Global Sources Online Revenues Grow 109% in First Quarter "Sustainable and incremental profits, the key to further online growth" Hong Kong, June 2, 2000/HK PRNewswire-AsiaNet/ - Online services continued to lead revenue growth in the first quarter of 2000 for NASDAQ-listed Global Sources Ltd. (GSOL), a leading infomediary and B2B market maker for global merchandise trade. Online revenues were US$11.1 million for the quarter, up 109% compared with US$5.3 million for the same period in 1999. Operating income from online advertising services before non-cash compensation expense was US$2.6 million, up more than 200% from the same period in 1999. Total revenues grew almost 15% to US$25.3 million over the first three months of the year, from US$22.0 million in the same period in 1999. Net income before non-cash compensation expense grew to US$4.3 million, compared with US$3.2 million last year from the same period in 1999. While online revenues were derived largely from the Global Sources Online B2B marketplace (www.globalsources.com), the Company continued to roll out its cataloging, trade messaging and order management applications. "We're developing the next generation of e-commerce transaction tools on an extremely sound basis of sustainable and incremental revenue and profit," said Merle Hinrichs, Global Sources' Chairman and CEO. "Our critical mass and dominance in the import/ export community gives us both the income to invest in developing our Connect and Transact services, and a significant head start in rolling them out to the market." "While three decades in this business give us tremendously deep knowledge, it's the day-to-day commercial relationships we have with thousands of import and export companies that enables us to understand their real business needs, and where we can add value," Hinrichs added. In the 12 months to April 1, 2000, Global Sources community of active buyers grew to more than 203,000. Requests for information delivered online through Global Sources Online totaled over 507,000 for the first quarter in 2000, up 52% over the same period in 1999. User sessions totaled more than 2.5 million, up 242% over the same period in 1999 and an average of well over 28,000 per day. New local portal sites were added to the Global Sources network, including Korea Sources in January and Thailand Sources in March. Additional highlights of the quarter included: * Global Sources began the roll-out of its Private Supplier Catalog service for exporters which was announced late 1999. Response has exceeded expectations, with private, password-protected online catalog environments set up for more than 10,000 companies to date. Private Supplier Catalogs enable Global Sources exporters to build and maintain their own electronic data, then post it to existing customers, the Global Sources Online public marketplace or via private offers to selected major importers using Global Sources Private Buyer Catalogs. * Several major buyers completed pilot testing of a "broadcast" inquiry service from their Private Buyer Catalog environments. The service widens the reach of buyers by enabling them to send specific product requests directly to all relevant suppliers among Global Sources database of more than 80,000 exporters. Global Sources believes that this service additionally saves time and administration costs by allowing the buyer to gather, compare and process all responses electronically. * Adding to existing relationships with Dun & Bradstreet and Bureau Veritas, on March 28, 2000, Global Sources announced a partnership with trade finance and settlement services provider TradeCard Inc. to integrate its services into Global Sources end-to-end e-commerce solution. Global Sources expects to add further third party service and content providers in the coming months, in the areas of trade finance, logistics and verification. "These developments represent the future of e-commerce for global merchandise trade," said Merle Hinrichs. "In addition to a neutral, trusted and unbiased marketplace, our community demands services that help them to catalog data, tools to communicate more widely and more efficiently, and services to better manage their internal processes. Global Sources provides all these services, tested and proven in the real world." Global Sources Q1 2000 Consolidated Financial Statements 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 ofSection 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]