Chinatrust First to Offer Multi-Country Financing With TradeCard's Global Online Settlement Network.

Business Editors

TAIPEI--(BUSINESS WIRE)--August 15, 2000

Chinatrust Commercial Bank and TradeCard, Inc., a global online international trade transaction network, announced today an agreement that establishes Chinatrust as the first bank in Taiwan to provide multi-country financing services to TradeCard members in Taiwan, Hong Kong and the United States.

Through TradeCard's online network, members can initiate, conduct and settle trade transactions 24 hours a day, seven days a week. Now, because of the TradeCard/Chinatrust agreement, members will further be able to access Chinatrust's financing services directly through the TradeCard network, making Chinatrust's financing process much more automated than it is today. Knowing they have the proper financing mechanisms in place, U.S., Hong Kong and Taiwanese traders doing business together can increase their trading efficiencies and expand the global reach of their businesses.

"Chinatrust aims to provide our customers with the best e-commerce strategies available so they can more efficiently and profitably conduct business," said Chinatrust VP James J. Hsiu. "Chinatrust's alliance with TradeCard helps us meet this goal by making it easier, faster and more cost-effective for the Taiwanese trading community to do business globally. We are particularly pleased to be the first of TradeCard's banking partners to extend this service to the Hong Kong and U.S. trading communities as well." "TradeCard chose Chinatrust as a partner to fulfill the needs of importers and exporters in the United States, Hong Kong and Taiwan who do business in each other's countries," said Kurt Cavano, TradeCard Chairman and CEO. "TradeCard provides the network that allows traders to realize greater trading efficiencies, and Chinatrust provides the financing that many traders require to make their transactions possible. The partnership will provide these traders with more efficient, easy-to-use online transaction tools."

TradeCard was conceived in 1994 to provide a more efficient alternative to traditional paper-based and labor-intensive international trade transaction methods. The company has launched operations in the U.S., Canada, Hong Kong, Singapore, Korea and Taiwan. TradeCard enables international buyers and sellers to discover, order, and approve agreements on its electronic transaction platform. TradeCard's patented compliance engine checks that actual shipment data matches the original purchase order data provided by the seller, including deliveries, insurance and certification requirements. Once compliance of the transaction is met, funds are electronically transferred from the buyer's account to the seller's account. The seller also receives an assurance of payment, and now, access to world-class financing solutions provided by Chinatrust Bank.

How TradeCard Works

In order to use TradeCard's patented transaction system, buyers and sellers must first become approved TradeCard members by completing an online application. To begin a transaction, the buyer creates a purchase order containing the transaction's terms and conditions. This purchase order can be created directly on the TradeCard system, or sent via electronic file from a company's ERP system or an online marketplace.

TradeCard stores the purchase order on its secure, proprietary database, and notifies the seller that an order is pending. The seller can either approve the purchase order electronically, or can negotiate the order with the buyer online. Once both parties have agreed on the terms of the purchase, they can move to the next phase of the transaction.

At the time of shipment, the seller populates an invoice and packing list on the TradeCard system using either TradeCard's pre-populating tools, or by means of an electronic file. At this point the seller may obtain assurance of payment from a third party credit insurer. If the order requires inspection, the inspecting party submits an inspection certificate. At the time of delivery a third party logistics provider submits the Incoterm-appropriate proof-of-delivery documents. At any time during this fulfillment phase, either party can submit a request for amendment to the purchase order that will only be effective upon the electronic approval of both parties.

Once all the required documents have been submitted, TradeCard's patented compliance engine automatically verifies that all required terms of the transaction are met by comparing the data of the purchase order with the commercial invoice, packing list and proof of delivery documents. If discrepancies are noted, the buyer and seller can resolve them online.

Once discrepancies, if any, are resolved and compliance is met, a global payment provider electronically transfers funds from the buyer's financial institution to the seller's financial institution, settling the transaction. If necessary, foreign currency exchange services can also be obtained from the global payment provider. TradeCard is an open network; buyers and sellers are not required to open new accounts with other financial institutions. TradeCard and its global payment provider work with buyers' and sellers' existing account relationships.

In addition to these core features, TradeCard members can contract for inspection services and pre-and post export financing, and will be able to contract for cargo insurance and other value-added services.

About TradeCard

TradeCard is a business-to-business e-commerce infrastructure that enables buyers and sellers to conduct and settle international trade transactions securely over the Internet. By aggregating buyers, sellers and disparate trade service providers, our solution automates and streamlines existing international trade transaction processes, which are complex, paper-based, time-consuming and expensive. Our objective is to provide a secure, reliable, cost-effective user-friendly solution for conducting and settling international trade transactions.

TradeCard, Inc. is headquartered in New York City with offices in Hong Kong and Taipei, and can be found on the World Wide Web at http://www.tradecard.com

About Chinatrust Commercial Bank

Chinatrust Commercial Bank, the former China Securities Investment Corporation established in 1966, went through two organizational transformations; in 1971 the company was reorganized as the China Investment & Trust Company and in 1992 established as Chinatrust Commercial Bank. The financial institute's growth represents its continuous efforts to pursue innovation and to strive at providing customers with ever better financial services.

Outstanding service is the key concept of Chinatrust Commercial Bank. We would like to grow with our customers, become their life-long friend and make our services indispensable to them. As the financial environment grows more and more competitive, not only have we consistently added new branches (there are currently 48 branches available in Taiwan), but have also pioneered the first "24Hour Automatic Service Center" in Taiwan. Chinatrust Commercial Bank's service is available 24 hours a day and 365 days a year.

In addition, Chinatrust Commercial Bank is actively devoted to the "Home Banking" business, which includes its Voice Response System. As a recent addition to our service portfolio, e-banking now offers another innovative way to service our customers right in their homes.

In order to cope well with Taiwan's financial liberalization and internationalization, we have moved our headquarters to Hsin-Yi District, the future location of Taiwan's international financial center. We are also vigorously increasing our global network by building our presence in major financial areas where overseas Chinese reside densely. With all these efforts, we are moving ahead to become the "global Chinese bank" and one of the top 100 banks in the world. We can be found on the World Wide Web at www.chinatrust.com.tw.

This press release contains a number of matters that constitute forward-looking statements. The presentation reflects the current views of TradeCard's management with respect to future events and is subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements.