SilverBirch Inc.

SilverBirch Inc.

July 16, 2007 17:54 ET

SilverBirch to Acquire ZIM Corporation's Canadian Text Gateway Assets

Technology provides text messaging services for Pitney Bowes, Rogers Wireless and the Ontario Lottery and Gaming Corporation

TORONTO, ONTARIO--(Marketwire - July 16, 2007) - SilverBirch Inc. (TSX VENTURE:SVB) has signed an agreement to acquire certain mobile messaging assets and clients from ZIM Corporation ("ZIM") (OTCBB:ZIMF). The assets include ZIM Corporation's Canadian mobile gateway technology that facilitates cross carrier text messaging and related clients in addition to their proprietary web to text technology that enables online to phone text messaging. The mobile gateway customers include the Ontario Lottery and Gaming Corporation, Pitney Bowes and Rogers Communications.

"This acquisition will significantly strengthen our Canadian market position both in terms of customers and capabilities," said SilverBirch CEO Derek van der Plaat.

The transaction will boost SilverBirch's sales immediately and is expected to have a positive impact on earnings. As consideration for the acquisition, SVB will pay $75,000 in cash, a $100,000 note and 500,000 common shares of SilverBirch subject to certain performance requirements. The transaction is subject to regulatory approvals and is expected to complete within the next 30 days.

ZIM CEO Michael Cowpland stated, "We are very pleased with this transaction as it is consistent with our business strategy of focusing on our current Mobile Content, Internet TV and database applications. SilverBirch is the ideal purchaser for these assets as it will ensure the continuity and quality of our gateway services to our customers and partners going forward."

The Corporation also announced today that it has granted a number of stock options, for which it is contractually obligated, to The Chief Executive Officer, three independent directors, and a senior employee, in accordance with the Employee Incentive Stock Option Plan approved by shareholders on May 2, 2007. Options to purchase common shares, totalling 775,000 have been granted at a strike price of $0.20 being the closing price of the common stock on July 13, 2007.

In a separate statement, the company confirms that it has now issued common shares to four employees, pursuant to the previously announced exchange of current debt for common shares of the Company. This conversion extinguished $12,435 of current debt in exchange for 96,482 common shares of SilverBirch Inc., and was approved by the TSX Venture exchange on June 25, 2007.

About SilverBirch Inc.

Toronto-based SilverBirch Inc. is a fully integrated developer, publisher and distributor of high quality interactive media content and, through its SilverBirch Mobile division, provides mobile marketing and direct-to-consumer mobile content to its media partners. In addition, the company is a multi-platform video game developer and plans to launch an English-language MMORPG game (massive multiplayer online role-playing game) called Metin 2 (see this summer. For more information, please visit and

About ZIM Corporation

ZIM is an Internet TV service provider and mobile content provider. Through its global infrastructure, ZIM provides publishing and licensing services for market-leading peer to peer (P2P) Internet TV content and mobile content. For more information on ZIM and its customers, partners and products, visit: and

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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