SOURCE: Silverstar Holdings, LTD

February 21, 2007 10:40 ET

Silverstar Holdings Announces Financial Results for Period Ended December 31, 2006

Revenues Increased by 200% for Quarter Six Months' Revenues Increased by 139%; Empire Interactive Contributed $12.6 Million in Revenues and $1,044,000 in Proforma Operating EBITDA for the Six-Month Period

BOCA RATON, FL -- (MARKET WIRE) -- February 21, 2007 -- Silverstar Holdings, Ltd. (NASDAQ: SSTR) today reported its results of operations for the second quarter and six months ended December 31, 2006.

The Company reported revenues of $2.96 million for the second quarter, an increase of approximately $1.98 million or 200% from approximately $983,000 for the same period in 2005. For the six-month period, the Company reported revenues of $3.2 million, an increase of approximately of $1.88 million or 139% compared to $1.35 million for the same period in 2005. The revenues for both periods include one-month's revenues from Empire Interactive PLC which was acquired in December 2006.

For the quarter, operating loss before interest, taxes, depreciation and amortization was approximately ($730,000) or ($0.07) per share as compared to approximately ($218,000) or ($0.02) per share in 2005.

For the six months, operating loss before interest, taxes, depreciation and amortization was approximately ($1,253,000) or ($0.13) per share as compared to approximately ($594,000) or ($0.07) per share in 2005.

For the quarter, net loss was approximately ($1,302,000) or ($0.13) per share compared to approximately ($574,000) or $0.06 per share in 2005. The Company recorded depreciation and amortization charges of approximately $656,000 in the quarter ended December 31, 2006 compared to approximately $43,000 during the comparable period last year.

For the six months, net loss was approximately ($2,243,000) or ($0.24) per share as compared to approximately ($503,000) or ($0.06) per share for the same period in 2005. The Company recorded depreciation and amortization charges of approximately $706,000 in the six-month period ended December 31, 2006 compared to $85,000 during the comparable period last year.

On a proforma consolidated basis for the six months, the Company recorded revenues of $13.8 million with operating earnings before interest, taxes, depreciation and amortization of approximately $587,000 or $0.06 per share. Of these amounts Empire Interactive contributed $12.6 million in revenues and operating earnings before interest, taxes, depreciation and amortization of approximately $1,044,000 or $0.11 per share. Proforma information has been prepared assuming the acquisition had occurred at the beginning of each respective reporting period.

Clive Kabatznik, Chief Executive Officer of Silverstar Holdings, stated: "The results for the period reflect only one month of Empire Interactive's operations. The six-month proforma results included in this release provide a clearer picture of Empire's performance during the current fiscal year."

Mr. Kabatznik continued, "Based on these proforma numbers, it is clear that Empire is a valuable and significant addition to our portfolio of companies. We have made significant progress in adding value to Empire since the acquisition in December. We are confident that this work will be reflected in Empire's ongoing title release schedule and in its future results as a fully fledged subsidiary of Silverstar."

Silverstar Holdings and Empire Interactive will hold a shareholder update conference call on Wednesday, February 28 at 4:15 pm EST.

Anyone interested in participating should call 1-800-936-9754 if calling within the United States or 1-973-935-2048 if calling internationally approximately five to 10 minutes prior to 4:15 p.m. Participants should ask for the Silverstar Holdings Ltd. Shareholder Update conference call. There will be a playback available until March 7. To listen to the playback, please call 1-877-519-4471 if calling within the United States or 1-973-341-3080 if calling internationally. Please use the pass code 8481151 for replay.

This call is being webcast by ViaVid Broadcasting and can be accessed at ViaVid's website at http://www.viavid.net. The webcast can be accessed through March 7, 2007. To access the webcast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player, please visit: http://www.microsoft.com/windows/windowsmedia/en/download/default.asp

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 Empire Interactive PLC and Strategy First Inc. as well as a stake in Magnolia Broadband.

Empire Interactive PLC is a leading developer and publisher of interactive entertainment software games such as "Starsky & Hutch," "Big Mutha Truckers," "Ford Racing" and "FlatOut." Empire's products are delivered on both console and PC platforms. Strategy First Inc. is a leading developer and worldwide publisher of entertainment software for the PC. Magnolia Broadband is a fabless semiconductor company and innovator of radio frequency (RF) solutions for the cellular industry.

The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, regulatory approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission.


                        Silverstar Holdings, Ltd.
                    Consolidated Statement of Earnings


                                                  Quarter       Quarter
                                                   Ended         Ended
                                                December 31,  December 31,
                                                    2006          2005
                                                ------------  ------------
Net Revenues                                    $  2,960,789  $    983,434
                                                ------------  ------------
Operating Loss                                  $ (1,385,878) $   (261,094)
                                                ------------  ------------
Depreciation and Amortization                   $    655,775  $     43,004
                                                ------------  ------------
Operating EBITDA                                $   (730,123) $   (218,090)
                                                ------------  ------------
Net Loss from Continuing Operations             $ (1,301,671) $   (574,356)
                                                ------------  ------------
Operating EBITDA  Per Share                     $      (0.07) $      (0.02)
                                                ------------  ------------
Net Loss Per Share                              $      (0.14) $      (0.06)
                                                ------------  ------------
Weighted Average Number of Shares Outstanding      9,431,657     9,076,518
                                                ------------  ------------





                        Silverstar Holdings, Ltd.
                    Consolidated Statement of Earnings


                                                 Six months    Six months
                                                   Ended         Ended
                                                 December 31, December 31,
                                                    2006          2005
                                                ------------  ------------
Net Revenues                                    $  3,239,534  $  1,354,143
                                                ------------  ------------
Operating Loss                                  $ (1,958,789) $   (681,708)
                                                ------------  ------------
Depreciation and Amortization                   $    705,866  $     84,929
                                                ------------  ------------
Operating EBITDA                                $ (1,252,923) $   (593,779)
                                                ------------  ------------
Net Loss from Continuing Operations             $ (2,239,749) $   (860,884)
                                                ------------  ------------
Operating EBITDA  Per Share                     $      (0.13) $      (0.07)
                                                ------------  ------------
Net Loss Per Share                              $      (0.24) $      (0.10)
                                                ------------  ------------
Weighted Average Number of Shares Outstanding      9,290,346     9,072,551
                                                ------------  ------------





                        Silverstar Holdings, Ltd.
                Proforma Consolidated Statement of Earnings
                    Six months Ended December 31, 2006



                                                   Empire       Proforma
                                                Interactive   Consolidated
                                                ------------  ------------
Net Revenues                                    $ 12,602,025  $ 13,673,946
                                                ------------  ------------
Operating Loss                                  $ (2,274,289) $ (3,247,602)
                                                ------------  ------------
Depreciation and Amortization                   $  3,318,695  $  3,436,958
                                                ------------  ------------
Operating EBITDA                                $  1,044,406  $    189,356
                                                ------------  ------------
Net Loss from Continuing Operations             $ (2,864,769) $   (860,884)
                                                ------------  ------------
Operating EBITDA  Per Share                     $       0.11  $       0.02
                                                ------------  ------------
Net Loss Per Share                              $      (0.30) $      (0.09)
                                                ------------  ------------
Weighted Average Number of Shares Outstanding      9,290,346     9,290,346
                                                ------------  ------------

Contact Information