Ableauctions.com To Broadcast the First Live Auctions on the Web; Interactive Broadcasts To Debut in November; Site Received Over 1 Million Hits in September.

BURNABY, British Columbia--(BUSINESS WIRE)--Oct. 14, 1999--

Ableauctions.com, Inc. (OTC BB: ABLC, ABLCD), a company that specializes in liquidating and auctioning merchandise ranging from computer products to patio furniture, today unveiled plans to broadcast live auctions over the Internet and accept bids from online buyers while an auction is in progress.

Through the use of proprietary technology and strategic partnerships with the Compaq Computer Corporation (NYSE: CPQ), the Allaire Corporation (NASDAQ: ALLR) and Telus Advanced Communications (BTS: TSE, MSE), consumers and corporate purchasing agents will be able to place absentee bids and preview auction items through online pictures and movie clips one week prior to the auction date. On the day of the auction, users will be able to view the auction proceedings in real time and submit live online bids that are processed within two seconds of transmission.

The auctions will be completely unreserved with no minimum bids. Bids as low as $1 will be accepted, even on high-ticket items like treadmills and computers, with all items being sold regardless of price. The company will also guarantee availability and delivery of all products and offer a moneyback guarantee. These unusual policies will provide significant new savings opportunities for online bargain hunters and eliminate many of the problems that have plagued the online auction industry to date.

The live e-auction venture is part of a four-pronged Internet initiative by Ableauctions.com that also includes silent auctions, charity auctions, and an online retail store offering upscale merchandise at considerable discounts. These four business segments will produce multiple revenue streams, give the company a variety of outlets for the large volume of merchandise it purchases as a liquidator, and position Ableauctions.com to become a major player in the burgeoning business of Internet auctions.

"Able Auctions has 14 years of experience in running live auctions that typically draw 500 to 2,000 people. Now we're going to leverage that experience to bring these auctions to the Web for the first time," said Abdul Ladha, President and CEO of Ableauctions.com.

"Our live online auctions will not only be an entertaining and attractive option for consumers, but they will also offer exceptional benefits for corporate purchasing managers who are looking for low-cost products but cannot invest the hours needed to attend live auctions in person," Ladha said. "This gives us a potentially lucrative business-to-business component that is not available to our competitors."

Most auctions will center on computer products, office equipment and furniture, and industrial equipment, with items including desktops and laptops, printers, photocopiers, fax machines, paper shredders, VCRs, surveillance cameras, office partitions, boardroom tables, desks and desk chairs, and specialized industrial tools. The site will also offer higher-ticket consumer goods such as golf clubs, fitness equipment and china.

Viewers will be able to watch all the live auction action on their computers, including the auctioneer, the crowd and the merchandise displayed. Bids received from the Internet will be shown on large screen monitors and treated as live representation. Bidders will be able to specify minimum and maximum bids from a special window on their computer screens.

The company's no minimum-bid policy, moneyback guarantee and other innovative procedures stem from a unique business model that builds on the long history of its predecessor company, Able Auctions Ltd., as a liquidator and auctioneer.

Unlike other online auction sites that broker transactions between buyers and sellers for a small percentage, Ableauctions owns its inventories. It acquires merchandise at low prices through bankruptcies, insolvencies and defaults or handles it under consignment. This approach, though capital-intensive, enables Ableauctions to fulfill orders itself rather than forcing sellers to rely on good-faith agreements made with potentially unscrupulous strangers. It also enables the company to command significantly higher gross profit margins.

The company's distinctive business model also creates a significantly different revenue scheme than traditional online auction sites. While competitors earn commissions in the 3% range on each sale, Ableauctions.com earns the difference between the pennies-on-the-dollar price at which it purchases its inventories and the eventual price at which a product sells. Margins are expected to average 33 percent, based on the company's prior live auction experience.

The deployment of the Ableauctions site marks a milestone in video broadcasting that is the result of an extensive collaboration between Compaq and Allaire. Compaq will implement DISA fault tolerant server arrays and revolutionary cache servers specifically designed for Ableauctions, while Allaire will deploy application development and server software designed to handle high-volume, transaction-oriented electronic commerce applications. Telus will serve as the company's portal to the Internet and manage the server array, providing the housing, redundant routers, reserve power systems and distributed load balancing through its strategic partners across North America.

Ableauctions will be the first site to utilize the new technology and is expected to serve as a model for future implementations by other vendors. On the backend, the system will tie into legacy applications that provide tools for calculating taxes and shipping costs. The software works with a variety of payment schemes and processes transactions securely.

Auction previews can now be seen as www.ableauctions.com, with the first live auctions using the new video streaming technology to air in November. Within several months, the company expects to run one or two live auctions every week. Daily auctions are expected within a year as Ableauctions completes a planned expansion from its initial auction site in Canada to New York, San Jose, Seattle and seven other U.S. locations.

For more information contact North Star Communications, Investor Relations, at 1-877-684-8444, e-mail [e-mail], or visit www.ableauctions.com.

Safe Harbor Statement: Some statements in the report are forward looking and are subject to certain risks and uncertainties. These risks and uncertainties include, but are not limited to, economic conditions, changes in law or regulations, demand for products and services of the company and the effect of competition. These risks and uncertainties could significantly affect anticipated results in the future and actual results may differ materially from any forward-looking statements.