Jagged Alliance

London, UK – 26 August 2008 Empire Interactive, a wholly owned subsidiary of Silverstar Holdings (NASDAQ: SSTR), has today confirmed that Jagged Alliance for the Nintendo DS ^TM is currently under development with Strategy First Strategy First Inc. and Cypron Studios and is due for release in 2009.

Jagged Alliance is an explosive fusion of a role playing game mixed with turn-based tactical combat, allowing gamers to become fully immersed in their characters. A new generation of gamers will be invited to liberate the Island of Metavira in the nonlinear game play that made the 1994 original so popular amongst gamers.

"Jagged Alliance provides an exciting blend of RPG and turn based action, which has already won fans and accolades worldwide. The time is right to bring its frenetic battles to Nintendo DS and allow a brand new audience the experience the exhilarating game play." commented, James Spice, VP of Marketing for Empire Interactive.

"Jagged Alliance DS is one of the many forthcoming highlights in our new release pipeline and this announcement augments Empire's commitment to bringing quality titles to a global market," said Clive Kabatznik, CEO of Silverstar Holdings. "The title will prove to be a truly entertaining experience for DS gamers."

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For further information please contact:

David Bancroft

T: +44 (0)20 8343 7337

E: david.bancroft@empire.co.uk

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About Empire Interactive

Empire Interactive is a leading publisher of interactive entertainment software that has been established for 19 years. Headquartered in the UK, Empire Interactive also has offices in the US, Germany, France, Spain and Italy. The company develops and publishes a varied range of titles for all current platforms in the US, Europe and Asia. Games such as Starsky & Hutch, Big Mutha Truckers, Ford Racing and FlatOut have all enjoyed success across the world. Its budget label, Xplosiv, is one of the fastest growing in Europe. Further information about Empire Interactive and its products can be found at www.empireinteractive.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., a leading development and worldwide publisher of entertainment software for the PC.

About Cypron Studios

Cypron Studios is a software development company. Founded in 1999, the team is composed of young, enthusiastic and talented individuals. Starting out with an innovative approach to real time strategy, Cypron Studios released its first PC game titled "State of War" in 2001. After having received a large amount of positive response for this game, Cypron Studios released a mission pack called "State of War: Warmonger," in 2002. Besides working for the last three years on their in house 3D engine for their flagship project called "GODS: Lands of Infinity," and "GODS: Lands of Infinity Special Edition," Cypron Studios also specializes in the console market. www.cypron-studios.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 ^TM " 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

NINTENDO DS IS A TRADEMARK OF NINTENDO.