Sports Authority Signs New Deal with GSI Commerce to Enhance Multichannel Experience

Expanded Agreement Includes Ship-to Store, Ship-from Store, In-Store Pickup and In-Store Ordering Capabilities to Increase Overall Customer Loyalty and Satisfaction
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KING OF PRUSSIA, Pa.--GSI Commerce Inc. (Nasdaq: GSIC), a leading provider of e-commerce and interactive marketing solutions, today announced it has signed a long-term agreement with Sports Authority that extends and expands the relationship between the two companies.

Under the new agreement, GSI will continue to provide Sports Authority with a broad array of services, including e-commerce technology, customer care, fulfillment, and interactive marketing. Sports Authority will leverage GSI’s powerful suite of multichannel capabilities to provide its customers with an enhanced shopping experience – both online and in retail stores. New capabilities such as ship-to store, ship-from store, in-store pickup and in-store ordering will be provided through VendorNet, a company GSI acquired earlier this year. Sports Authority will also align its online merchandise assortment with its stores, significantly improving the customer experience.

“Sports Authority is committed to delivering a consistent customer experience across all channels. This new deal supports our multichannel strategy and increases our flexibility and control over cross-channel merchandising,” said Jeff Schumacher, Executive Vice President, CMO and CSO of Sports Authority. “With GSI as our trusted e-commerce partner, we’re confident they’ll be instrumental in helping us further the evolution of our online business.”

“As Sports Authority moves to the next level of its e-commerce strategy, we are privileged to be their e-commerce and digital marketing partner,” said Scott Hardy, executive vice president of business management for GSI. “This long-term agreement speaks to the deep collaboration and shared goals that exist between our companies. We are pleased with the success of our relationship and the potential new and exciting growth opportunities that lie ahead.”

GSI’s Global Marketing Services division will provide Sports Authority with a variety of interactive marketing services delivered via its network of innovative solutions, including design through TrueAction, affiliate marketing through Pepperjam, e-mail marketing through e-Dialog, and retargeting services through Fetchback.

To support a more unified multichannel experience, Sports Authority will buy and own all merchandise sold through its Web store, and will become the seller of record for its e-commerce business in the first half of 2011. This model is comparable to GSI’s other multichannel, non-owned inventory e-commerce relationships, which comprise the majority of its client agreements. As part of the agreement, Sports Authority will purchase GSI’s remaining sporting goods inventory in the first half of 2011.

While this move marks GSI’s exit from its sporting goods owned-inventory model, the company will continue to own inventory for its professional sports league clients and Rue La La. GSI will also support the inventory needs of its remaining sporting goods Web stores through its network of drop-shippers, its ship-to store and ship-from store solutions, consigned inventory and licensed goods inventory.

About Sports Authority

Sports Authority, Inc. ("Sports Authority") is headquartered in Englewood, Colorado. It operates over 460 stores in 45 U.S. states under the Sports Authority and SA Elite brands. The Company's website, located at sportsauthority.com is operated by GSI Commerce Inc. Sports Authority has a rich history, dating back almost a century, of being an industry leader in providing a wide assortment of quality, brand-name sporting goods.

About GSI Commerce

GSI Commerce® 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. GSI delivers customized solutions through an e-commerce platform, which is comprised of technology, fulfillment and customer care and is available on a modular basis or as part of an integrated, end-to-end solution. The company offers a full suite of interactive marketing services through two divisions, TrueAction™ and e-Dialog. Additionally, GSI provides brands and retailers a platform for online private sales through RueLaLa.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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