iSteelAsia: Press Release

iSteelAsia.com expands alliances, signs MOUs with new partners: COFCO, BNP PARIBAS, COSCO (HK) Shipping, Dao Heng Bank and Kawasho

Hong Kong, 5 July 2000 - iSteelAsia.com (HKSE: 8080), the world's first listed steel exchange vertical portal and the first B2B vortal listed on the Hong Kong Stock Exchange's GEM board, today announced the signings of a series of Memoranda of Understanding ("MOUs") with a wide range of new partners to further expand its business relationships and provide new scope of services to its members.

These new business partners include China National Cereals, Oils & Foodstuffs Import & Export Corporation ("COFCO"), one of China's largest conglomerates; BNP PARIBAS, a prominent international merchant bank; COSCO (H.K.) Shipping Co., Limited ("COSCO (HK) Shipping"), a member of the COSCO (Hong Kong) Group and one of the largest dry bulk shipping companies in the world; Dao Heng Bank, a top-tier locally incorporated bank under the Guoco Management Co., Ltd. and Kawasho Corporation, a leading Japanese steel and general trading conglomerate.

COFCO, one of the largest steel end-users in China, will become a Founding Member of iSteelAsia.com. This partnership with one of the largest state-owned enterprises in China is a proof of iSteelAsia.com's ability to execute efficiently and effectively to satisfy the growing needs of steel e-commerce from Chinese conglomerates.

BNP PARIBAS and Dao Heng Bank both propose to develop trade finance products for iSteelAsia.com's members to assist their online trading activities, and to provide up-to-date information on the availability and scope of such products. The huge size of the Asian steel industry and the growing member base of iSteelAsia.com, added to the need of its members for secure and fast online transactions, represent great business potential for the banks.

COSCO (HK) Shipping has undertaken to provide iSteelAsia.com members with up-to-date logistical information and to develop logistics partnerships for the benefit of the site's members, greatly enhancing the value-added services provided by iSteelAsia.com. The partnership enables both parties to explore sharing potential revenue streams.

Kawasho Corporation will join iSteelAsia.com as a Founding Member and assist iSteelAsia.com in marketing the site to business partners in Asia and to explore joint provision of value-added services to other members. Given the size of the steel industry in Asia, this partnership creates great synergy for both parties.

Mr. Ma Li Shan, Vice President of COFCO, said of the MOU: "We share with iSteelAsia.com the belief in its revolutionary steel e-trade business model as a new way of doing business. We anticipate considerable benefits in terms of efficiency and costs for all our member companies as they do more and more trades through the iSteelAsia.com platform."

Mr. Jacques Jouve, Head of Business Development, BNP PARIBAS Hong Kong BRANCH said: "Banking services are already going online in response to the needs of our customers, and integrating these with e-commerce portals is a natural step. Since iSteelAsia.com handles high-value trade business opportunities, we are very pleased to be associated to the development of the site."

Mr Zheng Song, Panamax Fleet General Manager of COSCO (HK) Shipping said: "Our strength in bulk carriers makes this a natural paring for iSteelAsia.com whose members will enjoy the benefits of our services. COSCO (HK) Shipping, with a fleet of dry bulk vessels aggregating to approximately 5 million deadweight tons, ensures that members of iSteelAsia.com can ship cargoes anywhere in the world at the most competitive freight rate. The alliance also extends the customer reach for COSCO (HK) Shipping by leveraging the speed and space of the iSteelAsia.com platform."

Mr. James Eng, Jr., Executive Director of Guoco Management Co., Ltd. said: "It is our long-term strategy to re-engineer our major service delivery channel through our e-banking system. This partnership will help us to further deepen our customer base and support the development of our e-banking services. We are impressed with the way iSteelAsia.com has expanded their vertical portal and are delighted to work with them."

The MOU, which was signed by Kawasho Corporation and iSteelAsia.com, stated that: "By targeting Asia, our mutual corporation is helping to build bridges between the steel communities in various Asian nations, which also have some of the world's largest steel producers. Kawasho applauds this endeavour and are pleased to extend help in expanding iSteelAsia.com's Asian presence and membership."

Commenting on the signing of the MOUs, Ms. Drina Yue, COO of iSteelAsia.com, said: "These partnerships demonstrate the achievements of iSteelAsia.com since its listing in April this year. Their breadth shows the multi-track strategy we are pursuing in increasing our transaction traffic, geographical reach, and value-added services."

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.

About COFCO
Founded in 1952, China National Cereals, Oils & Foodstuffs Import & Export Corporation ("COFCO") has devoted itself to the development of China's foreign trade, economic cooperation and international business in cereals, oils and foodstuffs. COFCO's total volume of imports and exports amounted to US$130 billion during the past 46 years. The Group was also ranked as one of the FORTUNE 500 companies and one of the top 20 leading trading companies in FORTUNE magazine from 1994 to 1997. In terms of net assets, it was ranked the 63rd among China's 500 "backbone" state-owned enterprises and the first in China's foreign trade enterprises in 1996. The domestic and overseas assets of the corporation totalled US$4.5 billion by the end of 1998. With the acquisition of Seabase International Holdings Limited and the World Trade Center Group in 1993, subsequently renamed China Foods Holdings Limited and Top Glory International Holdings Limited respectively, COFCO has successfully ensured access to the international marketplace.

About BNP PARIBAS
BNP PARIBAS is the largest listed banking group in France and the first in terms of net income. It is the fourth largest bank in Europe in terms of stockholders' equity, and the bank has the second largest market capitalization in the euro zone. In term of corporate client base, eighty of the hundred largest groups worldwide have chosen BNP PARIBAS as their bank. In France, BNP PARIBAS' individual customers represent 10% of that market segment and one third of all French small-to-medium-sized enterprises, more than 40% of exporting companies, and most of the major corporations based in France are customers of the bank.

About COSCO (Hong Kong) Shipping Co., Limited
COSCO (H.K.) Shipping was established on August 28th, 1994. It specializes in global dry bulk cargo transportation. As COSCO Pacific (HKSE 1199) and COSCO International Holdings (HKSE 0517), it is one of the cornerstone enterprises of COSCO (Hong Kong) Group. It owns and operates nearly bulk carriers including Handy and Panamax vessels, aggregating to approximately 5 million tons deadweight. The total cargo volume handled by the fleet is in excess of 30,000,000 tons.

Being major members of important maritime organizations such as HKSOA, INTERCARGO and BIMCO, COSCO (H.K) Shipping enjoys great popularity in the international shipping market.

As early as 1996, COSCO (H.K.) Shipping was conferred ISO9002/ISM code certificates by ABS (American Bureau of Shipping) and CCS (China Classification Society), being the first shipping company in Hong Kong certified by two classification societies at the same time. It commits itself to providing standard and customized service to all kind of customers as well as to strive for satisfying the customers' needs.

About Dao Heng Bank
Dao Heng Bank had its origins in Hong Kong where it was established in 1921. Now, Dao Heng Bank Group Limited is one of the top-tier locally incorporated banks in Hong Kong and is a member of Guoco Group Limited.

At present, Dao Heng Bank Group comprises over 80 branches and service outlets in Hong Kong, 15 branches in the Philippines, 2 in the United Kingdom and 1 each in China, Malaysia and the Cayman Islands.

Dao Heng Bank Group provides a wide range of commercial and retail banking services to both commercial and industrial clients as well as individuals. It has gained a reputation for its quality services in the areas of trade finance, retail and consumer banking.

About Kawasho Corporation
Kawasho Corporation was established in 1954 as a trading company for Kawasaki Steel Corporation. Since then, the company has been expanding into a wide range of fields such as raw materials, industrial machinery, chemicals, ships, real estate, leisure facilities, electronics, lumber, jewels, foodstuff, hides and various general goods in addition to their stable basis of steel business.

At present, the company has 69 branches (22 in domestic, 47 in overseas) and nearly 90 affiliated companies all over the world. The company's total sales performance of F.Y.99 is Ľ1,100 billion (about US$10 billion). Steel sales is 11,000,000 M/T, Ľ700 billion (almost 30% is overseas).