Re: 8/17/00; 8/20/00 - [SNMM] Starnet Cleared by Canadian Authorities of Allegations of Distributing Illegal Pornography; Starnet Announces Result of Court Hearing Concerning Investigation by Canadian Authorities
Starnet Cleared by Canadian Authorities of Allegations of Distributing Illegal Pornography
No Charges to be Issued Against Starnet or Management
ST. JOHNS, Antigua, Aug 17, 2000 (BUSINESS WIRE) -- Starnet Communications International Inc. (OTC-BB: "SNMM" chart, msgs) ("Starnet" and the "Company"), a leading provider of proprietary software for the Internet gaming industry, today reported that Canadian authorities have concluded their investigation into allegations that Starnet distributed prohibited pornographic images of adults and children over the Internet. No charges will be issued against Starnet or members of the company's management.
An affidavit filed by Canadian authorities on August 14, 2000 in the Supreme Court of British Columbia stated in paragraph 55 the following: "No pornographic images of children were found within the computer system operated by Starnet, and no charges will be recommended to the Attorney General of British Columbia, as the result of this investigation, in regard to Starnet having distributed prohibited pornographic images over the Internet."
President and Chief Executive Officer Meldon Ellis said, "Results of the investigation by Canadian legal authorities confirm what we have maintained since the beginning of this investigation: we are not, and have never been, involved in distributing illegal pornography. In fact, we have always had policies in place that prohibited such illegal commerce to take place. One non-management employee of the company, in violation of company policy, was discovered to be in possession of illegal child pornography. He was immediately dismissed with cause from Starnet, and subsequently charged by Canadian authorities. Since that time, we have divested our adult entertainment division and are no longer involved in the adult entertainment industry."
Ellis added, "The filing of this affidavit in essence means that the RCMP has cleared the company and its management of charges related to distributing illegal pornographic material. This is a critical finding, given the shadow that these unfounded allegations have placed over the company during the past year and the negative media coverage that has continued to state or imply our involvement in such activities. Although we understand the need to be thorough, we are disappointed that the RCMP has taken so long to clear Starnet of these allegations and conclude this matter. We are also dismayed that this information has not been made public, which is inconsistent with public comments made by authorities in connection with the raid of our facilities in August 1999. Despite full cooperation with the RCMP throughout their highly publicized investigation, we have yet to receive an official communication from the RCMP regarding this finding."
Starnet is pleased to achieve closure on this issue for Starnet, our licensees, business partners and shareholders. The company is continuing to pursue all opportunities to bring an end to the investigation of its online gaming operations. Associate Chief Justice Patrick Dohm has yet to deliver his decision on two applications filed August 14, 2000 with respect to the frozen funds. Management will continue to update its shareholders on the status of the RCMP investigation and remains confident in the future of the international I-gaming market and Starnet.
About Starnet
Starnet is a leading developer and producer of Internet technologies for gaming applications. Products currently offered and under development comprise a full suite of gaming products, including casinos, sports betting, bingo, lotto, and horse racing. Games are available in a number of different formats including Java, C++, and HTML and comprehensive marketing support software is also provided. For more information, please visit www.snmm.com or email sales@starnetsystems.net.
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 also listed on the Berlin Stock Exchange where it is traded on the Over-The-Counter market under the symbol "SNM".
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.
Contact:
Starnet Communications International Inc.
Investor Relations
Ph: (604) 608-1818 Fax: (604) 608-6163
Rob Grace, Investor Relations Manager
Ph: (604) 608-8733 Fax: (604) 608-6163
North American Toll - 1-888-883-0833
Outside N. America - 800-883-88338
Email - ir@snmm.com
or
Ogilvy Public Relations Worldwide
Brad Miller
Ph: (212) 880-5345
siliconinvestor.com
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Starnet Announces Result of Court Hearing Concerning Investigation by Canadian Authorities
ST. JOHNS, Antigua, Aug 22, 2000 (BUSINESS WIRE) -- Starnet Communications International Inc. (OTCBB: "SNMM" chart, msgs) ("Starnet" and the "Company"), a leading provider of proprietary software for the Internet gaming industry, today reported that the British Columbia Supreme Court has extended the restraining order over two of Starnet's bank accounts for an additional six months to allow the RCMP to complete their investigation into Starnet's on-line gaming operations.
President and Chief Executive Officer Meldon Ellis said, "While we are disappointed with the ruling, it is consistent with the Court's past opinions. As we expected the Court to grant additional time to the RCMP to complete their investigation, we have prepared for this contingency. We have instructed our lawyers to file an appeal with the British Columbia Court of Appeal immediately and believe that our case has considerable merit. We will proceed with this appeal expeditiously and hope to be in a position to set an appeal date within a few months."
Ellis added, "Management continues to be disappointed with the handling of this matter by the authorities, from the pace of the investigation to the apparent unwillingness to examine the issues involved. Despite our full cooperation and support of establishing legal precedents that would provide beneficial regulation of online gaming, action by the parties involved has been slow and reluctant. This is unfortunate, given the possible benefits to all parties of resolution."
Ellis continued, "We are aggressively pursuing all possible opportunities to resolve the investigation. Restructuring efforts have been designed to enhance the clarity of our operations and eliminate potential misunderstandings of our operations. What has become increasingly clear to management over the past year is that while legal institutions in North America have struggled to adapt to the new reality of I-gaming, several international jurisdictions have been more proactive. These jurisdictions provide stable launching pads for our operations and form the foundation of our strategic growth plans."
"Going forward, we will continue to develop our online gaming operations and expand internationally," said Ellis. "Our revenues are rapidly and consistently growing, and as investments in new software and online pari-mutuel services decline over the next two quarters, we anticipate generating significant positive earnings. In the short term, we expect to make several announcements related to our new software and pari-mutuel operations, as well as growth in our core gaming operations. Over the past year, we have built a better Starnet, with enhanced products and services. As a result, we are better positioned than ever to capitalize on industry growth and look forward to a strong year."
About Starnet
Starnet is a leading developer and producer of Internet technologies for gaming applications. Products currently offered and under development comprise a full suite of gaming products, including casinos, sports betting, bingo, lotto, and horse racing. Games are available in a number of different formats including Java, C++, and HTML and comprehensive marketing support software is also provided. For more information, please visit www.snmm.com or email sales@starnetsystems.net.
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 also listed on the Berlin Stock Exchange where it is traded on the Over-The-Counter market under the symbol "SNM".
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.
Contact:
Starnet Communications International Inc.
Carey Nelson, Investor Relations Manager
Ph: 604/608-1818 Fax: 604/608-6163
or Rob Grace, Investor Relations Manager
Ph: 604/608-8733 Fax: 604/608-6163
North American Toll: 888/883-0833
Outside N. America: 800/883-88338
ir@snmm.com
or
Ogilvy Public Relations Worldwide
Brad Miller
212/880-5345
siliconinvestor.com |
