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.