SilverBirch Inc.
TSX VENTURE : SVB

SilverBirch Inc.

March 08, 2007 13:31 ET

Acquisition of Jambo Positions SilverBirch to Expand Market Reach

Plans to embed highly effective mobile promotion tools into its games are part of the deal

TORONTO, ONTARIO--(CCNMatthews - March 8, 2007) - Derek van der Plaat, CEO of SilverBirch Inc. (TSX VENTURE:SVB) announced today that the acquisition of Jambo Mobile Solutions Inc. closed yesterday afternoon, following regulatory and board approval.

"I am very excited to be able to integrate mobile communication tools such as mobile alerts into our games", said Derek van der Plaat, "Mobile Marketing is a highly effective tool for increasing game play and loyalty, and this will extend the scope of both subsidiaries".

The former founders of Jambo, Derek Colfer and Matthew Kim, have joined the SilverBirch executive team, as Vice President, Strategic Development, SVB Mobile, and Vice President, Technology, SVB Mobile, respectively. "I am thrilled to have these two talented people join our management team", said Derek van der Plaat. Jambo is a key player in this industry segment, and their know-how is an invaluable component of our new business strategy."

Pursuant to the terms of the Agreement, the Company will pay the shareholders of the Vendor $1,170,000, comprised of $137,000 cash on closing, issue 4,440,774 common shares valued at $0.15 per share and issue a secured promissory note in the amount of $363,000. This note will allow the holder to have the option to convert up to $363,000 into common shares at the conversion price of $0.15 per share. The Vendor's shareholders shall also receive a further 1,666,667 common shares of the Company valued at $0.15 if the acquired business exceeds revenue of $750,000 from January 1, 2007 to April 1, 2008; and a further 1,666,667 common shares valued at $0.15 if the acquired business exceeds revenue of $1,500,000 over the subsequent twelve months.

About SilverBirch Inc.

Toronto-based SilverBirch inc., is a diversified media company that brings together the specialized skills of video game development/operations and mobile marketing to create communities that generate advertising, promotion and content sales revenue.

The company leverages its mobile marketing expertise and premium short code mobile payment capabilities to create new distribution channels where consumers can instantly buy mobile and in-game content and participate in mobile promotion programs. 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 TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the content of this news release.

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