We are a leading provider of e-commerce solutions that enable retailers, branded manufacturers, entertainment companies and professional sports organizations to operate e-commerce businesses. We began our e-commerce business in 1999 and initially targeted the sporting goods category. Since fiscal 2001, we have expanded our reach and now offer our solution to companies in seven additional retail categories: apparel, health & beauty, consumer electronics, entertainment, home, jewelry & luxury goods and toys. We provide e-commerce solutions for more than 50 partners. We provide solutions for our partners in the United States through our integrated e-commerce platform, which is comprised of three components: technology, logistics and customer care, and marketing services. We employ approximately 1,550 people, the majority of which are based at our headquarters in King of Prussia, Pa., our two fulfillment centers in Kentucky and our customer care center in Melbourne, Fla. We also offer international e-commerce solutions through GSI Commerce Europe Inc., a wholly owned subsidiary of GSI Commerce. GSI Commerce trades on the Nasdaq Stock Exchange under the symbol, GSIC.

While retailers recognize the importance of e-commerce to their overall business strategy, online sales are estimated to account for only a small percent of total retail sales. Because online sales generally represent a small part of retailers' businesses, we believe retailers find it difficult to justify making a significant investment in the technology, infrastructure and expertise required to operate a high quality e-commerce business. By partnering with GSI Commerce, companies can grow their e-commerce businesses more quickly and more cost-effectively than they could on their own.

Our solutions focus on the needs of our partners, including promoting their brand identity and enabling them to remain focused on their core offline businesses. We continually seek to enhance our capabilities to grow our partners' e-commerce businesses and provide a high-quality customer experience. We structure our partner relationships to align our incentives with those of our partners, primarily by tying the financial benefit that we derive from our relationships to the performance of our partners' e-commerce businesses.