Starnet Communications International Inc. Enters a Guilty Plea

August 17 2001

As the result of an investigation conducted by the Organized Crime Agency of British Columbia, Starnet Communications International Inc., was charged on August 16th, 2001 with one count of keeping a device for gambling or betting under s.202(1)(b) of the Criminal Code of Canada. Starnet is a company incorporated in the state of Delaware USA, which had been doing business in British Columbia principally in the area of Internet gambling.

Today representatives for Starnet Communications International Inc. appeared in Provincial Court at in Vancouver, and entered a plea of guilty to this charge. The company has been fined $100,000 CAD and the court has ordered that under the proceeds of crime legislation, $3,925,000 US dollars (approximately $6,000,000 CAD) from Starnet’s Vancouver bank accounts, be forfeited to the Province of British Columbia. These accounts have been frozen since August 25^th 1999.

This will conclude the investigation by the Organized Crime Agency of British Columbia. We would like to acknowledge the contribution of the Delta Police Department, the West Vancouver Police Department, the Vancouver Police Department, the Ontario Provincial Police and the Royal Canadian Mounted Police, in bringing this very lengthy and complex investigation to a successful conclusion.