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Silverstar Holdings
Announces Acquisition of Strategy First
Transaction Represents a Significant Step
Towards Implementing Broader Fee-Based Electronic Online Game Strategy
BOCA RATON, FL — 04/22/2005 — Silverstar Holdings, Ltd.
(NASDAQ:
SSTR) announced today that it has acquired Montreal-based Strategy First,
Inc., a leading developer and worldwide publisher of entertainment software.
This acquisition represents a significant
milestone towards implementing Silverstar’s strategic plan to acquire, own and
operate well-established, fee-based electronic game companies across a broad
spectrum of industry segments. Silverstar now operates in the online fee-based
sports business through Fantasy Sports, Inc. and in the PC strategy game
business through Strategy First.
The acquisition was made through the
jurisdiction of the Montreal bankruptcy court. As per the approved plan of
arrangement, consideration to creditors consists of approximately $600,000 in
cash, the issuance of approximately 400,000 shares of SSTR Common Stock, the
assumption of approximately $400,000 in existing bank debt, as well as
contingent consideration based on the future profitability of Strategy First.
Clive Kabatznik, CEO of Silverstar Holdings,
said, "We are delighted to have completed this transaction. It is a significant
event for Silverstar on a number of levels. Firstly, it marks the initial step
towards implementing our strategic plan to become an owner and operator of a
broad range of fee-based electronic game companies. We strongly believe that the
fee-based electronic game industry, and in particular the online element of this
industry, is one of today’s most exciting business opportunities. The operating
leverage provided by the Internet and other distribution platforms provides a
compelling business model that, if implemented successfully, can provide
excellent shareholder value."
"Secondly, in Strategy First and its
management team, we believe we have acquired a well-established, experienced
player in the strategy/role playing electronic game segment. Strategy has been
in business for over 15 years and has established a reputation among developers,
retailers and gamers worldwide as a reputable publisher of quality titles.
Additionally, with the consolidation of the electronic game industry, there is a
growing need for mid-sized, independent publishers, like Strategy First, who
focus on providing titles to market segments that are typically ignored by the
industry giants. Prior to its 2004 bankruptcy filing, Strategy operated
profitably. We anticipate that with its new streamlined and focused operations,
Strategy First will contribute to the growth of Silverstar’s shareholder value,"
Mr. Kabatznik continued.
"Finally, by cost-effectively acquiring
Strategy through a bankruptcy restructuring, we now control a company with a
clean balance sheet and a refocused business strategy that holds great promise.
Post acquisition, Silverstar has in excess of $9 million in financial assets, of
which approximately $5 million is cash, with no appreciable debt, at the
corporate level. Therefore, as we integrate Strategy First into our operations
we will continue to seek additional growth opportunities, both organically and
through acquisition, to further implement our strategic plan," Mr. Kabatznik
concluded.
About Silverstar Holdings
Silverstar Holdings Ltd. is a
publicly traded company focusing on acquiring controlling positions in high
growth, fee-based businesses that stand to benefit from the economies of scale
generated by Internet and other technology-related platforms. It currently owns
Fantasy Sports, Inc., a dominant provider of fee based, NASCAR related and other
fantasy sports games, as well as a stake in Magnolia Broadband, a fab-less
semiconductor company and innovator of radio frequency (RF) solutions for the
cellular industry.
www.silverstarholdings.com
About Strategy First
Strategy First, Inc. is a leading
developer and worldwide publisher of entertainment software for the PC. Founded
in 1990, the company has grown rapidly, publishing major games in the industry
and simultaneously developing its own in-house titles such as O.R.B. and
Disciples II. After winning numerous awards for games such as Disciples: Sacred
Lands, Kohan: Immortal Sovereigns, Steel Beasts, Galactic Civilizations, and
Jagged Alliance, Strategy First continues to push the gaming envelope with its
own groundbreaking titles, while maintaining its reputation as a unique
alternative for independent developers seeking to market their games to a
worldwide audience.
www.strategyfirst.com
