World Gaming Archiv News

[Boni]

05.01.2001

Starnet Reduces Inphinity Workforce to Streamline Operations

St. Johns, Antigua, January 5, 2001 - Starnet Communications International Inc. (OTC-BB: “SNMM”) (“Starnet”), a leading provider of interactive media and information systems for companies engaged in the Internet gaming industry, today announced a workforce reduction of approximately 30 employees at its Vancouver, B.C. based Inphinity Interactive subsidiary (“Inphinity”) in order to reduce expenditure levels and increase operating efficiencies. As part of the reductions, Jason King, previously Inphinity’s Chief Executive Officer, has left the company. The reductions are effective immediately and are primarily in the managerial, administrative and support areas.

These actions are part of Starnet’s focus on aggressively pursuing opportunities to improve cash flow from operations without jeopardizing future revenue growth. The total salary and benefits associated with the departed employees is in the range of 1-1.2 Million dollars (U.S.). Inphinity’s core development team remains intact and will focus on producing superior software products for Starnet’s various business units, which have also been re-aligned to foster greater efficiency and accountability. Greater cost control mechanisms have also been implemented within the Inphinity organization and the Company anticipates taking further measures to reduce overall company-wide expenditures in the weeks ahead.

Interim President and Chief Executive Officer Fred Hazell commented “we have taken these measures in order to make Starnet and its subsidiaries a leaner, more client-focussed business group. We are transforming our corporate culture from a software development focus to one devoted to business development and an improved bottom line. Starnet intends to transform itself into an integration and delivery organization offering multiple interactive gaming products to our licensees across a standardized technology platform. The activities now underway provide the basis for enhanced business performance going forward, and increased shareholder value.”

About Starnet

Starnet is a leading developer and producer of Internet technologies for gaming applications. The company's new software, Beyond2000, which began a phased launch in August, 2000, will offer a full suite of gaming products, including casinos, sports betting, bingo, lotto, and horse racing. Games are available in a number of different formats including Java, C++, and HTML and comprehensive marketing support software is also provided. For more information, please visit www.snmm.com or email sales@starnetsystems.net.

Starnet is an SEC reporting US (Delaware) corporation, which currently trades on the Over-The-Counter Bulletin Board. The company began trading in September of 1997 under the symbol "SNMM". Starnet is also listed on the Berlin and Frankfurt Stock Exchanges where it is traded on the Over-The-Counter market under the symbol "SNM".

Contact:
Starnet Communications International Inc.
Rob Grace, Investor Relations Manager
Ph604)608-2255
Fax: (604) 639-9339
North American Toll - 1-888-883-0833
Email - investor.relations@worldgaming.com
Or

Ogilvy Public Relations Worldwide
Amy Mumma
Ph: 212.884.4036

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical fact are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays in testing and evaluation of products, shareholder approval of the proposal to reorganize into a new holding company incorporated in the U.K., regulation of the online gaming industry, and other risks detailed from time to time in Starnet's filings with the Securities & Exchange Commission. We assume no responsibility for the accuracy and completeness of these statements and are under no duty to update any of the forward-looking statements contained herein to conform these statements to actual results. This is not an offer to sell or a solicitation of an offer to purchase any securities.

[Boni]

16.01.2001

STARNET ANNOUNCES TWO NEW LICENSEES

Starnet Systems Enters Agreements with Casino Networks and Bet Racer

St. Johns, Antigua, January 16, 2001 - Starnet Communications International Inc. (OTC-BB: “SNMM”) (“Starnet”), a leading provider of interactive media and information systems for companies engaged in the Internet gaming industry, today announced that its wholly-owned subsidiary, Starnet Systems International Inc. (“Starnet Systems”) has entered into agreements with two new licensees.

Starnet Systems will license its proprietary Beyond2000 Internet gaming software to Casino Networks Ltd. (“Casino Networks”), an Internet marketing group with over five years experience in the Internet entertainment field. In a separate agreement, Starnet Systems will license its Pari-Mutuel wagering interface to Bet Racer Network, Inc., (“Bet Racer”) a company focusing solely on racing-related activities.

In accordance with the agreements, Starnet will provide Casino Networks with a full Internet casino, sportsbook and Pari-Mutuel interface. Starnet’s Internet casino includes a diverse array of gaming environments and culturally specific games such as Pai Gow poker that will enhance Casino Networks’ efforts in targeting multiple international markets. Casino Networks possesses several key gaming-related domain names, including www.casino.net, www.toplottery.com, and www.pokergames.com, which the company intends to develop and leverage in order to maximize exposure for its gaming operations.

Bet Racer will be provided with Starnet’s cutting-edge Pari-Mutuel wagering interface, which will grant Bet Racer customers instant access to real-time betting lines and secure online transactions with fast payouts. Bet Racer intends to build on an extensive background in media and advertising campaigns to create a successful business platform and a dynamic interactive experience for the end user.

Fred Hazell, interim President and Chief Executive Officer of Starnet, said “As the interactive gaming industry matures, we expect to see increased specialization in various market segments. Bet Racer’s strategy of concentrating solely on racing-related activities is consistent with this process of market maturation. Starnet’s diverse suite of I-gaming products will enable us to capitalize on the continuing emergence of these niche plays. ”

Hazell continued “Casino Networks and Bet Racer are valuable additions to our licensee group. The agreements with these new licensees are consistent with Starnet’s strategy of focusing on core business development, and improving our financial performance by targeting licensees with strong business offerings.”

About Starnet

Starnet is a leading developer and producer of Internet technologies for gaming applications. The company's new software, Beyond2000, which began a phased launch in August, 2000, will offer a full suite of gaming products, including casinos, sports betting, bingo, lotto, and horse racing. Games are available in a number of different formats including Java, C++, and HTML and comprehensive marketing support software is also provided. For more information, please visit www.snmm.com or email sales@starnetsystems.net.

Starnet is an SEC reporting US (Delaware) corporation, which currently trades on the Over-The-Counter Bulletin Board. The company began trading in September of 1997 under the symbol "SNMM". Starnet is also listed on the Berlin and Frankfurt Stock Exchanges where it is traded on the Over-The-Counter market under the symbol "SNM".

Contact:
Starnet Communications International Inc.
Rob Grace, Investor Relations Manager
Ph604)608-2255
Fax: (604) 639-9339
North American Toll - 1-888-883-0833
Email - investor.relations@worldgaming.com
Or

Ogilvy Public Relations Worldwide
Amy Mumma
Ph: 212.884.4036

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical fact are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays in testing and evaluation of products, shareholder approval of the proposal to reorganize into a new holding company incorporated in the U.K., regulation of the online gaming industry, and other risks detailed from time to time in Starnet's filings with the Securities & Exchange Commission. We assume no responsibility for the accuracy and completeness of these statements and are under no duty to update any of the forward-looking statements contained herein to conform these statements to actual results. This is not an offer to sell or a solicitation of an offer to purchase any securities.

[Boni]

19.01.2001

STARNET SHAREHOLDERS APPROVE REORGANIZATION PROPOSAL
Company’s plan to create U.K. parent company passes important milestone

St. Johns, Antigua, January 19, 2001 - Starnet Communications International Inc. (OTC-BB: “SNMM”)(“Starnet”), a leading provider of interactive media and information systems for companies engaged in the Internet gaming industry, today reported that it has obtained a majority vote of outstanding shares in favor of its proposal to reorganize into a U.K.-based parent company.

Results of the vote were announced at a special meeting of shareholders held earlier today at the Company’s offices in St. John’s, Antigua. The approval by shareholders is a key step in the reorganization process, by which Starnet intends to reorganize into a U.K.-based parent company, World Gaming plc (“World Gaming”). Fred Hazell, Starnet’s interim President and Chief Executive Officer, thanked shareholders for their support of the proposal, and re-affirmed the Company’s intention not to complete the reorganization until the ordinary shares of World Gaming are admitted or authorized to trade on a stock exchange or trading facility in the U.K., U.S., or elsewhere, either directly as ordinary shares or as American Depositary Receipts. Under the reorganization proposal, shares of Starnet common stock will be exchanged for shares in World Gaming at the time of completion of the reorganization.

Mr. Hazell said, “The approval by our shareholders of the reorganization proposal is an extremely positive step in the reorganization process. With that approval now in place, we will turn the full focus of our reorganization team’s efforts towards obtaining a suitable trading facility for World Gaming shares, and bringing the reorganization process to completion.” Mr. Hazell continued, “We believe that the United Kingdom is more supportive of companies operating in the online gaming industry, and will provide a more favorable business and financial environment for the long-term profitability and growth of our business. We are indeed very excited about the opportunities that are now before us.”

About Starnet

Starnet is a leading developer and producer of Internet technologies for gaming applications. The company's new software, Beyond2000, which began a phased launch in August, 2000, will offer a full suite of gaming products, including casinos, sports betting, bingo, lotto, and horse racing. Games are available in a number of different formats including Java, C++, and HTML and comprehensive marketing support software is also provided. For more information, please visit www.snmm.com or email sales@starnetsystems.net.

Starnet is an SEC reporting US (Delaware) corporation, which currently trades on the Over-The-Counter Bulletin Board. The company began trading in September of 1997 under the symbol "SNMM". Starnet is also listed on the Berlin and Frankfurt Stock Exchanges where it is traded on the Over-The-Counter market under the symbol "SNM".

[Cabo]

14.02.2001

STARNET REINSTATES PLANNED SHAREHOLDER UPDATES
CEO Updates on Corporate Initiatives in Letter to Shareholders

St. Johns, Antigua, February 14, 2001 - Starnet Communications International Inc. (OTC-BB: “SNMM”)(“Starnet”), a leading provider of interactive media and information systems for companies engaged in the Internet gaming industry, announced today that it has commenced its planned CEO Teleconference Call program. This action follows the shareholder approval of the Proxy/Prospectus proposal on Starnet’s plan to reorganize the Company into a new holding company domiciled in the United Kingdom.

The Company decided in October 2000 not to institute the planned program in light of the inherent restrictions the Company faced following the filing of Starnet’s Form F-4. The commencement of the conference calls was announced in a letter to shareholders from interim President and Chief Executive Officer Fred Hazell that highlights Starnet’s commitment to proactive, regular communication with shareholders, and provides an update on the status of various corporate initiatives. The text of that letter is included below.

Dear Shareholders:

Now that you have approved the Proxy/Prospectus proposal on our plans to reorganize Starnet into a new holding company domiciled in the United Kingdom, I wanted to take the time to thank you for demonstrating overwhelming support for the direction that we have recommended for the Company.

I am pleased to inform you that management is confident that we will be able to have our shares traded as American Depositary Receipts (ADRs) on a U.S. trading facility. Efforts are also underway to have WorldGaming plc accepted for trading on trading facilities in Europe. We believe that as we relaunch the Company, this key step of obtaining a listing in Europe will enable the Company to achieve additional exposure to capital markets and result in a fair valuation of its asset base as reflected in our excellent future growth potential. We expect to proceed with our plans to reorganize into World Gaming plc domiciled in the U.K. within the next 30 to 60 days.

Unfortunately, our communication with you over the past three months has been less than we would have preferred, primarily due to securities laws considerations while our proxy/prospectus material was under consideration. Now that this is behind us, we are pleased to institute regular updates with you, our shareholders.

Much has happened over the past three months, and I want to take this opportunity to update you on these events.

CEO Search- After narrowing our search for a CEO to three highly qualified candidates, the Board of Directors will make our final selection this week. We expect that the new CEO will be in place in March 2001, and will lead the Company forward, building credibility with the capital markets and enhancing shareholder value. There will be a separate release providing you with the background of the successful candidate.

Improved Operations - As part of our increased focus on improving the quality of our service to our licensees, we have hired Mr. Liam Gillen as Starnet’s Executive Director of Business Operations. Mr. Gillen will spearhead the Company’s efforts in this area, building on his 20 years of operational gaming experience in Europe and the Caribbean.

Additionally, we have restructured the company to focus our efforts on becoming more sales, marketing, and client focused, while continuing to identify and deliver the products and services that our licensees need. Our Business Units will be focused on working closely with our licensees to identify their needs and to deliver the products and services that they require.

Increased Revenues - We are committed to bringing new revenues into the Company over the next two fiscal quarters. To achieve this goal, we are actively recruiting new licensees to expand our licensee base. We plan to devote significant resources to increasing our revenue base as well as ensuring that our income reflects the level of services that we provide by identifying and properly allocating our transaction costs. Additionally, we are working to establish a business presence in Europe that will enable us to expand this licensing momentum into new markets going forward.

Cost reduction - On January 4, 2001, we took steps to reduce the cost base of Inphinity Interactive Inc., our software development subsidiary. We believe that reducing our managerial, administrative, and support staff there, and outsourcing certain functions to consultants as needed under short-term contracts, is in the long term best interests of the Company. We will continue to evaluate our operations, and will further reduce the Company’s cost base in all areas, including vendor, service, and legal contracts, going forward. Where possible, we will continue to outsource resources on an “as required basis”. Overall, we are instilling more cost-consciousness and fiscal discipline to the Company.

Legal Update - As concerns the inquiry initiated by the Royal Canadian Mounted Police ("RCMP") of the Company's historical business practices in Canada up through August 1999, we expect that a further extension of time will be requested from the Court in order for the Crown to determine what further action will be taken in the matter. We do not intend to oppose the request, as we believe the inquiry is approaching a stage where we will be able to discuss the matter in a meaningful way. While we certainly do not know the ultimate outcome, this additional time may possibly allow for this inquiry, which raises issues never before addressed concerning online commerce, gaming and the limits of a country's jurisdiction, to be resolved without costly and protracted litigation.

Financial Results - Looking ahead, our third quarter 2001 results will be released by March 15, 2001, and will reflect a profitable operational quarter. We believe that we will meet our stated projections, exclusive of the costs associated with downsizing our operations and other non-recurring charges. We are optimistic about the future growth prospects of the Company and confident that our innovative offering of products and services will continue to lead the market.

A conference call has been scheduled for 4:30 P.M. EST on Tuesday February 20, 2001 to discuss these matters and to answer any questions that you may have on the issues facing our Company. Further details about the call will be issued in a press release, and will also be available on the Starnet Web site, www.snmm.com, on the investor relations page. We hope you will join us.

Sincerely,
Fred Hazell
Interim President and Chief Executive Officer
Starnet Communications Inc.

[Cabo]

19.02.2001

ADVISORY: STARNET TO HOLD CONFERENCE CALL UPDATE
Provides Dial-In Numbers for Access to Call

St. Johns, Antigua - February 19, 2001 - Starnet Communications International Inc. (OTC-BB: “SNMM”)(“Starnet”), a leading provider of interactive media and information systems for companies engaged in the Internet gaming industry, announced today the dial-in information for its upcoming conference call in which Starnet’s interim President and Chief Executive Officer Fred Hazell will provide an update on the status of recent corporate initiatives.

Starnet invites shareholders and the public to participate in the conference call, which will be held at 4:30 p.m. EST on Tuesday, February 20, 2001, by calling toll free 1-877-888-4210 (domestic, within North America), or 416-695-5261 (international, local Vancouver). Participants should dial in at least five minutes prior to the broadcast.

Access to the live conference call will also be available at 4:30 EST on Starnet’s Web site, www.snmm.com under the “Investors” tab. To listen to the Internet broadcast, please go to the Web site at least 15 minutes prior to the call to register, download and install any necessary audio software.

This conference call will be available as a replay on Starnet’s Web site,www.snmm.com, shortly after the completion of the event.

[Cabo]

26.02.2001

STARNET SUBSIDIARY SIGNS NEW PARI-MUTUEL AGREEMENTS
World Gaming Signs Agreements with Miami Jai Alai and Scarborough Downs, Re-signs Additional Track Partners

St. Johns, Antigua, February 26, 2001 - Starnet Communications International Inc. (OTC-BB: “SNMM”) (“Starnet”), a leading provider of interactive media and information systems for companies engaged in the Internet gaming industry, is pleased to announce that its wholly-owned subsidiary, World Gaming Services Inc. (www.worldgaming.net), has entered into simulcast agreements with Scarborough Downs and Miami Jai-Alai.

Scarborough Downs is a harness track located in Portland, Maine, and is the state’s largest and most active raceway. Its season begins March 3rd and concludes December 30th. Scarborough Downs will be available around the world on the Internet through Starnet’s full pari-mutuel wagering product. The service includes integrated handicapping information for thoroughbred, standardbred, and greyhound tracks from across North America. This information is available through Starnet’s partnerships with the Daily Racing Form, BRISnet.com, and Track Data Systems.

Starnet’s Chairman, Interim President and Chief Executive Officer Fred Hazell said “Our Pari-mutuel wagering software differentiates Starnet as the only I-Gaming Company with a full suite of products, giving us a significant competitive advantage. We plan to leverage this advantage by continuing our expansion into non-traditional pari-mutuel events in the future.”

Miami Jai-Alai (www.fla-gaming.com/miami) is owned and operated by the Florida Gaming Corporation (OTCBB: BETS). Florida Gaming Corporation is the largest Jai-Alai operator in the world. Florida Gaming Corporation owns jai-alai frontons with simulcasting operations in Miami and Ft. Pierce, Florida and is well known for its all-star roster of players.

Florida Gaming's Chairman and CEO, Bennett Collett stated: "We are very excited to be able to offer the highest level of professional jai-alai games from Miami Jai-Alai - the world-wide brand name in jai-alai. Miami Jai-Alai has a 75-year history of providing the most intense level of competition in the sport of jai alai. We are very pleased to team up with Starnet Communications to offer world-wide distribution of these exciting games to our on-line audience."

In addition, World Gaming has signed new 1-year agreements with two existing track partners, Phoenix Greyhound Park and Monticello Raceway.

Pari-mutuel software

Launched on October 12, 2000, Starnet’s Beyond2000 pari-mutuel software allows participants to place wagers on-line, access real time betting lines, and view live audio/video streaming of events through Starnet's web site (www.worldracetracks.com).

The Company and it’s tote partner Amtote International, Inc. constructed an International pari-mutuel based hub in Antigua, giving Starnet the ability to link and process bets from all racetracks that have signed agreements with Starnet. Starnet has signed ten track partners to date, including: Dania Jai-Alai, Delta Downs, Lebanon Raceway, Miami Jai-Alai, Monticello Raceway, Northfield Park, Ocean Downs, Phoenix Greyhound Park, Scarborough Downs and Tucson Greyhound Park.

Handicapping information from across North America and around the world is available on both www.worldgaming.com and www.worldracetracks.com through Starnet’s partnerships with the Daily Racing Form, BRISnet.com, and Track Data Systems

Starnet will be rolling out the pari-mutuel product to its licensees as a part of the Beyond2000 Product Suite. It offers a full menu of gaming products, including sports betting, casino games, bingo, lotto and now pari-mutuel wagering on horse, greyhound and jai-alai events.

[Cabo]

02.03.2001

STARNET SELECTS NEW CHIEF EXECUTIVE OFFICER
CEO To Take Office On March 19th

St. Johns, Antigua - March 2, 2001 - Starnet Communications International Inc. (OTC-BB: SNMM)(“Starnet”), a leading provider of interactive media and information systems for companies engaged in the Internet gaming industry, announced today that the Company has received a commitment from its newly selected chief executive officer.

“I am pleased to announce that the candidate selected by Starnet’s board of directors last week to become the Company’s new chief executive officer has accepted our offer, and has signed an agreement with us.”, stated Fred Hazell, the chairman of the board and interim president and chief executive officer of Starnet. “We have agreed to honor the new chief executive officer’s wish to remain anonymous until he has finalized a transition plan with the company he is departing.”

Mr. Hazell continued, “However, I can tell you that this individual is a prominent businessman with an extensive background in the technology industry and a proven track record of success as a leader of a publicly traded (NASDAQ) growth-stage company. He will leverage his experience to take Starnet to its next level of corporate development as we reorganize the Company into a new holding company domiciled in the United Kingdom. He is scheduled to join the Company on March 19th, and we will issue a formal announcement on or before the date that he takes office.”

Starnet will introduce the new chief executive officer to shareholders and other interested parties on its 3Q 2001 earnings conference call, scheduled for 4:30 p.m. EST on Tuesday March 20, 2001. The dial in numbers for the call are 1-877-888-4210 (domestic, within North America) and 416-695-5261 (international, local Vancouver). Participants should dial in at least five minutes prior to the broadcast. The call will also be Web cast from Starnet’s Web site, www.snmm.com at 4:30 EST under the “Investors” tab. A replay of the call will be available shortly after the completion of the event at www.snmm.com.

[Cabo]

19.03.2001

STARNET REPORTS RECORD REVENUE IN FISCAL THIRD QUARTER

St. Johns, Antigua, March 19, 2001 - Starnet Communications International Inc. (OTC-BB: SNMM) ("Starnet"), a leading provider of interactive media and information systems for companies engaged in the Internet gaming industry, today reported results for the three- and nine- month periods ended January 31, 2001.

Total revenues for the third quarter were $6.37 million, a new record for the Company, which represents a 44% increase compared to reported revenues of the same quarter last year and a 16% increase over Q2. Net loss for the quarter was $0.17 million, or $0.01 per share, compared to a net loss of $4.93 million, or $0.16 per share, during the corresponding quarter in fiscal 2000.

For the nine-month period ended January 31, 2001, revenue increased 28% to $15.88million, compared to $12.37 million in the same period last year. Net loss for the period was $3.28 million, or a loss of $0.10 per share, compared to a net loss of $3.98 million, or $0.13 per share, during the corresponding nine-month period in fiscal 2000.

Third quarter revenue gains were the result of a significant increase in royalties and fees from Starnet’s core licensing business. Revenues of the Company’s licensees, or system wide revenues, increased to $31.12 million, up 92% from the same quarter last year and a 60% increase from Q2. Deposits made to Starnet’s licensees by their customers, or system wide deposits, were $57.61 million in the quarter, up 41% from Q3 last year and 3% from Q2.

For the third quarter 2001, Starnet recorded positive earnings before interest, taxes depreciation and amortization (EBITDA) of $0.42 million, compared to negative EBITDA of $4.21 million in the third quarter of 2000 and negative $0.62 million in Q2 2001. The Company had not been EBITDA positive since Q2 2000.

Excluding non-recurring charges taken in the third quarter, the core business generated an operating profit of $0.41 million, compared to a net operating loss of $ 1.1 million last quarter. This $1.5 million improvement is due to a $1.0 million increase in revenues and a $0.5 million reduction in operating expenses. Total operating expenses were reduced to $5.20 million, compared to $7.39 million in the same quarter last year and $5.26 in Q2.

Third quarter non-recurring charges included severance costs of $0.26 million associated with workforce reductions in Inphinity Interactive, which are expected to lead to annualized cost savings of over $1 million, expenses of $0.13 million associated with the U.K. reorganization initiative, and a bad debt provision of $0.14 million which pertains to certain software license fee receivables booked after Q3 2000 but before the new licensee criteria were implemented. The licensees in question failed to generate sufficient Web site revenues to pay Starnet the royalty and license fees required by their contracts.

"This year’s third quarter marked a dramatic refocusing of Starnet’s operational priorities. We began the process of streamlining the company’s operations in all areas," commented Fred Hazell, chairman and interim president and chief executive officer of Starnet. Hazell continued, "We also shifted the focus of our operations from software development toward better serving the needs of our licensees, executing strategic personnel changes to drive the business forward in this new direction."

Chris Thompson, Starnet’s vice president of finance, said, "Although the year on year growth was strong for the quarter there was a definite weakening in December and January, most likely due to the slow down in the U.S. economy. We expect this slowdown to continue, which may lead to the Company’s return to negative cash flow in Q4. The Q4 results could also be negatively affected by settlements in the class action and/or RCMP issues. Nevertheless, such settlements would greatly benefit the Company by reducing the level of uncertainty among shareholders, a benefit which far outweighs any possible short-term costs."

Third Quarter Highlights: 2001

Shareholders approved the Company’s proposal on plans to reorganize Starnet into a new holding company domiciled in the United Kingdom.
Starnet streamlined operations company-wide with cuts that are expected to reduce operational costs by over $1 million per year going forward. The Company expanded its focus on licensee relations and service, adding Liam Gillen as executive director of operations.
Starnet added 3 new active licensees during the quarter and signed license deals with another 2 who will commence operations in Q4.
Starnet management will be holding a conference call to discuss these financial results on Tuesday March 20, 2000, at 4:30 p.m. EST. The dial in numbers for the call are 1-877-888-4210 (domestic, within North America) and 416-695-5261 (international, local Vancouver). Participants should dial in at least five minutes prior to the broadcast. A live Web cast will be available on the Starnet Web site, www.snmm.com, under the "Investors" tab. To listen to the Internet broadcast, participants should go to the Web site at least 15 minutes prior to the call to register, download and install any necessary audio software. A replay of the call will be available shortly after the completion of the event at www.snmm.com.

About Starnet

Starnet is a leading developer and producer of Internet technologies for gaming applications. The company's new software, Beyond2000, which began a phased launch in August, 2000, will offer a full suite of gaming products, including casinos, sports betting, bingo, lotto, and horse racing. Games are available in a number of different formats including Java, C++, and HTML and comprehensive marketing support software is also provided. For more information, please visit www.snmm.com or email sales@starnetsystems.net.

Starnet is an SEC reporting US (Delaware) corporation, which currently trades on the Over-The-Counter Bulletin Board. The company began trading in September of 1997 under the symbol "SNMM". Starnet is also listed on the Berlin and Frankfurt Stock Exchanges where it is traded on the Over-The-Counter market under the symbol "SNM".

Contact:
Starnet Communications International Inc.
Rob Grace, Investor Relations Manager
Ph604)608-2255
Fax: (604) 639-9339
North American Toll - 1-888-883-0833
Email - investor.relations@worldgaming.com
Or

Ogilvy Public Relations Worldwide
Amy Mumma
Ph: 212.884.4036

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical fact are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays in testing and evaluation of products, shareholder approval of the proposal to reorganize into a new holding company incorporated in the U.K., regulation of the online gaming industry, and other risks detailed from time to time in Starnet's filings with the Securities & Exchange Commission. We assume no responsibility for the accuracy and completeness of these statements and are under no duty to update any of the forward-looking statements contained herein to conform these statements to actual results. This is not an offer to sell or a solicitation of an offer to purchase any securities.


Starnet Communications International Inc.
Consolidated Balance Sheets As at January 31, 2001 and April 30, 2000
(in thousands of US dollars)
(Unaudited)
31-Jan
2001 30-Apr
2000


ASSETS
Current
Cash and cash equivalents 2,829 5,984
Reserves and deposits with credit card processors 3,487 3,857
Accounts receivable 2,779 2,022
Prepaid expenses and deposits 732 616
Current portion of long-term receivable 37 514
Other current assets 520 1,349
Total current assets 10,384 14,342
Restricted cash 7,666 7,234
Capital assets (net) 5,877 4,868
Long-term receivable 1,552 1,539
Total Assets 25,479 27,983
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities 3,267 5,223
Funds held on deposit 3,062 2,118
Deferred revenue 187 287
Current portion of capital lease obligations 708 476
Total current liabilities 7,224 8,104
Non-current portion of capital lease obligations 788 503
Long-term note payable 1,500 0
Total liabilities 9,512 8,607
Shareholders' equity
Capital stock 22,335 22,143
Sub....ion receivable -366 -381
Accumulated deficit -5,655 -2,371
Accumulated other comprehensive loss -347 -15
Total shareholders' equity 15,967 19,376
Total liabilities and shareholders' equity 25,479 27,983

Starnet Communications International Inc.
Consolidated Statements of Operations For the Periods Ending January 31 (in thousands of US dollars except per share information) (Unaudited)
Three Months Ended 31-Jan (Unaudited)
Nine Months
Ended 31-Jan
REVENUE
Sales 2001 2000 2001 2000
Royalties and fees 5,891 3,646 14,245 9,415
Licensing 480 770 1,632 2,958
Total sales 6,371 4,416 15,877 12,373
Cost of sales 1,392 1,751 4,292 3,548
Gross profit 4,979 2,665 11,585 8,825
EXPENSES
Sales 155 249 452 544
Marketing 581 520 2,079 1,373
Development 873 584 2,582 1,407
Operations 1,257 458 3,424 750
General and administrative 1,424 1,902 4,049 3,893
Provision for bad debts 140 1,443 140 1,693
Legal 130 1,723 420 1,912
Depreciation and amortization 639 514 1,954 1,160
Total operating expenses 5,199 7,393 15,100 12,732
Loss from operations -220 -4,728 -3,515 -3,907
Other income 49 105 231 186
Loss from continuing operations before income taxes -171 -4,623 -3,284 -3,721
Income tax expense
Current 0 0 0 53
Deferred 0 0 0 0
Income taxes 0 0 0 53
Loss from continuing operations -171 -4,623 -3,284 -3,774
Loss from discontinued operations of the on-line Interactive
media division (less applicable income taxes) 0 -307 0 -202
Net loss for the period -171 -4,930 -3,284 -3,976
Retained earnings (deficit), beginning of period -5,484 1,838 -2,371 884
Deficit, end of period -5,655 -3,092 -5,655 -3,092
Basic loss per share from continuing operations ($0.01) ($0.15) ($0.10) ($0.13)
Basic loss per share ($0.01) ($0.16) ($0.10) ($0.13)
Weighted average number of common shares
Outstanding 32,201,181 30,967,287 32,161,486 29,690,911
Diluted earnings per share from continuing operations n/a n/a n/a n/a
Diluted earnings per share n/a n/a n/a n/a
Weighted average number of common shares
Outstanding for diluted earnings per share n/a n/a n/a n/a

Starnet Communications International Inc.
Consolidated Statements of Cash Flows
For the Periods Ending January 31(in thousands of US dollars) (Unaudited)
Three Months
Ended
31-Jan
(Unaudited)
Nine Months Ended
31-Jan

Cash flows from operating activities 2001 2000 2001 2000
Net loss -171 -4,930 -3,284 -3,976
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 639 511 1,954 1,157
Amortization of deferred web site costs 0 53 0 159
Amortization of software development costs 0 473 0 611
Changes in current assets and liabilities:
Decrease (increase) in reserves and deposits with credit card processors 152 -3,726 370 -4,221
Decrease (increase) in accounts receivable 110 3,634 -742 -334
Decrease (increase) in prepaid expenses -91 121 -116 -217
and deposits
Decrease (increase) in other assets 241 596 829 -131
Increase (decrease) in accounts payable
and accrued liabilities -324 308 -1,953 3,194
Increase in income taxes payable 0 -88 0 -30
Increase (decrease) in funds held on deposit -1,098 266 944 2,402
Increase (decrease) in deferred revenue 54 -34 -100 -168
Net cash used in operating activities -488 -2,816 -2,098 -1,554
Cash flows from investing activities
Purchase of capital assets -285 -1,671 -2,056 -3,610
Transfer to restricted cash -114 -82 -435 -6,937
Net cash used in investing activities -399 -1,753 -2,491 -10,547
Cash flows from financing activities
Payments received on long-term receivable 7 0 491 0
Proceeds from loan 0 0 1,500 0
Proceeds from issuance of shares 0 302 192 12,329
Principal repayments under capital lease obligations -149 -183 -449 -372
Net cash provided by (used in) financing activities -142 119 1,734 11,957
Effect of exchange rate changes on cash -79 284 -300 205
Net increase (decrease) in cash during the period -1,108 -4,166 -3,155 61
Cash, beginning of period 3,937 10,093 5,984 5,866
Cash, end of period 2,829 5,927 2,829 5,927
Other non-cash transactions
Leased assets acquired 42 340 1,001 622
Supplemental cash flow information
Interest paid 59 68 89 97
Income tax paid 0 0 0 0

[Cabo]

20.03.2001

STARNET CORRECTS CERTAIN SYSTEM WIDE AND OTHER INFORMATION

St. Johns, Antigua, March 20, 2001 - Starnet Communications International Inc. (OTC-BB: SNMM) ("Starnet"), a leading provider of interactive media and information systems for companies engaged in the Internet gaming industry, has issued a correction of yesterday’s 10-Q filing and earnings press release regarding the percent of growth in revenues of the Company’s licensees, or system wide revenues. Additionally, the Company has issued a correction of system wide revenues for the quarter ended October 31, 2000.

System wide revenues of $31.12 million for the quarter ended January 31, 2001 were reported correctly. However, the percentage change should have been reported as a 60% increase from the same quarter last year and a 40% increase from the quarter ended October 31, 2000. System wide revenues for the quarter ended October 31, 2000 were corrected to $22.21 million.

Separately, Starnet has learned from Business Wire that in distribution of yesterday’s earnings release, Business Wire made a formatting error that resulted in a typographical mistake in Starnet’s Consolidated Statements of Operations for the Periods Ending January 31. The Company’s sales revenue from licensing for the nine months ended January 31, 2001 and 2000 were released as $1,63 and $22,958 (in thousands of U.S. dollars), respectively. The correct sales revenue from licensing figures are $1,632 and $2,958 (in thousands of U.S. dollars) for the nine months ended January 31, 2001 and 2000, respectively.

Shareholders and other interested parties are encouraged to participate in the conference call scheduled today, Tuesday March 20, 2001, at 4:30 p.m. EST. The dial in numbers for the call are 1-877-888-4210 (domestic, within North America) and 416-695-5261 (international, local Vancouver). The call will be webcast live on the Starnet Web site, www.snmm.com, under the "Investors" tab. To listen to the Internet broadcast, participants should go to the web site at least 15 minutes prior to the call to register, and to download and install any necessary audio software. A replay of the call will be available shortly after the completion of the event at www.snmm.com.

[Cabo]

25.05.2001

Starnet Communications appoints new CEO

St. John’s, Antigua, May 25, 2001 - Starnet Communications International Inc. (OTCBB: SNMM), a global pioneer in I-gaming technologies, announced the appointment of Michael Aymong as its President and Chief Executive Officer, the first in a number of steps to be taken by the company as part of its reorganization plans.

“Mike has a proven track record of making technology companies thrive in competitive, rapidly evolving markets,” said Fred Hazell, Starnet Chairman, who stepped down as interim President and CEO in April when Aymong took on the position. “During the past 12 years, Mike has driven market growth and provided strategic vision for several public companies at the senior executive level. Today’s announcement is outstanding news for Starnet Communications.”

Aymong will lead the corporate reorganization and growth strategy for Starnet Communications, in order to take advantage of significant market opportunities in the Americas, Europe, Asia and Australia.

“When I accepted the position of President and CEO,” said Aymong, “I did so with a commitment to sound business practices and leadership, implementation of the approved corporate reorganization, a strong sales and customer focus for the company, and accelerated product development and innovation. In only a few short weeks, we have already taken a number of important steps toward re-establishing our place as a leader in the I-gaming industry.”

Prior to joining Starnet Communications, Aymong served as Executive Vice President of Marketing, Sales, and Customer Service at GT Group Telecom (NASDAQ: GTTLB; TSE: GTG.A, GTG.B). He spearheaded the telecommunication service provider’s aggressive nation-wide launch, leading to successful initial public offerings in both Canada and the United States. Aymong had full profit and loss responsibility for the company’s commercial efforts. He also drove the strategic direction of the company’s marketing, sales, client service activities, operations, and facilities, as well as revenue targets.

Aymong’s first foray into the technology sector was as Director of Operations and Support at MetroNet Communications, reporting to the President and CEO. His vision and strategy helped drive the company’s success, measured by a significant increase in the stock price from $21 to more than $75 per share during his tenure.

Next, Aymong provided senior executive leadership to TELUS Advanced Communications (TSE: T, T.A; NYSE: TU) in his capacity as the Vice President of Marketing and Director of Marketing and Operations. Here, he played a critically important role in molding a truly cross-functional and profit-focused billion-dollar data communications company. He led the movement to performance-based planning and the solidification of TELUS’ business and market plans. His work supported eight profit centres as independent business units, meeting financial targets and embracing corporate objectives.

Aymong is a graduate of the Executive MBA program at the University of Western Ontario. He also serves as a member of the Board of Directors of Vicom Communications Inc., Big Picture Technologies Inc., CharterHub and the Art Gallery of Ontario.