SKG's NorstarMall.ca to develop and manage Online Shopping at
    CTVSportsnet.com
 
    The Toronto Stock Exchange
    Symbol:  SKG
 
    RICHMOND HILL, ON, July 27 /CNW-PRN/ - SKG Interactive Inc. ("SKG
Interactive") (TSE:SKG) and NorstarMall.ca Inc. ("NorstarMall.ca"), a division
of SKG Interactive, today announced that they have entered into a strategic
business alliance with CTVSportsnet.com, ("Sportsnet") to develop, host and
maintain a co-branded shopping destination for Sportsnet's website,
ctvsportsnet.com. Once online, CTVSportsnet.com and NorstarMall.ca
will enter into cross-promotional activities using various media channels to
market the new online shopping destination.
    "The CTVSportsnet co-branded shopping destination is the latest step in
the development of a network of NorstarMall.ca powered shopping destinations,"
stated Mr. Paul Romanchuk, Chairman and Chief Executive Officer of
NorstarMall.ca Inc. "Together with our existing strategic alliances and
partnerships, we continue to leverage our technology, infrastructure and
relationships with leading Canadian Internet retailers through the development
of online shopping facilities for leading Canadian interactive media
destinations."
    David Akande, Director of Business Affairs at CTVSportsnet.com, outlined,
"NorstarMall.ca has provided us with a turn-key solution to quickly develop
and deploy a more robust e-commerce channel on CTVSportsnet.com and we are
confident that we will enhance our users experience."
 
    CORPORATE UPDATE
    Management would like to offer an update to shareholders of SKG
Interactive on the status of the Corporation with respect to the TSE
requirements. SKG is in the final stages of preparing a complete package to be
submitted to the TSE for review by July 28, 2000, as previously announced, and
will submit this package by the specified date. The Board of Directors of SKG
is confident that with the completion of announced financings and other
initiatives currently underway and near completion, that SKG will meet the TSE
requirements.
 
    About CTVSportsnet.com
    CTVSportsnet.com, launched in January 2000, is Canada's first choice on
the Internet for breaking news in Canada. CTVSportsnet.com provides users more
streaming video than any other Canadian sports website, and also provides
users with polls, chats and contests. Sportsnet.com is owned and operated by
CTV Sportsnet, Canada's only 24-hour regional sports network.
    Sportsnet, launched on October 9, 1998, offers sports fans programming in
four distinct regions: East (Quebec and Maritime provinces), Ontario, West
(Alberta, Saskatchewan, Manitoba and the Northwest Territories) and Pacific
(British Columbia and the Yukon Territories). Sportsnet broadcasts more NHL
hockey than any other Canadian network, broadcasting 32 national regular-
season games and first-round playoffs, 40 Calgary Flames contests (West
Region), 34 Ottawa Senators games, 30 Vancouver Canucks telecasts and 20
Edmonton Oilers games.
 
    About SKG Interactive Inc./NorstarMall.ca Inc.
    SKG Interactive Inc. is focused on creating Canada's premiere e-commerce
destination. NorstarMall.ca Inc., a division of SKG Interactive Inc., offers
consumers access to over 160 Canadian e-tailers and now 485 American e-
tailers, all at a single destination. NorstarMall.ca is also home to Canada's
first and only wireless shopping portal and 3-D cybermall, which features the
combination of entertainment, information services and brand name Canadian
retailers including Holt Renfrew, Indigo Online, Future Shop, Roots Canada,
Danier Leather, HMV.com, and SportMart.ca, creating a uniquely Canadian
destination for online shoppers.
 
 
SOURCE SKG Interactive Inc.
    -0-              07/27/2000
    /CONTACT: please visit our websites, norstarmall.ca and
skginteractive.com, or contact: For SKG Interactive Inc.: Investor
Relations, Tel: 905-985-9687, Fax: 905-985-8238, Email:
investorinquiries@skginteractive.com; For CTVSportsnet.com: Mr. Dave
Rashford, Manager of Communications, Tel: 416-332-5656/
    (SKG.)
 
CO: SKG Interactive Inc.; NorstarMall.ca Inc.
ST: Ontario