iSteelAsia.com Reports 10%Growth
And Decreased Operating Loss for Third Quarter
Gross Profit Margins also Improve Despite Lull in Steel Industry

Hong Kong, 13th February, 2001 ¢w iSteelAsia.com Limited ("iSteelAsia.com" or the "company", HKSE: 8080) today announced its unaudited consolidated results for the nine months ended 31st December, 2000 ("Q3").

For the period, the company recorded a turnover of approximately HK$140.5 million, representing a 10% increase over the corresponding period in the previous financial year. Through stringent cost control measures, the company's net loss decreased to approximately HK$12 million, representing a 17% decrease when compared to the second quarter (six months ended 30th September, 2000), and a 64% decrease when compared to the first quarter (three months ended 30th June, 2000) of the current financial year.

For the traditional steel trading operation, the company has increased the gross profit margin to approximately 12%, as compared to only 5% in the second quarter. This is achieved by focusing on the selling of higher margin products.

As of 31st December, 2000, a total of approximately US$162 million worth of traded transactions have been concluded through iSteelAsia.com since the launch of the website in December 1999. Commission income generated was approximately HK$8.4 million.

Commenting on the Group's performance during the period under review, Mr. Andrew Yao, Chairman and CEO of iSteelAsia.com said, "We are pleased to report the third quarter results, despite a lull in the global steel industry, which adversely affected performance. Responding to these outside factors, we have decreased marketing and branding expenses 78% when compared to the first quarter and 40% when compared to the second quarter of this financial year. Similarly, research and development expenses have decreased 79% from approximately HK$14.1 million to HK$2.9 million when comparing this quarter against that of the first quarter. All such efforts have helped to keep us on track towards profitability."

Membership, transaction postings, completed transaction volume and commission income have all indicated continued healthy growth. Since listing in April 2000, year-to-date membership has grown 110% to over 3,000 and year-to-date transaction postings have grown 399%, while total completed transaction volume has grown 387%, yielding a commission income growth of 610%.

As part of its "Global Vision, Asian Focus" strategy, iSteelAsia.com acquired a strategic stake in the London based Stemcor Holdings Limited, one of the largest independent global steel trader. The first stage investment was completed in January 2001. As part of the investment by iSteelAsia, Stemcor committed to transact a portion of its steel trading volume through iSteelAsia.com.

"The investment is the first of its kind in the steel industry. It will definitely boost our liquidity and tap Stemcor's knowledge base, both in terms of value-added service and steel trading," Yao said. "Given Stemcor's well-established global presence, we are in an advantageous position to leverage these resources to further develop our market position in a more efficient manner and to further strengthen our competitiveness in this dynamic global steel industry."

In addition, for markets outside of Asia, iSteelAsia.com will cooperate with McDonald Investments Inc., a U.S. midwest-based investment bank specialized in the steel industry, to jointly explore and evaluate business development opportunities in key markets around the world.

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Corporate Information

iSteelAsia.com Limited
Launched in December 1999, iSteelAsia.com Limited ("iSteelAsia.com") was Asia's first online exchange for trading in steel and steel products. It is the first of its kind to be listed on the Hong Kong Stock Exchange's GEM board in April 2000. Focused on the Asian steel community, iSteelAsia.com aims to offer an open and neutral marketplace for steel trading. Trading competitiveness and efficiency are optimized on iSteelAsia.com as players can access a full spectrum of buyers and sellers and timely market knowledge. iSteelAsia.com serves as a single point of contact offering financing, insurance, surveying, shipping and logistics services, providing members with a one-stop end-to-end steel trading.

To date, iSteelAsia.com has over 3,000 registered members who regularly use its online trading services and access into its online Reuters and Asian Information Resources Limited. For details, please visit : www.isteelasia.com

For further information, please contact:

iSteelAsia.com Limited
Ms. Betty Jane Leon
Senior Marketing Manager
E-mail: betty.leon@isteelasia.com