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FerrousExchange and Gibraltar Steel Enter Into Strategic Alliance

11 May 2000

FerrousExchange and Gibraltar Steel Enter Into Strategic Alliance For Business-to-Business E-Commerce

    NEW YORK, May 10 FerrousExchange Inc, a highly efficient
internet-based global marketplace for the iron and steel industries, today
announced that it had entered into a strategic alliance with Gibraltar Steel
Corporation , a leader in the intermediate steel processing
industry.  As part of the agreement, Gibraltar Steel is making a minority
investment in FerrousExchange Inc as well as a multi-year commitment to
purchase and offer significant annual quantities of steel products through the
FerrousExchange(TM) marketplace, which is expected to launch Summer 2000.
    Gibraltar Steel's Chairman and CEO Brian J. Lipke said, "As a significant
purchaser and seller of flat-rolled steel products, improving supply chain
efficiency is key to providing value to our customers.  We view
FerrousExchange as an ideal internet-based platform for delivering substantial
transaction efficiency to the steel industry.  Our commitment to transact
business through the FerrousExchange marketplace will create the opportunity
for Gibraltar Steel to improve operating efficiencies in our relationships
with suppliers and customers.  Moreover, leveraging FerrousExchange will
enable us to broaden and diversify our supplier and customer base.  Gibraltar
Steel's investment in FerrousExchange represents our belief that it will
become one of the predominant e-commerce marketplaces for the steel industry."
    Ferit Ferhangil, Chairman and CEO of FerrousExchange, said:  "We are
extremely pleased that Gibraltar Steel, one of the steel industry's technology
leaders, has chosen to become a significant market participant on
FerrousExchange.  Gibraltar Steel's leading position in the steel processing
industry will enhance liquidity on the FerrousExchange marketplace, resulting
in significant benefits for our market participants, which include producers,
trading companies, service centers, processors and end-users.  Gibraltar
Steel's investment in FerrousExchange further validates our powerful business
model."
    In April, FerrousExchange announced that it had entered into a strategic
marketing alliance with Ispat International N.V. ,
a leading, global steel producer with operations in countries including the
United States, Canada, Mexico, Trinidad, Germany, France and Ireland.  As part
of that alliance, Ispat International also made a minority investment in
FerrousExchange and will offer important annual tonnages on the
FerrousExchange marketplace.
    "Gibraltar Steel's endorsement of the FerrousExchange business model
strongly ratifies FerrousExchange's position as a preferred on-line
marketplace for the iron and steel industry.  The alliance with Gibraltar
Steel further strengthens FerrousExchange's position as one of the leading
electronic marketplaces for the iron and steel industry," Mr. Ferhangil added.
    "The strategic alliance with FerrousExchange reinforces Gibraltar Steel's
position as a pioneer in leveraging leading-edge technologies to advance its
business objectives," Mr. Lipke added.  In the 1980's Gibraltar developed a
three-way EDI link into its facilities, customers and suppliers to expedite
material processing, lower inventory, and reduce costs.  In March, Gibraltar
Steel retained Xpedior , a leading provider of innovative
eBusiness solutions to Global 2000 companies and emerging digital businesses,
to accelerate the development and implementation of a comprehensive eBusiness
strategy.