PC Mall’s OnSale Subsidiary Expanding Into “Deal of the Day” Coupon Market

TORRANCE, Calif.–(BUSINESS WIRE)–PC Mall, Inc. (NASDAQ:MALL), a leading IT solutions provider, today announced that its OnSale subsidiary is expanding its business model to become an online destination where consumers can find daily deals on desirable goods and services in their local markets by leveraging the principles of social commerce. OnSale intends to launch this effort through its existing web-site, www.OnSale.com, in several markets with hyper-local marketing programs later in the second quarter, and quickly expand thereafter into other markets across the country. OnSale has already begun partnering with local and national merchants who will offer discounts through the site, and starting today consumers can sign up to receive daily updates and offers as soon as the site is launched. OnSale will bring unique and significant discounts to consumers by allowing merchants to harness the power of this emerging channel, through which they can attract and retain new customers. Businesses offer discounts through OnSale to consumers on terms that work for both the merchant and its customers. OnSale’s mission is to bring innovative value to both merchants and consumers, helping each to find the other.

Commenting on the pending launch of OnSale’s expanded business model, PC Mall’s Chairman and CEO, Frank Khulusi, commented “We are very excited about OnSale’s prospects as it expands into this emerging market which, fueled by the social web, has quickly evolved into an important growth channel for merchants. We have been working for some time to develop what we believe is an innovative, unique value proposition to both merchants and consumers. We have hired dedicated executive and management teams made up of talented professionals, and have approximately 81 people on board as of today. Most members of our support staff are currently working in our operation located in the Philippines. We are rapidly expanding our workforce to meet what we believe is a fantastic market opportunity.”

Khulusi continued, “We feel like our expertise and experience will enable us to drive significant value for both merchants and consumers relative to other, more established players in this market. For instance, unlike other competitors in this space, OnSale has been an online eCommerce merchant for over 10 years. As a result, OnSale can offer consumers the opportunity to leverage rewards programs that provide them significant discounts on computer and consumer electronics products, not just discounts on other third party coupons. Additionally, OnSale is committed to its merchant partners’ success, and has developed what we believe is a unique and value added approach to those merchants.”

Khulusi concluded, “Though there are others in this market that have raised significant capital, and have a bit of a head start on us from a launch perspective, this market is massive. It is an important and growing channel through which local merchants can reach and attract new customers, and consumers can try new products or services in their local markets, while securing significant discounts. We believe that the model we have built is scalable over different verticals and geographies, and can accommodate local, regional, and national deals. In many ways, this is a very natural extension for us. For instance, OnSale will leverage our significant experience in database marketing and expertise locating certain support functions off-shore in the Philippines, as well as our capabilities developing and executing on outbound calling efforts to businesses. We are firmly committed to this market as it evolves, and are already exploring additional avenues of growth for OnSale. The launch of OnSale will be a significant event for us, and we are excited about the future of OnSale and what it means to merchants, consumers and to PC Mall.”

About PC Mall, Inc.

PC Mall, Inc., through its wholly-owned subsidiaries, is a leading value added direct marketer of technology products, services and solutions and is expanding its business model to become an online destination where consumers can find daily deals on desirable goods and services in their local markets by leveraging the principles of social commerce. PC Mall offers its products, services and solutions to small and medium sized businesses, mid-market and enterprise customers, government and educational institutions and individual consumers. Our brands include: PC Mall, PC Mall Gov, Sarcom, MacMall, Abreon, NSPI, eCost and OnSale. In the twelve months ended March 31, 2011, we generated $1.4 billion in revenue and have over 2,600 employees, over 65% of which are in sales or service positions. For more information please visit pcmall.com/investor or call (310) 354-5600.

Third-quarter sales for computer reseller PC Mall decreased 14%, to $280.3 million, down from $325.9 million for the same period last year. The Torrance, CA-based merchant’s net income sank 44% for the quarter ended Sept. 30, to $1.44 million, compared to $2.59 million for the period in 2008.

But PC Mall chairman/CEO Frank Khulusi believes there are signs nationally that the economy is improving. “While consumers and businesses continue to be under significant pressure based on credit and macro-economic conditions, we believe businesses and government agencies have begun to show signs of a return to more normal spending patterns, albeit at reduced levels,” he said in a release.

And PC Mall aims to get in on any uptick in spending. “Our efforts to drive sales and gross profit growth are continuing, and we believe that our team is well equipped to add value to our customers and vendor partners,” Khulusi said. “As I have stated previously, we believe that a recession is not the time to shy away from making strategic investments that we believe are essential for the long-term success of PC Mall, and we expect to continue making these investments for the foreseeable future.”