CMXchange Chairman Blasts Trademark Infringement Lawsuit; 'Lawsuit Without Merit and Constitutes a Low Blow'.

Business Editors

NORTHFIELD, Ill.--(BUSINESS WIRE)--July 22, 2003

The Chairman and Chief Executive Officer of Commodities Management Exchange, Inc. (CMXchange) charged Monday that a federal trademark infringement lawsuit brought against the CMXchange by the Chicago Mercantile Exchange, Inc. is without merit and represents a "low blow."

"We reject the Chicago Mercantile Exchange's claims in full," said A. Demetrius (Tony) Brown, Chairman and CEO of CMXchange, a pioneering Internet-based integrated commodities management service company headquartered in Northfield, IL.

"It is my understanding that the Merc has been aware of CMXchange since shortly after its incorporation in March 2000," said Brown. "In fact, we met with senior executives of the Merc in January of 2001 to discuss CMXchange's business plans. To say the Merc lawsuit comes as a surprise and is a low blow is an understatement."

CMXchange, certified by both the Illinois and Michigan Minority Business Councils, offers market-intelligent solutions for participants in the metals, manufacturing and automotive industries. CMXchange, which lists an extensive group of non-ferrous and platinum group metals on its electronic platform, plans to add a variety of steel products, including coil, rod and sheet, Ferro-Alloys and De-Ox on August 4.

In the federal lawsuit filed in Chicago, the Merc alleged that CMXchange had adopted a name so similar to the Merc's that it would trigger confusion among customers. "But if you go to the www.cme.com website and to the www.cmxchange.com website you will see that the CME logo and the CMXchange logo bear no resemblance whatsoever. They are totally different as to look and feel, including the number of letters (three as opposed to nine), type font, and color," said Brown.

Brown further noted that CMXchange is located in Northfield, not Chicago, and that its products and services are different from the Merc's. CMXchange allows its customers to buy and sell base metals and to transact over-the-counter swaps over its website, CMXchange.com. In contrast, Brown said, the Merc, the largest futures exchange in the nation, is located on the western edge of Chicago's Loop and does not list over-the-counter swaps.

"After allowing more than two years to pass and with CMXchange having invested over $10 million in building the CMXchange business and the CMXchange brand, the Merc has suddenly decided, at this late date, that the CMXchange mark is likely to be confused with the Merc's mark," said Brown.

Commodities Management Exchange Inc. is staffed by professionals with decades of experience in all aspects of total commodity management, including metals procurement, price risk management, logistics and information reporting. A recently announced trading platform called CMXflexclear offers a family of over-the-counter, cash-settled forward metals contracts, providing market participants efficient tools with which to hedge against adverse price swings.