SilverBirch Inc.

SilverBirch Inc.

October 19, 2006 12:18 ET

SilverBirch Announces New Board Appointments and Ratification of Electron Jump Licence Acquisition

TORONTO, ONTARIO--(CCNMatthews - Oct. 19, 2006) - As a result of the anticipated resignation of Board Chairman, Mr. Sean Wise (principal of Wise Mentor Capital), pursuant to the September 30th expiry of his one year contract, the Directors of SilverBirch Inc. (TSX VENTURE:SVB) have been pleased to invite Mr. Derek van der Plaat, the company's recently appointed CEO, to join the Board. In addition to Mr. van der Plaat accepting the Directorship, the Board further moved to appoint Board incumbent, Mr. Brian Courtney as its new Chairman.

A spokesman for the company said, "Mr. Wise has played a very effective role in chairing the Board over the last twelve months, and will be sorely missed. However, his current workload (he is heavily involved in the CBC "Dragons' Den" TV series) makes it difficult for him to accommodate our Board schedule on top of those demands, and his many speaking engagements, so it was mutually agreed that a renewal of his term was not practical at this time.

"We are however most pleased to have Mr. van der Plaat fill the Board vacancy. Mr. van der Plaat is now a major investor in the company and is eager to join the board and contribute to the strategic direction and growth of the company at this level. Furthermore, having Mr. Courtney fill the vacated Chair is also a fortuitous move, as he brings an abundance of solid business experience to the position. Amongst his many accomplishments, he has been Chairman and CEO of Visible Decisions Inc., a 3D computer graphics company, and before that, President of Oracle Canada, and a one time senior marketing executive with Xerox. He currently holds executive positions in a number of other significant business ventures"

In other matters resulting from the October 16th Board meeting, the Directors ratified the acquisition of an unrestricted source code license for the proprietary Vermillion multi-platform, multi-player game engine, previously announced in an August 3rd, 2006 Press Release. Terms of the purchase, which are subject to TSXV approval, call for the issuance of 476,190 common shares, to Electron Jump Games Inc., representing the agreed licence fee of $100,000, priced at $0.21 per share. Following issue of these shares the company will have 19,162,529 common shares outstanding. A further issue of common shares having a value of $100,000 will take place when certain benchmarks are reached in the further development of the license.

The Board also reconfirmed the withdrawal of the previously announced $300,000 Private Placement, (to be replaced by a more substantial Convertible Debenture, to be administered by D&D Securities), and voted to rescind the grants of employee stock options which had been awarded on July 19th of this year.

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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