SilverBirch Inc.
TSX VENTURE : SVB

SilverBirch Inc.

January 22, 2007 10:50 ET

SilverBirch to Acquire Jambo Mobile Solutions

Combination will significantly expand SilverBirch's mobile marketing capabilities

TORONTO, ONTARIO--(CCNMatthews - Jan. 22, 2007) - SilverBirch Inc. (TSX VENTURE:SVB), a publisher, distributor and developer of mobile entertainment content, has signed a letter of intent with Jambo Mobile Solutions Inc. ("Jambo"), to acquire all of its outstanding shares. Jambo is an award-winning mobile marketing services provider to a roster of marquee Canadian and U.S. brands including Adidas, Coca-Cola, Dell, Disney - Buena Vista, Pfizer, Sony, and many others.

Jambo, a privately-owned company based in Toronto, has spent the past five years developing its proprietary Ignition™ technology platform to provide mobile marketing services. This platform offers the ability to deliver timely, permission-based personal and relevant communications to the mobile phones of target consumers. Based on the success of its mobile programs, Jambo has won a number of awards, including most recently a 2006 Digital Marketing Wireless Award.

"This combination gives us a range of proprietary technical capabilities that will be attractive to consumer product marketers seeking to leverage the fast-growing popularity of mobile content and text messaging," said SilverBirch CEO Derek van der Plaat.

"Our combined expertise in mobile marketing, content and gaming will provide our clients with the very best integrated mobile solutions under one roof," added Jambo Mobile's Managing Director, Derek Colfer.

The transaction will boost SilverBirch's sales immediately and is expected to have a positive impact on earnings. SilverBirch's executive team will also be strengthened by the addition of Jambo's co-founders, Derek Colfer and Matthew Kim. Consideration will be in the form of cash and shares; the transaction is expected to close within the next 45 days.

About SilverBirch Inc.

Toronto-based SilverBirch, through its SilverBirch Studios and SilverBirch Mobile divisions, is a publisher, distributor and developer of mobile 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 on SilverBirch, please visit www.silverbirchinc.com.

For more information on Jambo Mobile, please visit www.jambomobile.com.

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 agreement is subject to customary terms and conditions, including approval by the TSX Venture Exchange. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the content of this news release.

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