The convolution of two functions (The equation is abbreviated) and (The equation is abbreviated) is defined as (f*g) (The equation is abbreviated). For (The equation is abbreviated) and g(z) = z/(1-z)^(2(1-γ)), the extremal function for the class of functions starlike of order γ, we investigate functions h, where h(z)=(f*g)(z), which satisfy the inequality |(zh'/h)-1|/|(zh'/h)+(1-2α)|<β, 0≤α<1, 0<β≤1 for all z in the unit disk. Such functions f are said to be γ-prestarlike of order α and type β. We characterize this family in terms of its coefficients, and then determine extreme points, distortion theorems, and radii of univalence, starlikeness, and convexity. All results are sharp.