Ableauctions Continues Its Migration Strategy of UK-Based iCollector.

Business Editors, High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Jan. 22, 2002

Following the acquisition of iCollector PLC, Ableauctions.com(TM), Inc. (AMEX:AAC) (the "Company") announced today details regarding the intended restructuring of its Technology Arm and iCollector operations.

The move comes as part of the Company's objective to attain and maintain profitability in its "bricks & mortar" operations and its Technology arm.

Migration and Restructuring of iCollector and Technology Arm

Following the acquisition of United Kingdom based iCollector PLC, the Company has now fully deployed and combined its new business model into the iCollector operation. Prior to iCollector being acquired by Ableauctions, the London based company had expended considerable funds developing its technology and formulating a marketing strategy. Since iCollector was formed in 1994, it had raised and spent approximately 23,670,000 (Pounds Sterling) or approximately US $34,320,000. However, the Company still required additional funds to complete its technology development and further its business strategy. However, given the deterioration of the financial markets for raising funds for high-technology Internet companies, iCollector was unable to raise the required funds. In September 2001, Ableauctions completed the acquisition of iCollector and assisted in raising approximately $4,250,000. The additional funds were used to repay outstanding creditors and provide working capital for iCollector for the short term.

The Company has now completed the migration of the iCollector technology to North America and has redeveloped the iCollector website to provide scalability and resources to handle more auctions. In realizing the economies of scale, the Company has also moved the bulk of iCollector's operations to its more economical North American offices and hosts the new website, www.icollector.com, on Ableauctions servers. The site is maintained by existing Ableauctions personnel. The Company also terminated 20 iCollector positions as part of the restructuring process. Despite the downsizing, the Company has retained the services, experience and expertise of key senior management staff and a presence in New York and London, thus maintaining iCollector's leading market position in the sector.

As a result, iCollector, with pre-acquisition losses in the fiscal year 2000 of approximately $1,522,000 per month and an additional $750,000 per month in 2001, will soon be able to realize sufficient revenues to fund its own operations.

"Continuing iCollector's proven track record of managing over 220 sales through eBay's Live Auctions during 2001 combined with the very real major reduction in operating overheads mean that we expect to reach a 'break even' situation imminently," said Mark Hill, Director of Live Auctions & Auction House Services for iCollector.

"We do anticipate some disruption in business afforded by the quiet auction season in January, but with our ongoing relationship with eBay and our auction house clients this should be short-lived and we expect to exceed this figure comfortably during 2002," continued Hill.

Julian Ellison, Business Development Director, said, "The rapidly increasing acceptance and demonstrable success of the eBay Live Auctions product amongst our 300 global auction house clients is leading to much greater interest in the sector with many major clients contacting us to hold Live Auctions via the Internet."

Founded in 1994, the London-based company has spent over $34 million in developing its infrastructure and client base. It acts as an online aggregator of collectibles, antiques and art catalogs for over 300 auction houses, dealers and galleries in the United States, Europe and the United Kingdom. The company enables its users to search for, view and bid on lots online and facilitates transactions by broadcasting live auctions over the Internet via eBay Live Auctions.

Ableauctions has appointed Michael Boyling of British Columbia, a Marketing Director of Rogers Insurance, as a Director of Ableauctions. One of his many responsibilities will be to oversee the iCollector operations. Mr. Boyling replaces Sir Anthony Jollife of the United Kingdom who has now resigned.

Under Ableauctions' technology arm, which consists of iCollector and Ableauctions broadcast technology, the Company's aim is to set the defacto standard in live auction broadcasting on the Internet. The Company has developed its own technology to manage the back-end of auction operations and broadcast auctions over the Internet. It has applied and developed its own technology from a sound business footing, building on the financial and knowledge base from the auction houses that it owns and operates. Following one quarter of profitability, Ableauctions intends to offer the services of its technology arm into auction houses across North America.

Restructuring of Ableauctions "bricks and mortar" Operations

Despite the downturn in the economy, technology and Internet sector, the Company continues to generate sufficient cash resources from internal operations to sustain its Internet technology and software development at a minimal level. In efforts aimed at further increasing the profitability of its operations and preserving cash resources, the Company has placed all expansion and further acquisitions on hold until they can be financed externally. The Company also intends to suspend operations at its Arizona facility and relocate its head office and management to the Pacific Northwest. Messlers of Arizona, along with the 50,000 sq ft. building, was originally acquired to provide the Company with a United States based antique and collectible arm. In light of the iCollector acquisition and the almost flat performance of the Arizona operations, management feels it is prudent to focus its resources on iCollector and its California, Washington State and British Columbia operations.

Since inception, the Company's business strategy has been to acquire established "bricks & mortar" auction houses and develop, and deploy, its Internet broadcasting technology throughout these houses. The development of the technology, the acquisition of the auctions houses, and the costs required to maintain a publicly listed company have been substantial. To ensure a positive return to the Company's shareholders and sustain operations, the Company has embarked on an aggressive restructuring and cost-cutting program. Given the current economic and financial climate, the Company's management is committed to ensure the Company's longevity and sustainable growth.

About Ableauctions.com

Ableauctions.com is a high-tech business-to-business and consumer auctioneer that conducts auctions live and simultaneously broadcasts them over the Internet. The Company liquidates a broad range of products including computers, electronics, office equipment, furniture and industrial equipment that are acquired through bankruptcies, insolvencies and defaults. This release and prior releases are available on the Company's Internet Auction web site located at www.ableauctions.com.

This press release contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the performance of our auction houses, our ability to implement our inventory procurement strategy, general economic conditions, our ability to license our software to other auction houses, and other factors that are detailed in our Annual Report on Form 10-KSB filed with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may differ materially from the Company's expectations and estimates.