The Baltic Exchange, the world's oldest shipping market, launched the first stage of its internet-based electronic trading Floor. This development will help the Exchange to consolidate its leading position in the international market place.The electronic platform, which is incorporated within the re-designed Baltic Exchange website, will replicate in many respects the exchange of information which for more than two centuries was focused on the Exchange's trading Floor.

Peter Kitching, Chairman of the Exchange said: "This is a bold, imaginative and innovative investment which has the potential to offer real and lasting benefits to our members and subscribers around the world, we have committed an investment of £1 million to the first stage of this project and we have plans to commit a further £2 million over the next few years as we add new features and enhancements to our electronic trading Floor."

The launch of the first stage of the electronic platform - balticexchange.com - follows the appointment of Lost Wax, a European e-commerce technology company, at the end of last year to develop the software systems required. The key components of the first stage platform are:

· an electronic trading Floor which will enable Exchange members and other subscribers to search for and match available ships with available cargoes on a world-wide basis. A database containing details of more than 40,000 bulk ships and information on more than 8,500 ports forms a part of the Electronic trading Floor;

· the full range of shipping freight market information published daily by the Exchange - embracing some 48 daily route rates for both dry bulk and oil cargoes and a list of ships for which charters have been fixed - complemented by sophisticated software to chart trends in the route rates and principal Baltic indices.

The electronic platform has been designed to assist shipbrokers and their principals and to enhance the role of brokers; balticexchange.com does not include a negotiation platform and detailed negotiations will continue to be conducted by shipbrokers using traditional methods.

Members of the Exchange who have registered as users of the electronic platform will benefit from a free trial period which will run to the end of march next year; non-members will be offered a three month trial period.

The Baltic Exchange is the world's only self-regulated shipping market maintaining professional standards, resolving disputes and providing market information. It is the world's largest shipbroking market and its members handle some 30 per cent of all dry cargo fixtures and 50 per cent of crude oil fixtures. More than half of the world's new and second hand tonnage is bought and sold by Baltic members in a market, which according to Clarkson's Research was worth around US$34 billion in 2000.

Lost Wax is a European e-commerce technology company with five year track record in developing e-commerce solutions for a wide range of customers . It is at the forefront of agent technology, delivering agent-based software solutions that are critical to the future success of e-commerce. Lost Wax customers include the Balitc Exchange, Egg, Eurobenefits, General Motors (On:Line Finance), Sony, Psion and Orange.