Global Sources 1999 Online Revenues Grow 77% to US$ 25.8 million 600% operating profit increase in online B2B business Hong Kong, May 31, 2000/HK PRNewswire-AsiaNet/ - Leading B2B marketplace and e-commerce provider Global Sources Ltd. (NASDAQ: GSOL) has announced its financial results for the year ended December 31, 1999. The highlight was a US$11.2 million increase in online advertising revenue to US$25.8 million, as the Company's flagship website Global Sources Online (www.globalsources.com) continued to expand its community of international merchandise importers and exporters. Global Sources' online business was also profitable. The Company reported 1999 operating income of US$3.6 million, up more than 600% over 1998, for online advertising, resulting from increasing reliance on the Internet among importers and exporters, and the economies of scale associated with its revenue growth. "Global Sources has established critical mass, and a range of focused, proven online services that our community is happy to pay for," said Chairman and CEO Merle Hinrichs. "We have a rock-solid base for further rapid growth." The Company overall reported net income of US$11.0 million on revenues of US$91.9 million in 1999 compared to net income of US$11.6 million on revenues of US$95.9 million in 1998. Net income per share was US$0.44 in 1999 compared with US$0.46 in 1998. The Global Sources community of active buyers grew to more than 195,000 by the year-end, with suppliers hosting more than 75,000 product profiles online per day at Global Sources Online. In 1999, Global Sources Online users made more than 1,790,000 requests for information on the site, representing more than 200 sales leads per hour for suppliers. Traffic, as measured by user sessions, grew by more than 160% year-on-year. In the area of trade transactions, the Company focused on the development of Transact, its web-enabled order management software, and Connect, a web-based messaging platform being rolled out in the second quarter of 2000. Software development costs capitalized in 1999 amounted to approximately US$4.6 million. The Company expanded its roster of Private Buyer Catalog clients to 94, including many of the world's biggest names in importing such as Sony, Dell, Kmart and the Home Depot, along with the regional buying offices of Wal*Mart and Metro AG, the dominant general merchandisers in the US and Europe respectively. Several Private Buyer Catalog clients also assisted with pilot programs for Global Sources' next generation of e-commerce services. Global Sources also began a program of geographic expansion, launching partnerships with third parties in Australia and South Africa, plus local portal sites serving Hong Kong, Taiwan, and China. Following annual increases in online advertising revenue of 77% in 1999 and 181% in 1998, the Company expects to continue to focus on shifting customers from the print to online revenue streams, and to benefit from further economies of scale. Trade transaction software and services will remain an area for major investment for Global Sources in 2000. Global Sources 1999 earnings statement can be viewed and downloaded at www.globalsources.com/financials Global Sources (NASDAQ: GSOL) is a leading infomediary and neutral B2B market maker for volume buyers and suppliers worldwide. Global Sources has been operating for over 29 years and has developed one of the world's most comprehensive databases of export products and suppliers. Global Sources is a B2B e-commerce provider offering a web-based "end-to-end" e-commerce solution which enables its buyer community to interface electronically with suppliers in all phases of the supply chain management process in all corners of the world. Its e-commerce services are tailored for eight industry-specific verticals: Computer Products, Electronic Components, Consumer Electronics, Timepieces, Gifts and Home Products, Fashion Accessories, Telecom Products and Hardware. Global Sources community currently includes over 203,000 active buyers who are able to locate over 86,600 supplier contacts from more than 90 countries and source over 81,100 products per day, with detailed specifications and color images. Global Sources Online (www.globalsources.com) generated 161,795 Requests for Information (RFIs) from buyers to suppliers in April 2000. User sessions were recorded at 862,699 and the number of hits totaled 35,565,676 in the same month. This news release contains forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933, as amended and Section 21-E of the Securities Exchange Act of 1934, as amended. The Company's actual results could differ materially from those set forth in the forward-looking statements as a result of the risks associated with the Company's business, changes in general economic conditions, and changes in the assumptions used in making such forward-looking statements. Contact: Camellia So Tel: 852-2555-5042 Fax: 852-2518-8764 e-mail:[email protected]