BOCA RATON, Fla., July 2, 2008 (PRIME NEWSWIRE) -- Empire Interactive, an international publisher and developer of interactive entertainment software and a subsidiary of Silverstar Holdings (Nasdaq:SSTR), has implemented a number of organizational changes designed to maximize efficiencies within the company, eliminate certain unprofitable operations, and better position the company for growth.
Under the plan, the company expects to reduce Empire's active headcount by approximately 30%. This will be achieved primarily through the sale or disposition of its internal development studio, Razorworks, which it acquired in 2000, and is comprised solely of a development team and physical assets. It will not involve the sale of any intellectual property or affect current project development. Empire will continue to use outside developers for game development. The company is currently in negotiations with potential acquirers and looks to complete the transaction in the coming weeks. The total head count reduction is expected to deliver cash flow savings of approximately $3.0 million per year.
Additional organizational changes include reorganizing Empire's executive management team through certain promotions, as well as the relocation of its headquarters to a modern facility near Muswell Hill, a suburb in north London.
Clive Kabatznik, CEO of Silverstar Holdings, commented, "The changes at Empire mark an important new direction for the company as we head into fiscal 2009. These significant cost savings and managerial changes, along with our planned fiscal 2009 game line-up, position the company for a strong fiscal 2009."
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.
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About Silverstar Holdings
Silverstar Holdings Ltd. (Nasdaq:SSTR) is a leading international publisher and developer of interactive entertainment software. It currently owns Empire Interactive, PLC and Strategy First, Inc., a leading development and worldwide publisher of entertainment software for the PC. For more information about Silverstar Holdings go to www.silverstarholdings.com.