Company Overview
Value Proposition
Strategic Partners
Overseas Expansion
Services
Services in Development
Revenue Model
Financial Status

Company Overview
Cyber Merchants Exchange (“C-Me or the Company”) is using its proprietary web-based software to create a global B2B e-commerce solution that streamlines the way retailers locate viable merchandise.  The Company’s retailer centric marketing model is successful by leveraging retailers’ purchasing power to increase its Small and Medium sized Enterprises (“SME”) base globally.  In the retail industry, SMEs consist of manufacturers, factories, exporters, agents, suppliers, importers, jobbers and wholesalers. C-Me also provides an innovative financial platform (patent pending) to eliminate the need for letters of credit for retailers to purchase merchandise internationally.  To attract SMEs, the Company is providing an affordable and complete e-commerce solution, which directly links to the appropriate buyers’ Internet Sourcing Network (ISN), and an open electronic marketplace – Virtual Trade Show (VTS) and free web site design and hosting.(return to top)

Value Proposition
Retail buyers spend 60 to 80 percent of their time on sourcing (searching for and locating) merchandise and SMEs.  The SME’s, primary goal is to obtain direct access to targeted retail buyers, foresight into the retailer’s procurement cycle, and the ability to receive “open-to-buy” information.  C-Me’s value lies in its intermediary abilities; specifically in its ability to create an information pipeline for the retail industry.  The Company believes its virtual pipeline can eliminate cost, redundancy, and system integration barriers now faced by retailers, and expedite the flow of usable product information to retailer from SMEs who will benefit its low cost, low technology, real time feedback communication system.  

Strategic Partners
U.S. Retailers
The Company’s current retail partners are Factory    2-U Stores, Inc. (NASDAQ: FTUS), Burlington Coat Factory (NYSE: BCF), Sacks SFO, Susie’s Deals, McWhorter’s and L&L Wings.  C-Me has agreements with these retailers to assist them in purchasing overseas merchandise using the Company’s web based applications.(return to top)

The retailers have agreed to pay, the  Company a percentage of the purchases made through its own ISN.  FTUS has a warrant to purchase C-Me’s common stock of approximately 848,000 shares; BCF also has a warrant to purchase approximately 686,000 common stock shares of the Company.

CIT Group/Commercial Services, Inc. (“CIT”)
CIT is the world’s largest factoring commercial services company and is working with the Company with its patent pending Global Financial Platform and Wholesale Auction Center.

Bank Sinopac
Bank Sinopac, one of the largest privately held banks in Taiwan, is working with the Company to provide financing to the local SMEs when they ship  merchandise to C-Me’s retail partners with credit approval by CIT.

Retail Technology Consortium (“RETEX”)
RETEX, the nation’s largest retail technology buying consortium, is an independent, not-for-profit, member controlled organization headquartered in New York.  Approximately 2000 retail members, such as The Gap, Barnes and Noble, Southland Corporation, The Disney Store, Inc. Brookstone, Trader Joe’s Company, The Musicland Group, Liz Claiborne, and General Nutrition Centers, Inc., take advantage of RETEX’s low-cost technology products and services designed especially for the retail industry.  RETEX is effectively promoting the Company’s services to all of their retailer members.(return to top) 

Overseas Expansion
By providing retailers with direct access to foreign SMEs, The Company can support its existing retail partnerships and attract new retailers to join. C-Me’s strategy is to set-up joint ventures in the Pacific Rim first.  Each local joint venture will set up multiple sourcing offices within their region to market SMEs to join.  Currently, Taiwan has opened three local offices, China has five, and the Philippines and Thailand each have one office.  In addition, the Company has independent sourcing agents in Hong Kong, Korea, Indonesia, Singapore and Turkey.

Services
Internet Sourcing Network (“ISN”)
The cornerstone of C-Me’s services is the ISN. The ISN is a secure private extranet built and maintained by the Company according to each retail partner’s specifications. These web-based turnkey systems automate merchandise sourcing activities for retailers in an efficient manner at no cost to them.

The ISN allows retailers and SMEs to conduct business using any Internet connection without investing in expensive hardware, software or training. After paying to join a retailer’s ISN, SMEs can get real-time feedback from the retail buyer about purchasing needs and decisions. SMEs can instantly make product changes and additions, according to buyer requests.

Virtual Trade Show (“VTS”)
VTS is an open electronic marketplace showcasing SMEs’ products 365/7/24. VTS allows buyers around the world to search products through C-Me’s unique product-driven search engine. (return to top)

Services in Development
Wholesale Auction Center (“WAC”) WAC will provide a community for vendors to liquidate odd lots and closeouts in bulk quantity. Its patent-pending process is designed to eliminate fraudulent on-line auctions. CME is in the process of forming a strategic alliance with an already established on-line auction company. (return to top)

Factory Outlet Mall (“FOM”) The FOM will be a B2C vertical marketplace that will enable vendors to sell directly to the consumer. C-ME will provide the vendor with a free service that connects them globally with the consumer. The FOM will include a “shopping cart” function and secure credit card transactions. (return to top)

Revenue Model
The Company derives its revenues through subscription and set-up fees from SMEs, and transaction fees from retailers.  There are numerous SMEs in the Far East as well as around the world.    C-Me’s retailer centric marketing provides opportunity to its joint ventures to attract local SMEs to subscribe to the Company’s services.  Once a critical mass is reached, the annual subscription fees will be a substantial “annuity” of revenue for the Company.  Currently, our existing retail partners are paying a transaction fee on all purchases (return to top)

Financial Status
The Company initially raised $1.55 million in seed money. Fifteen of C-Me’s original investors were senior management or buyers for major retailers including J.C. Penney, Sears Roebuck & Co., Ames Department Stores, and Montgomery Ward.  In July 1999, C-Me raised approximately $3 million through its IPO.  On June 30, 2000 the Company raised approximately $6.3 million in a private placement offering to 30 high net worth investors. As of January 31, 2001, C-Me has approximately 7.5 million shares of common stock outstanding, and 500 plus shareholders.   In addition, the Company has issued common stock warrants to two strategic partners totaling approximately 1.5 million shares at exercise prices ranging from $4.00 to $4.878. The Company  currently is listed on the OTCBB under the symbol CMEE. (return to top)