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To: THOMAS GOODRICH who wrote (510)7/30/1998 3:23:00 PM
From: Chris Noel  Respond to of 8858
 
This is my email to Alan and his response. Hope this sheds some light on the subject for you.

At 10:12 PM 7/29/98 -0400, you wrote:
>Dear Allen,
>
>I was wondering the status of the earnings report.ÿ July 29th has passed us
>by.ÿ Did you file the extension for filing, or will we see them tomorrow or
>Friday.
>Many of us are anxiously awaiting these numbers.
>
>I was also wondering what the status is regarding the taking of wagers from
>U.S. citizens.ÿ I know World Gaming will continue to block wagers coming
>from the U.S.ÿ but what about are licensees.ÿ Will their software block
>these transactions, or will SNMM let our customers take that risk for
>themselves?ÿ Will we be opening ourselves up to prosecution if these
>companies do except wagers in violation of the Kyl ammendment.
>
>Thank you again in advance,
>Chris Noel

Hi Chris:

Sorry about the delay. It is not Starnet's fault, the auditing firm has
been taking there time. We filed for an extension and have heard we
may be able to file August 4th or 5th.

Regarding our licensees, the Kyl amendment is not law and since we do
not infringe upon the rights of Softec licensees we cannot tell them nor
do we advise them on how to run their operations with respect to the
taking of wagers. These operators deal with a foreign company that
operates under deference of the law. Starnet is in no way liable for
their actions.

Thanks for your interest Chris!

Regards

Alan Poole
Investor Relations
604.608.6035

Starnet Communications Intl. Inc.
425 Carrall Street, Mezzanine level
Vancouver, BC,V6B 6E3 Canada,
Tel-888.777.6458 Fax-604.684.0391
starnetcommunications.com