SilverBirch Inc.
TSX VENTURE : SVB

SilverBirch Inc.

June 02, 2006 12:17 ET

SilverBirch to Acquire Electron Jump

TORONTO, ONTARIO--(CCNMatthews - June 2, 2006) - SilverBirch Inc (TSX VENTURE:SVB) announced today that it has signed a Letter of Intent to acquire the assets of Ontario-based Electron Jump Games Inc., a leading developer of console and handheld videogames and related technologies.

"This will be a major addition to our own highly acclaimed game development capabilities," said CEO, Kevin Birch. "The development talent and technology platforms we will gain as a result of this acquisition will allow us to rapidly expand our mobile game initiatives into the emerging, high-demand 3D and 3G arenas, while at the same time giving us an entirely new set of product and service offerings across higher-end game platforms such as Sony's PlayStation® Portable (PSP™) and the Nintendo DS™."

Electron Jump was founded by a group of industry veterans, each with numerous development credits across some of the most well known videogames in the market today. A key component of this acquisition is the group's high-performance game engine, 'Vermillion', supporting a wide variety of handheld and console videogame platforms and also adaptable for high-end mobile phones.

Todd Showalter, President of Electron Jump, added "SilverBirch has built an enviable reputation for its innovative and premium quality mobile game development capabilities, and this proposed transaction demonstrates their ongoing commitment to leading the industry into the next generation of mobile entertainment. We are excited about the possibility of joining their team and contributing our expertise and technology towards the realization of this goal."

Completion of the proposed acquisition is subject to approval of the TSX Venture exchange and the SilverBirch Board of Directors, following which, Electron Jump's technologies and personnel will be fully integrated into SilverBirch Studios Inc.

SilverBirch also announces that the agreement with various creditors to exchange current debt for common shares of the company, extinguishing $224,070.27 of current debt in exchange for 896,281 common shares of the company, has been approved by the TSX Venture Exchange. Following conversion the company will have a total of 18,686,339 common shares outstanding. The new common shares will have a four-month hold period and will be restricted from sale until that period has passed.

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 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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