January 11, 2006

STRATEGY FIRST TERMINATES THEIR AGREEMENT WITH GAME FACTORY INTERACTIVE FOR THE DEVELOPMENT OF DISCIPLES III

Software publisher Strategy First, Inc. a wholly owned subsidiary of Silverstar Holdings, Ltd. (NASDAQ: SSTR) announced today that their Agreement with Game Factory Interactive for the development of “Disciples III” has been terminated. Mistland South, a development studio owned by Game Factory Interactive, will therefore not be responsible for the development of this next addition to the popular series.

“Jagged Alliance 3D,” the upcoming addition to Strategy First’s renowned Jagged Alliance franchise, is still currently under development by Mistland South.

“Disciples III” development has been started already by another studio to be announced shortly.

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