Strategy First Signs Major European Publishing and Distribution agreement
Company: Lago
Montreal, Canada. July 7, 2005. Publisher Strategy First, Inc., a wholly owned subsidiary of Silverstar Holdings, Ltd. (Nasdaq: SSTR), and publisher Lago srl., are pleased to announce that they have entered into a broad Western European publishing and distribution deal covering ten of Strategy First's upcoming titles. The initial term of the agreement runs through the release of ten titles, anticipated to be distributed over the next nine months.

Stewart Braybrook, Strategy First's Director of European Operations, and a principal architect of the deal, said, "We are justifiably pleased to have entered into this far-reaching arrangement with one of the premier publishing and distribution organizations in Europe. We anticipate that this will be the beginning of a long and satisfactory partnership that will strengthen the marketplace presence of both companies."

This important European initiative with Lago places Strategy First squarely in the ranks of many of the industry's leading PC game makers. Black Bean is the game label of Lago srl, the publishing arm of Leader Group; one of the leading videogame companies in Italy. Black Bean was first launched in December 2004 and with the release of major titles such as; "SCAR: Squadra Corse Alfa Romeo" and the strategy / RPG title "Rising Kingdoms", has since established major publishing and distribution partnerships across Europe. Black Bean's main goal is to strengthen and diversify their product line and to establish themselves as a leading publisher in the European market.

"Our new publishing and distribution arrangement with Strategy First significantly increases our importance to the entire European marketplace, and we are excited by the potential offered by this deal. Strategy First's growing palette of new and ground-breaking strategy titles, coupled with our aggressive new thrust into the rest of Europe, provides the perfect formula for commercial success," said Virgilio Bixio, Lago's Managing Director. "We've put in place the critical components for the perfect commercial marriage."

Commenting on the new agreement, Clive Kabatznik, President and CEO of Silverstar Holdings, said, "Forging this kind of important strategic relationship underscores the growing strength of Strategy First in both title selection and international presence. Partnering with one of Europe's leading software publishers and distributors provides an excellent platform for our future West European distribution. This relationship, along with our strong network in Eastern Europe, positions Strategy First as the publisher of choice for developers seeking the strongest international distribution for their products."

About Lago/Black Bean
Black Bean is the games label of Lago srl, which is part of Leader Group. Leader SpA has been the leading independent distributor in Italy since it started business in 1984. Leader is based in Gazzada (Varese) which is situated 30 miles north of Milan in northern Italy. Black Bean philosophy is to focus on a wide range of games genre leveraging on the niche targets that remain uncovered into the market. By adding original content to the products and by fully localising the titles Black Bean's vision is to remain close to player's needs. Black Bean has distribution partners all across Europe and PAL territories including Australia and South Africa.

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 such as "Supreme Ruler 2010" and "Disney's Aladdin Chess Adventures" 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 .

About Silverstar Holdings
Silverstar Holdings Ltd. is a publicly traded company (NASDAQ: SSTR), focusing on acquiring controlling positions in high growth retail driven and fee-based electronic game businesses that stand to benefit from the economies of scale generated by the 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, Strategy First Inc. a leading developer and worldwide publisher of entertainment software for the PC, 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
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