GSI Commerce and Dick's Sporting Goods Extend E-Commerce Agreement With New 15-Year Contract - SNEWS

GSI Commerce and Dick's Sporting Goods Extend E-Commerce Agreement With New 15-Year Contract

New deal to provide customers with enhanced multichannel experience including in-store pickup and in-store ordering.
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KING OF PRUSSIA, Pa. and PITTSBURGH, Aug. 26 -- GSI Commerce Inc. (Nasdaq: GSIC), a leading provider of e-commerce and multichannel solutions, and Dick's Sporting Goods Inc. (NYSE: DKS), announced today that they have signed a new 15-year contract, extending their successful relationship. Sales through dickssportinggoods.com have grown to more than 10 times the sales it experienced since the beginning of its relationship with GSI in 2001.

"Our goal is to provide a high-quality, seamless shopping experience for our customers across all channels," said Edward W. Stack, chairman and CEO of Dick's Sporting Goods. "We've had a very successful relationship with GSI for the past seven years, evidenced by the significant growth of our e-commerce business. This new deal gives us even more flexibility, greater control and ultimately enables us to better serve our customers while accelerating our multichannel strategy."

Under the agreement, Dick's Sporting Goods will be the seller of merchandise through its e-commerce business beginning Feb. 1, 2009, and GSI will continue to provide Dick's Sporting Goods with a full suite of services, including e-commerce technology, customer service, fulfillment, drop ship management, interactive marketing and e-mail marketing. Dick's Sporting Goods will concentrate on enhancing its customers' experience by better aligning their online assortment of merchandise with their stores. New capabilities such as in-store pickup and in-store ordering will also be added, making the experience more convenient for customers.

"We are excited to take our partnership with Dick's Sporting Goods to the next level," said Michael G. Rubin, chairman and CEO of GSI. "This new agreement will better position us to maximize value for both companies. We believe Dick's Sporting Goods has tremendous multichannel potential given their position as one of the largest and fasting growing retailers in the United States and the preeminent player in sporting goods retail."

Consistent with Dick's Sporting Goods' goal to have a seamless multichannel operation, under the new agreement, Dick's Sporting Goods will buy and own the sporting goods inventory sold online. This is a significant change from the prior agreement and is comparable with GSI's other multichannel non-owned inventory e-commerce agreements.

Dick's Sporting Goods' current contract with GSI was set to expire in 2011. "As we conducted a thorough evaluation of potential options for how to better serve our customers, we determined that continuing to work with GSI was the best alternative for us," said Stack. "We believe that GSI offers the best solution that complements our long-term strategic plan and that they are the right e-commerce provider to help us grow our multichannel business another 10 times over the next decade."

Related to the deal, gsi interactive(sm), a division of GSI, was selected as the digital marketing agency of record for Dick's Sporting Goods, providing design services, paid search, comparison shopping engines (CSEs) and affiliate marketing services. Dick's Sporting Goods also has agreed to continue to utilize the services of e-Dialog, a wholly owned subsidiary of GSI, to continue to supply Dick's Sporting Goods with enhanced permission-based e-mail marketing services to its Scorecard members designed to maximize their long-term customer value.

About Dick's Sporting Goods, Inc.

Dick's Sporting Goods, Inc. is an authentic full-line sporting goods retailer offering a broad assortment of brand name sporting goods equipment, apparel, and footwear in a specialty store environment. As of August 2, 2008, the Company operated 357 Dick's Sporting Goods stores in 38 states primarily throughout the eastern half of the U.S. The Company also owns Golf Galaxy, Inc., a multi-channel golf specialty retailer, with 84 stores in 30 states, ecommerce websites and catalog operations and Chick's Sporting Goods, Inc., which operates 15 specialty sporting goods stores in Southern California.

About GSI Commerce

GSI Commerce® (www.gsicommerce.com) is a leading provider of services that enable e-commerce, multichannel retailing and interactive marketing for large, business-to-consumer (b2c) enterprises in the U.S. and internationally. We deliver customized e-commerce solutions through an e-commerce platform, which is comprised of technology, fulfillment and customer care. We offer each of the platform's components on a modular basis, or as part of an integrated, end-to-end solution. We also offer a full suite of interactive marketing services through two divisions, gsi interactive(sm) and e-Dialog Inc. (www.e-dialog.com).

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements made in this release, other than statements of historical fact, are forward-looking statements. Actual results might differ materially from what is expressed or implied by these forward-looking statements. Additional 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.

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