STRATEGIC INTERNET INVESTMENTS INCORPORATED TO FUND THE CONSTRUCTION OF MAN MADE ISLAND OFF THE NORTH-EASTERN COAST OF MANAMA, BAHRAIN, IN PREPARATION FOR THE DEVELOPMENT OF THE "DREAM ISLAND RESORT" LEISURE AND ENTERTAINMENT COMPLEX.

News Release #5-02
Symbol: SIII
Exchange: OTC: BB
August 21th, 2002
Shares issued: 13,617,961
Sec # 33 - 28188
NEWS RELEASE

VANCOUVER, Aug. 21 /PRNewswire-FirstCall/ - The Board of Directors of STRATEGIC INTERNET INVESTMENTS, INCORPORATED, (the "Company") is pleased to announce that the Company has been assigned all benefits and obligations under a dredging and reclamation construction contract, (the "Dredging Contract"), to begin construction of the 16.5 hectare (41 acre) man-made island to be situated approximately 250 metres offshore from the Al Fatah Corniche Park on the north- east coast of Manama, Bahrain. The Dredging Contract dated August 2, 2002 between Robodh Contracting Est. ("Robodh") of Manama, Bahrain and Star Leisure & Entertainment Inc. ("Star Leisure") of Vancouver, B.C. stipulates that Robodh will be issued convertible preferred shares with a face value of $5,075,000 USD, the total value of the Dredging Contract, as full payment to carry out the necessary dredging and reclamation work to construct the island.
Star Leisure, with the consent of Robodh, has assigned, to the Company, all benefits and obligations under the Dredging Contract. Accordingly, the Company will issue to Robodh $5,075,000 face value Series A Convertible Preferred Shares. Final documentation to complete the issuance of the Series A Preferred Shares, valued at $4.00 per share, and to define the preferred shares respective rights and restrictions is expected to be completed within the next 10 days.

"Robodh Contracting has demonstrated exceptional confidence in the Dream Island Project and, particularly, in the future value of the Company", states Mr. Abbas Salih, CFO and Director of the Company. "For a construction contractor of the size and caliber of Robodh to make such a significant share investment in the developer's Company speaks to their high regard for the project.

The Company recently announced that it entered into a Letter Agreement with British Columbia, Canada based Star Leisure to purchase 80% of the outstanding share capital of Bahrain incorporated Gulf Star World Development W.L.L. ("Gulf Star"). Please refer to the Company's July 12th, 2002 news release No. 2-02 for more details on this transaction and a brief description of the project. Investors are also encouraged to visit the Company's web site, at the address noted below, to view conceptual drawings and plans for the Dream Island Resort Complex.

For further information contact:

Corporate Contact: Strategic Internet Investments, Inc. (604) 684-8662 email: info@siiincorporated.com www.siiincorporated.com

Investor Relations: Crescent Fund, Inc. (212) 509-3060 email: crescentfund@yahoo.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.

-0- 08/21/2002