*** Star E Media Corporation(OTC: STRE) ***

Editors Note:

At Stockupticks, we like small-cap companies that think big -- globally in fact.  It shows a confidence in their product and the creativity to draw revenues from a diverse marketplace.

That's exactly the direction in which Star E Media is heading.  This children's education business is positioning itself to become a participant in a global market estimated at nearly $4 billion. The niche for Star E Media is multi-lingual educational-entertainment software. 

Star E Media produces and distributes multimedia educational tools and games with an initial focus on the Spanish and Arabic markets.  The company’s growing line of state-of-the-art educational products includes interactive CD-ROMs, many of which are packaged with supporting bilingual workbooks for an enhanced educational experience. 

Star E Media has established business alliances with the leading producers of children's educational software, including Scholastic, School Zone and Vivendi's Knowledge Adventure.  Star E Media, with 40 titles, is focused on becoming the leader in "Edutainment Software"  for children around the world.  Its strategy is to localize top-selling, English-language titles; millions of which have already been sold by these three major producers in the U.S.

NEWS NEWS NEWS  -  This Just in ...
 

Star E Media Ships First 30,000 CD's to SpaceToon 

LAKE FOREST, Calif., Sep 3, 2002 /PRNewswire-FirstCall via COMTEX/ -- Star E Media Corporation (OTC: STRE) www.staremedia.com President and COO Mr. Gene Abbadessa announced today that Star E Media has shipped to SpaceToon Online the first 30,000 CD's pursuant to its $25M, five year exclusive Middle East marketing and distribution agreement. Star E Media's agreement with SpaceToon calls for 1,000,000 CD's to be shipped over the next 12 months. The Arabic/English "edutainment" software titles to be distributed in the Middle East by SpaceToon will include Scholastic and School Zone titles. Additional "edutainment" titles are in the works that will increase product recognition and sales for Star E Media's Arabic/English CD-ROM edutainment products. 

To read the entire news release, click here

*** A Brief Look At Star E Media ***

Star E Media is dedicated to breaking down the language barriers that leave many non-English speaking communities behind when it comes to children’s education.  In doing so, the company is not only providing an invaluable service with far-reaching effects inherent to enhanced education, but is also filling a dramatically under-served business niche.

Star E Media was formed in March of 2000 and has obtained exclusive licensing rights to award-winning English language titles (40 to date) that have sold millions -- such as "Clifford’s Big Red Dog," "I Spy," "Jump Start" and "Math Blaster" published and distributed by three world-renowned U.S. children’s software and educational entertainment companies (Scholastic, School Zone and Vivendi's Knowledge Adventure). 
 

Star E Media has granted two exclusive distribution agreements. ESP International for Spanish around the World and SpaceToon for the Middle East.  Under the agreements, ESP must purchase or cause to be purchased over $30M in 4 years to maintain their exclusivity and SpaceToon must purchase $25M in 5 years to maintain its exclusivity.

The non-English speaking community in the U.S. is large and growing, and is expected to steadily drive demand.  The company’s products are sold by its licensees in the U.S. with Star receiving royalty payments.  The company is also expanding into international markets and is in the process of establishing a strong presence in regions of the Middle East and South America.

Star E Media is dedicated to increasing the education levels of children around the world, while at the same time maximizing shareholder value.  Helping the company achieve this goal is a highly experienced team of industry professionals that provide the foundation upon which the company is built. These professionals have implemented an aggressive business strategy and intend to see the company become the premier provider of effective, interactive learning tools to children in diverse communities. With successful backgrounds in sales, marketing, business administration and engineering, this team is uniquely qualified to move the company forward.

Currently, almost half of children’s educational-entertainment CD sales originate from less than 25 percent of households in the U.S.  Four heavily populated states -- California, Florida, New York, and Texas -- have a substantial number of residents that speak only Spanish.  According to the U.S. Census Bureau, over the past decade, the U.S. Hispanic community has grown by over 58% to more than 35 million people.  Globally, Spanish represents the largest market for multi-lingual educational software.  There are over 330 million native Spanish speakers, outnumbered only by Mandarin Chinese with over 880 million speakers.  Spanish speakers are prevalent throughout 28 countries. This untapped market presents another opportunity for Star E Media.
 

*** Creating An International Library Of Bi-Lingual Titles ***

• Scholastic and School Zone titles are localized in both Spanish and Arabic. The English version is included with each localized title
• School Zone has also licensed Star E Media to produce a bilingual workbook publication, which will augment the CD titles
• Star E Media intends to build the largest foreign-language library of children's interactive educational products
• Star E Media will issue exclusive licensing, marketing & distribution rights to major corporations outside the US
• Star E Media is building an international distribution system in order to market other languages and other bilingual products

*** Business Partners ***

  Scholastic, a $2 billion company, is the largest publisher and distributor of children's books in the world, including the phenomenally successful Harry Potter™, The Babysitters Club®, Dear America®, The Royal Diaries™, Animorphs® and Clifford the Big Red Dog®. Through the company's unique school and community-based distribution channels, including its book clubs and book fairs, Scholastic reaches 32 million children, 45 million parents and nearly every school in the U.S. For more details see website: www.scholastic.com

School Zone's product line is organized to proved premier preschool through grade six curriculums for teaching basic learning skills in the home. School Zone is the first and only publisher to successfully present a sequential, fully integrated curriculum for the teacher at home, marketed on a mass scale. School Zone is the original workbook company. For more details, see website: www.schoolzone.com 

  Knowledge Adventure is part of a $12 billion company (Vivendi Universal), which owns Universal Studios and provides its wholly owned subsidiary with well-known content. They have been a leader in children's interactive content for 20 years, developing and publishing top-selling PC and console-based multimedia software designed for children to learn and play. The company is internationally renowned for its market-leading brands such as JumpStart™ and Math Blaster® which are used by millions of children in homes and schools around the world, as well as its portfolio of entertainment licenses such as Barbie™, Jurassic Park, Sabrina the Teenage Witch® and the Teletubbies™. For more details see website: www.vivendiuniversal.com 

ESP International, United Kingdom, is a specialized marketing company that operates exclusively in the educational entertainment market throughout the world. ESP is the international sales and marketing team for Star E Media and other clients such as School Zone Interactive, the American Education Corporation, and Maestro Learning. As a company devoted to the marketing of multimedia educational products, their expertise brings over 50 years of experience in the educational software market around the world. ESP has eight international sales employees speaking 14 different languages with five regional offices worldwide. 

Star E Media has entered into an exclusive marketing agreement with ESP to provide minimum sales of 220,000 units in 2002, 645,000 units in 2003, 950,000 units in 2004 and 1,250,000 units in 2005. The President/CEO of ESP is Mr. Mike Gaunt who spent over six years as head of International Sales for IBM's Consumer software division where he was responsible for three of IBM's major brands of educational "Edutainment" before founding ESP International. www.espeducation.com

SpaceToon is the exclusive marketer and distributor for Star E Media for the Middle East and has budgeted $1.5M to market Star E Media products over the next 18 months. To maintain this exclusive agreement, SpaceToon and Star E Media have entered into a $25 million contract over 5 years by purchasing a minimum 1 million CD's each year. Space Toon will prepare and broadcast all commercial media for advertisement on their TV station, their radio station, and their Space Toon monthly magazine. 

SpaceToon presents children and the youth in middle east with the most pleasant surprise of the Millennium: the first Arabic children's TV channel. Space Toon will transmit from Bahrain via Arab Sat (C-Band) to all analog viewers and via Nile Sat for digital viewers. The station will broadcast in Arabic to an estimated 50 million viewers throughout the Arab World. Space Toon has the largest library of Arabic dubbed cartoons in the Middle East supported by leading American, Italian and Japanese companies such as Warner Brothers, MGM, Universal Studios, Mondo-TV, Toei Co., Fuji, and others.

*** Star E Media Products ***

*** Contact Star E Media ***

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