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News of  February 22, 2000
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ereorg and Mitsubishi Form Joint Venture to Introduce Internet Debt Trading System to Japan
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$600 Billion Distressed Bank Debt Market Targeted

NEW YORK and TOKYO - ereorg.com, Inc. announced that it has formed a joint venture with Mitsubishi Corporation to introduce ereorg's institutional online debt auction system to the Japanese market. The ereorg system enables users to buy and sell debt in the secondary market in an anonymous and secure environment while significantly reducing transaction costs and settlement times.

The Japanese secondary bank debt market presents a significant opportunity for ereorg. Japanese distressed bank debt is estimated to exceed $600 billion. Bank debt as a percent of GDP is nearly 100%, compared to 40% in theU.S. Furthermore, as the Japanese economy recovers, the primary loan market is expected to grow rapidly. This trend is evidenced by the aggressive expansion in Tokyo of the corporate lending groups of U.S. and European commercial and investment banks. ereorg will be well positioned to capitalize on the corresponding increase in secondary par loan trading.

ereorg is fortunate to have Mitsubishi as a partner in Japan. Mitsubishi is a world class institution with over fifty years of experience and relationships in global trading markets," stated Ronald DeKoven, Chairman and Chief Executive Officer of ereorg. DeKoven added, "Given the vast size of the Japanese debt market and the demand for portfolio restructurings, we have extremely high expectations for ereorg in Japan."

Announcing the joint venture, Yuji Komiya, General Manager of Mitsubishi Corporation's Merchant Banking Department, stated, "we believe that ereorg will be an important catalyst to increase liquidity in the Japanese debt markets. By offering an anonymous channel for financial institutions to reach a wide range of qualified buyers, ereorg will facilitate the efficient exchange of debt products."

In connection with the joint venture, Mitsubishi's U.S. merchant banking arm, MC Capital Inc., invested in ereorg. Commenting on the investment, Shunichi Maeda, President and CEO of MC Capital stated: "ereorg has assembled an impressive management team with extensive experience in financial services and technology. Mitsubishi believes that ereorg will transform global debt trading markets. In Japan, Mitsubishi and ereorg will work together to introduce a full-range of debt trading products demanded by current market conditions." MC Capital has been an active Internet investor with investments that include Wit Capital, Intertrust and e-STEEL.

(Feb. 17, 2000)

 

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