iSteelAsia.com Limited Announces Year 2000 Interim Results With Promising Growth in Online Transactions
The Group also launches the New Generation Trading Platform

Highlights of performance for the six months ended 30th September, 2000
Q1 = For the three months ended 30th June, 2000
Q2 = For the three months ended 30th September, 2000

• For the six months ended 30th September, 2000, the Group recorded a turnover of approximately HK$105,455,000, representing a 32% increase as compared to the same period in 1999/2000.
• The Group's loss attributable to shareholders has been substantially decreased to approximately HK$14,615,000 in Q2, representing a 56% decrease by comparing to the loss attributable to shareholders incurred in Q1.
• Up to 30th September, 2000, a total of approximately HK$1,139 million worth of traded transactions have been concluded through iSteelAsia.com since the launching of the website in December 1999. By comparing the statistics in Q2 against Q1, membership has grown 23% and transaction postings have grown 65%. Completed transaction volume has grown 31% to approximately HK$499 million and commission income has grown 196% to approximately HK$4,343,000.
• In July 2000, the Company entered into Memoranda of Understanding with Dao Heng Bank, COSCO (HK) Shipping Co., Limited and BNP PARIBAS as strategic partners to provide value-added services to iSteelAsia.com's customers.
• In August 2000, the Company entered into a "heads of terms" agreement for the acquisition of a strategic interest in a London-based international steel trader, Stemcor Holdings Limited.
• In September 2000, the Company announced that iSteelIndia.com established as a steel portal focusing on the Indian domestic steel trading market using a franchise model. Initially, the Company will partner with HFCL, a leading Indian e-commerce and technology company, CPH, a leading Australian multimedia company, and Stemcor to set up the new venture.
• In October 2000, the Company launched a Scient-built next generation trading platform as the foundation for its continued business expansion.

[31st October, 2000 - HONG KONGĄj-] iSteelAsia.com Limited ("iSteelAsia.com" or the "Group"; stock code: 8080) today announced the unaudited consolidated interim results of the Group for the six months ended 30th September 2000, and the official launch of the Group's next generation trading platform.

Year 2000 Interim Results
For the period under review, the Group recorded a turnover of approximately HK$105,455,000, representing a 32% increase as compared to the same period in 1999/2000. The turnover from online steel trading operation represented commission income derived from completed trading transactions through iSteelAsia.com.

For the six months ended 30th September, 2000, the commission income of approximately HK$5,812,000 was earned. Up to 30th September, 2000, a total of approximately HK$1,139 million worth of traded transactions have been concluded through iSteelAsia.com since the launching of the website in December 1999. When comparing the performances between the periods of the three months ended 30th June, 2000 ("Q1") and the three months ended 30th September, 2000 ("Q2"), the commission income earned in Q2 represented a 196% growth as compared to the figure in Q1. The turnover from traditional operation has also continued to attain a stable growth. For the six months ended 30th September, 2000, such turnover has increased 25% to approximately HK$99,643,000 as compared to the same period in 1999/2000.

Commenting on the Group's performance during the period under review, Mr. Andrew Yao, Chairman and CEO of iSteelAsia.com, said, "We are pleased with the results for the period under review. In comparison with the results in the first quarter, our second quarter results showed promising growth in our online trading platform. Analysis of membership, transaction postings, completed transaction volume and commission income have all indicated continued and healthy growth. By comparing the statistics in Q2 against Q1, membership has grown 23% and transaction postings have grown 65%. Completed transaction volume has grown 31% to approximately HK$1,139 million, while commission income has grown 196% to approximately HK$4.34 million. These promising figures demonstrated the growth of confidence among the users to conduct steel trading through our state-of-the-art online platform."

On the cost side, through implementing stringent and internal cost controls, the Group's net loss has been substantially decreased to approximately HK$15 million in Q2, representing a 56% decrease by comparing to the net loss incurred in Q1.

Mr. Yao explained, "iSteelAsia.com remains focused on capturing the market for key Asian steel trade flows. We have enjoyed significant success against this goal, achieving significant volume growth with over HK$1,139 million of steel transacted over our platform up to the end of September, 2000 since our launch in December 1999. These transactions have involved a broad range of steel products, including long, flat and raw materials, encompassing all of the Group's target markets."

During the period under review, iSteelAsia.com launched an enhanced platform supported by Intel® architecture. The server platform has been developed utilizing high-performance Intel® Pentium III Xeon™ dual processor-based Dell 4450 servers and Apache open-source applications. To strengthen our operation, iSteelAsia.com also partnered with various conglomerates and financial institutions, including China National Cereals, Oils & Foodstuffs Import & Export Corporation, BNP PARIBAS, COSCO (H.K.) Shipping Co., Limited, Dao Heng Bank and Kawasho Corporation, to expand its business relationships and provide new scope of services such as finance, insurance and shipping to its members.

In September 2000, the Group announced that iSteelIndia.com would be established as a steel portal focusing on the Indian domestic steel trading market. Initially, the Group will partner with Himachal Futuristic Communications Limited ("HFCL"), a leading Indian e-Commerce and technology company, Consolidated Press Holdings ("CPH"), a leading Australian multimedia company, and Stemcor Holdings Limited ("Stemcor") to set up the new venture.

In addition, the Group has entered into a "head of terms" agreement for the acquisition of a strategic interest in the London-based international steel trader Stemcor. As part of the agreement, Stemcor committed to transact a portion of its steel trading volume through iSteelAsia.com.

"This alliance immediately boosts the liquidity on the exchange and at the same time opens the door to access Stemcor's knowledge base and partnerships with value-added service providers such as financial institutions and logistics providers. Given Stemcor's well established global presence, we are in an advantageous position to leverage on these resources to further develop our market position in a more efficient manner." Mr. Yao added.

The Group is confident and optimistic about the future outlook of online steel trading market in Asia. Looking ahead, Mr. Yao concluded, "The Group is also progressively pursuing domestic joint ventures or franchises in its other key Asian markets of China, Korea and Taiwan. We aim to be the world leader in steel e-Commerce. Leveraging on the Group's strong technology and domain experts, together with the launch of enhanced platform that provides wide range of value-added services, alliance with Stemcor, moreover, explosive growth of e-Commerce in business transaction, we are anticipating ample business opportunities for the future."

Next Generation Platform
To meet with the increasing demands of its business expansion and maximize customers' benefits, iSteelAsia.com launched the next generation transaction platform. The new platform provides a powerful tool for steel industry players to efficiently manage their steel trading portfolios and conduct multiple one-to-one negotiations online. The new and improved functionalities on the new platform is user friendly, web-centric and will give members a world class trading experience online.

A "Four-Click Strategy" user guide is newly created in the generation in order to facilitate transaction. Players can reach their destination in a more structure and efficient direction. Besides, the upgraded platform enhances personalization, higher degree of security, trading efficiency by its informative characteristic, moreover, provides members with one-stop transaction, i.e. true B2B on-line trading. In addition, the new platform supports growing range of value-added i-fulfillment services, including financing, shipping, surveying, insurance and logistic services.

"The new generation platform makes trade more efficient, cost effective and easier." Ms. Drina Yue, COO of iSteelAsia.com said, "The "Four-Click Strategy" gives users a clear guideline without missing essential information."

In line with the Group's "Global vision, Asian focus" business strategy, the enhanced platform help iSteelAsia.com step forward in serving much broader customer base globally by the embrace of user-friendly functionalities and integrates various value-added services functionalities.

Commenting on the new generation platform, Ms. Yue, said "The enhanced platform further strengthened our competitive advantage by simplifying and speeding up the online transaction which in return saves users' operation cost. Since the soft launch of the new platform, customer reactions have been very positive which should result in more market opportunities."

Corporate Information
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 approximate 3,000 registered members who regularly use its online trading services and access into its online Reuters and Asian Information Resources Limited.

Issued by OCCASIONS Corporate & Financial Communications Limited for and on behalf of iSteelAsia.com Limited. For further information, please contact:

iSteelAsia.com Limited
Ms. Betty Jane Leon / Ms. Stephanie Liu
Senior Marketing Manager / Communications Manager
c/o OCCASIONS Corporate & Financial Communications Limited
Tel: 2801-5333 Fax: 2801-5323

OCCASIONS Corporate & Financial Communications Limited
Mr. Allen Tong / Ms. Vijo Lee
Tel: 2801-5333 Fax: 2801-5323
E-mail: allen@occasions.com.hk / vijo.lee@occasions.com.hk