PASADENA, CA – May 17, 2001 – Cyber Merchants Exchange, (C-Me) (OTC-BB: CMEE) today announced its financial results for its fiscal 2001 third quarter and nine month periods, ending March 31, 2001.

Third Quarter Results

For the three months ended March 31, 2001, the Company had revenues totaling $7,147 as compared to $8,120 for the same period in 2000.  The Company reported a net loss of $(762,295) or $(0.10) per share for the three months ended March 31, 2001 as compared to a net loss of $(343,780) 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 to a non-cash charge for stock-based compensation of $259,848.

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 $(502,447) or $(0.07) earnings per share.  There was no stock based compensation expense for the same period in 2000.  

For the nine-month period ended March 31, 2001, the Company had revenues totaling $35,341 as compared to $49,795 for the same period in 2000.  The Company reported a net loss of $(2,386,204) or $(0.31) per share as compared to a net loss of $(668,229) or $(0.11) 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 $778,721.

Net losses for the nine-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 $(1,607,483) or $(0.21) earnings per share.  There was no stock based compensation expense for the same period in 2000.

Restatements of Previously Reported Periods