GSI Commerce, Inc. reported that net revenue for its third fiscal quarter ended September 27, 2003 was $47.5 million in the third quarter of fiscal 2003, compared with net revenue of $32.3 million in the third quarter of
fiscal 2002, an increase of 46.9%.

The net loss was $5.5 million in the third quarter of fiscal 2003, compared with net loss of $8.6 million in the third quarter of fiscal 2002. Net loss per share was $0.14 in the third quarter of fiscal 2003, compared with net loss per share of $0.22 in the third quarter of fiscal 2002.

EBITDA loss was $2.0 million in the third quarter of fiscal 2003, compared to EBITDA loss of $5.9 million in the third quarter of fiscal 2002. EBITDA represents earnings (or loss) before interest income/expense, taxes, depreciation and amortization and stock-based compensation.

“GSI Commerce continued its trend of strong performance in the third quarter of 2003, with excellent sales growth and reductions in EBITDA loss and net loss compared to the prior year period. Our year to date results demonstrate solid execution and a growing market opportunity. We are reiterating our previously issued fourth quarter
guidance and continue to expect to achieve EBITDA and GAAP
profitability in fiscal 2004,” said Michael Rubin, Chairman and CEO of GSI Commerce.

Net merchandise sales increased 51% over the prior year quarter, including a 49% increase in sporting goods, a 98% decrease attributable to the Ashford.com business, which GSI Commerce sold in December 2002, and a 108% increase in other categories.

Sales and marketing, product development and general and administrative expenses, collectively, increased 1.8% over the prior year quarter, and declined, collectively, to 39.4% of net revenue from 56.9% of net revenue.

Inventory declined to $22.4 million from $32.4 million a year ago.

The company expects full-year fiscal 2003 net revenue to be in the range of $228-$234 million with net merchandise sales is expected to be in the range of $269-$275 million.
The company's net loss is expected to be in the range of $12-$14 million and the EBITDA loss is expected to be in the range of $0-$2.0 million.

For the fourth quarter, net revenue is expected to be in the range of $82-$88 million and net merchandise sales is expected to be in the range of $107-$113 million. Net income is expected to be in the range of $1.5-$3.0 million and EBITDA is expected to be in the range of $4.5-$6 million.

                 
                  GSI COMMERCE, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands, except per share data)
                              (unaudited)

                             Three Months Ended     Nine Months Ended
                            Sept. 28,  Sept. 27,   Sept. 28, Sept. 27,
                               2002       2003       2002       2003
                            --------   --------   --------   --------
  Revenues:
   Net revenues from product
    sales                    $27,778    $42,521    $85,721   $132,416
   Service fee revenues        4,545      4,962     11,596     14,294
                            --------   --------   --------   --------
        Net revenues          32,323     47,483     97,317    146,710
  Cost of revenues from
   product sales              20,257     30,778     61,011     95,938
                            --------   --------   --------   --------
        Gross profit          12,066     16,705     36,306     50,772
                            --------   --------   --------   --------
  Operating expenses:
    Sales and marketing,
     exclusive of $154,
     $419, $155 and $927
     reported below as
     stock-based
     compensation,
     respectively             11,362     11,789     30,297     35,335
    Product development,
     exclusive of $0, $38,
     $(44) and $38 reported
     below as stock-based
     compensation,
     respectively              3,317      3,860      8,720     11,553
    General and
     administrative,
     exclusive of $27, $171,
     $(148) and $355
     reported below as
     stock-based
     compensation,
     respectively              3,708      3,078     10,757      9,713
    Restructuring costs
     related to Ashford            -         19          -         19
    Gain on sale of Ashford
     assets                     (379)         -       (379)         -
    Stock-based compensation     181        628        (37)     1,320
    Depreciation and
     amortization              2,585      3,119      6,692      8,551
                            --------   --------   --------   --------
    Total operating expenses  20,774     22,493     56,050     66,491
                            --------   --------   --------   --------
  Other (income) expense:
    Interest expense             127          -        389          -
    Interest income             (270)      (243)    (1,096)      (914)
                            --------   --------   --------   --------
        Total other (income)
         expense                (143)      (243)      (707)      (914)
                            --------   --------   --------   --------
   Net loss                  $(8,565)   $(5,545)  $(19,037)  $(14,805)
                            ========   ========   ========   ========
  Losses per share - basic
   and diluted:
    Net loss                  $(0.22)    $(0.14)    $(0.49)    $(0.38)