GSI Commerce Receives $3.75 Million from Pennsylvania for Economic Development and Employee Job Training
KING OF PRUSSIA, Pa., March 21, 2006 – GSI Commerce Inc. (Nasdaq: GSIC) announced it has received grants totaling approximately $3.75 million from the Commonwealth of Pennsylvania for economic development and employee job training. The company has received approximately $3 million from the Redevelopment Assistance Capital Program (RACP) for the construction and renovation of the company’s corporate headquarters in King of Prussia. The company also was deemed eligible by the state Department of Community and Economic Development (DCED) to receive an additional $750,000 for employee job training assistance.
Prior to purchasing its new King of Prussia property, GSI Commerce evaluated commercial real estate options in Pennsylvania, New Jersey and Delaware. In 2004, the company met with Gov. Edward Rendell, members of the Governor’s Action Team, DCED, the Montgomery County Redevelopment Authority and state Sen. Constance Williams. After these meetings, it was concluded the optimal choice for the company was to obtain assistance from the commonwealth through the RACP and remain in the King of Prussia area. In June 2004, the company purchased an unfinished, four-story, 104,000-sq.-ft. building at 935 First Avenue. The company moved its headquarters into the new location during November of the same year.
RACP is a component of the governor’s economic stimulus package, which leverages grants, loans and guarantees to generate private sector investment, and help Pennsylvania’s businesses succeed. RACP grants are awarded, in part, for an applicant’s potential to improve economic growth and to create jobs. GSI Commerce currently employs approximately 525 people at its new headquarters – approximately 100 more people than the company employed prior to purchasing the new facility in June 2004.
As part of the company’s decision to locate its new corporate headquarters in Pennsylvania, the DCED, through its Customized Job Training (CJT) and its Workforce & Economic Development Network (WEDnetPA) grants, awarded the company a job training assistance grant for up to $750,000. The training grant is administered in phases. Currently, the company is using its first round of approved funding to train eligible employees in several areas including, management and leadership, communication and programming.
“Our company has grown rapidly during the last several years, and we expect to continue to grow as we build a leadership position in the e-commerce industry,” said Michael G. Rubin, chairman and CEO of GSI Commerce. “Our choice to continue to locate our corporate headquarters in King of Prussia provided us with options that will help support our future growth. I thank the commonwealth for providing the RACP grant and I also thank Gov. Rendell, state Sen. Williams and the Montgomery County Redevelopment Authority for the roles they played in helping the company obtain a grant from the program. Their action demonstrates a commitment to help businesses stay and grow in Pennsylvania.”
“We are using our resources to keep companies like GSI Commerce in Pennsylvania and to support job creation and business expansion throughout the state,” said Gov. Rendell. “Our investments are helping to revitalize our towns and cities and keep our businesses competitive. The results are a record number of jobs and an unemployment rate that has dropped to a five-year low—great news for workers and employers.”
“The new GSI Commerce headquarters is a welcome addition to the King of Prussia business community,” said Sen. Williams who worked with the Montgomery County Redevelopment Authority and with GSI Commerce during the grant process. “I am glad to have supported the company’s efforts with the governor to obtain the state funding it needed to make this project a reality. I believe this was a prudent investment of state dollars that will help strengthen job creation and the economic vitality of the commonwealth.”
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: core technology, supporting infrastructure and partner services. We either operate, or will operate pursuant to signed agreements, all or portions of the e-commerce businesses for more than 50 partners.
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,” 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 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
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