Strategy First Inc. was incorporated under the Canada Business Corporations Act as a Canadian-controlled private corporation in 1988. Initially, the Company functioned as a computer graphics art studio, sub-contracting to various computer game software developers and publishers in the North American market, including LucasArts and ABC Interactive, a division of Disney. Operations began in rented premises in downtown Montreal with three employees. The Company rapidly achieved a solid reputation and significant industry acclaim for the quality of its artwork and graphics production.

In addition to sub-contracting work, the Company soon began development of its first proprietary title—a hockey game. Solid Ice was self-published by Strategy First in 1995, and was distributed by Empire Interactive. Immediately after the launch of Solid Ice, the Company began development of Man of War, while continuing to do artwork for other publishers. Man of War was published in 1997 by Strategy First, and was distributed by Virgin Interactive Entertainment under an affiliated label agreement. Man of War achieved significant industry praise and a satisfactory level of market acceptance.

During 1997, the Company attracted significant investments by the venture capital division of the Business Development Bank of Canada and Innovatech Grand Montreal, an investment agency of the Province of Quebec, along with a “patient capital” loan guaranteed by Canada Economic Development. During the same year, the Company acquired the creative assets and personnel of Midnight Software, an Ottawa studio known for Renegade: Battle for Jacob’s Star, published by Strategic Simulations Inc., and The Heroes of the 357th, published by Electronic Arts.

By 1998, staffing had increased to over 30 employees in the Montreal area alone, and the Company relocated to larger premises in Old Montreal—the hub of Quebec’s multimedia industry. Towards the end of the year, Strategy First acquired Micomeq Productions, a 15-person development studio in St-Jerome, Quebec. Micomeq was originally an educational software developer, but had distinguished itself in the computer game business with titles such as Fallen Heaven and Liberation Day. The acquisition was accompanied by a substantial second round of investment by the Business Development Bank and Innovatech.

Strategy First made a strong start to 1999 by forming a strategic promotional relationship with A & E, the American cable television network. Man of War II was launched in conjunction with A & E’s premier airing of its Horatio Hornblower mini-series, and when the title reached retail shelves in May of 1999, it had already profited from the widespread publicity surrounding its association with the popular television series.

Mid-year, the Company entered into a two-year affiliate publishing and distribution agreement with GT Interactive (since acquired by Infogrames). Under the agreement, all of the Company’s titles were published under the Strategy First logo, with sales handled by GT Interactive’s North American sales force, and manufacturing, distribution, and billing handled through GT’s warehousing facilities. Three titles were released during the spring, summer, and fall of 1999 under this new arrangement—Man of War II, Clans, and Disciples: Sacred Lands.

The year 2000 was a year of consolidation and renewal for the Company. Three titles were actually published during the calendar year—Submarine Titans, Outforce, and Konung—while the Company assiduously pursued third-party publishing opportunities, inking contracts late in the year with CDV in Germany for the North American publishing rights to Sudden Strike and Cossacks; Timegate in the U.S.A. for Kohan; Paradox in Sweden for Europa Universalis, Breakaway Games in the U.S.A. for Napoleon at Waterloo, and Playnet in the U.S.A. for World War II Online.

In September of 2000, Strategy First secured additional investment participation from the Business Development Bank, and a new investment from Fonds d’investissement de la culture et des communications.

The stage was thus set for a stellar performance in the first six months of Calendar 2001 (the last six months of Fiscal 2001). The Company ended Fiscal 2001 on June 30 with sales of C$17 million, profits of C$1.45 million, potentially achieving the momentum necessary to assure future growth in sales and profits.

In 2002, the Company continued to lay the groundwork for continued growth. The product development team was augmented by acquiring virtually the entire, experienced development group from Sirtech Canada Limited, an Ottawa studio that recently closed its doors after producing such landmark hits as the Wizardry series (1 through 8), and the Jagged Alliance group of titles. Simultaneously, the Company acquired the entire Jagged Alliance intellectual property.

The burden of greatly expanded development overhead, coupled with several disappointing retail launches of third-party products carrying onerous performance guarantees created a need for an injection of additional working capital, a need that was appropriately met by securing a term sheet from the Société Générale de Finacement (SGF), a government of Quebec venture capital organization. The arrangement called for a $14 million investment in two installments over as many years, and was based on a business plan developed in co-operation with the SGF and approved by them.

The SGF, as a result of their own organizational restructuring and a change in the local political climate, abruptly withdrew from the deal on the eve of its closing, and the Company was caught in a cash squeeze that forced immediate and drastic downsizing. Most product development people were laid off as projects were either finished or shelved. Severe cost reductions occurred at all levels of the Company’s operations.

On August 18, 2004, the Company filed for protection from its creditors under Canada’s CCAA, and successfully emerged as a reorganized entity and a wholly owned subsidiary of Silverstar Holdings on April 25, 2005.

Strategy First made a strong comeback in 2005, publishing solid titles like S.C.S. – Dangerous Waters, Legion Arena, Emergency 3,Disciples Rise of the Elves Gold, Space Empires IV Deluxe, Seal of Evil and Disney’s Aladdin Chess Adventures. On April 5, 2006 – The Company acquired all of the intellectual property assets of Malfador Machinations. As part of the transaction, Aaron Hall, Malfador’s president and CEO, joined the Strategy First management team to direct the ongoing development of Malfador’s successful Space Empires franchise under the Strategy First banner. Shortly later that summer, Strategy First launched their much anticipated online store.

On December 8, 2005, an agreement with Valve Corporation, a leading entertainment and technology studio, was announced. A multi-title distribution deal was made to deliver a collection of Strategy First’s front line titles and new releases via Steam, Valve’s online platform for digital content distribution and management. Strategy First became the first entertainment software publisher to move forward with Valve’s Steam, thus connecting them to nearly 6 million gamers worldwide.

Strategy First remains a strong market leader in brand recognition in the strategy game genre, and can boast a strong lineup of future strategy games from its cadre of internal intellectual properties such as the Jagged Alliance, Disciples and Space Empires franchises, as well as a host of third party titles for which the Company has entered into long term publishing contracts—mostly for worldwide distribution. By the end of 2006 Strategy First will have published, Space Empires V, Iron Warriors: T72 - Tank Command, Aliance Future Combat, Birth of America, Brigade E5: New Jagged Union, Naval Combat Pack, and Great Invasion: The Darkages “350-1066 AD”.

Strategy First can promise many great releases in the future, as it continues to work on popular titles such as Jagged Alliance 3, a major sequel in the Jagged Alliance series that will push the envelope within the tactical genre, Jagged Alliance 2 DS for the Nintendo DS platform, Disciples III: Renaissance, a totally new Disciples game in full stunning 3D that will be followed with two major add-on products and Disciples II DS for the Nintendo DS platform as well.

Management

Strategy First Inc. has a strong, seasoned, and exceptionally talented management team who bring extraordinary experience and strong personal connections in the computer game industry. The senior management group consists of three founding shareholders of the Company, rounded out with a strong team of professional managers who were more recent additions to the team.

Stewart Braybrook is the President of Strategy First having joined the Company in March of 2000 as the Director of European Operations. After a career in various aspects of the computer games industry in the U.K., Stewart became International Sales Manager for the GT Interactive Value Division, and became Head of Acquisitions for Infogrames Europe after they acquired GT Interactive. The Company's European offices are located in Essex County in England.

Dave Hill is Vice President-Systems of Strategy First, and one of the original co-founders of the Company. Dave’s experience covers many areas of the Company’s business, including producing one of its first games, Man of War. Dave's background includes information technologies, security, and communications.