BHP and e-STEEL Sign MOU for Major e-Commerce Project.

Business & Technology Editors

NEW YORK--(BUSINESS WIRE)--July 20, 2000

Australia's Largest Steel Producer Finalizing Plans with e-STEEL to

Bring Leading Edge B2B e-Commerce Technology to Australasian Region

The Broken Hill Proprietary Company Limited (NYSE: BHP), an international resources company with a market cap of more than AUD30 billion announced today the signing of a three year, multi-million dollar Memorandum of Understanding (MOU) between its steel business, BHP Steel, and e-STEEL Corporation, the leading negotiation-based e-Commerce marketplace for the global steel industry. BHP Steel is the largest steel producer in Australia and 19th largest worldwide. Heralding a new level of cooperation and integration between independent B2B exchanges with brick and mortar (BAM) companies, the MOU confirms how the two companies plan to build and operate a customized transaction-based network for BHP.

The network, to be powered by proprietary e-STEEL technology will initially be open to BHP's steel customers in Australia, prior to expansion into key BHP Steel markets internationally. It will have the capability to accommodate transactions for BHP's entire portfolio of steel products and provide other related value-added services.

President BHP Steel Kirby Adams said the company was pleased to be involved in a project that will create a more efficient trading environment for its customers. "By combining our existing e-commerce capabilities with e-STEEL's expertise we will deliver efficiencies and benefits across our entire value chain. This initiative will also complement our steel product website and will be launched later this year," he said.

The customized technology backbone for the venture will be the proprietary e-STEEL STEELDIRECT(TM) technology that enables buyers and sellers to easily negotiate and execute steel transactions online. BHP will also adopt SML (Steel Mark-up Language), the e-STEEL-led industry standard for Internet-based data integration.

"The BHP/e-STEEL project is an important milestone in the development of steel e-Commerce, and will have instant traction when it opens later this year," said e-STEEL CEO, Chairman, and Founder, Michael S. Levin. "It also marks a new stage in global B2B e-Commerce whereby leading independent exchanges and prominent brick-and-mortar companies join forces to develop hybrid B2B models tailored to the needs of specific global markets, which leverage both e-Commerce and steel knowledge to provide greater value within the supply chain," Levin added.

Under the terms of the MOU, e-STEEL will receive both transaction fees and subscription-based revenues to build, operate and power the site.

BHP and e-STEEL expect to sign contracts in the near future, with the proposed launch date for the new site being in Q4 2000.

"This project is a strong example of the range of solutions that e-STEEL is pioneering to meet the needs of the complex steel industry and our relentless focus on creating global value," Levin said.

About BHP

BHP is a natural resources company with a regional steel business. The company has global interests and operations in minerals exploration, production and processing, oil and gas exploration and development, and steel production and merchandising.

Headquartered in Melbourne Australia, BHP has a market capitalization of more than AUD30 billion.

BHP Steel is the largest steel producer in Australia and the 19th largest world-wide. It is a market leader in the supply of flat and coated products to Australian, New Zealand and Asian markets. In 1999, BHP Steel had revenues AUD7.7 billion, based on shipments of 8.5 million tons of steel products representing to Australia, New Zealand, and other international markets.

Serving the construction, automotive and manufacturing industries, BHP Steel is at the forefront of steel coating technology and is the world's largest roll former of processed steel products.

About e-STEEL

New York City-based, e-STEEL Corporation (www.e-steel.com) is the leading negotiation-based, neutral e-Commerce marketplace for prime and secondary steel products serving the $700 billion global steel industry. Its electronic commerce solution web site unites steel buyers and sellers and provides an array of resources for sales and purchasing professionals throughout the steel industry. Nearly 3,000 companies, from 90 countries have become members of e-STEEL, representing all of the key segments of the complex steel value chain.

Founded in September 1998, e-STEEL has 130 employees and additional offices in Chicago, Pittsburgh, Detroit, Atlanta, Brussels, Tokyo, and Singapore. e-STEEL is backed by a blue-chip group of 15 strategic investors led by Goldman Sachs & Co. Recently, e-STEEL also completed significant strategic alliances with Ford Motor Company, U. S. Steel Group, Dofasco Inc., Ispat International, National Steel, Worthington Steel, Rouge Steel, and UPI.