Aberdeen Group Names Global Sources as 'Dominant' Leader in the International Trading Market.

Business/High Tech Editors

HONG KONG--(BUSINESS WIRE)--Aug. 15, 2000

Aberdeen Research Concludes That The Use of Online Merchandise Trade

Significantly Decreases Costs for Buyer and Supplier

Global Sources Ltd. (Nasdaq:GSOL), a leading B2B market maker and e-commerce solutions provider for the global trade market, announced today that the Aberdeen Group, a research consulting firm, has identified Global Sources as a "dominant player" in the global merchandise trade market.

"Global Sources (is) a trusted third party with a critical mass of buyers and sellers already in place, giving it an edge over emerging e-Markets which must build such relationships from scratch. It has built deep knowledge and experience of the market segments that it serves," the report says.

Global Sources has been profiled in a July 2000 white paper released by the Aberdeen Group, Inc. The white paper, entitled "Managing the Complexities of Global Retail Trade in the Internet Economy" covers the growth of Internet global trading, both for the supplier and buyer, in conducting transactions and sourcing products and services. As a result of the adoption of the Internet, companies of all sizes can now participate in e-commerce with partners from many geographical areas. According to the World Trade Organization, international trade exceeds $10 trillion annually, much of which can be done through the Internet.

The research also points out that Global Sources' neutral business model positions it to add value for both buyer and supplier, rather than just one side, and therefore build relationships with both.

"The strength of a company's relationships with its partners and customers is an essential element in any business, and a determining factor in relocating a business to the Internet is a company's ability to respect its existing relationships rather than deconstruct them. Currently, the Global Sources network of e-Markets includes 213,000 buyers worldwide -- 95,000 of which are registered online -- and 83,000 registered suppliers. The strength of its relationships can be seen through analysis of its Web site visitor statistics: 83 percent of buyers visit the Global Sources network at least once per week."

Merle Hinrichs, CEO of Global Sources said, "As many people are now discovering, business-to-business e-commerce is neither simple nor easy. We welcome the Aberdeen Group's white paper because it digs below the surface to uncover the real value that our business delivers to international trade volume merchandise. This serves to accelerate the realization of benefits that the Internet offers to international merchandise trade."

Critical Success Factors for International E-Trading:

In contrast to common assumptions about "transactions" being the key to success for business-to-business marketplaces, the Aberdeen white paper states that, "To be effective in an online marketplace, an e-Market must provide the following: develop an efficient infrastructure to allow participants to effectively source suitable articles or qualified buyers; automate the bulk of the documentation and processes required in the trading environment; effectively and dynamically manage content; and manage global relationships on an ongoing basis."

Aberdeen research also found that, "The purchasing practices of companies in multiple industries indicate that the initial sourcing process, from supplier search and identification through contract negotiation and final purchase, is the area that has the greatest impact on the cost, quality and delivery of a product or service... a 2 percent reduction in costs during the initial sourcing cycle can lead to a reduction of as much as 14 percent in the end cost of a new product or service. Automating these processes through the use of Internet-based technologies and e-Markets can reduce sourcing cycles by an average of 25 percent to 30 percent."

Global Sources (Nasdaq:GSOL) is a leading neutral B2B market maker and e-commerce solutions provider for the global trade community.

Global Sources has been operating for 30 years and has developed one of the world's most comprehensive databases of export products and suppliers. Its e-commerce services are tailored for twelve industry-specific verticals. 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.