CIT, Bank SinoPac and C-ME Join for Tri-Party Finance Agreement; Innovative Financing Pact Eliminates Letters of Credit, Facilitates Global Trading Transactions.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 30, 2001

CIT (NYSE:CIT; TSE:CIT.U), the leading global source for financing and leasing capital, announced today the establishment with Bank SinoPac of Taiwan and Cyber Merchants Exchange (C-ME) (OTCBB:CMEE) of a tri-party financial platform. The agreement will eliminate the need for Letters of Credit by allowing exporters in Taiwan to ship merchandise to pre-approved retailers in the United States. Letters of Credit have historically been the predominant means of payment for cross border trading, but are rapidly being supplanted by more creative and flexible financing mechanisms such as tri-party agreements that assure less risk for both exporters and retailers.

Through this arrangement, each party will make an essential contribution to expedite transactions between an exporter and retailer while guaranteeing that the terms of the contract are fulfilled. Each of the tri-party agreement participants play an integral role. CIT's Commercial Services unit will guarantee the credit worthiness of the U.S. retailers while Bank SinoPac will provide potential working capital financing and will act as the conduit for foreign manufacturers to receive payment for goods that are shipped to U.S. retailers. It is through C-ME's innovative international factoring agreement that exporters, retailers, international banks and CIT will be linked to the platform, which provides rapid access to global purchasing.

John F. Daly, president of CIT Commercial Services, outlined the enormous potential of this unique financing arrangement. "This agreement underscores our commitment to international trade as well as our confidence in the tremendous growth opportunities between our U.S. clients and the Pacific Rim businesses. The huge global trading trend that is unfolding will create immediate cost and administrative efficiencies and our partnership is a step towards the globalization of factoring service for U.S. retailers."

Paul C. Lo, the President of Bank SinoPac, highlighted the many factors that contributed to forging this creative agreement for the rapidly evolving global trading community. "Studies we have conducted show that only 30 percent of Taiwan exports rely on Letters for Credit for their financing. We have also found that computer technology has significantly changed the international purchasing payment terms to net 30 or even longer and we foresee that more and more buyers will request these same payment terms. This agreement will provide each party with a level of comfort and financial security -- retailers won't be burdened with Letters of Credit and vendors can have their cash in advance."

Frank Yuan, Chairman and CEO of C-ME commented, "Our B2B platform provides Pacific Rim manufacturers the ability to bring their goods to the desk tops of U.S. retailers through the Internet. This tri-party agreement will enable our retail partners to purchase merchandise abroad without having to issue Letters of Credit. In addition, foreign manufacturers are providing financing alternatives to improve their cash flow. C-ME will continue to accelerate the growth of our international sourcing offices to provide a more efficient and cost effective means for our retail partners to purchase globally."

About Bank SinoPac

Bank SinoPac is one of the new banks established following the passage of the banking regulation amendment in 1989 by the Taiwan government. After almost two years of preparation, the business officially commenced on January 28, 1992. Equipped with years of working experience at foreign banks, the management of Bank SinoPac is renowned for its international vision, banking expertise, innovative managerial philosophy, and effective development strategies.

Presently, Bank SinoPac possesses nearly 40 branches in Taiwan and three overseas offices, excluding SinoPac Capital Ltd. (HK), and the thirteen branches of Far East National Bank (USA). Besides general commercial banking services, it also provides special banking services such as fund raising, asset management, securities trading, financial derivatives, and factoring. For more information, visit the company's website at www.banksinopac.com.tw.

About C-ME.com

The mission of CYBER MERCHANTS EXCHANGE, INC. d.b.a. C-ME.com(http://www.C-ME.com) is to use its proprietary Web-based software to create a global business-to-business e-commerce solution that streamlines the way retailers locate viable merchandise sources. C-ME.com's current retail partners include Factory 2-U Stores (Nasdaq:FTUS) and Burlington Coat Factory (NYSE:BCF). Other retailers include: McWhorter's, Sacks SFO and Susie's Deals which are based in California and L & L Wings which is based in New York. The company is also forming joint ventures in the Pacific Rim to facilitate direct international merchandise sourcing for its U.S. retail partners. C-ME has operations in North America, Asia, Europe and the Middle East.

About CIT

CIT Commercial Services is the nation's largest provider of factoring, accounts receivable management and lending services. It is a business unit of CIT Commercial Finance, one of six operating groups of The CIT Group, Inc. (NYSE:CIT; TSE:CIT.U).

CIT is a leading, global source of financing and leasing capital for companies in more than 30 industries. Managing more than $50 billion in assets across a diversified portfolio, CIT is the trusted financial engine empowering many of today's industry leaders and emerging businesses, offering vendor, equipment, commercial, factoring, consumer and structured financing capabilities. Founded in 1908, CIT operates extensively in the United States and Canada with strategic locations in Europe, Latin and South America, and the Pacific Rim. For more information on CIT, visit the Web site at www.cit.com.

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 forms filed with the Securities and Exchange Commission from time to time.