SilverBirch Inc.

SilverBirch Inc.

January 29, 2007 18:04 ET

Founder Signs Off On Growth Strategy

TORONTO, ONTARIO--(CCNMatthews - Jan. 29, 2007) - Kevin Birch, CTO of SilverBirch Inc.(TSX VENTURE:SVB) and President of the Studios subsidiary, announced on Friday that he is resigning both roles as at the end of the March quarter. His decision meshes well with the Company's previous announcement to strengthen its direct to consumer mobile content distribution and promotion platform, as reflected in the recently announced intention to acquire Jambo Mobile Solutions Inc.

"The company is now in a stronger position than ever", said the Founder of SilverBirch Studios, "We have a CEO with fresh energy and a vision that is going to continue moving SilverBirch in the right direction. We also have a more active shareholder base after our recent financing rounds, with many exciting new projects either in the pipeline or being pitched. The mobile division is in the process of being significantly benefited by the proposed Jambo acquisition, and I am very excited about the future of SilverBirch. It's incredibly rewarding for me to look at the current state of the company - to see all of our various accomplishments and realize how far we've come, and also to see some of our long term relationships and visions starting to finally gain some serious momentum."

CEO Derek van der Plaat added, "The Company owes a major debt of gratitude to Kevin. He has worked tirelessly for the last three years to create one of the most innovative companies in the cell phone gaming space, and his legacy is a creative team second to none in this industry."

A major shareholder, Mr. Birch will remain on the Board of Directors of SilverBirch Inc. and will continue to provide significant consulting input at all levels of the Company's operations.

Mr. Birch's announcement coincides with the formal acceptance by the TSX Venture exchange of a Shares for Debt conversion which was applied for on January 8, 2007. Mr. Birch is one of the participants in the plan, which sees a total of $106,793 converted to 1,067,930 common shares. He is joined by Mr. van der Plaat, CFO Graham Lowman, and two other managers, in this further demonstration of support for the Company, following which, there will be a total of 39,210,292 common shares issued and outstanding. The shares issued under this arrangement are subject to the customary four month hold.

In a further announcement, the Company disclosed that it has granted options to purchase common stock of SilverBirch in the total of 1,622,697, at a strike price of $0.10 cents per share to DVP Capital Management Inc. (600,000), to Aberdeen Gould Inc. (762,697), and to Mr. Tim Gallagher (560,000). The grants vest and may be exercised immediately with the exception of Aberdeen Gould Inc., whose options are exercisable upon terms over successive 90 day periods. The expiry date of these grants will be December 20, 2011.

About SilverBirch Inc.

Toronto-based SilverBirch, through its SilverBirch Studios subsidiary, is a publisher, distributor and developer of wireless entertainment applications including games, ringtones, images and other content. SilverBirch's application portfolio is comprised of both original and licensed intellectual properties. For more information please, visit

Forward-Looking Statements - Certain information set forth in this news release, including management's assessment of future plans, contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond management's control, including the impact of general economic conditions, industry conditions, and currency fluctuations. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the content of this news release.

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