ACQUISITION OF CONTROLLING INTEREST IN
GULF STAR WORLD DEVELOPMENT W.L.L., BAHRAIN,
DEVELOPER OF THE PLANNED "DREAM ISLAND RESORT"
LEISURE AND ENTERTAINMENT COMPLEX.

News Release #2-02
Symbol: SIII
Exchange: OTC: BB
July 12th, 2002
Shares issued: 12,540,567
Sec # 33 - 28188
NEWS RELEASE

VANCOUVER, B.C. July 12, 2002-The Board of Directors of STRATEGIC INTERNET INVESTMENTS, INCORPORATED, (the "Company"), is pleased to inform shareholders that the Company has entered into a Letter Agreement with British Columbia, Canada based, Star Leisure & Entertainment Inc., ("Star Leisure") to purchase 80% of the outstanding share capital of Bahrain incorporated Gulf Star World Development W.L.L. ("Gulf Star").

Gulf Star holds 100% of the rights to develop the planned Dream Island Leisure and Entertainment Resort Facility located at Manama, Bahrain. The Dream Island Resort will be an integrated real estate and tourism development project on an island off the north-eastern coast of Manama, Bahrain, occupying approximately 165,000 sq. meters on a man made island about 250 meters offshore from the Al Fatah Corniche Park. The conceptual master plan includes:
· 120 villas to be managed by an international hotel management company;
· 100 villas for sale/rent/timeshare;
· 85 apartments for sale/rent on a timeshare basis;
· A luxury hotel with at least 225 rooms and 25 suites;
· A spa, health club and related facilities;
· Restaurants, cafes and a shopping, retail and entertainment center;
· A promenade and marina plus an aquarium and a water park;
· Sports facilities and a children's play area;
· Infrastructure and support facilities including a mosque, a beachfront area, parking, landscaping and water features.

The Letter Agreement gives Strategic the right to purchase 80% of the outstanding shares of Gulf Star by issuing to Star Leisure, in escrow, a total of five million common shares of the Company to be earned out of escrow based on progressive stages of development of the Dream Island Project over a three year period. The Company has agreed to formulate a comprehensive funding plan on a best efforts basis to secure the necessary debt and/or equity financing for completion of the Dream Island Project. The Company has further agreed to pay to Star Leisure the sum of US $100,000 within three months of the date of the Letter Agreement to reimburse Star Leisure for a portion of its preliminary start-up and development costs for the Dream Island Project including engineering, design, administrative and professional work.

Expenditures in excess of $100,000 associated with the start-up and development of the Dream Island Project will be reimbursed to both Star Leisure and Jzala Investment Group ("Jzala"), a Saudi Corporation holding a 20% interest in Gulf Star, only at such time as the project financing has been fully secured and commencement of the main construction of the Dream Island Project has been funded. These expenditures will be subject to verification in an independent audit to be completed by an internationally recognized firm of Chartered Accountants acceptable to all the parties.

Star Leisure will assign to the Company, any and all agreements relating to the Dream Island Project and, in particular, certain FIDIC agreements that it has recently negotiated and/or entered into with Robodh Contracting of Manama, Bahrain, specifically, the Dredging and Reclamation Works Agreement for Dream Island and the Planning, Consulting and Supervision Agreement for Dream Island.

Star Leisure is a related party to the Company. Mr. Abbas Salih, Director and controlling shareholder of the Company is the controlling shareholder of Star Leisure and therefore the agreement outlined above is a non-arms length transaction.

For further information contact:
Strategic Internet Investments, Inc.
(604) 684-8662
email: sohoralph@hotmail.com
www.siiincorporated.com

Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.