Asia Aluminum Holdings Limited enters the internet ERA announced the lanuch of i-Metal.com

Asia Aluminum Holdings Limited announced plans for a truly one-stop metal exchange serving the non-ferrous metal industry in the world. The metal exchange website presents a unique opportunity for the Company to launch e-commerce for trading non-ferrous metals.

The Company will deliver a suite of comprehensive services encompassing both spot and futures trading through its website - i-metal.com. Targeting to be the leading metal exchange providing comprehensive services right after its official launch in May, i-metal.com will offer a business-to-business online platform for both spot and futures trading.

The spot business will be divided into primary metals market (ingots), end product market and scraps market. The futures business includes online futures trading of the non-ferrous metals market on the Shanghai Futures Exchange.

Reputable organizations in the international metal markets, including "Transworld", "LG", Gerald Metal and "Refco", have shown their intention to invest and participate in i-metal.com, giving impeccable support to the Company.

The Company maintains close ties with key organizations of the non-ferrous metals market industry. Exclusive arrangements and technology developments have been reached with different key organizations, including interfacing technology with the Shanghai Futures Exchange's trading and clearing systems. Also, a non-credit card based bank payment settlement system in China has been established with the Industrial and Commercial Bank of China. These exclusive arrangements would be a major competitive advantage for the Company.

i-metal.com has already teamed up with Shanghai Futures Exchange, Shenzhen Jinzhonxun Information Technology, and international wire services to provide updated market information and research reports to its members.

i-metal.com would have the majority of its initial operations in Nanhai, the aluminum trading center in China. It provides much needed e-commerce services to a broad spectrum of small to medium manufacturers in Nanhai City. The operation flows of the business are designed to be secured and easy to use.

Arthur Andersen is responsible for the project management and operations while IBM Greater China Group supplies the software and hardware platforms.

Commenting on the Company's latest venture, Mr. Micael Tse, Vice Chairman and Managing Director of the Company said, "i-metal.com signifies the Company evolution into the era of technology based transformation."

He continued, "Today small-to-medium sized enterprises have immense need to put their trading and business online. However, most of them are limited by the initial investment cost and technical support required. i-metal.com would remove geographic barriers and the limitations on the participant's size. It is set to become the preferred venue of business for the international non-ferrous metals community, enterprises large and small."

With its profit making target in the end of 2000, i-metal.com is expected to generate revenues mainly from trading commission and other value-added services. However, membership fees and advertising will contribute to the revenue mix.

The turnover for the business comprises net commission and service charges from the spot and futures markets, service charges from logistics services, bonded warehouse, membership fees, virtual shop rental and advertising income. Based on the targeted membership base and market share, the business will turn profitable during its first year of operation, and is expected to grow exponentially for the next few years.

The business would be ready to launch electronic services for trading for the Shanghai Futures Exchange in May 2000 including all key non-ferrous metals (aluminum, copper, zinc, nickel and lead). The spot market services for aluminum, copper, zinc, nickel and stainless steel would become operational in June 2000. The spot markets services for aluminum end products and scrap would become available by the end of 2000. The membership uptake would be 80 paid members at launch, growing to 200 by end of 2000.

Mr. Tse continued, "Facing the rapid development of the Internet, our Directors identify e-commerce as the definitive development direction. i-metal.com envisions itself as the main venue of activities for the non-ferrous metals business community, first among China, gradually extending to the global community encompassing all non-ferrous metals markets. It targets to become the standard e-commerce platform for the non-ferrous metals industry. It aims to provide comprehensive services to the non-ferrous metals business community, from information exchange, to e-trading, logistics, warehouse, custom and tax support."