<B>PaperExchange Forms Alliance with SGS</B>

PaperExchange.com, Inc. announced an alliance with SGS Société Générale de Surveillance S.A., the world leader in verification, testing, certification, and quality assurance. SGS is launching a new service called SGSonSITE (Safe Internet Trading Environment) through which SGS will provide its quality services to industry marketplaces via the Web. PaperExchange.com is one of only six business-to-business marketplaces working as a development partner with SGS to develop its online service offering. PaperExchange.com members will be able to order a variety of services from SGS via the PaperExchange.com marketplace, including product quality and verification checks. PaperExchange.com will soon be introducing for its members a new augmented dispute resolution process.

SGS will support this service by providing the independent inspection and

testing of the goods, when required.

"Our alliance with SGS further enhances the integrity of our marketplace," said Kent A. Dolby, CEO of PaperExchange.com. "The integration of quality verification services complements the way in which product attributes are currently listed on our site and gives our members an added level of quality assurance. PaperExchange.com recognizes the value of this physical capability as worldwide members transact in a virtual marketplace."

Operating in more than 140 countries, SGS verifies that goods and services conform to quantity, quality or compliance standards to ensure satisfaction for customers worldwide. The SGS brand carries 120 years of physical quality assessment experience to the world of business-to-business e-commerce through its SGSonSITE offering. Through the alliance with SGS, PaperExchange.com members can benefit from a variety of quality and verification services available to support both routine trading and the PaperExchange.com dispute resolution service.

"We are very pleased to work with an industry leader like PaperExchange.com," said Hal Loevy, Vice President Global Marketing & Partnerships, at SGSonSITE. "PaperExchange.com is committed to providing a successful trading environment for both buyers and sellers and continually extends innovative, value-added services to its members. Their alliance with SGS offers proof of this commitment."