C-Me Announces Hong Kong Joint Venture

PASADENA, CA – July 11, 2001 –Cyber Merchants Exchange, (C-Me) (OTC-BB: CMEE), a international B2B electronic trading company, today announced the establishment of C-Me Hong Kong.  The joint venture corporation was formed to further expand C-Me’s global merchandise sourcing network.

“The establishment of C-Me Hong Kong represents a key milestone in the execution of our business model,” said Frank Yuan, Chairman & CEO of Cyber Merchants Exchange.  “Hong Kong is the center of the Far East and we expect it will become the hub of much of the Company’s sourcing activities.  It has already produced transactions in its first month of operation.”

“It is with pleasure and confidence that we enter into this joint venture and participate in C-Me’s global Internet Sourcing Network,” said C-Me Hong Kong President, Peter Wong.   I believe Hong Kong will be key to the success of C-Me.   Not only is the merchandise sourcing and transaction platform the company offers unique and new to the Far East but, the company’s Global Financial Platform is revolutionary in the international trade.”

Peter Wong, a Hong Kong native, is Director of Basu Investment Ltd. and Doming Ltd. Basu established in 1988 is a textile and real estate holding company with assets of over $10,000,000. Doming Is a fully integrated textile company with mills specializing in corduroy and woven fabrics. The company has combined revenues of over $30,000,000 per year.

 About Cyber Merchants Exchange, Inc. (C-Me)

C-Me (http://www.C-Me.com) is an international B2B electronic trading company that creates efficiencies for retailers to source and finance international purchases.  C-Me builds private extranets, Internet Sourcing Networks (“ISN”) for its retail partners. A profile for each retail buyer is established, and then the ISN matches and pushes merchandise to his or her desktops.  C-Me’s Global Financial Platform (US Patent Pending) will allow US retailers to purchase overseas merchandise without the need of issuing a Letter of Credit.  The company also provides vendors with a Virtual Trade Show (“VTS”), a vertical marketplace for vendors to display their product in an open environment accessible to any buyer around the world.  The company presently has offices located all over Asia and Turkey.  C-Me has strong strategic partnerships with CIT Commercial Services (NYSE: CIT) and Bank SinoPac. The Company’s current retail partners are: Factory 2-U Stores, Inc. (NASDAQ: FTUS), Burlington Coat Factory (NYSE: BCF), Bermo Enterprises, McWhorther’s, Sacks SFO, Susie’s Deals and L&L Wings