SOURCE: Infosmart Group Limited

October 13, 2006 09:25 ET

Cyber Merchants Exchange, Inc. Announces Effectiveness of SB-2 Registration Statement

Cyber Merchants Previously Announced That Its Name Would Be Changed to "Infosmart Group, Inc."

HONG KONG -- (MARKET WIRE) -- October 13, 2006 -- Cyber Merchants Exchange, Inc. (OTCBB: CMXG) (hereafter "Infosmart" or the "Company"), a Hong Kong-based recordable digital versatile disk ("DVDR") manufacturing company, announced today that on October 10, 2006 the Securities and Exchange Commission declared effective the Company's registration statement on Form SB-2 relating to the resale of up to 80,450,174 shares of the Company's common stock, no par value, by certain selling stockholders.

The Company was required to register these shares due to commitments it made in connection with the issuance of $7.65 million of Series B Convertible Preferred Stock and warrants to purchase common stock to certain accredited and institutional investors as well as commitments it made in connection with its share exchange transaction with Infosmart Group Ltd. and its shareholders, which closed on August 16, 2006.

The resale registration statement, while effective, allows selling stockholders to publicly resell their shares of the Company's common stock, subject to the satisfaction by selling shareholders of the prospectus delivery requirements of the Securities Act of 1933, as amended, in connection with any such resales.

The Company will not receive any proceeds from any sales by selling stockholders, but will receive the proceeds from the exercise of warrants held by selling stockholders, if exercised.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the Company's securities, nor shall there be any sale of these securities in any state in which offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Additional information with regard to this transaction and related transactions can be found in the Company's Current Reports on Form 8-K, as filed with the Securities and Exchange Commission on August 24, 2006 and the Registration Statement on Form SB-2, as filed with the Securities and Exchange Commission on September 15, 2006, which can be viewed without charge on the internet at

About Infosmart Group, Inc.

Infosmart operates a state of the art DVDR production facility in Hong Kong and is preparing to manufacture new writable High Density media (HD-DVDR). In addition, the Company will soon become the largest manufacturer of DVDR discs in Brazil. Disc media will be the storage media of choice for years to come, whether as HD-DVDR for mature markets or traditional DVDR for developing markets. No other storage media available rivals its combination of high capacity, low cost and exceptional portability.


The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward looking statements if they comply with the requirements of the Act.

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