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U.S. Auto Parts Network Expands International Workforce


April 2007
 Filed under: CORPORATE Car News | CORPORATE Headlines
CARSON, Calif., April 26 /PRNewswire-FirstCall/ -- U.S. Auto Parts Network, Inc. (NASDAQ:PRTS) , a leading online provider of aftermarket auto parts and accessories, today announced it has entered into an agreement to bring in house certain sales and customer service employees based in the Philippines who are currently supporting the Company through its outsourced call center provider, Access Worldwide. The agreement announced today is expected to be cost-neutral for U.S. Auto Parts for the next six months and to create operating cost savings starting late in 2007 and beyond.

Under the terms of the agreement with Access Worldwide, approximately 182 employees of Access Worldwide will be given the opportunity to become U.S. Auto Parts employees and join our 244 existing direct U.S. Auto Parts employees already working for the Company in the Philippines. Approximately 170 of these employees have already agreed to transition over to direct employment by U.S. Auto Parts' Philippines subsidiary. U.S. Auto Parts has also entered into an agreement to lease workstations in the current Access Worldwide facility in the Philippines for a period of six months. The Company is currently anticipating opening its own call center facility in the Philippines in the second half of 2007 to augment the facilities it already operates there.
"Our call center agents form an integral part of our operations by supporting our network of e-commerce sites and online marketplaces and generating cross-sell and up-sell opportunities," said Mehran Nia, President and Chief Executive Officer. "This is an important move for us as we continue to build our Company and take direct control of the experience customers have with us. We want to make sure we are satisfying our customer at each and every point of contact they have with us, and we believe we can do this best when we have direct control over the employees who work for us in our call centers. We believe that taking direct control of the customer experience will allow us to better serve our customers."

Michael McClane, Chief Financial Officer, added, "As we grow our business, we remain focused on controlling operating expenses and fully leveraging our offshore operations. During the six-month transition period, we expect our costs to remain relatively consistent with historical levels, and once the move to our own facility is complete, we expect to realize cost savings in 2008 and beyond. This is a natural move for us given our existing operations in the Philippines and our proven ability to manage offshore operations in a cost-effective manner."

About U.S. Auto Parts Network, Inc.

Established in 1995, U.S. Auto Parts is a leading online provider of aftermarket auto parts, including body parts, engine parts, performance parts and accessories. Through the Company's network of websites, U.S. Auto Parts provides individual consumers with a comprehensive selection of approximately 550,000 competitively priced products that are mapped by a proprietary product database to over 4.3 million product applications based on vehicle makes, models and years.

U.S. Auto Parts' flagship websites are located at www.partstrain.com and www.autopartswarehouse.com and the Company's corporate website is located at www.usautoparts.net

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are based on management's current expectations, estimates and projections about the Company's business and its industry, as well as certain assumptions made by the Company. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will" and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, the Company's expectations regarding the timing, costs and potential benefits of the Company's new call center and the Company's ability to successfully obtain and transition the Access employees to the Company's Philippines subsidiary. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors.

Important factors that may cause such a difference include, but are not limited to, the Company's ability to locate, equip and operate a new call center and transition the employees and the related support to the Company's Philippines subsidiary; the costs and expenses of building and operating such facility; the ability to retain such employees following the closing of the Purchase Agreement; the ability to effectively staff and manage offshore call center operations; different employment and other legal or regulatory requirements associated with operating a subsidiary in the Philippines; demand for and pricing of the Company's products; the competitive environment in the Company's industry; the Company's ability to expand its product offerings; the Company's ability to control costs and meet the analysts' expectations; changes in general economic or market conditions; and other factors discussed in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the Risk Factors contained in the Company's Annual Report on Form 10-K, and available at www.usautoparts.net and the SEC's website at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements in this release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. Unless otherwise required by law, the Company expressly disclaims any obligation to update publicly any forward-looking statements, whether as result of new information, future events or otherwise.

Source: U.S. Auto Parts Network, Inc.

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