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Step Into The Unknown...

For Immediate Release!

Montreal, Canada. March 19, 2007. Software Publisher Strategy First Inc., a wholly owned subsidiary of Silverstar Holdings, Ltd. (Nasdaq: SSTR), and the Swedish Independent Developer Frictional Games, are happy to announce the signing of "Penumbra: Overture". The agreement gives Strategy First Worldwide digital marketing and distribution rights of "Penumbra: Overture".

"Penumbra: Overture" will follow up with two sequels over the course of one year. The first person adventure horror game has already generated a strong following and is sure to leave fans looking forward to the future sequels.

"We are thrilled to be releasing 'Penumbra: Overture' on Strategy First's online distribution network, and we look forward to working with them. The demo has been receiving excellent feedback and we are excited for the launch. Our team has worked hard on this project and it's an incredible feeling to be so close to its final release," says Thomas Grip of Frictional Games.

"Put your puzzle making skills to the test, your life may depend on it! Penumbra Overture is a new type of adventure horror game that allows you to solve problem in many different ways. We are very excited to bring this game to the online marketplace," says Brock Beaubien, Game Producer at Strategy First.

Penumbra: Overture is an innovative first person survival horror game using advanced physics interaction. Instead of relying on combat as the main gameplay, Penumbra focuses on puzzles and exploration, using wits to fight off enemies, rather than brute force, creating a unique experience and surreal atmosphere of a scary game world.

Penumbra tells the story of Philip, who while in search of his presumed dead father, uncovers a dark world. Trapped in an underground complex below the icy wastelands of Greenland, Philip fights for his survival and sanity.

Features:

Dynamic Lighting and Shadows Next-Gen Graphical features such as Motion blur and Depth of Field Innovative physical interaction system Dynamic Music handler / mixer Advanced AI with an ability to sense its surroundings. Environmental Sound system using physics to mix realistic sounds. Detailed and Atmospheric Environments. State of the art interaction system. Thrilling blend of Puzzles and Action, with various solutions. Dark secrets to be discovered. Over 8 hours of Gameplay

Visit us today and pre-order your copy of "Penumbra: Overture" for only $19.99 and receive a free download of "Star Fury." This promotion is available until

March 30th, 2007, only at http://store.digitalriver.com/servlet/ControllerServlet?Action=DisplayPage&Locale=en_US&SiteID=srategyf&id=ShoppingCartPage

For more information on "Penumbra: Overture" please visit http://www.strategyfirst.com/en/games/penumbraep1/

About Frictional Games

Frictional Games is a small PC game developer company who focuses primarily on content and technology, working closely with a network of external contributors who provide additional resources in music, coding, writing, and other specialized areas. Founded in 2006, its first game "Penumbra," was developed as a technology demonstration. This demonstration was extremely successful and developed into "Penumbra: Overture", a full commercial release spanning over three episodes. Frictional Games uses their in-house developed HPL engine, featuring various graphic, physic and audio technologies that are often referred to as "next-gen". This includes depth of field, motion-blur, advanced audio physics, and an advanced physics based interaction system. http://frictionalgames.com/

About Strategy First Inc

Strategy First Inc., a wholly owned subsidiary of Silverstar Holdings (Nasdaq: SSTR), is a leading developer and worldwide publisher of entertainment software for the PC. Founded in 1990, the Company is well known for its proprietary groundbreaking titles, such as the award winning Disciples, Jagged Alliance and Space Empires series of games, which are under continuing development. Simultaneously, Strategy First continues to publish many of the industry's major titles, winning numerous awards for games such as "Hearts of Iron", and "Galactic Civilizations." Recent offerings include top releases such as "S.C.S. - Dangerous Waters" and "Space Empires V." The Company provides a unique alternative for independent developers seeking to market their games to a worldwide audience. www.strategyfirst.com

About Silverstar Holdings

Silverstar Holdings Ltd. is a publicly traded company (NASDAQ: SSTR), focusing on acquiring controlling positions in high-growth retail-driven and fee-based electronic game businesses that stand to benefit from the economies of scale generated by the Internet and other technology-related platforms. It currently owns Empire Interactive PLC and Strategy First Inc. as well as a stake in Magnolia Broadband. Empire Interactive PLC is a leading developer and publisher of interactive entertainment software games such as Starsky & Hutch, Big Mutha Truckers, Ford Racing and FlatOut. Empire's products are delivered on both console and PC platforms. Strategy First Inc. is a leading developer and worldwide publisher of entertainment software for the PC. Magnolia Broadband is a fabless semiconductor company and innovator of radio frequency (RF) solutions for the cellular industry.

The statements which are not historical facts contained in this press release are forward looking statements that involve certain risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, regulatory approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission.

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