First online steel trade in Asia at iSteelAsia.com

(Hong Kong, 20 January 2000) The Asian steel industry entered the Internet age with the first ever online steel trade in the Asian region, between Duferco Group of Switzerland and Shougang Concord ("Shougang"), conducted on the revolutionary iSteelAsia.com online trading portal. On 11 January 2000, Duferco traded US$1 million of Prime newly rolled high tensile reinforcement bars with Shougang, with specifying, sourcing, negotiation and purchasing transacted entirely online through iSteelAsia.com's systems. This is the first time that a complete business-to-business e-commerce transaction has been conducted on a Greater China vertical portal industry Web site - marking a step forward in the evolution of e-business in the region.

iSteelAsia.com provides an open trading community and neutral marketplace for buyers and sellers of steel products, who can access a vast increased range of clients and make huge economies in cost, time and efficiency through the online trading system. With systems created by iMerchants, a pioneer and leader in providing e-commerce to businesses in Hong Kong and Asia, iSteelAsia.com offers value-added services to industry players: real-time information, industry news, steel industry gossip and personalized services as well as an online auction system that cuts out hours of time-consuming negotiation by phone and fax. Payment and value-added banking services are handled by ABN AMRO. In addition, the SSL system secures the entire transaction from enquiry to completion, ensuring that all trades are confidential and safe from interference. Other value-added services include free freight insurance for transactions conducted on-site, surveying and exhaustive vetting of all potential trading partners. Commencing operations in 1999, iSteelAsia.com is now a fully functioning trading forum, only weeks after its launch.

This first trade reflects the recognition that iSteelAsia.com has achieved already from the Asian steel industry, which accounts for 45% of overall world consumption. Already over 800 members have registered to take advantage of its services since it commenced operation in November 1999. Membership of the site is free, and users have all the speed and efficiency benefits of online B2B (business-to-business) e-commerce provided to them without the expense and effort of implementing their own systems. iSteelAsia.com lowers transactions costs by linking all service providers in a single trade, broadens the client base - thereby increasing competition and marketing efficiency - and eliminates the need for expensive proprietary systems. Analysts have estimated the process cost savings of e-commerce at up to 25%, leading to total cost savings of around 10%. The speed of the transaction and global reach of this trade, between Switzerland and Hong Kong, demonstrates the immense benefits of the online trading system for users.

"We are immensely impressed by the speed, convenience and efficiency of the portal. It represents the trend of steel trading. It has significantly improved the operational efficiency of our steel trading business", Shougang stated. Mr. Trevor Hughes, spokesman for partners in the trade Duferco, has said, "this is a great business opportunity for us, setting us ahead of the competition in terms of the savings in cost and time we can make in our trades." "iSteelAsia.com is extremely positive about the future of the online steel trade. We have received enthusiastic responses from major steel industry players and anticipate membership rising to 6,000 by the year end," says Andrew Yao, Founder and CEO of iSteelAsia.com.

One of iSteelAsia.com's value-added services provider has been just as ready to praise its success. "We are very impressed with the security of iSteelAsia.com's operation - and we are glad to be helping them complete their portfolio of value-added services", says Mr. Johnson Kwok, Director of Houlder Insurance Brokers (Far East) Ltd, iSteelAsia.com's insurance consultant.

According to Mr Francis Kong, Head of Cash Management and Securities Services Asia Pacific at ABN AMRO, "iSteelAsia.com is a business model that can provide value-added e-commerce solutions to players in the steel industry and ABN AMRO is pleased to be the portal's first financial settlement bank. By providing integrated payment and collection services, members can settle transactions efficiently and obtain timely information. Furthermore, with our world-wide coverage in 76 countries and territories, buyers and sellers can also benefit from local support."

About iSteelAsia.com
Limited Launched in December 1999, iSteelAsia.com (iSteelAsia) 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 aims to offer an open and neutral marketplace for steel trading. Trading competitiveness and efficiency are optimised on iSteelAsia as players can access a full spectrum of buyers and sellers and timely market knowledge. iSteelAsia 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 has over 2,600 registered members who regularly use its online trading services and access into its online Reuters and Asia Information Resources News.