---

Trade Exchanges Must Facilitate Innovation Says M-Xchange.com CEO and Co-Founder Roy Roberts

24 May 2000

Trade Exchanges Must Facilitate Innovation Says M-Xchange.com CEO and Co-Founder Roy Roberts

    DETROIT, May 24 Web-based trade exchanges must foster
innovation if they are to provide real value to the entire supply chain, said
Roy Roberts, CEO and Co-founder of M-Xchange.com, a minority trade exchange
dedicated to facilitating minority supplier relationships for Fortune 1000
companies.
    Roberts warned that Web-based trade exchanges that focus on price alone
will eventually stifle innovation.  Suppliers will slash research and
development to meet stringent price requirements.  Over time, this will result
in products that will not meet the end customers' demands for product
improvements.  Roberts made his remarks at the Planet Automotive Detroit
Conference at the State Theatre in Detroit today.
    "Most of the exchanges have emphasized economics -- transaction costs,
inventory costs, product costs and reduced distribution costs," Roberts said.
"But more focus needs to be placed on developing strategic advantages.  Yes,
trade exchanges can reduce cost, but they also can facilitate bringing
innovative new products to market faster than ever before."
    One of Roberts' goals for M-Xchange.com is to incubate and empower
innovative minority companies to fully participate in the new economy.
Helping companies bring innovative products to market will be an important
part of the M-Xchange.com mission.
    "M-Xchange.com is creating a virtual marketplace to provide new economic
value for minority businesses in the information economy," Roberts said.  "We
want to ensure that minority companies have a way to bring their talents to
the marketplace in the digital age."
    Recent studies have estimated that total business-to-business e-commerce
purchases will range between $2.7 and $4.4 trillion by 2003.  Approximately
five percent of this estimated total, or $135 billion, represents potential
minority procurement activity.
    M-Xchange.com is the first B2B Internet exchange focused on minority
procurement and the advancement of minority businesses.  Founded by Roy
Roberts and Gary Wasserman, M-Xchange.com is headquartered in downtown
Detroit.  M-Xchange.com will provide a number of strategic advantages to
minority supplier development managers as well as minority companies.  Among
them:

    *  Enable Fortune 1000 companies to achieve minority procurement policy
goals.
    *  Provide access and reach for corporate purchasers and minority
suppliers in a wide range of businesses throughout the U.S.
    *  Serve as a strategic partner to existing B2B economic exchanges
aggregating buyers and sellers across industries and improving trading
relationships between buyers and minority suppliers within industries.
    *  Provide hi-tech skills development and career opportunities for
minorities.

    M-Xchange.com can be found on the Internet at http://www.M-Xchange.com , the
company can be reached via telephone at 313-237-6809.