Cyber Merchants Exchange Announces Second Quarter Results

PASADENA, CA – February 15, 2001 -Cyber Merchants Exchange, (C-Me) (OTC-BB: CMEE), announced the results for its fiscal 2001 second quarter and six-month periods, ending December 31, 2000.
 
For the three months ended December 31, 2000, the Company had revenues totaling $33,150 as compared to $31,525 for the same period in 1999. The Company reported a net loss of $(1,054,493) or $(0.14) per share for
the three months ended December 31, 2000 as compared to a net loss of $(227,658) or $(0.04) per share for the same period in the previous year.  The increase in net loss is due primarily to an increase in general and administrative expenses and to a non-cash charge for stock-based compensation of $259,849.
 
Net losses, excluding the non-cash stock based compensation charge, show an increase in the loss of earnings per share.  This translates into a net loss of $(794,644) or $(0.10) earning per share.  There was no stock based compensation expense for the same period in 1999.

For the six-month period ended December 31, 2000, the Company had revenues totaling $46,050 as compared to $41,675 for the same period in 1999.  The Company reported a net loss of $(1,777,932) or $(0.23) per share as compared to a net loss of $(344,449) or $(0.06) per share for the same period in the previous year.  The increase in net loss is due primarily to an increase in general and administrative expenses and a non-cash charge for stock-based compensation of $518,873.
 
Net losses for the six-month period, excluding the non-cash stock based compensation charge, show an increase in the loss of earnings per share.  This translates into a net loss of $(794,644) or $(0.17) earnings per share.  There was no stock based compensation expense for the same period in 1999.
 
Frank Yuan, C-Me's Chairman and CEO, commented, "the Company is continuing to execute its business plan, however due to market conditions, we have been unable to expand our sourcing network further in Asia and globally.  Our current focus is to enhance the product information flow in the Far East to our retailer partners in the U.S. Our already established joint venture sourcing offices and local company sponsored trading agents are concentrating on the specific needs of each U.S. retailer.  In addition, the Company is in negotiations to expand
its recently announced global financial platform in the Pacific Rim.  We believe that by providing U.S. retailers with direct access to foreign manufacturing along with the global financial platform, the company is
well positioned for future growth". 

About CYBER MERCHANTS EXCHANGE, INC. (C-Me) C-ME (http://www.C-ME.com) is to use its proprietary web-based software to create a global B2B e-commerce solution that streamlines the way retailers locate finished and made-to-order viable merchandise.  C-Me's current retail partners include Factory 2-U Stores (NASDAQ: FTUS) and Burlington Coat Factory (NYSE: BCF).  The company also provides vendors with the Virtual Trade Show T ("VTS"), a vertical marketplace for vendors to display their product in an open environment. The company is currently forming multiple joint ventures in the Pacific Rim to facilitate direct international merchandise sourcing for its U.S. retail partners.  C-Me has operations in twenty-one cities in seven countries.

Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties.  In such instances, actual results could differ materially as a result of a variety of factors including the risks associated with the effect of changing economic conditions at home and abroad, variations in cash flow, reliance on collaborative retail customers, reliance on intellectual property legislation, use of proprietary un-patented technology, dependence on the Internet and on new product development, variations in new product and service development, risks associated with rapid technological change, and potential of introduced or undetected flaws
and defects in products and services and other risk factors detailed in forms filed with the Securities and Exchange Commission from time to time.