Strategy First Signs Major European Publishing and Distribution Agreement

Strategy First Signs Major
European Publishing and Distribution Agreement

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

“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.”