NorStar in Major China Deal Valued at USD$150 Million

Business Wire, March 7, 2001

Business Editors/Technology Writers

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--March 7, 2001

NorStar Group, Inc., (OTCBB:NSTG), confirmed this morning that it entered into an exclusive distribution agreement through its innovative and cutting edge subsidiary,(www.veearecity.com) with HangZhau Foresight Intellectual Digital Equipment Co, Ltd, of The Peoples Republic of China. The agreement gives Hangzhou Foresight the right distribute the Company's proprietary product The Cybervisor (TM). The contract is worth USD$150 million to NorStar over five years. The Cybervisor(TM) is NorStar's lightweight, comfortable, and affordable proprietary virtual reality IPD (Interactive Personal Display) system designed for home, school, and business, which can be used to display virtual reality or three-dimensional products. Hangzhou Foresight is a well-established high modern technology joint-stock company, associated of Zhejiang Qianjiang Motor Group Co., Ltd, and Blue Moon Modern Technology Industrial And Trading Company also of The Peoples Republic of China.

"The Company is very enthusiastic about this major development and its relationship with Hangzhau Foresight", said Jay Sanet, NorStar's Director of Corporate Development. "This agreement is helping NorStar successfully penetrate the Asian markets because Hangzhau Foresight has a long and successful history as both a manufacturer and distributor of consumer electronics goods in the Far East", added Sanet.

Sanet went on to say, "This agreement also helps position NorStar to become a leading purveyor of immersive technologies. NorStar's goal is to implement web based virtual reality single/multiplayer game sites and to produce realistic digital worlds where computer generated avatars become stand-ins for actual people and surrounded sound audio will emulate real-life noises. As human beings we live in a 3-dimensional world and The Cybervisor (TM) virtual reality IPD system is the high quality and affordable gateway to explore 3 dimensional worlds".

Background Information

There are now over 22.5 million Internet users in China, according to the latest study from the China Internet Network Information Center (CNNIC). The typical Internet user spends an average of 13.66 hours per week online, mainly accessing news and entertainment sites. About 60 percent use the Internet at home, 44 percent at work, 21 percent at cybercafes, and 20 percent at their place of education.

According to another recent study by eMarketer, by 2004, China will have almost as many Internet users as Japan. Japan currently accounts for about 36 percent of the Asian Internet population but its share will drop to 18.5 percent by 2004 as the number of users in China grows exponentially, making up 17.4 percent of all Asian users.

eMarketer predicts that the compound annual growth rate of the number of Asian users will be 38 percent over the next few years, so that by 2004 there will be 173 million Internet users in the region. This will increase Asia's share of the global Internet population from 21 to 27 percent. Ecommerce revenues in Asia are expected to grow to USD338 billion by 2004, up from USD39.4 billion last year.

About NorStar

Through selective acquisitions and partnering alliances, NorStar Group, Inc.(NSTG) is positioning itself to be a leading provider of interactive, virtual reality, entertainment, educational, and business products and services. NorStar is also the co-developer of a proprietary lightweight, comfortable and affordable virtual reality IPD system, The Cybervisor(TM), which is designed for home, school, and business.

Safe Harbor: Certain statements contained in this press release, including but not limited to information regarding the future economic performance and financial condition of the Company, the plans and objectives of the Company's management and the Company's assumptions regarding such performance and plans, are forward-looking in nature. Many factors and conditions could cause actual results to differ from the forward-looking information contained in this public announcement.