9 November 1999 - Over 20 major steel industry enterprises, together with an electronic commerce expert and a leading global information and news group, have today founded the region's first, vertical steel exchange portal - iSteelAsia.com.

This new exchange portal has combined the solid industry knowledge of the founding steel enterprises - including Van Shung Chong Holdings Limited (Hong Kong), Shougang Concord International Enterprises Company Limited (Hong Kong), Amsteel (Malaysia), ICDAS (Turkey), Scaw Metals, a member of the Anglo American plc group (South Africa), Coutinno Caro & Company (Germany), Stemcor Limited (United Kingdom) and Saudi Iron and Steel Company (Saudi Arabia) - and the strong support in technology and portal content from iMerchants Ltd while steel news content will be supplied by Reuters.

Scheduled for launch next month, iSteelAsia.com aims to broaden the market reach of steel suppliers while, at the same time, increasing buyers' choice and convenience. It offers the steel community a new, online mechanism for buyers and sellers of steel products to transact and communicate in a highly efficient and economical fashion.

"iSteelAsia.com will create a 'win-win' situation for both buyers and sellers," said Mr Leroy Kung, Managing Director of iMerchants. "By centralizing and automating the buying and selling processes over the Internet, online transactions will expand the potential number of matches and promote market transparency. Buyers will be able to maximize their power to purchase steel products at the lowest possible price, and sellers will be able to significantly lower operating costs, which ultimately improves their bottom line."

iSteelAsia.com enables both buyers and sellers to initiate inquiries or offers, search for products and trading partners, as well as negotiate the full details of a transaction electronically.

Fundamental Changes to the Industry
Mr Kung said iSteelAsia.com will not only offer significant cost and time savings to industry members, but will also introduce revolutionary changes to one of the most important and largest industries in Asia.

"According to a Goldman Sachs report, companies adopting e-commerce may enjoy total cost savings between 3-12.5%," he said. "iSteelAsia.com is set to revolutionize the traditional steel industry which is still predominantly paper-based and depends heavily on fax and telephone communications. Furthermore the exchange portal will encourage higher interactivity between buyers and sellers. Customers will be given immediate attention and service, for example in requesting information, checking status of orders and lodging complaints."

As a result of these changes, Mr Kung expects Asian steel enterprises to become more competitive in the global arena.

Potential of the Online Steel Trading Market
According to Mr Andrew Yao, Chairman of the VSC Group, Asia currently captures about 45% of global steel consumption, worth an annual turnover of more than US$300 billion.

"We believe the Asian steel market still has a significant growth potential as we see clear signs of an increasing demand for steel supply from this region," said Mr Yao.

"Online end-to-end steel trading business, fueled by the increasing popularity of the Internet and constant improvements in Web technologies, will open up additional growth opportunities to steel enterprises in Asia as well as to iSteelAsia.com. And we are optimistic that iSteelAsia.com will be able to secure about 10% of the Asian steel market by 2002 as we understand the genuine needs and common interests of the steel community," he said.

Mr Yao said that the founding committee is looking to appoint a professional management team who will be responsible for the strategic development and operation of the steel exchange portal.

"We wish to emphasize that iSteelAsia.com will be a truly neutral marketplace, which will be owned by the steel community. Equipped with the latest technology, such as SSL channel encryption, transactions over the exchange portal - from inquiries to closing deals - will be conducted in an absolutely secure and confidential manner," he said.

Membership in the iSteelAsia.com is free to both buyers and sellers. Besides offering trading facilities, iSteelAsia.com endeavors to keep the steel community abreast of both industry and business developments by providing real-time global news. Currently it has enlisted Reuters, the leading global information and news group, to supply proprietary real-time global steel news and archive steel news which will be available in multiple languages including English, Chinese and Japanese. Other trading and community-building features include electronic catalogues, online auction, hyperlinks library, industry calendar and community bulletin.

iSteelAsia.com is the first iMerchants Ventures of iMerchants Ltd. As the execution partner, iMerchants provides the e-commerce expertise and infrastructure contributing to the success of the exchange portal.

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 the VSC Group (www.vschk.com)
Van Shung Chong Holdings Limited ("VSC", stock code: 1001) is a leading distributor of construction and industrial materials, contributing to the building and infrastructure development as well as the manufacturing industry in Hong Kong and China, through a network of six operating divisions. Founded in 1961, VSC was the first, and now the largest, importer and stockholder of steel rebars in Hong Kong.

About iMerchants (www.imerchants.com)
iMerchants Ltd. is a leader in providing electronic commerce solutions to businesses in Hong Kong and Asia. Founded in 1996, the Company's mission is to be the electronic commerce partner of choice for Asian businesses whether that is by providing consulting services, through on-going outsourcing partnerships or by incubating promising electronic commerce business ideas. In executing this mission, iMerchants has achieved many pioneering accomplishments that have helped to advance the development of electronic commerce in the region.