Starnet Announces Three New Licensees; CEO Reviews Strategic Growth Initiatives

Business Wire, May 3, 2000

Business/Technology Editors

ST. JOHNS, Antigua--(BUSINESS WIRE)--May 3, 2000

Starnet Communications International Inc. (OTC-BB: "SNMM") ("Starnet"), an online provider of interactive media and information systems and a recognized leader in Internet gaming, announced today that its wholly owned subsidiary, Starnet Systems International Inc. ("Starnet Systems") has entered into agreements to license its proprietary Internet gaming technologies to Star Media Entertainment Inc. ("Star Media"), Yeteck Entertainment Inc. ("Yeteck") and Internet Empire Entertainment Ltd. ("Internet Empire Entertainment"), all of Antigua.

Meldon Ellis, chief executive officer of Starnet said, "Star Media, Yeteck and Internet Empire Entertainment are excellent additions to our licensee partner base, the largest in the industry, and represent sustained momentum in our core I-gaming operations. We are continuing to add licensees and attract top caliber talent to our management and software development teams, which will allow us to aggressively expand, increase our net value and deliver increased shareholder value."

Ed Starrs, president of Starnet Systems added, "It is also important to note that Star Media, Yeteck and Internet Empire Entertainment are the first licensees added in accordance with stringent new criteria that we have developed to help ensure the success of both our partners and Starnet. All new licensees must demonstrate a viable business plan, qualified management, and significant marketing resources. After careful screening of each of these companies, we are convinced that they will be strong additions to our partner base and generate substantial revenues."

The three Antiguan licensees highlight the international dimension of I-gaming, Starnet's intent to grow globally, and management's commitment to operate in a manner which is consistent with international laws. Star Media is an I-gaming company that has specialized in Asian markets for the past two years, an area of significant potential for Starnet. Yeteck has an extensive background in marketing to multi-language clientele. Internet Empire Entertainment also has significant experience in Internet marketing and Web site development for international markets.

Review of Starnet's Strategic Growth Initiatives

Commenting on Starnet's strategic growth initiatives, Meldon Ellis said, "Over the past several months we have executed on our strategic growth plan in consistent and deliberate fashion, setting the stage for an exciting year. We started by consulting legal, financial and governmental authorities and developed a comprehensive restructuring plan that clarifies our business model and establishes a secure platform for future growth. At the same time we began adding to our management team, improving our ability to execute our growth plans and capitalize upon market opportunities.

"To increase the quality and competitiveness of our core business products, we dramatically improved our software development team," added Ellis. "Over the past several months we have added 35 new software programmers, led by Dr. Eugene Nizker who has over 25 years of experience in software development and led teams at Chase Manhattan Bank and Digital Dispatch Systems. The result is Starnet 2000, our new suite of revolutionary I-gaming products with unparalleled, state-of-the-art features that will make Starnet the clear choice for prospective licensees, whether they be land-based operators, major Internet organizations, or governments."

In addition to upgrading core products, Starnet has developed new ones that compliment the company's core business and leverage company assets. Pari-mutuel operations will launch this summer, extending Starnet's market reach. The company is also beginning development of wireless applications for Starnet's products, as management sees strong global opportunities for content players in wireless that fit well with Starnet's products and capabilities.

Ellis continued, "To further secure growth and maintain our leadership position well into the future, we are aggressively pursuing strategic alliances and reviewing potential acquisitions. With several hundred players currently in the I-gaming market, industry consolidation is imminent, favoring the largest and strongest players like Starnet. We are currently in discussions with several leading international gaming companies, seeking to add products and services that would create strong synergies and enable us to become the first Internet gaming company with a truly global presence. We are pleased with our achievements to date and confident that we have positioned Starnet for an exciting and successful future."

Martin Mullally, vice president of strategic planning, added, "The outlook for Starnet remains strong. Recent market concerns over the viability of many Internet businesses and their cash burn rates only highlight the strength of Starnet's business model, our operating results and our outlook. Unlike many dot.coms, Starnet's business plan has delivered profits, and rests on solid fundamentals. We see continued global growth of this market over the next several years, accompanied by considerable industry consolidation, and intend to remain a leading player in the industry. With our licensee base providing significant, stable revenue streams, a healthy balance sheet, and investment bankers providing deep financial resources, we are well positioned for future growth and excited about the opportunities ahead of us."