iSteelAsia Unveils Encouraging Annual Results Achieving Remarkable Turnover & Profit Growth

(June 16, 2003 - HONG KONG) iSteelAsia.com Limited ("iSteelAsia" or the "Group", stock code: 8080) today announced its audited consolidated results for the year ended March 31, 2003, reporting its first profitable year since listing in April 2000.

iSteelAsia reported robust turnover and profit growth in the year under review. Turnover surged 89.4% to approximately HK$811.1 million. Profit attributable to shareholders amounted to approximately HK$6.6 million, a remarkable improvement as compared to the net loss of HK$17.3 million over last year. Basic earnings per share was HK0.42 cent.

The impressive growth in turnover and profit was attributable to the fruitage of a well-developed professional sales infrastructure, which is continuously enhanced, as well as exercising on-going cost cutting measures. During the past two years, iSteelAsia has focused its resources in mainly expanding its sales distribution network into various affluent cities with the highest average annual income per capita in China. iSteelAsia is consistent with its underlying philosophy of providing value added proposition to its customers. Its distribution network not only consists of dedicated marketing/sales force; the latter work closely with the end customers to assist them with services such as inventory plannings, in addition to its ability to make quality products available in a timely, and consistently price competitive manner. This approach to business translates into satisfied and loyal customers, plus a reputation in the industry for quality and integrity.

The Directors do not recommend a final dividend payment for the year ended March 31, 2003.

"We are extremely pleased to announce the first profitable year for iSteelAsia. This is a combined result of our flexibility in fine-tuning the business model in response to the market situation, customer-focused strategy, comprehensive value-added services and determination. I would like to take this occasion to express my deepest gratitude to customers, business partners, shareholders and our staff for their continuous support," said Ms. Drina Yue, CEO of iSteelAsia.

For the year under review, iSteelAsia established four sales offices in Guangzhou, Tianjin, Shenzhen and Chongqing, totaling six sales offices spanning across China. Encouraged by effectiveness towards cost control and economies of scale, operating cost incurred during the year under review had improved slightly at approximately HK$33.7 million despite expanded operation.

Sales generate from China continued to grow. In fiscal 2002/03, China accounted for approximately 90.7% as compared to 66.5% last year. In addition, iSteelAsia has successfully expanded market reach to outside southern China region.

On the business development front, iSteelAsia focuses on the fastest growing enterprises, namely small to medium domestic enterprises in China. They are considered as the most competitive and the growth engine of China in the future. iSteelAsia offers total solution package to these customers, providing logistics arrangement, steel industry information, warehousing services, helping its customers to achieve "zero" inventory.

Commenting on the Group's future development, Drina concluded, "I think that no one will argue for China's potential growth. Our business model and strategy clearly reflect our determination in targeting this emerging and rapid growing economy. The encouraging results have shown that we have adopted the right strategy and tapping the right target. In future, we will continue to enhance the distribution network. Also, we will enrich product offering to various types of steel to grasp every business opportunity with an aim to maximizing shareholders' value."

To better reflect the Group's operations, which in the last two years had been devoted to develop a physical distribution network and rising contribution from traditional trading business, the management proposes to rename the Group as "iSteelAsia Holdings Limited".

- End -

Corporate Information

iSteelAsia.com Limited ("iSteelAsia") was established in December 1999 and listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited in April 2000. iSteelAsia capitalizes on its extensive local market coverage and strong strategic partners' relationship to offer one-stop shop service of various types of quality products of the steel industry. Building on an experienced management team and professionals, iSteelAsia provides an excellent trading environment and distribute world-class steel products.

Serving mainly the Asian steel community with a PRC focus, iSteelAsia offers an open and neutral marketplace for efficient and cost effective steel distribution, trading services, covering both off-line and on-line distribution services which include logistics services like insurance, surveying, and shipping. Currently iSteelAsia operates sales offices and warehouses spanning across major cities in China, such as Beijing, Shanghai, Tianjin, Guangzhou, Shenzhen, Chongqing, as well as representative offices overseas. iSteelAsia represents flexible, comprehensive and quality distribution services of steel products throughout the steel supply chain. For details, please visit: www.isteelasia.com

For further information, please contact:

iSteelAsia.com Limited
Ms. Betty Jane Leon
Senior Marketing Manager
E-mail: betty.leon@isteelasia.com