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To: Ron who wrote (30800)	12/18/1998 1:05:00 PM
From: Gravitar	Read Replies (1) \| Respond to of 119973

StarBase Insiders Invest in Company at a Premium to Market Price Executive Management Team Extends their Personal Financial Commitment December 18, 1998 12:58 PM SANTA ANA, Calif., Dec. 18 /PRNewswire/ -- StarBase Corporation SBAS , a leading provider of advanced Internet and intranet-based technical collaboration and software configuration management tools, today announced a private placement of $70,000 by members of the executive team. The private placement consists of approximately 60,000 shares of restricted common stock priced at $1.18, per share, and about 12,000 two-year warrants with a strike price of $1.18. The purchase of this common stock represents about an eighty-percent premium to the current market price. William Stow, III, President and Chief Executive Officer, stated, "Executives of the company have been discouraged from the purchase or sale of securities in the company due to the dynamic nature of an emerging company and the high degree of inside information available to executives of the company. However, since the shares in the private placement are restricted for one year and the market price of the shares has been below the investment price for almost two months, the executives are now allowed to complete this investment. The executives agreed that the price of the common shares should be set at a considerable premium to the market as they believe, given the current market price, the stock is highly undervalued. Furthermore, even though the private placement is set at a price significantly above the market on a percentage basis, the price difference in real dollars is considered insignificant compared to what we believe to be the real value of the company over the next 24 months. The price appreciation that we believe the shares will experience during this period would provide a very healthy return on the executive's investment even at this premium to the current market price."