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CheMatch.com is a leading business-to-business Internet-based marketplace for purchasers and sellers of commodity chemicals, plastics and fuel products. Our marketplace is centered around a real-time, interactive trading exchange, where our members bid, offer and negotiate online for the purchase and sale of products 24 hours a day, seven days a week. Members of our secure, neutral exchange trade products anonymously, utilizing real-time pricing and other market information provided through our exchange. Members are pre-qualified by us and pre-selected by each other before trading on our exchange. Our members include more than 125 of the world's leading chemical companies and other leading purchasers and sellers of commodity chemicals, plastics and fuel products, including traders, distributors, brokers, manufacturers and other end users. Our trading exchange, located at www.chematch.com, was the first and is one of the largest online exchanges serving the chemical industry. Over $125 million in transactions have been traded on our exchange since February 1998, and over $29 million in transactions were traded on our exchange in the quarter ended December 31, 1999. In the fourth quarter of 1999, we averaged more than 35,000 metric tons of daily product bids and offers and the average transaction value of completed trades exceeded $500,000. We generate revenues on our trading exchange from commissions typically paid by each party to a completed transaction. Our strategic investors include Bayer AG, Computer Sciences Corporation, E.I. duPont de Nemours and Company, General Electric Company, Millennium Holdings Inc., Muehlstein Holding Corporation, Stolt-Nielsen Transportation Group Ltd., TownsendTarnell, Inc. and William Heinemann Inc., a subsidiary of Reed Elsevier plc. We have entered into strategic alliances with Bayer, CSC, duPont, General Electric and Muehlstein to build our membership, to increase the trading volume on our exchange and to generally enhance our trading exchange. In addition, we have strategic relationships with Stolt-Nielsen to facilitate logistics, with DeWitt & Company, Incorporated and Reed Elsevier to provide information services, and with eCredit.com and TownsendTarnell to provide credit and other services. | ||||||||||||
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