ereorg Introduces Revolutionary Internet Debt Trading Market / Auction-Based Site for Trading of $340 Billion in Bank Loans, Trade Claims And Sovereign Bank Deb

New York (PROTEXT) - A new business-to-business e-commercecompany, ereorg.com, Inc. (www.ereorg.com), will establish thefirst online auction market for the estimated $340 billion ofbank loans, trade claims and sovereign bank debt currently tradedin global secondary markets. Going live in January 2000, ereorgwill host auctions for par and distressed U.S. bank loans, aswell as distressed U.S. trade claims. Shortly thereafter, ereorgwill add international bank loans and sovereign bank debt. ereorgbegan registering users this week in preparation for trading inJanuary. "By offering an unprecedented level of transparency,significantly lower transaction costs, standardizeddocumentation, and a much shorter transaction cycle time, ereorgwill revolutionize the way bank loans, trade claims and sovereignbank debt are traded," says Ronald DeKoven, the company's founderand Chief Executive Officer. "Because ereorg brings buyers andsellers together in an anonymous and secure online tradingenvironment, the system will increase liquidity and spur marketgrowth. Both parties benefit as buyers gain access to increasedproduct flow and sellers reach more potential buyers. The end-result will be a new global market characterized by optimalpricing." In addition, by capturing the information on specific trades,ereorg will create the first objective database of market pricinginformation. ereorg users will have access to this data,facilitating price discovery and an associated increase inliquidity. Using the ereorg system Access to ereorg is free, with no registration fees charged toeither buyers or sellers. All registered users can view auctionsonline, with all parties assured of complete anonymity. To insurea community of users who are legitimate and creditworthy, ereorghas set strict eligibility requirements for participation inereorg auctions. As part of the registration process, buyers andsellers agree that all transactions are governed by a masterconfidentiality agreement and that a binding settlement agreementis formed at the close of each auction. To initiate an auction, aseller fills out an online Auction Ticket in which the sellerspecifies a minimum purchase price for the posted debt, theauction completion time, the form of debt purchase and othermaterial terms of settlement. Before placing a bid, buyers have full access to the status ofall open auctions and can perform due diligence by downloadingdebt-specific information previously posted by the seller. Thebuyer can request additional information from the seller bysending an anonymous Auction Information Request. Throughout theauction process, buyers can keep track of new bids and the timeremaining in each auction to evaluate their bidding options.After the auction is completed, ereorg reveals the identities ofthe high bidder and seller only to one another. ereorg iscompleting its plans to partner with a respected institution tocoordinate the closing of the trade through the exchange of debtinstruments and purchase proceeds between buyer and seller. Bothbuyers and sellers pay ereorg a commission of five basis pointsof the face amount of the debt traded. Significant savings ereorg clients will be able to capture significant costsavings over current trading practices given ereorg'sstandardized documents, online format and low-priced commissionstructure. Users will no longer incur legal bills associated withnegotiated documentation. Administrative resources can be reducedgiven the online posting of all due diligence information anddecreased handling of transaction documentation. In addition,ereorg's commission is significantly lower than current averagecommissions for distressed bank loans and trade claims. ereorgwill also improve the speed and efficiency of transactionsettlement time. Currently, it takes 20 to 30 days (T+20 to T+30)to complete a distressed bank loan trade. For most transactions,ereorg anticipates settlement time of T+10, with sometransactions closing in T+5. Over the past few months, ereorg has been consulting with agroup of twenty-five key market players that includes commercialbanks, institutional investors, broker-dealers and hedge funds.According to DeKoven, "Early feedback from this beta test groupenabled the company to tailor the ereorg system to its users." Prior to founding ereorg, DeKoven was the senior partnerresponsible for managing Shearman & Sterling's global corporaterestructuring practice. After launching ereorg earlier this year,DeKoven assembled a management team with backgrounds in debttrading, corporate restructuring, technology and financialservices. ereorg is well-capitalized by initial investors whichinclude Shearman & Sterling; AMT Capital Management, headed byAlan Trager, a former Morgan Stanley managing director; andThomas Burnett, President and founder of Merger Insight(R), aninstitutional research service, and a former Merrill Lynchmanaging director. ereorg is in the process of closing anadditional financing round with a global venture capital firm. ereorg has filed a patent to protect its trading process andbusiness concept, a practice established by priceline.com andother innovative e-commerce companies. In addition, ereorg hascopyrighted the ereorg User Handbook that incorporates thecompany's proprietary system rules and registration documents.ereorg is a registered broker-dealer and member of the NationalAssociation of Securities Dealers, Inc. (NASD). The companyitself will not buy, sell, or own debt instruments. ots OriginalText Service: ereorg.com, Inc. Internet:http://www.newsaktuell.de Contact: ereorg.com, Inc., (USA) 212-418-1150 Steven Bruce or Carina Thate of Abernathy MacGregorFrank (USA) 212-371-5999, for ereorg.com Web site:http://www.ereorg.com

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