SilverBirch Inc.
TSX VENTURE : SVB

SilverBirch Inc.

April 06, 2006 14:45 ET

SilverBirch Creditors Choose Shares Over Cash

TORONTO, ONTARIO--(CCNMatthews - April 6, 2006) - The management of SilverBirch Inc. (TSX VENTURE:SVB) announces that it has entered into agreements with various creditors to exchange current debt for common shares of the company. It is anticipated that this conversion will extinguish $224,070.27 of current debt in exchange for 896,281 common shares of the company. Following conversion the company will have a total of 18,536,339 common shares outstanding, subject to the exercise by option holders of current outstanding options. The debt to equity conversion will not result in any change of control or insider status. The TSX Venture Exchange must approve the conversion. Subject to this approval the new common shares will have a four-month hold period and will be restricted from sale until that period has passed.

The Board and Management of SilverBirch wishes to thank our creditors for this significant vote of confidence in the company and its operating subsidiary, SilverBirch Studios Inc.

The company further announced that its SilverBirch Studios subsidiary is saying a reluctant farewell to Executive Vice President and Chief Operating Officer, Ian Halliday. Mr. Halliday will continue to serve on the board of SilverBirch Inc. as an independent Director, while pursuing a new venture in the enterprise software community, a sector that he originally left in order to assist SilverBirch in its early pursuit of financing and business development opportunities.

Announcing Mr. Halliday's departure from his operational role, CEO Kevin Birch said "Ian very generously came aboard as a contract consultant in the fall of 2004, at a time when management resources were clearly stretched in our efforts to secure new working capital sources. He made a significant contribution during the last eighteen months by agreeing to stay on and assume a broader direct management role, while we continued to build a strong customer base in many areas of the business and increase our expertise at the middle-management level."

Mr. Halliday added, "My time at SilverBirch allowed me to help grow the company in a significant way, and to assist in securing a more solid financial base through the recent RTO with York Capital Corporation (now SilverBirch Inc.). I feel strongly that I can play a significant role in their development by staying on their management board, in a newly independent capacity. I am also pleased to participate in the current round of debt conversion as a further mark of my continuing faith in the SilverBirch operation."

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 and includes Mobiloke™, Mobile Poker Trainer, Su Do Ku, Animal Snap, Covert Solitaire, El Presidente, Free Cell Block, and others. For more information please, visit www.silverbirchinc.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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