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EXHIBIT 99.2
TUESDAY APRIL 3, 7:05 AM EASTERN TIME
PRESS RELEASE
DAISYTEK AND PFSWEB ANNOUNCE ADDITIONAL SEPARATION PLANS
LETTER OF INTENT SIGNED FOR PURCHASE OF SELECTED ASSETS TO SUPPORT NEW DZTK
OFFICE PRODUCTS STRATEGY
ALLEN & PLANO, Texas--(BUSINESS WIRE)--April 3, 2001-- Daisytek International
Corporation (Nasdaq:DZTK - news) and PFSweb, Inc. (Nasdaq:PFSW - news) today
announced the signing of a nonbinding letter of intent that accelerates the
process of separating the business operations and functions of the two
companies.
Under terms of the letter, Daisytek will acquire certain distribution and
fulfillment assets located in Memphis, Tenn., currently used by PFSweb to
provide outsourcing services to Daisytek, and it will also assume certain
related leases.
Daisytek plans to hire PFSweb employees who currently support the services
provided to Daisytek. Additionally, Daisytek and PFSweb will enter into a
short-term information technology and transition services fee agreement that
will facilitate the separation of Daisytek's and PFSweb's information technology
operations and functions. The companies also will terminate all transaction
management services agreements between Daisytek and its subsidiaries and PFSweb
and its subsidiaries, other than the agreements whereby Daisytek and PFSweb
jointly provide distribution and fulfillment services for IBM in Europe and
North America.
Terms of the deal have yet to be finalized, but the transaction is expected to
be in excess of $10 million and is conditioned on the negotiation of a
definitive agreement, the completion of due diligence, receipt from the IRS of a
supplemental private letter ruling that the contemplated asset purchase
transaction does not adversely affect any of the rulings set forth in the
private letter ruling received last June relating to the spin-off of PFSweb and
approval from the board of directors of each company. The closing is expected to
occur on May 2, 2001, or as soon thereafter as the conditions to closing are
satisfied. Additional terms of the transaction were not disclosed.
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About Daisytek:
Daisytek is a leading distributor of computer supplies, office products, and
recordable media. Serving customers in more than 50 countries, Daisytek
distributes more than 20,000 products from more than 150 manufacturers. Daisytek
is headquartered in Allen, Texas, and maintains sales and distribution centers
in the United States, Australia, Canada, Argentina and Mexico. Daisytek is a
registered trademark of Daisytek, Incorporated. All rights reserved. This news
release and more information about Daisytek are available at www.daisytek.com.
The Web site is not part of this release.
The matters discussed in this news release contain both historical and
forward-looking statements. All statements other than statements of historical
fact are, or may be deemed to be, forward-looking information within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Act of 1934, as amended. You can identify these statements by the
fact that they do not relate strictly to historical or current facts, but rather
reflect our current expectations concerning future results and events.
Forward-looking statements relating to such matters as our financial condition
and operations, including forecasted information, are based on our management's
current intent, belief or expectations regarding our industry or us. These
forward-looking statements including forecasts are not guarantees of future
performance and involve risks, uncertainties and assumptions that are difficult
to predict. In addition, some forward-looking statements are based upon
assumptions as to future events that may not prove to be accurate. Therefore,
actual outcomes and results may differ materially from what is expected or
forecasted in such forward-looking statements. We undertake 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.
Certain factors, including but not limited to, general economic conditions,
industry trends, the loss of key suppliers or customers, the loss of strategic
product shipping relationships, customer demand, product availability,
competition (including pricing and availability), risks inherent in acquiring,
integrating and operating new businesses, concentrations of credit risk,
distribution efficiencies, capacity constraints, technological difficulties,
exchange rate fluctuations, and the regulatory and trade environment (both
domestic and foreign) could cause our actual results to differ materially from
the anticipated results or other expectations expressed in our forward looking
statements. Additional factors that could cause or contribute to such
differences include, but are not limited to, risks relating to the completion of
the contemplated transaction, including the risk that required regulatory
clearances or Board of Director approval might not be obtained at all. In
addition, statements in this press release relating to the expected benefits of
the contemplated transaction are subject to risks relating to the timing and
successful completion of transitioning certain information technology,
integration of the acquired assets into Daisytek's operations, unanticipated
expenditures and changing relationships with customers, suppliers and strategic
partners. There may be additional risks that we do not currently view as
material or that are not presently known.
A description of certain of these factors, as well as other factors which could
affect Daisytek, is set forth in Daisytek's 10-K for the fiscal year ended March
31, 2000.
About PFSweb, Inc.
When the world's brand names need proven, fast, and secure business
infrastructure and technology to enable traditional and e-commerce strategies,
they choose PFSweb for comprehensive outsourcing solutions. The PFSweb team of
experts designs diverse solutions for clients around a flexible core business
infrastructure. PFSweb provides solutions that include: professional consulting
services, order management, web-enabled customer contact centers, customer
lifecycle management, international distribution services, billing and
collection services, and ERP information interfacing utilizing the Entente
Suite(SM).
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The matters discussed in this news release (except for historical information)
and, in particular, information regarding future revenue, earnings and business
plans and goals, consist of forward-looking information under the Private
Securities Litigation Reform Act of 1995 and are subject to and involve risks
and uncertainties, which could cause actual results to differ materially from
the forward-looking information. These forward-looking statements are not
guarantees of future performance and involve risks, uncertainties and
assumptions that are difficult to predict. These risks and uncertainties
include, but are not limited to, our reliance on the projections of and fees
generated by the transaction volume or product sales of our clients; the impact
of strategic alliances; trends in the market for our services; trends in
e-commerce; whether we can continue and manage growth; changes in the trend
toward outsourcing; increased competition; effects of changes in profit margins;
the unknown effects of possible system failures and rapid changes in technology;
trends in government regulation; risks of operating overseas and foreign
currency risks; and our relationship with and separation from Daisytek, our
former parent corporation. Additional risks and uncertainties include, but are
not limited to, risks relating to the completion of the contemplated
transaction, including risks that required regulatory clearances or board of
director approval might not be obtained at all. A description of these factors,
as well as other factors, which could affect the Company's business, is set
forth in the Company's Prospectus dated December 2, 1999 and Form 10-K for the
fiscal year ended March 31, 2000, and Form 10-Q for the quarter ended December
31, 2000.
This news release and more information about PFSweb are available at
www.pfsweb.com. PFSweb is a registered trademark. Entente Suite is a service
mark of PFSweb. All rights reserved.
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Contact:
PFSweb
Preston F. Kirk, APR, 830/693-4447
kirk@281.com
or
Daisytek
Craig McDaniel, APR, 214/521-8596
cmcdaniel@mbapr.com