Strategy First Terminates Their Agreement With Game Factory Interactive For the Development of Jagged Alliance Games.

Montreal, Canada. September 1st, 2006. -- Software publisher Strategy First, Inc. a wholly owned subsidiary of Silverstar Holdings, Ltd. (NASDAQ: SSTR) announced today that their Agreements with Game Factory Interactive relative to the development, publishing and distribution of the titles “Jagged Alliance 3” and “Jagged Alliance 3D” have been terminated. Game Factory Interactive will therefore not have any right to publish, distribute, license nor to develop any Jagged Alliance title or derivative products for any platform.

Strategy First is confident that it will access additional development resources so that the new addition to the Jagged Alliance franchise will not only equal but surpass its predecessors in scope and play value.

About Strategy First
Strategy First Inc., a wholly owned subsidiary of Silverstar Holdings (Nasdaq: SSTR), is a leading developer and worldwide publisher of entertainment software for the PC. Founded in 1990, the Company is well known for its proprietary groundbreaking titles, such as the award winning Disciples, Jagged Alliance and Space Empires series of games, which are under continuing development. Simultaneously, Strategy First continues to publish many of the industry’s major titles, winning numerous awards for games such as “Hearts of Iron”, and “Galactic Civilizations.” Recent offerings include top releases such as “S.C.S. – Dangerous Waters™” and “Space Empires V.” The Company provides a unique alternative for independent developers seeking to market their games to a worldwide audience. www.strategyfirst.com

About Game Factory Interactive Ltd
Game Factory Interactive Ltd was founded in 2003 by a group of professionals with extensive experience and knowledge in the Video Gaming Industry. Game Factory Interactive Ltd. is an independent PC Games developer and publisher with offices in Seattle (WA, USA), Ottawa (Ontario, CANADA), Moscow (Russian Federation) and Kiev (Ukraine). We publish directly in Russian and Ukrainian markets, via our partner companies in Eastern Europe and sublicense in other territories. As one of leading publishers in the former Soviet Union, our main goal is to bring high quality game titles in ex-Soviet Union and East Europe.

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