Adatom Emphasizes Global Operations And Announces Restructuring; Company To Reduce Costs And Focus On China Trade.

Business Editors/High-Tech Writers

MILPITAS, Calif.--(BUSINESS WIRE)--Sept. 25, 2000

Adatom.com, Inc. (Nasdaq:ADTM) an enabler and operator of electronic marketplaces, today announced that it is restructuring the Company to focus on its international operations by attempting to leverage its China partnerships.

This change also addresses the increased demand from buyers and sellers in both the U.S. and China to participate in bi-lateral trade through Adatom, utilizing its strategic agreements with key Chinese government and private institutions. This restructuring emphasizes and adds resources to Adatom's international business, while concurrently reducing expenditures related to the B2C Internet superstore (www.adatom.com) and Adatom's B2B e-Commerce Solution Program (AESP). Adatom will transition from its operation of the superstore and AESP properties, which have been the dominant source of the Company's revenues, to licensing the properties to Adatom's international partners and others. These actions will result in an overall headcount reduction of 45% and anticipated total spending reductions of approximately 55%, seeking to achieve increased revenue growth, reduced expenses and accelerated time to profitability.

The Company's move follows U.S. congressional approval of China's PNTR status and the Chinese government's approval of Adatom's pact with the Yangling High-Tech Industrial Demonstration Zone for the creation of an agricultural marketplace. Adatom's relationship with the China Product Trade Net Center (CPTNC) has already yielded a breakthrough order for steel, pending delivery to a U.S. steel buyer, replacing an existing offshore supplier. Adatom's restructuring enables the Company to focus on its China business while achieving significant cost reductions through a combination of work force reduction and decreased marketing expenditures associated with its superstore and AESP operations.

Richard S. Barton, President and CEO of Adatom.com, stated: "We are refocusing our resources to capitalize on our position as what we believe is a key conduit for global trade with China and responding to the demand from buyers and sellers worldwide to tap into Adatom's wide variety of partnerships with key Chinese government and private enterprises. Our current revenue opportunities encompass brokering a $150 million fiber optics turnkey manufacturing capability, minerals trade to and from China, consumer goods supply and agricultural exports to China. Our licensing program seeks to accelerate our global expansion and put into place regional partners who can take advantage of our B2C and B2B business models while enjoying the benefits of our global e-Commerce marketplace. We believe our new focus will enable Adatom to reduce expenditures, leverage our relationships, create new global distribution channels, grow revenues and achieve profitability."

About Adatom.com, Inc.

Headquartered in Milpitas, California, Adatom.com is a creator and operator of electronic marketplaces worldwide, enabling the most direct interfaces between buyers and sellers. Currently, these marketplaces range from an Internet superstore in the United States to an evolving global network connecting the China marketplace to the world. Adatom has substantive relationships in China, including strategic partnerships with the China Product Trade Net Center, the Yangling Agricultural Hitech Zone, ShenZhen Bay Industrial, Education and Research Center and the China Federation of Industrial Economics. Adatom's Internet superstore (www.adatom.com) offers more than three million items for the home, the individual and the office with a comprehensive mix of name brand products in 29 product categories. Additionally, Adatom.com provides branded e-Commerce solutions to other online retailers through its proprietary e-Commerce Solution Program (ESP) based on a turnkey model of Web site enablement, high quality customer service and fulfillment.

Statements in this news release that are not descriptions of historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "believes," "plans" "anticipates" and "likely" also identify forward-looking statements. All forward-looking statements are based on current facts and analyses. Actual results may differ materially from those currently anticipated due to a number of factors including, but not limited to history of operating losses, anticipated future losses, competition, future capital needs, the need for market acceptance, dependence upon third parties, disruption of vital infrastructure and intellectual property rights. All forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the Securities and Exchange Commission.