iSteelAsia.com announces Placing of New Shares on the GEM Board

(Hong Kong, April 16, 2000) The Directors of iSteelAsia.com Limited ("iSteelAsia.com" or "the Company") today announce details of the Company's Placing of New Shares ("the Placing") for listing on the Growth Enterprise Market of the Hong Kong Stock Exchange ("the GEM Board"). The Company is offering 100,000,000 New Shares (subject to an Over-allotment Option) by way of a Placing at an issue price of HK$1.08 per Placing Share.

Dealings in the Company's shares on the GEM Board of the Stock Exchange of Hong Kong are expected to commence on Thursday, 20 April 2000.

The New Shares offered represent 6.89% of the Company's enlarged share capital of 1,452,000,000 shares. Based on the issue price of HK$1.08 per Placing Share, the Company's market capitalization is estimated at HK$1,568 million.

The global coordinator, bookrunner, sponsor and lead manager of the Placing is BNP Prime Peregrine. ABN AMRO Rothschild, Asia Financial (Securities) Limited, CLSA Emerging Markets, Dresdner Kleinwort Benson and Salomon Smith Barney International are the co-managers.

Mr. Andrew Yao, Founder, Chairman and CEO of the Company said, "We are pleased to be making this announcement. We have received a positive encouragement internationally from investors during our roadshow. We are widely recognized as a dynamic pioneer in on-line steel trading. We are fully committed to pressing ahead with our business plan. Our listing will underline our first mover advantage, attract long-term strategic partners and investors, and make iSteelAsia the leading Asian steel exchange vortal and a major global force in the steel industry. Our listing will further strengthen our ability to attract top caliber online talent."

iSteelAsia.com is the first steel exchange vertical portal worldwide to be listed, and the first B2B vortal to list on Hong Kong's GEM board.

Net proceeds of the Placing are expected to be approximately HK$88.4 million, among which HK$31 million will be used for acquiring interests in value-added information and service provider(s), funding start-up and on-going operating costs as well as developing a country specific website. The Company also intends on utilizing HK$26.4 million to conduct marketing and promotional activities; HK$15.5 million for engagement of independent consultants and internal activities to formulate, revamp and refine the Company's business strategies and operations. The remaining HK$15.5 million will be for the acquisition of content for the websites.

Commenting on the iSteelAsia.com's decision to reduce the size of the Placing and to adjust the Issue Price, Mr. Andrew Yao said, "The adjustments were made in the light of the present market sentiment. We are however very confident about the long-term prospects and viability of iSteelAsia.com. We are already recording regular trades on our site which demonstrates that our B2B model is a sustainable franchise, and the short-term volatility of the market will not deter us from realizing our value".

Mr. Yao further explained that "The size of the industry, first mover advantage, a solid business model and excellent management team are the keys to success for an Internet vortal. We are greatly encouraged by the support shown by the strategic investors who have shared our vision. In addition, BNP Prime Peregrine and other renowned international institutions' underwriting commitment also demonstrate solid confidence from the investment community in iSteelAsia.com."

Mr. Yao added, "Given the size of the steel industry, the increased popularity of the Internet and the inherent inefficiencies in the supply chain of the steel industry, the Directors believe that the potential for an Internet-based vertical portal for the steel market is significant. iSteelAsia.com aims to become the premier B2B vortal for the steel community in the Asia-Pacific region with a critical mass of buyers and sellers who effect an ever-increasing proportion of transactions through iSteelAsia.com's trading platform.

With an initial focus on cross-border trade involving the Asia-Pacific region, the Company also intends to pursue business opportunities to adapt iSteelAsia's concept and technology to Asia's domestic steel markets and to position iSteelAsia.com as a prominent, informative and liquid trading platform for the global steel industry."

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.