Starnet raided! How will it effect their books?

[Sal]

Starnet's offices and the homes of six of their directors have been raided by Vancouver RCMP and other agencies. I have listened to the reports on Vancouver radio. There stock is in freefall, under $3.10 last time I looked. Opened at over $13.00 today.

They have been under investigation for over 18 months for illegal bookmaking, possession and distribution of pornography etc.

Does any of this come as a shock to anybody? Dohlen was on ABC Nightline telling the world what he does. This could be the case to finally decide things in Canada regarding online gaming.

With football season approaching, would it be fair to assume not to deposit with any of thier licensed books?

I could supply more details of the story as heard on radio and other sites...but I am sure interested parties will get it for themselves.

[arizona8]

I would stay far away from every book that is a starnet licence's

Pull out your money in a hurry

Softec Gaming Licensees


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Ozgaming.com

Playersonly.com

Superbet.com

Classic Casino

Aces Casino

Sportsfanatik

World Games Casino

Silver Clover Casino

Wincity Casino
Mars Casinos
Aztec Gaming

Sportsbook.com

Club Rio Casino

Casino On Air

Pachinko Casino

Gem Casino

Casino Titanic

World Wide Gamble

[BOOKYBASHR]

I'm told starnet's severs were shut down today, but will be back up and running tonight. However, I did not hear this directly from Starnet. So, we'll see.

[STING]

Starnet Communications Announces Investigation Without Charges
VANCOUVER, BRITISH COLUMBIA--Starnet Communications International Inc. (OTC: SNMM - news), an online provider of interactive media and information systems, today announced that an investigation by the Coordinated Law Enforcement Unit of British Columbia has temporarily prevented management access to company offices. No charges have been issued by Canadian authorities in this matter.

Mark Dohlen, chief executive officer of Starnet, stated, ``We do not anticipate any interruption to our services or our ongoing operations as a result of today's actions. But we are dismayed by this disruption of our three year-old operations, have retained legal counsel and will vigorously defend our rights.''

Dohlen further added, ``It is regrettable that we were not given an opportunity to cooperate with authorities regarding their concerns. Cutting edge companies at the forefront of online services like Starnet are often misunderstood, but we are a fully reporting US public company and our international operations comply with the laws of their respective jurisdictions.''

Further information will be forwarded by Starnet as it becomes available.

Starnet, named ``the established leader in Internet gaming and entertainment'' by the Wall St. Journal, is a fully reporting, publicly held interactive entertainment company, which identifies and commercializes Internet technologies for established markets.

The statements in this press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and is subject to the safe harbor created by these sections. Actual results may differ materially from Starnet's expectations.

[phep]

I'm going to buy a couple thousand shares of Starnet Monday. At $3 a share, I'll be rich in a couple of years. It will go back up, no doubt about it.

[STING]

Phep, Monday is likely to be unbelievable! Starnet is not going away any time soon! Like I posted this morning, a few shady individuals with this company from the beginning and I'm sure there are still a few that have hung around. Those running the show now appear to be moving the company in the right direction. Getting rid of the porn and Claude Levy have been the priorities over the past few months.

[arizona8]

I know several of you like myself have held shares in Starnet. I actually bought some over a year ago when I heard they were in talks with Arlington and the price was around under a buck, I was lucky and sold after attending the Vancouver conference in which I heard Mark Dohlen really pour out the bs on how easy it was too make a profit and HOW STARNET does not take bets from the U.S. Well his licences make 95% of their profits from it, of which 40% (starting point) go to Starnet which seems to me like they did so I sold for about 20.

I don't want to preach or tout, but here is what I am doing. 1. counting my blessings I sold and 2 staying far away, in my opinion will drop below 2 soon.

[Jules]

What do you do if you have money in one of their sportsbooks and all of their servers are down??
Will someone please answer this question??
Is there any chance that I'll see my money again???

[freak]

how easy it was too make a profit and HOW STARNET does not take bets from the U.S.

i have bet with aces sportsbook and sportsbook.com

I live in the us.....

is starnet saying that their list of books dont take us bets or that starnet itself doesnt ???

odd situation to say the least....

[Polar]

Bet with a real book guys.

Why does everybody waste their time betting with these gimmick joints....

[freak]

Almost a year later did it have any real effects or do you think their operations suffered?

[mls]

Yes. Created a great opportunity to buy their stock!

[The Guesser]

Affected their Share price Only
Starnet Books are still solid.

[freak]

Stock is trading at $2.50 or so a share wow, that has had a bad effect..... I am quite surprised it is this low with the news I just read albeit a few days old....

Starnet Reports Fourth Quarter and Year-end Results


ST. JOHNS, Antigua--(BUSINESS WIRE)--July 31, 2000--

Company Reports 186% Increase In Revenues for FY 2000

Starnet Communications International Inc. (OTC-BB: "SNMM") ("Starnet" and the "Company"), a leading provider of proprietary software for the Internet gaming industry, today reported results for the fourth quarter and year ended April 30, 2000. Key elements include the following:

- The Company's results for fiscal year 2000 were significantly impacted by an ongoing investigation by Canadian legal
authorities. Therefore, the Company believes that period to period net earnings are not representative of normal operations.

- Fourth quarter revenues were $5.5 million and full year revenues reached $17.9 million, up 91% and 186%, respectively, compared to the same periods last year. For the full year, a loss in net income of $3.3 million was recorded. The Company's equity as of April 30, 2000 was $19.4 million, including $7.0 million in funds restricted by Canadian authorities. Total operating expenses were 17.6 million, including charges of $3.8 million related to the
RCMP investigation.

- Earnings per share in the final quarter were $.02 on 31.9 million shares outstanding, after recording the income on the sale of discontinued operations. The loss per share for the year 2000 was 12 on 29.6 million shares outstanding.

- For the fiscal year 2001, the Company expects to be cash flow positive.

- The Company generated cash from operations of just under $1 million in the fourth quarter.

President and Chief Executive Officer Meldon Ellis said, "Results for fiscal year 2000 were consistent for a company that incurred significant development expenses related to software production, infrastructure and reorganizational activities. Throughout fiscal year 2000, our company has been focused on product development, improving our sales, marketing and service capabilities and establishing a secure platform for rapid growth through our core software business and additional planned online pari-mutuel and lottery capabilities. While we expect our operating expenses to rise further in the first half of next year as we gear up for a major software release, we anticipate becoming cash flow positive in fiscal year 2001. In sum, despite experiencing significant negative financial impact from the investigation by Canadian legal authorities this year, we have continued to grow the business, enhanced our competitive position and are excited about our prospects going forward."

Operating Conditions and Transactions

In order to increase focus on its core I-gaming business and to ensure full legal compliance in Canada, the Company divested its adult entertainment division and initiated a restructuring of its operations in fiscal year 2000. The restructuring, designed to clarify the distinction between the company's operational and development functions, resulted in relocating to Antigua all activities either directly of indirectly related to the Company's gaming operations.

The Company succeeded in maintaining its position as a leader in I-gaming. Significant investments in software development made during fiscal year 2000 will provide Starnet with the industry's broadest offering of I-gaming products. The investment in software development, costs related to operational restructuring and significant legal expenses and provisions relating to the investigation, resulted in operational losses for the year.

CONTACT:

Starnet Communications International Inc.

Carey Nelson, 604/608-1818

Investor Relations Manager

Fax: 604/608-6163

or

Rob Grace, 604/608-8733

Investor Relations Manager

Fax: 604/608-6163

or

North American Toll 888/883-0833

Outside N. America 800/883-88338

Email - ir@snmm.com

or

Ogilvy Public Relations Worldwide

Brad Miller, 212/880-5345

KEYWORD: INTERNATIONAL LATIN AMERICA