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C-ME.com
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For immediate release

C-ME To Launch Operations in China

PASADENA, CA – October 17, 2000 –Cyber Merchants Exchange (C-Me) (OTC-BB: CMEE) and Good Support International Limited announced the establishment of a China joint venture corporation, named Global Purchasing Dotcom, to create a global B2B e-commerce solution for Chinese manufacturers and trading companies.  The joint venture will make Global Purchasing Dotcom part of the C-Me’s global network that provides U.S. retailers with a direct merchandise-sourcing channel to China.  Multiple satellite offices will be opening in China as part of this arrangement.

C-Me is an innovative, web-based B2B service that provides communication platforms for retailers and manufacturers and locates viable merchandise around the world.  Good Support International Limited is a Taiwan-based investment banking and financial services corporation.

With the recent passage by the U.S. Senate to extend permanent normal trade relations with China, the world’s fastest-growing economy, Global Purchasing Dotcom’s introduction comes at an extremely favorable time in East-West relations.  In 1999, imports from China to the U.S. reached $81.8 billion from $15.2 billion in 1990 while exports to China grew from $4.8 billion in 1990 to $13.1 billion in 1999.   The impact of these measures in terms of increased trade and reduced trade barriers should enhance C-Me value to U.S. retailers who are importing merchandise from China in ever increasing quantities and who want to simplify the process as much as possible and decrease costs.

Global Purchasing Dotcom was formed to create a global B2B e-commerce solution for Chinese manufacturers and export trading companies and is slated to fulfill several innovative functions in the booming Chinese trade industry and the global marketplace. Global Purchasing Dotcom’s focus in China will be to provide a direct international trading environment for China’s vendors and global retailers to connect, access product information, conduct business electronically and close a transaction at the least cost and shortest time by taking advantage of the Internet capabilities.  This will be accomplished by using the web-based proprietary software developed by C-Me.

Julia Wang, Director of Good Support International Limited, the investment bank, discussed the enormous potential for Global Purchasing Dotcom, particularly in light of the favorable prospects for China to join the World Trade Organization (WTO).  “Throughout my business experience in consummating many investment and financing deals for my Taiwan-based companies, I have gotten to know the Chinese and Asian business landscape very intimately.  I believe there is no greater opportunity now than to facilitate the world trade exchanges through advanced technology like Global Purchasing Dotcom is doing.  The added bonus is that it is the first company that will also be assisting Chinese retailers to modernize their supply chain management.  I know from first-hand experience that the way Chinese companies currently do business creates enormous impediments to growth and that Global Purchasing Dotcom by planning to open 5 local offices in 2000 and 15 in 2001 and offering vital services to Chinese business and managers, can become an indispensable resource in the Chinese marketplace.”   

Wang added that Global Purchasing Dotcom’s efforts in China will be concentrated on implementing several targeted strategies. “We will focus efforts on three primary areas which include:

1.       Aggregating Chinese vendor product information to retailers globally whereby Global Purchasing Dotcom plans to build a product database from Chinese Manufacturers and export trading companies through the multiple satellite offices in China.   This will be available to C-Me’s retailer partners such as Burlington Coat Factory and Factory 2-U Stores.  C-Me’s other countries’ joint ventures will aggressively partner large retailers in their respective countries to use Global Purchasing Dotcom’s services;

1.       Providing Chinese retailers with a direct sourcing channel to international vendors such that Chinese retailers have the opportunity to easily source for new merchandise globally.  Because of the network of C-Me’s other joint ventures in the Far East, Chinese retailers can access manufacturer information from Taiwan, Hong Kong, Thailand, the Philippines and the United States;

2.       Supplying Chinese retailers with turnkey procurement and fulfillment solutions to enhance their management and control operations using the most up-to-date technology. Currently Chinese retailers have the problem of inventory turnover in their stores.  What is on the shelf does not sell, while the most popular products are not provided quickly enough to keep up with demand.   As Chinese business owners seek to modernize every aspect of their operations, Global Purchasing Dotcom will provide them free PCs and software to help manage their stores with better point of sale controls, inventory flows and accounting functions.”   

Wang also outlined the benefits of participating in the Chinese market and aligning with C-Me to leverage their global reach. “I call this the multiplier effect because launching this JV in China exponentially expands the international opportunities in new and exciting directions.  For the core business, it will bring on-line hundreds of manufacturers from China to offer merchandise to C-Me’s retailer partners both in the U.S. and outside it.  Similarly, it helps Chinese retailers who want sourcing channels to vendors outside their country.  The fact that Global Purchasing Dotcom will also offer complementary services such as procurement and fulfillment solutions means that it is positioned to be one of, if not, the premier B2B companies in China.”

Frank Yuan, the Chairman and CEO of C-Me explained the origins of Global Purchasing Dotcom.  “Julia Wang is one of the most savvy and successful investment bankers in Taiwan.  Teaming up with her organization is sure to make Global Purchasing Dotcom a winner. China is very eager to utilize modern technology to benefit their country, expand their exports and conversely, enjoy the benefits of market efficiencies for their imports and a ‘cyber merchant exchange’ is an ideal way do this.”

Yuan also detailed how C-Me benefits participants from an economic point of view. “With this joint venture, our retail partners can source merchandise directly from China’s manufacturers, increasing retailer efficiencies by reducing costs associated with many middlemen.  This allows U.S. retailers to focus on increasing their profit margins by reducing their sourcing and buying costs and gives them a competitive advantage.”

About Good Support International Limited

Good Support Inc is an investment bank and financial services corporation operating in Taiwan.  In the last three years, the company has invested approximately $170 Million in fifteen high-tech and Internet companies.  These companies include Cherish Telecom Co., Ltd.; SoftChina Corp. and GenNet Technology Co.

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 ™ (“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.