ChemConnect Launches Asian Operations.

Business Editors & High-Tech/Science Writers

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 19, 2000

ChemConnect Well Positioned as Asian Chemical Industry Continues

Recovery and Turns to Online Trading for Greater Reach, Efficiency

ChemConnect Inc., the world's largest global Internet exchange for all types of chemicals and plastics, today announced the launch of its Asian operations, with the opening of its Singapore headquarters. As Vice-President, Asia, John Lukes, a 24-year industry veteran, leads a team of highly-experienced employees, with extensive chemical industry knowledge, who will offer their e-commerce, sales, marketing, and customer support experience to ChemConnect's rapidly expanding base of Asian customers.

"Trading on the World Chemical Exchange is becoming a major force in the chemicals and plastics industry throughout Asia," said John Beasley, ChemConnect CEO. "In order to meet the needs of the Asian community, it is critical to have a local base of operations; John and his colleagues in Singapore are the first team we are putting in place to support the region."

Manufacturers, buyers, and intermediaries, around the world, use ChemConnect's World Chemical Exchange, an open, neutral market, to find trading partners, negotiate pricing and complete transactions online. It enables companies to convert chemicals and plastics needs into instant trading offers that reach the global market. Since its launch in July 1999, the World Chemical Exchange has grown to become the largest B2B online chemicals and plastics exchange in the world.

Asian use of the Internet for B2B e-commerce transactions is expected to grow at an annual rate of 56 percent according to International Data Corp. (IDC). Singstat, the Singapore government statistics agency, reports its country's economic growth, partly fueled by the strength of exports in the chemical industry, is now at 6.7%.

The combination of regional chemicals industry growth and accelerated interest in B2B e-commerce is already evident at ChemConnect, where 1,400 Asian companies are trading members of the World Chemical Exchange.

"My entire team and I have been particularly attracted by ChemConnect's commitment to the global industry, and to its farsightedness in moving so quickly to establish a real presence in Asia," Lukes said. "We are already experiencing fast growth in Asian activity on the World Chemical Exchange, and we look forward to the challenge of what is, after all, a paradigm shift to new trading efficiencies in the Internet world."

Lukes, who has 15 years experience working directly with the Asia Pacific chemicals market, and who has lived in the region for the past 10 years, joined ChemConnect from Chevron. He joined ChemConnect from Chevron where he was the Asia Pacific Sales Manager for Chevron Chemical's Oronite Additives Division, in Singapore. During eight years of his management, sales growth increased by an average of 12 percent a year. Lukes also held a series of other managerial roles including supervising the Global Account Managers for Caltex and Mobil, as well as serving as Product Manager for the Asia Pacific Region of Oronite-Chevron.

About ChemConnect

ChemConnect is the Internet's largest global chemical electronic marketplace for all types of chemicals and plastics. Manufacturers, buyers, and intermediaries, around the world, use ChemConnect's World Chemical Exchange, an open, neutral market, to find trading partners, negotiate pricing and complete transactions online. Members of ChemConnect increase profits by gaining access to new markets, save from reducing transaction costs, and benefit from up-to-the-minute market information. Founded in 1995, ChemConnect is headquartered in San Francisco, with offices in Houston, Philadelphia, Singapore and London. Top-tier investment firms including Institutional Venture Partners (IVP), Weiss, Peck & Greer, Goldman Sachs, CMEA Ventures, and Highland Capital Partners back the company. Andersen Consulting, The Dow Chemical Company, Eastman Chemical Company and Rohm & Haas are also equity investors in ChemConnect. For more information, visit the company's website at www.chemconnect.com.

ChemConnect and World Chemical Exchange are registered trademarks of ChemConnect Incorporated.