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M-Xchange.com Closing Down Operations

18 July 2000

M-Xchange.com Closing Down Operations

    DETROIT, July 18 M-Xchange.com Inc., an online trade
exchange company dedicated to facilitating minority supplier relationships for
Fortune 500 companies, today announced it will cease operations.  The company
attributed its decision to several critical shifts in the online business-to-
business (B2B) marketplace recently.  The ability to charge transaction fees
for web-based commercial exchanges has declined, rendering it difficult for
M-Xchange.com to achieve profitability in an adequate timeframe using its
business model.  Additionally, the willingness of the capital markets to
finance B2B business has also declined dramatically.  Closing down operations
is seen as the most prudent action at this time to conserve investor capital.
    Although they remain committed to the concept underlying M-Xchange.com,
co-founders Roy Roberts and Gary Wasserman have agreed to end their
relationship.  Mr. Wasserman will focus on his existing business interests.
Mr. Roberts' vision when he retired from General Motors Corporation was to
serve minority firms.  He will continue to explore ways to help minority
companies in their efforts to succeed in the new economy.