Starnet and OJC Embark on Internet Simulcasting and Wagering Ventures

8 April 1998

Wilmington, DE -– Two subsidiaries of Starnet Communications International Inc. (NASD OTC-BB: SNMM) have entered into a Letter of Intent outlining a strategic alliance with the Ontario Jockey Club (OJC), which encompasses netcast coverage & online wagering on the OJC's horse racing events, and a Joint Venture to further develop both parties' on-line pari-mutuel wagering technologies.

Established in 1881, the OJC is respected worldwide as one of the most innovative organizations in horse racing. The OJC owns and operates two year-round horse racing facilities: Woodbine Racetrack in Toronto, Ontario and Mohawk Raceway in Milton, Ontario, which jointly host over 400 live horse racing events per year. The OJC pioneered Canadian simulcast horse racing coverage via closed-circuit television in 1980. Woodbine, the home to The Queen's Plate (North America's oldest continuously-run Thoroughbred stakes race), hosted the prestigious Breeders' Cup in 1996.

Under an Internet Simulcast Agreement, horse racing events from the OJC's facilities will be broadcast on Starnet's Internet gaming site, World Gaming. World Gaming patrons will have full access to the system's features, including up-to-the-minute track, program and handicapping information, and live racing coverage. Viewers residing outside of North America will be able to place up-to-the-post bets on the outcome of the OJC races.

World Gaming, a wholly owned subsidiary of Starnet, is licensed in Antigua, West Indies to accept and process wagers via the Internet. In addition to pari-mutuel wagering, the multilingual World Gaming system features virtual casino games, a Sportsbook with live odds feeds from Las Vegas and Europe, a virtual bingo hall and an international lottery ticket brokerage.

In the interest of advancing its Internet pari-mutuel wagering technology, Starnet Communications Canada Inc. (a wholly owned research and development subsidiary) will develop such technology with the OJC under a joint venture agreement, for future use by either party. Under the terms of the joint venture, Starnet Canada will provide Internet commerce & marketing consultation on the OJC's current business applications, and the OJC will consult Starnet Canada on the management of pari-mutuel wagering systems.

Starnet is a fully reporting, publicly traded interactive entertainment company, which identifies and commercializes Internet technologies for established markets.