SilverBirch Inc.
TSX VENTURE : SVB

SilverBirch Inc.

September 18, 2007 07:00 ET

SilverBirch Announces Game Distribution Agreement With Lavalife

TORONTO, ONTARIO--(Marketwire - Sept. 18, 2007) - SilverBirch Inc. (TSX VENTURE:SVB) today announced that it has signed an agreement with Lavalife Corp. to distribute its proprietary as well as third party mobile games through Lavalife's online mobile content portals.

"This significantly increases the reach for our game portfolio and validates our recent acquisition activities", said Derek van der Plaat, CEO of SilverBirch, "Lavalife was initially a customer of CrossRoad Mobile, an investee company of SilverBirch Inc., and through this relationship we were able to cross-sell our game content as well."

"SilverBirch has built a comprehensive suite of capabilities that are very competitive and we are very happy with this relationship" adds Marina Glogovac, Chief Executive Officer at Lavalife.

On an unrelated note the Company is pleased to announce it has received approval from the TSX Venture Exchange regarding its 60% investment in CrossRoad Mobile and wishes to provide further clarification of the terms as follows. SilverBirch has a "Call Right" exercisable until December 31, 2008 to purchase the remaining 40% of CrossRoad from the Vendors for a price equal to the amount that the Vendors would receive if the assets of CrossRoad were sold for the greater of $1.4 million or two times trailing gross revenue, and the proceeds of such sale were used for the payment of all CrossRoad liabilities and liquidating expenses and obligations and the remainder to the members of CrossRoad pro rata based on their relative percentage interests.

If: (1) SilverBirch does not exercise the Call Right by December 31, 2008; AND (2) the gross revenues of CrossRoad generated during the previous twelve month period are US$2,000,000 or less, the Vendors will have a Call Right of their own from January 1, 2009 onward to repurchase SilverBirch's 60% of CrossRoad from SilverBirch for a price equal to the amount that SilverBirch would receive if the assets of CrossRoad were sold for the greater of $2 million or two times trailing gross revenue, and the proceeds of such sale were used for the payment of all CrossRoad liabilities and liquidating expenses and obligations and the remainder to the members of CrossRoad pro rata based on their relative percentage interests. i.e. the price of the Vendors' Call Right would be 60% of the value of CrossRoad (being the greater of $2 million or two times trailing gross revenue) remaining after payment of all liabilities.

About SilverBirch Inc.

Toronto-based SilverBirch Inc. is a fully integrated developer, publisher and distributor of high quality interactive media content and, through its Jambo Mobile division, provides mobile marketing and direct-to-consumer mobile content. In addition, the company is a multi-platform video game developer and operates an MMORPG (massive multiplayer online role-playing game) game called Metin 2 (see www.metin2.us). For more information, please visit www.silverbirchstudios.com and www.jambomobile.com.

About Lavalife Corp.

Lavalife is ranked the #1 website for online dating in Canada and is ranked among the top 10 worldwide dating sites. A leading provider of products and services designed for singles, Lavalife connects, engages and entertains through a variety of web, voice and mobile offerings. Founded in 1987, Lavalife Corp. markets its products and services across the United States, Canada and Australia. Lavalife's open-minded approach to online dating allows singles to choose how they want to "click" by offering three unique and distinctive services in personals: dating, relationships and intimate encounters. Lavalife has attracted millions of unique members who exchange 1.3 million messages every day. For more information, visit http://www.lavalife.com.

(i)Source: Combination of comScore Media Metrix and Lavalife. Lavalife estimates that it ranks #1 in Canada when publicly quoted statistics are adjusted to reflect traffic assigned to other web sites.

(ii) Source: Combination of comScore Media Metrix and Lavalife. Lavalife estimates that it ranks in the top 10 worldwide when publicly quoted statistics are adjusted to reflect traffic assigned to other web sites.

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

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