Silverstar Holdings Acquires Student Sports, Inc.; Acquisition Adds Leading High School Sports Media and Marketing Company to Silverstar's Portfolio

Business Wire, Sept 25, 2001

Business Editors

BOCA RATON, Fla.--(BUSINESS WIRE)--Sept. 25, 2001

Student Sports and Fantasy Sports Become Backbone of

New Sports Media Acquisition Strategy

Silverstar Holdings, Ltd. (Nasdaq:SSTR) today announced that it has acquired all the assets and the business of Student Sports, Inc. Financial terms were not disclosed.

Founded in 1989 by Andy Bark, Student Sports Inc. ("SSI") is today one of America's leading high school sports media and marketing companies. SSI is a leading provider of news, video and statistical data on high school sports; and is the gateway to the teen market for top tier advertisers such as Nike, Procter & Gamble, ARCO, am/pm, Fox Sports Net, 24 Hour Fitness and the US Army. Student Sports Magazine (SSM), the company's cornerstone publication, is the nation's only monthly subscription-based magazine that covers the 38 organized high school sports offered across the country. SSM is considered the authoritative source of information and access point into the high school sports market and to the competitive student athlete.

Students Sports was the first national magazine to feature many of America's best athletes on its cover while they were in high school. Among these athletes are Tiger Woods, Marion Jones, Jason Giambi, Kevin Garnett, and Lisa Leslie.

In addition to its magazine and statistical record books, including the new National High School Football Record Book, SSI provides extensive local and regional television programming services to companies such as Fox Sports Net. SSI earned three Emmy Awards for its work on "Inside Cal Hi Sports" as broadcast regionally on Fox Sports Net. SSI also licenses proprietary high school and recruiting content to TheSportingNews.com, CNNSI.com and TheInsiders.com. Additionally, SSI produces live high school sports events for corporate sponsors such as the Elite 11 Quarterback Camp, the Nike Football Training Camps and Cal-Tex and CaliFlorida All-Star football games. The company also provides unique customized teen research, marketing and advertising campaigns for its corporate customers.

Clive Kabatznik, chief executive officer of Silverstar Holdings said: "We are delighted to have acquired this truly unique sports media property. Andy Bark and Student Sports are undeniably the most well respected players in the burgeoning high school student sports market. The company's elite roster of long-term clients such as Nike, ARCO and the US Army are testament to the quality of the publications, market information and sponsorship events that Student Sports consistently produces. Andy Bark and his team are the key reason for this success, and under his continued leadership they will be an integral part of Student Sports' future growth."

Mr. Kabatznik continued: "The growth opportunities in the teen market are enormous. There are currently 56 million boys and girls between the ages of 10 and 24 in the U.S. This influential generation is growing 19.5% faster than the overall U.S. population and accounts for more than $250 billion of annual disposable income. With more than six million teens involved in sports, in more than 22,000 high schools, an extraordinary opportunity exists for a visionary company to corner this valuable market. By meeting young people where they live, breath and participate in sports, SSI provides unparalleled access, not only to the athletes themselves but also to millions of coaches, family supporters and fans. After the recent "shake-out" of dot.com competitors, we believe that Student Sports stands as the company most likely to succeed in this great market.

"We now are fortunate to have acquired two unique sports media companies: Fantasy Sports and Student Sports Inc. Both are dominant players in their respective markets. There are excellent operational synergies and cross-marketing opportunities between the two companies. By bringing these two leaders under the Silverstar umbrella, we are consolidating our strategy of acquiring fast growing, unique and profitable sports media assets. The combination of these properties, along with our strong cash position, will enable us to grow these businesses, both organically and through acquisitions into substantial industry players," concluded Mr. Kabatznik.

Bark, president of SSI, said: "Over the last three years, 13 companies have tried to acquire or merge with SSI. The only one that saw the vision and understood the integration of our online and offline business divisions, as well as the value of our intellectual property, was Silverstar Holdings.

"The real winners here are the student-athletes, their families, coaches and fans of high school sports because now we have the strategic financial backing to expand our ability to inform, inspire and entertain," Bark said. "When I founded Student Sports Inc. over a decade ago, the media picture for high school sports was a barren landscape. Since then, more than 40 companies have tried to replicate what we do. None have succeeded. We are the leaders in high school sports and our longevity, the quality of our print and broadcast content, our special events and the effectiveness of our specialized marketing programs continue to underscore that.