualitatively, we must upgrade our offerings. We were far too basic and not responsive to our customers’ fashion preferences. We mistakenly believed being in-stock with great-fitting merchandise was good enough. It clearly wasn’t. Each of our brands continues to make significant progress in its merchandise assortments, most notably in their efforts to ensure the items work together as outfits.

Winning Culture

“We recognize that attracting and retaining key talent is a major ingredient of all successful businesses,” said Romano. “As such, we are committed to building a winning culture in an organization that is driven by respect, performance and integrity. We are pleased to share that we have been active in our talent management efforts with a number of key executive promotions and appointments.”

Jonathon Graub has been promoted to Executive Vice President – Real Estate, and will continue to report directly to Romano. Graub has served as the Company’s Senior Vice President – Real Estate since December 1999, and has been instrumental in driving savings and efficiencies in the Company’s store portfolio.

At Lane Bryant, in addition to Brian Woolf’s promotion to Group President, Lou Ann Bett has been appointed Senior Vice President and GMM of Sportswear, Accessories and Jewelry. Bett’s appointment was made in conjunction with the internal move of Carrie Klein to lead the Company’s Intimate Apparel business as Senior Vice President and GMM of Cacique/Intimates. Additionally, Sandra Tillet has been appointed Senior Vice President, Director of Stores.

Joan Munnelly has joined the Catherines brand, as Senior Vice President, Merchandising.

The Company’s Charming Direct division has made the following internal promotions: Jeffrey H. Liss to Senior Vice President and Chief Operating Officer of Charming Direct and C. Kenneth Mowry, Jr. to Senior Vice President of Marketing and Creative of Charming Direct.

In tandem with Romano’s October 2010 promotion to Chief Operating Officer, Bryan Q. Eshelman joined Charming Shoppes as Senior Vice President, Operations. He has responsibility for Technology, Logistics, Technical Design and Quality Assurance, and reports directly to Anthony M. Romano, President and Chief Executive Officer.

Romano added, “We are pleased to be strengthening our team through new executives and internal promotions.”

Romano concluded, “I believe our customer is underserved and I am passionate about providing her with the fashion, fit and value that she desires and deserves. With our strong brands and solid foundation within a growing market niche, I am very optimistic about the long-term value of and opportunities for Charming Shoppes. I look forward to our future.”

Charming Shoppes, Inc. will host its fourth quarter earnings conference call today at 9:15 a.m. Eastern time. To listen to the conference call, please dial 877-407-8293 approximately 10 minutes prior to the scheduled event. The conference call will also be simulcast and rebroadcast at http://phx.corporate-ir.net/phoenix.zhtml?c=106124&p=irol-audioArchives. The general public is invited to listen to the conference call via the webcast or the dial-in telephone number.

A transcript of prepared remarks for the conference call will be accessible at http://phx.corporate-ir.net/phoenix.zhtml?c=106124&p=irol-audioArchives following today’s conference call.

The conference call will be recorded on behalf of Charming Shoppes, Inc. and consists of copyrighted material. It may not be re-recorded, reproduced, transmitted or rebroadcast, in whole or in part, without the Company’s express written permission. Accessing this call or the rebroadcast constitutes consent to these terms and conditions. Participation in this call serves as consent to having any comments or statements made appear on any transcript, broadcast or rebroadcast of this call.

At January 29, 2011, Charming Shoppes, Inc. operated 2,064 retail stores in 48 states under the names LANE BRYANT®, CACIQUE®, LANE BRYANT OUTLET®, FASHION BUG®, FASHION BUG PLUS® and CATHERINES PLUS SIZES®. The Company also operates the Figi’s family of brands, including the holiday food and gifts catalog Figi’s® Gifts in Good Taste®, the home and gifts catalog Figi’s® Gallery and its wholesale unit Figi’s Business Services. During the twelve months ended January 29, 2011 the Company opened 9, relocated 6, converted 34 and closed 94 retail stores. The Company ended the period with 846 Lane Bryant and Lane Bryant Outlet stores, 743 Fashion Bug and Fashion Bug Plus stores and 475 Catherines stores, comprising approximately 13,376,000 square feet of leased space. For more information about Charming Shoppes and its brands, please visit www.charmingshoppes.com, www.lanebryant.com, www.cacique.com, www.fashionbug.com, www.catherines.com, www.loop18.com, www.figis.com, and www.figisgallery.com.

*SEC REGULATION G — Charming Shoppes, Inc. reports its financial results in accordance with generally accepted accounting principles (GAAP). However, management believes that non-GAAP performance measures, which exclude certain charges that the Company does not consider part of its ongoing operating results when assessing the performance of the Company, present the operating results of the Company on a basis consistent with those used in managing the Company’s business, and provide users of the Company’s financial information with a more meaningful report on the condition of the Company’s business. We believe that adjusted EBITDA, along with other measures, provides a useful pre-tax measure of our ongoing operating performance and our ability to meet debt service and capital requirements on a comparable basis excluding the impact of certain items and capital-related non-cash charges. We use adjusted EBITDA, along with other measures, to monitor and evaluate the performance of our business operations and we believe that it enhances our investors’ ability to analyze trends in our business, compare our performance to other companies in our industry, and evaluate our ability to service our debt and capital needs. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.

Safe Harbor Statement

This press release contains and the Company’s conference call may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the Company’s operations, performance, executive management changes, and financial condition. Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those indicated. Such risks and uncertainties may include, but are not limited to: the failure to successfully execute our in-stock inventory strategy could result in higher than planned levels of promotional activity in order to sell through excess inventory, the failure to successfully execute our business plans could result in lower than planned sales and profitability, the failure to realize the benefits from the sale of our credit card program to, and the operation of our credit card program by, our third-party provider, the impact of changes in laws and regulations governing credit cards could limit the availability of, or increase the cost of, credit to our customers, the failure to enhance the Company’s merchandise and marketing and accurately predict fashion trends, customer preferences and other fashion-related factors, the failure of growth in the women’s plus apparel market, the failure to continue receiving financing at an affordable cost through the availability of credit we receive from our bankers, suppliers and their agents, the failure to effectively implement our planned store closing plans, the failure to continue receiving accurate and compliant e-commerce and third-party processing services, the failure to achieve improvement in the Company’s competitive position, the failure to maintain efficient and uninterrupted order-taking and fulfillment in our e-commerce and direct-to-consumer businesses, extreme or unseasonable weather conditions, economic downturns, escalation of energy and transportation costs, adverse changes in the costs or availability of fabrics and raw materials, a weakness in overall consumer demand, the failure to find suitable store locations, increases in wage rates, the ability to hire and train associates, trade and security restrictions and political or financial instability in countries where goods are manufactured, the failure of our vendors to deliver quality and timely shipments in compliance with applicable laws and regulations, the interruption of merchandise flow from the Company’s centralized distribution facilities and third-party distribution providers, inadequate systems capacity, inability to protect trademarks or other intellectual property, competitive pressures, and the adverse effects of natural disasters, war, acts of terrorism or threats of either, or other armed conflict, on the United States and international economies. These, and other risks and uncertainties, are detailed in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other Company filings with the Securities and Exchange Commission. Charming Shoppes assumes no duty to update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

TranS1 Inc. (TSON) Announces AxiaLIF 1L+ 510(k) FDA Clearance

WILMINGTON, N.C., March 24, 2011 (GLOBE NEWSWIRE) — TranS1 Inc. (Nasdaq:TSON), a pioneer in minimally invasive approaches to lumbar spine surgery, today announced the 510(k) clearance of the AxiaLIF^® 1L+ product line, an instrumentation and implant system for L5-S1 lumbar fusion.

The AxiaLIF 1L+ system represents the next generation of the original AxiaLIF 1L system first launched in 2005 that has a clinical history of over 10,000 implants. TranS1 will commence a limited market release immediately with the new implant and instrumentation and anticipates full commercial release in the second half of 2011.

“Our new AxiaLIF 1L+ system further demonstrates TranS1’s commitment to continuously advance our proprietary AxiaLIF core technology. The 1L+ system builds upon our successful 2L+ system launched last year,” stated Ken Reali, TranS1’s President and CEO. “The modular approach of the 1L+, coupled with the tapered tip design, allows for more precise distraction capabilities and improvement in pull out strength. Further, through our minimally invasive pre-sacral access, the 1L+ implant provides a biomechanically stable implant at the base of the spine.”

“I am particularly excited by the availability of the 1L+ implant,” commented Dr. James Billys from the Florida Orthopedic Institute. “The 1L+ represents a real advancement in the AxiaLIF technology that will allow me to manually distract the L5-S1 disc space providing even greater control of the procedure and ultimately a strong fusion outcome.”

About TranS1 Inc.

TranS1 is a medical device company focused on designing, developing and marketing products that implement its proprietary approach to treat degenerative conditions of the spine affecting the lower lumbar region. TranS1 currently markets the AxiaLIF family of products for single and multilevel lumbar fusion and the Vectre and Avatar posterior fixation systems. TranS1 was founded in May 2000 and is headquartered in Wilmington, North Carolina. For more information, visit www.trans1.com.

CONTACT: TranS1 Inc.
         Investors:
         Joe Slattery, Chief Financial Officer
         910-332-1700

         Westwicke Partners
         Mark Klausner
         443-213-0501
         trans1@westwicke.com

LightPath Technologies (LPTH) Develops Additional Direct-to-China Sales Channels

ORLANDO, FL — (Marketwire) — 03/24/11 — LightPath Technologies, Inc. (NASDAQ: LPTH), a global manufacturer, distributor and integrator of optical components and assemblies, announced today that it has continued the expansion of its direct selling channels in China as part of its strategy to deliver high volumes of aspheric lenses and laser delivery systems to Asian manufacturers of optical equipment. Based on the adoption rate of aspheric lenses in multiple market segments in China, the market for aspheric lenses in Asia is expected to top $280 Million by the end of 2011. LightPath’s molded aspheric lenses provide cost savings over traditional high volume spherical doublet and triplet lenses without sacrificing performance.

The Company has signed two new distributors to create comprehensive market coverage in China. LIENHE Corp (www.lienhe.com.cn) and ETSC (www.etsc-tech.com). Both of these distributors are based in China and provide LightPath with new, valuable selling channels into specific targeted market segments that capitalize on increased demand from Chinese manufacturers. The addition of these two distributors extends the company’s sales channels in China to six distributors covering several different market segments and complements our direct sales force.

Jim Gaynor, CEO of LightPath, commented, “LightPath continues to successfully execute a growth strategy that addresses specific high volume target markets in Asia, Europe and the Americas. Our agreements with LIENHE and ETSC give LightPath significantly expanded exposure throughout China in the telecommunications and fiber optic markets. When combined with our recently expanded distribution agreement with AMS Technologies in Europe, and WPG in the Americas and South Asia, LightPath has dramatically broadened our sales channels around the world.”

About LightPath Technologies
LightPath manufactures optical products including precision molded aspheric optics, GRADIUM® glass products, proprietary collimator assemblies, laser components utilizing proprietary automation technology, higher-level assemblies and packing solutions. The Company’s products are used in various markets, including industrial, medical, defense, test & measurement and telecommunications. LightPath has a strong patent portfolio that has been granted or licensed within these fields. For more information, visit www.lightpath.com.

This news release includes statements that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This information may involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, factors detailed by LightPath Technologies, Inc. in its public filings with the Securities and Exchange Commission. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we do not have any intention or obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise.

GRADIUM® is a registered trademark of LightPath Technologies.

Contact:
Ray Pini
Director of Marketing
LightPath Technologies, Inc.
Phone: (407) 382-4003 x336
Email: rpini@lightpath.com
Internet: www.lightpath.com

Walgreens to Acquire Online Retailer drugstore.com, inc. (DSCM)

Mar. 24, 2011 (Business Wire) — Walgreen Co. (NYSE: WAG) (NASDAQ: WAG) and online retailer drugstore.com, inc. (NASDAQ: DSCM) today announced a definitive merger agreement pursuant to which Walgreens will acquire drugstore.com in a transaction with a total enterprise value of approximately $409 million.

“Our acquisition of drugstore.com today significantly accelerates our online strategy to leverage the best community store network in America by becoming the most convenient choice for health and daily living needs whether customers shop online or in our stores,” said Walgreens President and CEO Greg Wasson. “This acquisition offers a unique opportunity that will provide us immediate access to more than 3 million savvy, online loyal customers, and will allow us to move even closer to our existing customers through relationships with new vendors and partners, adding approximately 60,000 products to our already strong online offering. Importantly, drugstore.com’s well-recognized presence in the health, personal care, beauty and vision categories, including such strong websites as drugstore.com™, Beauty.com™, SkinStore.com™ and VisionDirect.com™, will complement and extend many of our own multi-channel initiatives that have been driving growth in our business. As a result, we are positioned better than ever to be the most convenient multi-channel retailer of health and daily living needs in America – offering customers what they want, when they want it and where they want it.”

Under the terms of the merger agreement, drugstore.com stockholders will receive $3.80 in cash for each share of stock, which represents an equity value of approximately $429 million. The price per share is a premium of approximately 102 percent over drugstore.com’s 30-day average closing stock price, and a premium of approximately 113 percent over the closing price of drugstore.com’s common stock on March 23, 2011, the last trading day prior to today’s announcement.

Consummation of the merger is subject to customary conditions, including satisfaction of regulatory requirements and approval of the transaction by drugstore.com’s stockholders. Walgreens will fund the acquisition with existing cash and anticipates the merger will close by the end of June 2011. The definitive agreement was unanimously approved by drugstore.com’s board of directors, and drugstore.com’s board recommends that the company’s stockholders vote in favor of the transaction.

“We believe the acquisition of drugstore.com by Walgreens is a great fit for all of our constituencies,” said Dawn Lepore, drugstore.com CEO and Chairman. “drugstore.com benefits from this transaction by joining the largest and most trusted drugstore chain in the U.S. Our growth strategies are perfectly aligned, and Walgreens will be able to accelerate and expand the investments necessary to achieve our vision and growth opportunities. Our goal consistently has been to create value for our customers, employees and shareholders. We believe we have made significant progress over the last six years and built an organization with a broad and deep bench of Internet experience. The opportunity to become a part of Walgreens is the right next step in this journey.”

With more than $456 million in sales in 2010, drugstore.com is ranked as the eighth-largest e-tailer in the U.S. according to Internet Retailer magazine. Walgreens will maintain drugstore.com’s corporate office in Bellevue, Wash., after the transaction is completed. drugstore.com employs approximately 1,000 people at its offices, call center and distribution centers.

As a result of the merger, Walgreens will acquire the drugstore.com website in addition to other websites operated by the company.

Walgreens President of E-commerce Sona Chawla said, “This is a very exciting time for the Walgreens e-commerce business as we expand and build our multi-channel capabilities for a $67 billion sales company with the best and most convenient store network in America. drugstore.com significantly accelerates our multi-channel initiatives by expanding our product selection for our customers, adding new capabilities through their well-known beauty and skin care websites, and joining their talented team with our strong and growing e-commerce organization. Over the past two years, we’ve established the infrastructure from which to grow our multi-channel products and services, and by combining drugstore.com’s capabilities we are well on our way to achieving our goal of becoming the most convenient multi-channel retailer for health and daily living needs.”

The transaction is consistent with Walgreens previously outlined capital allocation objectives, which include investing in strategic opportunities that reinforce the company’s core strategies and meet return requirements.

The company anticipates the transaction to be dilutive to earnings per share in the fourth quarter of fiscal 2011 by approximately 3 cents due to transaction-related one-time costs. Based on Walgreens intention to reinvest in the business, the company further anticipates the transaction to be dilutive to earnings per share by 3 to 4 cents in fiscal 2012, and 1 to 2 cents in fiscal 2013. Approximately 1 cent of the anticipated annual dilution per share is due to the estimated impact of incremental amortization based on Purchase Accounting assumptions. The company also anticipates an approximately $80 million present value cash flow benefit associated with the assumption of drugstore.com’s net operating losses and other tax related benefits.

drugstore.com will maintain separate branding of its websites after the transaction closes. Over the long term, Walgreens intends to enhance its multi-channel product assortment and the overall customer experience by leveraging drugstore.com’s websites.

drugstore.com was founded in 1998 with a mission to serve the health, beauty and wellness consumer with selection, convenience, information and personal service. The web store was launched on Feb. 24, 1999.

Credit Suisse Securities (USA) LLC acted as financial advisor to Walgreens in the transaction, and the law firms of Sidley Austin LLP and Weil Gotshal & Manges LLP served as legal counsel for Walgreens. Allen & Company LLC and Sonenshine Partners LLC acted as financial advisors to drugstore.com. The law firm of Wilson Sonsini Goodrich & Rosati, Professional Corporation served as legal counsel to drugstore.com.

About Walgreens

Walgreens (www.walgreens.com) is the nation’s largest drugstore chain with fiscal 2010 sales of $67 billion. The company operates 7,689 drugstores in all 50 states, the District of Columbia and Puerto Rico. Each day, Walgreens provides nearly 6 million customers the most convenient, multi-channel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice in communities across America. Walgreens scope of pharmacy services includes retail, specialty, infusion, medical facility and mail service, along with respiratory services. These services improve health outcomes and lower costs for payers including employers, managed care organizations, health systems, pharmacy benefit managers and the public sector. Take Care Health Systems is a Walgreens subsidiary that is the largest and most comprehensive manager of worksite health centers and in-store convenient care clinics, with more than 700 locations throughout the country.

About drugstore.com, inc.

drugstore.com, inc. is a leading online retailer of health, beauty, clinical skincare, and vision products. Our portfolio of brands includes: drugstore.com™, Beauty.com™, SkinStore.com™ and VisionDirect.com™. All provide a convenient, private and informative shopping experience, while offering a wide assortment of approximately 60,000 non-prescription products at competitive prices.

The drugstore.com pharmacy service, in association with BioScrip Pharmacy Services, Inc., is certified by the National Association of Boards of Pharmacy (NABP) as a Verified Internet Pharmacy Practice Site (VIPPS) and complies with federal and state laws and regulations in the United States.

Additional Information about the Transaction

This press release is not, and is not intended to be, a solicitation of proxies or an offer of securities. drugstore.com plans to file with the SEC and mail to its stockholders a Proxy Statement in connection with the transaction. The Proxy Statement will contain important information about Walgreens, drugstore.com, the transaction and related matters. Investors and security holders are urged to read the Proxy Statement carefully when it is available. Investors and security holders will be able to obtain free copies of the Proxy Statement and other documents filed with the SEC by drugstore.com through the website maintained by the SEC at www.sec.gov and by contacting drugstore.com Investor Relations at (212) 331-8424. In addition, investors and security holders will be able to obtain free copies of the documents filed with the SEC on drugstore.com’s website at www.drugstore.com.

Participants in the Acquisition of drugstore.com

drugstore.com and its directors and officers and certain other members of management and employees may be deemed to be participants in the solicitation of proxies from its stockholders in connection with the Transaction. Information regarding these persons who may, under the rules of the SEC, be considered participants in the solicitation of drugstore.com’s stockholders in connection with the proposed transaction will be set forth in the Proxy Statement described above when it is filed with the SEC. Additional information regarding drugstore.com’s executive officers and directors is included in drugstore.com’s definitive proxy statement, which was filed with the SEC on April 30, 2010. You can obtain free copies of this document from drugstore.com using the contact information above.

Forward-Looking Statements

Information set forth in this press release contains forward-looking statements, which involve a number of risks and uncertainties. These statements include those regarding the closing of the transaction and the expected timing thereof and the potential effects of the acquisition. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that could cause actual results to vary materially from those indicated, including: the ability to obtain regulatory approvals of the transaction on the proposed terms and schedule; the failure of drugstore.com’s stockholders to approve the transaction; the risk that the businesses will not be integrated successfully; the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers; competition and its effect on pricing, spending, third-party relationships and revenues; and other factors described in Walgreens Annual Report on Form 10-K for the year ended August 31, 2010, drugstore.com’s Annual Report on Form 10-K for the year ended January 2, 2011 and their respective subsequent SEC filings, which risks and uncertainties are incorporated herein by reference. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent required by law, Walgreens and drugstore.com disclaim any obligation to update any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise.

For Walgreens

Media:

Michael Polzin, (847) 315-2920

michael.polzin@walgreens.com

or

Investors:

Rick Hans, CFA, 847-315-2385

rick.hans@walgreens.com

http://news.walgreens.com

or

For drugstore.com

Brinlea Johnson, (212) 331-8424

brinlea@blueshirtgroup.com

www.drugstore.com

PFSweb (PFSW) Reports Fourth Quarter and Year-End 2010 Results

Mar. 23, 2011 (Business Wire) — PFSweb, Inc. (Nasdaq: PFSW), an international business process outsourcing services provider of end-to-end web commerce solutions, today announced its financial results for the fourth quarter and year ended December 31, 2010.

Mark Layton, Chairman and Chief Executive Officer of PFSweb, stated, “Our results for the fourth quarter and year ended December 31, 2010 are a testament to the renewed strength of our business and our ability to capitalize on new opportunities in the expanding eCommerce industry. Our Service Fee revenue increased more than 35% during the fourth quarter of 2010 as compared to the prior year, and more than 20% for the full calendar year. This strong Service Fee revenue growth, combined with a continued focus on cost effective technology development and operational management, resulted in an increased Adjusted EBITDA performance of 328% in the fourth quarter of 2010, as compared to the prior year, and more than 55% for the full calendar year.

“We continue to see strong acceptance of our eCommerce services in the U.S. as well as in Europe, which has recently shown vast opportunity for our solutions. This led to us launching more than 10 new client programs during 2010, including Carter’s, Juicy Couture, Kensie, Monet, Volcom, Havaianas, and several brands under a master agreement with a leading fragrance and beauty company. Most of these new client arrangements include new custom branded eCommerce sites supported by our complete End2End solution, which is a packaged offering that generally includes the Demandware eCommerce platform, along with our logistics and fulfillment capabilities, high-touch customer care, financial services and various interactive marketing services.”

Summary of consolidated results for the fourth quarter ended December 31, 2010:

• Total revenue increased to $76.3 million for the fourth quarter of 2010 compared to $72.8 million for fourth quarter of 2009;
• Service Fee revenue increased more than 35% to $21.7 million, compared with $16.0 million for the same period in 2009;
• Adjusted EBITDA (as defined) was $2.6 million versus $0.6 million for the fourth quarter of 2009;
• Net loss was $2.7 million, or $0.22 per basic and diluted share, compared to net loss of $0.9 million, or $0.10 per basic and diluted share, for the fourth quarter of 2009. Net loss for the fourth quarter of 2010 included a $3.2 million loss from discontinued operations related to eCOST.com. Net loss for the fourth quarter of 2009 included $0.4 million income from discontinued operations related to eCOST.com;
• Non-GAAP net income (as defined) was $0.7 million, or $0.05 per basic and diluted share, compared to a non-GAAP net loss of $1.3 million, or $0.13 per basic and diluted share, for the fourth quarter of 2009;
• Total cash, cash equivalents and restricted cash was $20.3 million as of December 31, 2010 compared to $16.9 million as of December 31, 2009.

Summary of consolidated results for the year ended December 31, 2010:

• Total reported revenue was $274.5 million compared to $267.9 million for the year ended December 31, 2009;
• Service Fee revenue increased 20.5% to $70.6 million, compared with $58.6 million for the same period in 2009;
• Adjusted EBITDA (as defined) was $5.5 million compared to $3.5 million for the year ended December 31, 2009;
• Net loss was $7.4 million, or $0.65 per basic and diluted share, compared to net loss of $4.6 million, or $0.46 per basic and diluted share, for the year ended December 31, 2009. Net loss for 2010 included a $4.0 million loss from discontinued operations related to eCOST.com. Net loss for 2009 included $0.3 million income from discontinued operations applicable to eCOST.com;
• Non-GAAP net loss was $1.9 million, or $0.17 per basic and diluted share, compared to non-GAAP net loss of $4.5 million, or $0.45 per basic and diluted share, for the year ended December 31, 2009.

“We believe we are well positioned to maintain strong growth moving forward, as we expect demand for our services will continue to increase. Our pipeline for potential new Service Fee business currently totals more than $50 million, based on client projections, the largest in PFSweb’s history, with potential new clients in several expanding markets, including the fashion, cosmetics and consumer packaged goods markets. To support the ongoing growth of our business, we are in the process of expanding capacity at select warehouse and customer care facilities and making other strategic investments that will also allow us to offer new capabilities. Based on our expected Service Fee revenue growth of approximately 20% in calendar year 2011, combined with the incremental investments we are making to support our long-term initiatives, we are currently targeting to report Adjusted EBITDA between $6.0 million to $7.0 million for the year ended December 31, 2011,” continued Mr. Layton.

“In an effort to streamline our operations and improve our overall financial results, we made the strategic decision to divest the eCOST.com business. We believe this action will allow us take what we have learned at the frontline of the web commerce retail world and focus that knowledge more resourcefully on our growing Service Fee business. As a result of this divestiture, we reported certain financial results as ‘discontinued operations’ for the quarters and years ended December 31, 2010 and 2009. In addition, we recorded a non-cash goodwill impairment charge of approximately $2.8 million for the quarter and year ended December 31, 2010, which is included in the discontinued operations,” concluded Mr. Layton.

Conference Call Information

Management will host a conference call at 10:30 am Eastern Time (9:30 am Central Time) on Wednesday, March 23, 2011, to discuss the latest corporate developments and results. To listen to the call, please dial (888) 562-3356 and enter the pin number 49410379 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. 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 April 23, 2011 at (800) 642-1687, pin number 49410379. The replay also will be available at the Company’s website for a limited time.

Non-GAAP Financial Measures

This news release may contain certain non-GAAP measures, including non-GAAP net income (loss), Earnings Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA.

Non-GAAP net income (loss) represents net income (loss) calculated in accordance with U.S. GAAP as adjusted for the impact of non-cash stock-based compensation expense, income (loss) from discontinued operations and executive disability benefits.

EBITDA represents earnings (or losses) before income (loss) from discontinued operations, interest, income taxes, depreciation, and amortization. Adjusted EBITDA further eliminates the effect of stock-based compensation and executive disability benefits.

Non-GAAP net income (loss), EBITDA and Adjusted EBITDA are used by management, analysts, investors and other interested parties in evaluating our operating performance compared to that of other companies in our industry. The calculation of non-GAAP net income (loss) eliminates the effect of stock-based compensation, income (loss) from discontinued operations and executive disability benefits and EBITDA and Adjusted EBITDA further eliminate the effect of financing, income taxes, and the accounting effects of capital spending, which items may vary from different companies for reasons unrelated to overall operating performance.

PFSweb believes these non-GAAP measures provide useful information to both management and investors by excluding certain expenses that may not be indicative of its core operating results. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measures included in this press release have been reconciled to the GAAP results in the attached tables.

About PFSweb, Inc.

PFSweb develops and deploys comprehensive end-to-end eCommerce solutions for Fortune 1000, Global 2000 and brand name companies, including interactive marketing services, global fulfillment and logistics and high-touch customer care. The company serves a multitude of industries and company types, including such clients as P&G, LEGO, Carter’s, Lucky Brand Jeans, Juicy Couture, Kensie, Monet, kate spade new york, AAFES, Riverbed, InfoPrint Solutions Company, Hawker Beechcraft Corp., Roots Canada Ltd. and Xerox.

To find out more about PFSweb, Inc. (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, 2009 and Quarterly Report on Form 10-Q for the nine months ended September 30, 2010 identify 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.