C-ME.com Announces Factory 2-U Marketing of its Private Internet Sourcing Network at the MAGIC Marketplace in Las Vegas.

ALHAMBRA, Calif.--(BUSINESS WIRE)--Aug. 26, 1999--

C-ME.com (OTC BB:CMEE), a business-to-business e-commerce company, Thursday announced that its retail partner, Factory 2-U Stores Inc., will be marketing its private Internet Sourcing Network ("ISN") at the MAGIC Marketplace for four days beginning Aug. 30, 1999 in Las Vegas.

C-ME.com provides proprietary Web-based software, such as FOCASTING(TM) and DEPS(TM), to build and maintain ISNs for retailers such as Factory 2-U. The ISN is an Internet-based platform that enables retailers and their vendors to communicate and conduct business more efficiently.

"We are very pleased that Factory 2-U Stores plans to co-market our services to the exhibitors at the MAGIC show," said Frank Yuan, chairman and chief executive officer of C-ME.com. "This is the world's largest trade show for the apparel industry. More than 3,500 exhibiting companies, 5,500 brand names, 21,000 product lines and 90,000 retail trade-related attendees from 110 countries are expected to attend."

"We are constantly striving to improve how we work with our vendors and believe that partnering with C-ME to create our Internet Sourcing Network facilitates this," said Mary McNabb, executive vice president of Factory 2-U Stores. "We are eager to market our ISN to a targeted group of vendors at MAGIC. Our Internet Sourcing Network is an interactive Internet-based platform created to improve communications and streamline the process of doing business. Vendors will be able to directly communicate product offerings to our buyers online and receive immediate feedback."

Factory 2-U Stores Inc. (NASDAQ:FTUS) operates 178 "Factory 2-U" and "Family Bargain Center" off-price retail stores which sell branded casual apparel for the family as well as select domestics and household merchandise at prices which generally are significantly lower than the prices offered by its discount store competitors. Stores are located in seven Western United States.

Established in 1933 as the Men's Apparel Guild in California, MAGIC has grown from an organization of California-based men's and boys' apparel manufacturers into the largest and most comprehensive apparel marketplace in the world. Currently, the MAGIC marketplace encompasses a broad range of price points and classifications of international men's, women's, children's and cutting-edge apparel manufacturers. MAGIC International is a subsidiary of Advanstar Communications, a world-wide business information company, which currently operates from offices across the United States, United Kingdom, Latin America and Asia.

Formed in 1996, C-ME.com is a business-to-business e-commerce company that has created a proprietary Internet-based turnkey solution to automate the merchandise sourcing activities for retailers and their vendors. The company's primary services include: the Virtual Trade Show, located at www.c-me.com -- a product showcase forum that allows retail buyers to quickly search among thousands of vendors; the Internet Sourcing Network -- a private extranet that links the company's retail partners with their vendors; and Internet EDI (Electronic Data Interchange) -- a platform that provides a more efficient way to process purchase orders, invoices, packing lists and shipping information. C-Me.com's major retail partners include Factory 2-U Stores and Burlington Coat Factory (NYSE:BCF).

Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors including the risks associated with the effect of changing economic conditions at home and abroad, variations in cash flow, reliance on collaborative retail customers, reliance on intellectual property legislation, use of proprietary un-patented technology, dependence on the Internet and on new product development, variations in new product and service development, risks associated with rapid technological change, and potential of introduced or undetected flaws and defects in products and services and other risk factors detailed in the company's prospectus.