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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (12799)	7/27/1999 5:15:00 PM
From: vagabond	Read Replies (1) \| Respond to of 108040

Here's SNMM's official response to the charges levelled against it by the Vegas casino -- interesting case of charge-countercharge, or "who-did-what-to-whom"... Vagabond ================== TERMINATION OF AGREEMENT BETWEEN LAS VEGAS CASINO INC. AND SOFTEC SYSTEMS CARIBBEAN INC. Wilmington, DE, July 27, 1999 - Starnet Communications International Inc. (NASD OTC-BB: "SNMM") ("Starnet") would like to confirm that its wholly-owned subsidiary, Softec Systems Caribbean Inc., ("Softec"), terminated its Software License Agreement (the "Agreement") with Las Vegas Casino Inc. ("Las Vegas Casino") because it was in default of its payment obligations for license fees payable to Softec under the Agreement. An outstanding amount of approximately $203,000 for monthly licensing fees has remained unpaid by Las Vegas Casino since May 31, 1999. As a result, Softec terminated the Agreement and all related services on July 23, 1999, and instructed its counsel to commence collection proceedings against Las Vegas Casino. Las Vegas Casino entered into a Software License Agreement as a licensee of Softec in July 1998. Under the Agreement Softec licensed its interactive gaming software in addition to e-cash processing services to Las Vegas Casino enabling them to operate approximately 70 front-end casinos on the Internet. The Agreement requires the licensee to pay a percentage of its monthly revenues to Softec following the end of each month. Softec has not been paid its licensing fees by Las Vegas Casino since May, 1999. Despite Softec's continual efforts to rectify the payment situation with Las Vegas Casino and its operator, no resolution was reached. Accordingly, Softec had no choice but to terminate the Agreement. Based on an article published on RGTonline article entitled "Who's on First" (see: www.rgtonline.com/newspage/artlisting.cfm/2773), this is not the first time a gaming software provider has encountered payment problems with the operators of Las Vegas Casino. Mark Dohlen, CEO of Starnet, states that "this is an unfortunate situation where we have a non-paying licensee who we had no choice but to terminate all services being provided to them under the Agreement. As a result, this operator is issuing statements which have no foundation whatsoever. We have instructed our legal counsel to commence collection proceedings and we are instructing our counsel to commence defamation proceedings against Las Vegas Casino for statements made against our companies and against officers of our companies". Mark Dohlen also confirms that none of the allegations by Las Vegas Casino Inc. with respect to the integrity of the system have any foundation whatsoever: "I reiterate that we have not received legal notice of any lawsuits from Las Vegas Casino". As stated by the Chief Operating Office of Venture Tech Inc., OTCBB: VTEH, one of Softec's licensees, "Venture Tech Inc. and its subsidiaries, remain completely committed to a mutually rewarding relationship with Starnet and we continue to have full confidence in the integrity and capability of its management and staff, with respect to our Asiacasino.com web-site now in full operation. We look forward to the launching of additional web sites in cooperation with Starnet and Softec. Starnet is a leading developer and producer of Internet technologies for gaming applications. For more information, please visit www.snmm.com. CONTACT: Starnet Communications International Inc. M&A West Inc. (Investor Relations) Mr. Carey Nelson Mr. Jack Rosenberg Ph: (604) 608-6034 Fax: (604) 684-0391 Ph: (650) 588-2678 North American Toll - 1-888-883-0833 www.mawest.com Outside N. America - 800-883-88338 Email - ir@snmm.com 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 fillings with the Securities & Exchange Commission.