News Release From Canadian Corporate News
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: PLAYSTAR CORPORATION
OTC Bulletin Board SYMBOL: PSCKE
APRIL 7, 1999
PlayStar Announces Deal Closing and Appointment of New
CEO
ST. JOHN'S, ANTIGUA--(OTC BB:PSCKE) PlayStar Wyoming Holding
Corporation announced today the closing of its previously
announced agreement with Cyberstation Limited, of St. Kitts.
In conjunction with these developments, the Company reported the
appointment of Mr. Stuart Brazier as its new President, Chairman
of the Board and Chief Executive Officer. Mr. Brazier, a veteran
of start-ups and turnaround situations, has been actively involved
in both of the company's multi-billion Internet financial
processing and gaming industries.
"I'm very excited at the potential" Brazier reports, "and intend
to take the bull by the horns and exploit these two significant
windows of opportunity. The company is positioned for growth - we
have the technology, we have the vision and there is significant
market demand. The strategy is to move quickly and make things
happen."
"To that end," Brazier continues, "I have three immediate
objectives - Firstly, I intend to open communications with our
Investors. This will involve the immediate deployment of a weekly
Company Newsletter and more information on the Web site. In the
short time I have been with the company, I have discovered that
our Investors are excited by the potential but frustrated at the
lack of communications. This has to change because our stock is
extremely undervalued. Our Investors simply do not know why we
have such a competitive edge - I intend to supply that
knowledge..."
"Secondly, I intend to increase the company's profile in the
investment community."
"Thirdly, I intend to significantly increase revenues."
"Increasing revenues is an exercise of deploying cost effective
marketing programs. One of my quirks," Brazier confesses, "is
that I love analogies. One of my favorite analogies is comparing
business to war... we launch marketing campaigns, we attack the
competition, etc. With the Internet, marketing campaigns have
traditionally been highly inefficient because they depend on
massive and expensive waves of advertising activity. Think of the
First World War and men running across no man's land and you will
get the picture."
"It's an ugly picture - one that I find unacceptable. Success or
failure has to be measurable and include as much leverage as
possible. By deploying targeted marketing activities and
measuring the results, we will determine the return on investment
for each campaign. By entering into licensing agreements and
joint ventures, we can conquer new territory through our allies.
By diversifying our lines of business we can ensure survival and
success."
"And diversified we are - financial processing and gaming! Two
industries that have been around for thousands of years..."
"Gaming on the Internet is here to stay. Certain countries may
introduce draconian laws to stop it, others may attempt to
regulate it, and many countries will let it develop unobstructed.
However, one thing is certain, it will always be profitable. To
what extent it is profitable is based upon the "stickiness" of the
casino - the ease of play, the number of games available, the size
of jackpots, and the quality of the peripheral entertainment. In
these respects," Brazier boasts, "Management believes that
PlayStar has it all because it is browser based and because new
casinos can be quickly spawned."
"The ability to spawn new casinos via our "Quick Connect"
affiliate program is our single biggest marketing asset. Because
it is browser based, we have the ability to provide many
webmasters with free or paid casinos to ensure "stickiness" on
their sites. While players gamble, products or services can be
advertised to them. This is an exceptional marketing and business
opportunity for smaller sites. After some final modifications to
our technology, we will be prepared to launch a Quick Connect
Recruitment Campaign in the very near future."
"On the other hand, the ability to receive payment for products
and services over the Internet is the essence of the commercial
viability of a web site. Credit cards are traditionally used in
this arena but new marketing based payment mechanisms are
emerging. The NetEngine technology can do it all..."
"Accepting credit cards over the Internet is fraught with many
issues - security of transactions; connectivity between banks,
credit cards, merchants and card holders; merchant fraud; card
holder fraud; criminal fraud; reporting of sales, credits,
chargebacks, fees, security reserves; reconciliation of accounts;
etc. - The list is endless," Brazier warned. "Which means that
finding a viable credit card processing solution is extremely
difficult."
"The NetEngine technology provides a seamless solution to both
financial institutions and Web sites. While there are many
competitive suppliers of credit card processing solutions in
developed countries, they simply cannot be found in tax havens.
Which is surprising," Brazier muses, "because tax havens are ideal
for Internet based businesses."
"Tax havens are ideal for protecting assets. Tax havens tend to
have less regulation because they were designed to facilitate
international commerce and investing. This does not mean you can
break the law," Brazier warns. "While companies can subcontract
fulfillment services of physical goods, the real potential is for
digital goods and services."
"Whatever is sold, if the NetEngine technology is used, processing
fees are earned on each transaction. This has a significant
potential to earn serious revenues. Fees range from a quarter of
a percent to six percent, and five cents to a dollar per
transaction. My challenge in the coming months will not be to
find the business but to manage the process associated to signing
up new financial institutions - installing hardware and software,
training new staff, interfacing new merchants to NetEngine, etc."
The statements in this press release may contain certain
forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Exchange Act of
1934 and are subject to the safe harbor created by these sections.
Actual results may differ materially from PlayStar's expectations.
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