Exhibit 99.1
[Starnet Communications International Inc. Logo]
News Release for Immediate Release
STARNET REDUCES INPHINITY WORKFORCE TO STREAMLINE OPERATIONS
St. Johns, Antigua, January 5, 2001 - Starnet Communications
International Inc. (OTC-BB: "SNMM") ("Starnet"), a leading provider of
interactive media and information systems for companies engaged in the
Internet gaming industry, today announced a workforce reduction of
approximately 30 employees at its Vancouver, B.C. based Inphinity
Interactive subsidiary ("Inphinity") in order to reduce expenditure
levels and increase operating efficiencies. As part of the reductions,
Jason King, previously Inphinity's Chief Executive Officer, has left the
company. The reductions are effective immediately and are primarily in
the managerial, administrative and support areas.
These actions are part of Starnet's focus on aggressively pursuing
opportunities to improve cash flow from operations without jeopardizing
future revenue growth. The total salary and benefits associated with the
departed employees is in the range of 1-1.2 Million dollars (U.S.).
Inphinity's core development team remains intact and will focus on
producing superior software products for Starnet's various business
units, which have also been re-aligned to foster greater efficiency and
accountability. Greater cost control mechanisms have also been
implemented within the Inphinity organization and the Company anticipates
taking further measures to reduce overall company-wide expenditures in
the weeks ahead.
Interim President and Chief Executive Officer Fred Hazell commented "we
have taken these measures in order to make Starnet and its subsidiaries a
leaner, more client-focussed business group. We are transforming our
corporate culture from a software development focus to one devoted to
business development and an improved bottom line. Starnet intends to
transform itself into an integration and delivery organization offering
multiple interactive gaming products to our licensees across a
standardized technology platform. The activities now underway provide
the basis for enhanced business performance going forward, and increased
shareholder value."
ABOUT STARNET
Starnet is a leading developer and producer of Internet technologies for
gaming applications. The company's new software, Beyond2000, which began
a phased launch in August, 2000, will offer a full suite of gaming
products, including casinos, sports betting, bingo, lotto, and horse
racing. Games are available in a number of different formats including
Java, C++, and HTML and comprehensive marketing support software is also
provided. For more information, please visit www.snmm.com or email
[email protected].
Starnet is an SEC reporting US (Delaware) corporation, which currently
trades on the Over-The-Counter Bulletin Board. The company began trading
in September of 1997 under the symbol "SNMM". Starnet is also listed on
the Berlin and Frankfurt Stock Exchanges where it is traded on the
Over-The-Counter market under the symbol "SNM".
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CONTACT:
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Starnet Communications International Inc.
Rob Grace, Investor Relations Manager
Ph: (604) 608-2255 Fax: (604) 639-9339
North American Toll Free- 1-888-883-0833
Email - [email protected]
Or
Ogilvy Public Relations Worldwide
Amy Mumma
Ph: (212) 884-4036
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: The statements contained herein which are not historical fact
are forward-looking statements that are subject to risks and
uncertainties that could cause actual results to differ materially from
those expressed in the forward-looking statements, including, but not
limited to, certain delays in testing and evaluation of products,
shareholder approval of the proposal to reorganize into a new holding
company incorporated in the U.K., regulation of the online gaming
industry, and other risks detailed from time to time in Starnet's filings
with the Securities & Exchange Commission. We assume no responsibility
for the accuracy and completeness of these statements and are under no
duty to update any of the forward-looking statements contained herein to
conform these statements to actual results. This is not an offer to sell
or a solicitation of an offer to purchase any securities.
