Cyber Merchants Exchange Announces Resignations

PASADENA, CA – May 21, 2001 –Cyber Merchants Exchange, (C-Me) (OTC-BB: CMEE) announced the resignation of two of its Board of Directors, Philip M. Hawley and Howard Moore. The company also announced that John F. Busey will resign as President of the Company effective June 30, 2001 but will continue as a member of the Board of Directors.

Frank Yuan, founder and CEO of Cyber Merchants Exchange, commented, “Both Messrs. Moore and Hawley have made valuable contributions in putting C-Me on its way to becoming one of the leading global merchandise sourcing companies, Howard unfortunately feels compelled to slow down and care for his health, while Phil’s press of activities does not permit him to continue as a full time active board member.  Both Phil and Howard will sit on the company’s Advisory Board.”

Mr. Yuan continued, “We are delighted that we will continue to have the benefit of John Busey’s expertise and experience as a member of the Board of Directors.  His leadership in maintaining the financial stability of the Company and in aggressively executing an innovative business plan that has the potential to revolutionize the retail industry has been invaluable.”  

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), Burlington Coat Factory (NYSE: BCF), Bermo Enterprises, McWhorter’s, Sacks SFO, Susie’s Deals and L&L Wings.  The company also provides vendors with the Virtual Trade Show ™ (“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 North America, Asia, Europe and the Middle East.