Synchronica Acquires Colibria's IMPS Instant Messaging Business

Highlights:

• The acquisition of Colibria's proven Instant Messaging & Presence Service (IMPS) and Social Networking Gateway positions Synchronica as a technology leader in the market for carrier-grade instant messaging (IM) solutions
• 13 existing live operator deployments including two multinational framework agreements with tier one mobile operators will accelerate Synchronica's entry into the fast-growing mobile IM sector
• The acquisition is a key milestone in Synchronica's strategy to become the leader in next-generation mobile messaging for emerging markets

Royal Tunbridge Wells, March 31, 2010. - Synchronica plc, the international provider of next-generation mobile messaging services, has signed an agreement to acquire Colibria's IMPS instant messaging business, reseller agreements, and existing worldwide mobile operator customer base. The acquisition will accelerate Synchronica's entry into the fast-growing mobile IM sector and help to achieve its goal of becoming the leader in next-generation mobile messaging for emerging markets.

Synchronica will continue to develop, market, and support Colibria's open standards-based IM technology as a stand-alone product. The software will also be integrated into Synchronica's Mobile Gateway messaging suite and will be pre-installed on the recently launched MessagePhone, a low-cost messaging-centric handset powered by Mobile Gateway.

Colibria's proven, carrier-grade, mobile IM technology and emerging markets-oriented customer base complement Synchronica's own focus on open standards-based messaging solutions for developing economies. Synchronica will use the acquisition as a springboard for cross-selling and up-selling opportunities as it seeks to further expand its market share in the rapidly expanding emerging markets.

Specifically, the acquisition includes:

• Transfer of 13 carrier contracts including two large carrier groups with an addressable market of more than 320 million subscribers
• 46 Colibria employees who will become part of the Synchronica team, ensuring the continuous development of the acquired products and support for transferred contracts
• Transfer of two reseller agreements with a tier one network equipment provider and a leading messaging infrastructure software provider related to the acquired IMPS products
• Colibria's Instant Messaging & Presence Service which provides a complete, scalable, and OMA standards-compliant mobile operator messaging service
• Colibria's Windows Live Messenger Gateway which allows users to mobilize their Windows Live Messenger service
• Colibria's Social Network Gateway which enables operators to provide an interactive and inclusive mobile social network service as part of an integrated mobile experience
• Colibria's App Center, a collection of software as a service (SaaS) solutions designed to add instant value for the user and boost revenues for the operator through increased traffic, premium services, and advertising

Synchronica CEO Carsten Brinkschulte says: "Mobile instant messaging and social networking are fast-growing sectors, in particular in emerging markets. Our acquisition of Colibria's instant messaging business will allow Synchronica to offer a comprehensive range of next-generation messaging products to service providers, improving our competitive positioning and accelerating our commercial growth."

Brinkschulte continues: "Synchronica is fully committed to the future development of the acquired products and to providing first-class, uninterrupted service and support to Colibria's IMPS customers. The transfer of 46 Colibria employees provides an assurance to Colibria's customers of a seamless transition and continuous support."

The acquisition will enlarge Synchronica's fast-growing footprint in emerging markets by adding key customer contracts in Latin America, Africa, the Middle East, and Russia / CIS, as well as global reseller agreements.

About Colibria

Colibria is the leading global provider of new-generation messaging, presence, and social networking solutions. Colibria's award-winning technology enables operators and service providers to deploy enhanced messaging services in order to differentiate their services and to unlock new revenue streams. Colibria's innovative product portfolio provides highly scalable and modular solutions for the deployment, expansion, and evolution of enhanced messaging, presence, and social networking services.

Founded in 2000, Colibria has offices worldwide and is the provider of choice for enhanced messaging deployments and powers mobile communities throughout Europe, Asia, and Latin America with a total addressable subscriber base in excess of 350 million.

Colibria is a Norwegian company based in Oslo with offices in Theale, England. For more information, please visit www.colibria.com

About Synchronica

Synchronica plc is a leading developer of next-generation mobile messaging solutions based on open industry standards. The award-winning product portfolio includes the flagship product Mobile Gateway, providing push email, synchronization, instant messaging (IM), backup and restore, and mobile connectivity to social networks. Synchronica's products are white-labeled and offered by mobile operators in emerging and developed markets to provide mass market messaging services, increasing data revenues and reducing churn.

Synchronica Mobile Gateway provides a unique multi-protocol gateway combining Push IMAP, SyncML, ActiveSync, Email to MMS, and Email to SMS, delivering push email and synchronization to literally any mobile phone currently in the market without requiring an additional client to be downloaded. Expanding instant messaging to mobile devices, Mobile Gateway establishes carrier-branded IM communities, using the industry standard XMPP and provides gateways to popular internet IM communities, connecting any IMPS-enabled handset.

Headquartered in England, Synchronica also maintains a development center in Germany in addition to a regional presence in the USA, Hong Kong, and Dubai. Synchronica plc is a public company traded on the AIM list of the London Stock Exchange (SYNC). For further information, please visit www.synchronica.com

For more information, please contact:

David Clark
Tel.: +44 1892 5527 20
Fax: +44 1892 5527 21
david.clark@synchronica.com