astounding growth of Internet commerce.

First Atlantic Commerce Ltd. aims to make Bermuda the offshore centre for Internet transactions by leveraging the Island's lack of corporate tax on profits.

"This is huge,'' said First Atlantic chairman Steve Cullimore, one of the principals behind CCS. "At this stage, through this medium, the word is the marketplace.'' The company has already signed up one music retailer and is working with several other "major companies'', Mr. Cullimore said.

Offshore companies will be required to set up an exempt company on the Island and then open an account at one of the local banks.

Tapping commerce on the Internet The companies will use First Atlantic's secure, Internet credit card transaction processing gateway in Bermuda.

Shoppers around the world will be able to buy goods such as software, music CDs and other products directly through the exempt company site. The on-shore company will then ship the good to the customer. Payment information is handled by First Atlantic's cGate processing technology. Transactions are transmitted over a virtual private network managed by Cable & Wireless.

"Bermuda's tax-neutral status, as well as both its stable economy and political environment make it an ideal location for companies considering offshore Internet commerce,'' Mr. Cullimore said.

He added the cGate technology allowed Bermuda's banks to securely settle Internet credit card transactions from any merchant around the world.

Credit card processing agency First Data Merchant Services has made First Atlantic its first offshore electronic commerce partner. First Data certifies systems based on an audit of security and encryption methodologies used in processing credit card transactions worldwide.

Mr. Cullimore said the company would not accept any companies dealing with Internet pornography and gambling.

Bermuda Chamber of Commerce president Michael Smith said the cGate technology was a boon to the Island's emerging technology services sector.

"cGate not only enhances Bermuda's ability to compete globally in the expanding field of electronic commerce, but it also benefits local banking institutions by attracting new international business to the Island,'' he stated in a press release.

Consultancy Forrester Research estimates consumers made $9 billion worth of online transactions last year. Business to business transactions are forecast to reach $327 billion by 2002.