STARNET - Starnet Announces Strategic Restructuring; Company Action Designed To Ensure Legal Compli - 500 Beiträge pro Seite

[investor_007]

Starnet Announces Strategic Restructuring; Company Action
Designed To <SNMM.OB>


Starnet Announces Strategic Restructuring;
Company Action Designed To Ensure Legal Compliance; Establishes Secure
Growth Platform

ST. JOHNS, Antigua--(BUSINESS WIRE)--February 10, 2000--Starnet
Communications International Inc. (OTC-BB: "SNMM") ("Starnet"), an
online provider of interactive media and information systems and a
recognized leader in Internet gaming, today announced a strategic
restructuring that separates Starnet`s operations in accordance with
their business functions. The reorganization of Starnet is designed to
ensure legal compliance, establish a secure platform for rapid future
growth and deliver increased shareholder value.
Meldon Ellis, president and chief executive officer of Starnet
said, "This plan represents the culmination of several months of
consultation by management with key external parties, including
financial advisors, legal advisors and relevant government
authorities. The restructuring clarifies Starnet`s business,
eliminating gray areas surrounding issues such as the location and
ownership of servers processing online gaming transactions."
Under the initial phase of the plan, Starnet has spun-off its
online gaming marketing arm into an independent organization, Wiremix
(www.wiremix.com). Wiremix, composed of Internet marketing specialists
and led by President Patrick Smyth, will be fully devoted towards
promoting internationally the online gaming properties of Starnet and
its licensees. Wiremix will partner with licensees, providing the
following services:
-- Defining the target market
-- Site theme conceptualization
-- Promotional site launches
-- Design of media and marketing plans
-- Consulting services
Wiremix`s unique focus on online gaming positions the
advertising/marketing agency to benefit from the tremendous growth
projected for the industry.
In addition, software development has been spun-off into a wholly
owned subsidiary named Inphinity. Jason King will lead Inphinity as
chief executive officer, with Helmut Biemann replacing King as chief
operating officer of Starnet. With a staff of over 100, Inphinity will
continue to focus on developing interactive cutting-edge games of
chance, and creating customized Web sites for licensees. Currently,
Inphinity is finalizing World Gaming 2000, their next generation
gaming software scheduled for release in spring 2000.
Ellis added, "Although the nature of cutting-edge, pioneering
companies is often initially misunderstood, Starnet management has
taken consistent, decisive action to clarify our business model,
eliminate misunderstandings and clearly establish compliance with
legal guidelines in jurisdictions where the company operates. We began
by moving our headquarters to Antigua and, as stated in our December
20, 1999 release, initiated development of a formal restructuring
plan. Management has also cooperated openly with legal authorities
during this time. The restructuring announced today is an expansion
and continuation of these actions and demonstrates our ability to
execute and deliver."
Martin Mullally, vice president, strategic planning said, "With
our new structure in place, and a talented, proven management team
executing our strategy in aggressive, systematic fashion, Starnet is
better prepared than ever to ensure legal compliance and face
competitive challenges. Starnet`s strong financial health and leading
position in a surging market also provides the company with a
competitive advantage. We look forward to an exciting year."
Starnet is a fully reporting US (Delaware) corporation, which
currently trades on the National Association of Security Dealers
("NASD") Over-The-Counter Bulletin Board. The company began trading in
September of 1997 under the symbol "SNMM".
Starnet is a leading developer and producer of Internet
technologies for gaming applications. For more information, please
visit www.snmm.com.
-0-
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 and other risks detailed from time to time in
Starnet`s filings with the Securities & Exchange Commission.
--30--cf/ny*
CONTACT: Starnet Communications International Inc.
Carey Nelson, Investor Relations Manager
Ph: [phone] Fax: [phone]
Rob Grace, Investor Relations Manager
Ph: [phone] Fax: [phone]
North American Toll - 1-888-883-0833
Outside N. America - 800-883-88338
Email - irsnmm.com
or
Ogilvy Public Relations Worldwide
Brad Miller
Ph: [phone]


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[investor_007]

By: tapco
Reply To: 185048 by DerPate Thursday, 10 Feb 2000 at 8:28 AM EST
Post # of 185051


Check out Starnet`s new Subsidiary "Inphinity"
This is what you are investing in !!!!!!!!!!!!!!!!!

This is Starnet`s newest subsidiary. They are not just a
gaming company. They have one of the best Internet design
staffs in North America. With over 200 IT specialist
creating State of the Art Web sites in the E-Commerce
Sector. Take a 3D tour and you can see where the Internet
Graphic world is going in the new Millennium.

http://www.inphinity.com/openwin.html

Tapco

[hellraid]

Schlagt mich, bitte schlagt mich

Ich hab bei $1,75 überlegt, ob ich fett nachlegen soll, aber dann hab ich gedacht..hmmm...66% Verlust reichen ja wohl.

Arghh...immer diese Zweifel, jetzt muss ich wahrscheinlich für $8 nachkaufen. Aber ich bin wieder im PLUS

[investor_007]

Die BIDS ziehen langsam an:
aktuell Bid $6.25 Ask $ 6.65

[investor_007]

Ein $7 Trade 2000 Stück

mfg
investor_007

[investor_007]

Open @ $7.062 US
+ 17.7%

mfg
investor_007

[investor_007]

$8 US
210,000 Shares
investor_007

[investor_007]

RESEARCH NOTE
STARNET

(NASD BB: SNMM)

February 11, 2000



CEO Meldon Ellis announced yesterday a major anticipated restructuring of the Company into a corporate structure that follows functional relationships. It is also intended to clearly limit what functions Starnet has remaining in Canada. In the restructuring process, what has been the Company`s marketing operations (as opposed to licensing sales) was spun off under the name of Wiremix (www.wiremix.com). Under the announced corporate structure, all functions that relate to licensee sales, operations, and its own casino operations, are domiciled offshore. These offshore functions and operations are the ones that could be construed by authorities as possibly in violation of Canadian gaming law had they remained domiciled in Canada. It was not feasible to move the functions and personnel of its licensee marketing group offshore, and thus it was spun off as Wiremix.

At this point in time, only its software development subsidiary (renamed Inphinity) remains in Canada along with certain corporate functions such as investor relations. The Company as part of the spin off now contracts with Wiremix to provide marketing support and consulting services to its licensees.

We are pleased to see this major piece of restructuring finally announced. Its implications are significant, and permit the Company to refocus on earnings growth. Mr. Ellis has been adding to his own management team, and has attracted what are clearly talented and experienced executives. We note that the restructuring clearly is intended to inform the Canadian authorities that it has now conformed with Canadian law in eliminating any ambiguities that might exist. A point for possible settlement with the authorities should have been established.

The street reacted to the this restructuring announcement with great enthusiasm, sending the stock up several points on exceptionally large volume. Clearly, the hangover of legal and restructuring expenses will be seen in the third and fourth quarters to be announced starting with early March. There is also the hangover of the various class action suits, but generally these should be quantified around a settlement for some amount of plaintiffs` counsels legal fees.

We continue to believe SNMM attractive as a speculative buy at these levels. Speculative as both its legal problems need to be concluded and strong earnings growth resumed. The current legal and restructuring costs should abate over the next several quarters. Mr. Ellis`s near term strategy to grow earnings from the internal growth of the operations of its licensees can now come into focus.

Our update report should be released in the very near future