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Cyber Merchants Exchange
600 S. Lake Ave., Suite 208,
Pasadena, CA 91106
tel: (626) 793-5000
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FAX: (626)793-5096 www.c-me.com

C-Me Korea Joint Venture Launched

PASADENA, CA – August 7, 2001 –Cyber Merchants Exchange, (C-Me) (OTC-BB: CMEE), an international B2B electronic trading company, today announced the establishment of C-Me Korea.  The joint venture corporation was formed to further expand C-Me’s global merchandise sourcing and retail sales network.

“South Korea plays an integral role for international trade,” said Frank Yuan, Chairman & CEO of Cyber Merchants Exchange.  “Korea’s 80% GNP are derived from export products such as apparel, footwear and consumer electronics. Establishing C-Me Korea, benefits our existing group of US retail partners and our overseas joint venture partners.”

“Over the last few years we have evaluated a wide range of electronic trading companies,” said C-Me Korea President, Sukon Kim. “We found C-Me’s Internet Sourcing Network (ISN) and Global Financial Platform (GFP) the most innovative and successful Internet trading model. With my background in international trading and long-standing ties throughout Europe’s retail and manufacturing community, Korea will be an essential part of C-Me’s global growth.”

Sukon Kim, a Korean native, is Director and President of DYCO Tex Inc., a company with over 25 years international trading experience and significant real estate holdings with more than $30 million US sales volume 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, Sacks SFO, Susie’s Deals and L&L Wings.


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.

Contacts:                                                                                                              

Cynthia Zamarripa
IR & PR Administrator
 Cyber Merchants Exchange, Inc. 
(626) 793-5000
e-mail: ir@c-me.com