Strategy First Acquires The Assets Of Malfador Machinations

April 5, 2006


Acquisition Includes Space
Empires Franchise, the Preeminent PC Space Game Property

Strategy First Inc., a wholly owned
subsidiary of Silverstar Holdings Ltd. (Nasdaq: SSTR), announced today that it
had acquired all of the intellectual property assets of Malfador Machinations of
Santa Rosa, California. As part of the transaction, Aaron Hall, Malfador’s
president and CEO, has joined the Strategy First management team to direct the
ongoing development of Malfador’s successful Space Empires franchise under the
Strategy First banner.

Founded in 1995, Malfador
Machinations and Aaron Hall have achieved widespread industry recognition as the
leading space genre game developer through the remarkable series of
award-winning titles in the Space Empires franchise. The first four Space
Empires games have garnered a cult following in the game community, and the
latest game in the series, Space Empires V, will be released in the next few

Clive Kabatznik, president and CEO
of Silverstar Holdings, said, “This acquisition is a further step in fulfilling
our strategy of becoming an owner of promising, profitable entertainment
software and media companies. As a leading international game software
publisher, Strategy First is ideally placed to identify promising game
franchises that can add significant value for our shareholders.”

“We have monitored the consumer
acceptance of the Space Empires franchise since entering into an exclusive
distribution and publishing agreement with Malfador in early 2005. The
remarkable ongoing sales of existing games, and the tremendous built-up
anticipation for the release of Space Empires V, give us confidence that the
intellectual property we have acquired will have long term value as the
preeminent space genre game franchise.

Mr. Kabatznik concluded, “This
transaction is immediately accretive to earnings and we are pleased that Aaron
Hall has joined our team. We will continue to seek and secure similar
acquisition opportunities in the future.”

“I’m absolutely delighted to be part
of the Strategy First family,” said Aaron Hall, president of Malfador
Machinations. “They have already been helpful in positioning the Space Empires
franchise going forward, and our combined talents will make this already
successful property even stronger in the future.”

“We’re excited to add the Space
Empires series to our library of award-winning titles which already includes the
successful Jagged Alliance and Disciples franchises,” said Don McFatridge,
president of Strategy First. “We now have three popular franchises under active
development, and we’ve gained the expertise of Aaron Hall, one of the industry’s
leading development luminaries.”