KING OF PRUSSIA, Pa., April 19 /PRNewswire-FirstCall/ -- GSI Commerce Inc. today announced it has made an equity investment in WebCollage Inc., a privately held provider of Web content integration solutions for manufacturers and retailers headquartered in New York. The investment was part of a new round of financing for WebCollage and GSI Commerce was joined by existing WebCollage investors Cedar Fund and Sierra Ventures. GSI Commerce and WebCollage also entered into an alliance to provide content syndication solutions to the e-commerce partners of GSI Commerce.

"We see the role of content syndication expanding and becoming more important as consumers increasingly are relying on the Web as their prime source of product information," said Michael G. Rubin, chairman and CEO of GSI Commerce. "Our investment and new alliance with WebCollage demonstrates our continuing commitment to strategically invest, enhance and grow the features, functions and services that we offer as part of our overall e-commerce solution. In turn, this helps our partners grow their direct-to-consumer businesses faster and more profitably than they could on their own."

"We welcome GSI Commerce's investment in our company and look forward to providing their e-commerce partners with content syndication solutions that better educate and inform their customers as they research and shop online," said Eli Singer, CEO and co-founder of WebCollage. "This alliance will bring the power of enhanced product marketing to the GSI Commerce platform and the opportunity to turn more of their partners' online customers from browsers into buyers."

In 2005, Shop.org and Forrester Research noted that retailers were beginning to invest in online content because it was seen as an effective tool to influence and drive sales - regardless of consumer choice of purchasing channel. Research conducted by the Online Publishers Association found that more than 90 percent of people ages 18 through 54 use the Web to research product information.

"When you analyze the trends, we believe content syndication is one of the most important forces shaping the evolution of e-commerce," said Steven Davis, senior vice president of partner services for GSI Commerce. "Our investment and alliance with WebCollage will provide our e-commerce partners with a solution that offers more control, a broader scope and larger scale for providing and receiving online, branded product content. WebCollage is a leader in content syndication and provides a seamless and affordable approach to delivering a required solution," said Davis.

Syndicating online product merchandising content through WebCollage is much more than simply copying and pasting content from one Web site to others. The solution compiles, reformats, integrates, customizes and updates content to meet the needs of each online channel partner. ASP-based, the solution works by capturing a manufacturer's existing product marketing materials and syndicating the content to various online channel partners.

Manufacturers gain greater control over their brand and product presentation and retailers benefit by offering online customers enhanced product information. When an online consumer clicks and requests more information about a product, WebCollage serves that information to the consumer on a separate Web page that carries the retailer's branding, but also includes engaging and pertinent product information as well as the product's branding. Interested consumers can then read, listen, or watch information specific to their product selection.

Four GSI Commerce Partners Launching Content Syndication

Four of GSI Commerce's partners in both the home and consumer electronics categories either are implementing WebCollage's product, or have gone live with the solution during April. Ace Hardware, for example, an e-commerce partner of GSI Commerce since 2003, recently implemented a syndicated content solution for KitchenAid(R) blenders on its Web store (http://www.acehardware.com/product/index.jsp?productId=1334239&cp=&origk... nders&kw=blenders&parentPage=search&searchId=5590711171). When an online consumer clicks on the "Learn More from KitchenAid" button, an Ace Hardware-branded Web page is displayed. The page includes product pictures and a menu bar consumers can access to learn more about KitchenAid's classic blender, including information about the blender's premium features, the blades, available speeds, and types of blender jars.

About GSI Commerce

GSI Commerce is a leading provider of e-commerce solutions that enable retailers, branded manufacturers, entertainment companies and professional sports organizations to operate e-commerce businesses. We provide solutions for our partners through our integrated e-commerce platform, which is comprised of three components: technology, logistics and customer care and marketing services. We either operate, or will operate pursuant to signed agreements, all or portions of the e-commerce businesses for more than 50 partners.

About WebCollage

WebCollage helps Fortune 1000 companies extend their online presence to indirect customers and offline buyers. With WebCollage, businesses can increase indirect sales and preserve their brand identity and message across online channels with distinctive and consistent brand and product presentation on every business partner's Web site. WebCollage's patented, award-wining technology automates the end-to-end process of sharing Web content and applications - enabling companies to reuse Web content and applications across an unlimited number of business partners' Web sites. Founded in 1999, WebCollage is headquartered in New York, N.Y. For more information, visit http://www.webcollage.com/, or call 1-212-563-2112.

Forward-Looking Statements

All statements made in this release, other than statements of historical fact, are forward-looking statements. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "will," "would," "should," "guidance," "potential," "continue," "project," "forecast," "confident," "prospects," "schedule," and similar expressions typically are used to identify forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business of GSI Commerce. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements. Factors which may affect GSI Commerce's business, financial condition and operating results include the effects of changes in the economy, consumer spending, the financial markets and the industries in which GSI Commerce and its partners operate, changes affecting the Internet and e-commerce, the ability of GSI Commerce to develop and maintain relationships with strategic partners and suppliers and the timing of its establishment, extension or termination of its relationships with strategic partners, the ability of GSI Commerce to timely and successfully develop, maintain and protect its technology, confidential and proprietary information, and product and service offerings and execute operationally, the ability of GSI Commerce to attract and retain qualified personnel, the ability of GSI Commerce to successfully integrate its acquisitions of other businesses, if any, the performance of acquired businesses and the impact of SFAS 123(R). More information about potential factors that could affect GSI Commerce can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed by GSI Commerce with the SEC. GSI Commerce expressly disclaims any intent or obligation to update these forward-looking statements.

Contact: Greg Ryan Director, Corp. Communications tel: 610-491-7294 e-mail: ryang@gsicommerce.com

CONTACT: Greg Ryan, Director, Corp. Communications, GSI Commerce,
+1-610-491-7294 or ryang@gsicommerce.com

Web site: http://www.gsicommerce.com/