America Movil's Claro Launches Synchronica Mobile IM Service

ROYAL TUNBRIDGE WELLS, United Kingdom, Nov. 15 /CNW/ - Synchronica plc ("Synchronica") (AIM: SYNC) (TSX Venture: SYN) announces that América Móvil's Claro Argentina has launched Claro Messenger, a carrier-branded mobile Instant Messaging service based on, and powered by, Synchronica's hosted IMPS platform. The launch represents the third of 15 mobile IM services due to go live as part of América Móvil's group-wide framework agreement with Synchronica.

The Claro Messenger Instant Messaging service is available exclusively to Claro's customers. Claro Argentina customers can register for the service by visiting the dedicated Claro Messenger portal (http://www.claro.com.ar/messenger), or by simply using their phone to navigate to the Msngr icon in the Claro WAP menu. The service acts as a churn inhibitor, because customers spread their identities virally and become dependent on the service to stay in touch with people. Defecting to a rival carrier would mean the loss of their IM identity.

The group-wide framework agreement with América Móvil provides Synchronica with a strong, growing recurring revenue stream. As well as Claro Argentina, Telcel Mexico and Comcel Colombia have already launched a Synchronica-based IM service; the remaining 14 subsidiaries are all expected to launch before 31 March 2011.

The group-wide framework agreement with América Móvil was originally signed by Colibria, whose IMPS Instant Messaging business was acquired by Synchronica in March 2010. Since then, Synchronica has worked closely with América Móvil to deliver on this commitment.

Commenting on the market for Value Added Services (VAS) in Latin America, Daniele Tricarico, Telecoms Research Analyst for Latin America at Informa, said: ""In Latin America, where pre-paid plans dominate, 'sticky' VAS such as mobile IM are proving to be successful churn inhibitors. As overall smartphone penetration in LatAm remains under 5%, and prepaid is dominant, it makes a lot of sense for mobile operators to provide device-agnostic VAS, so that they can reach their entire subscriber base. Non- SMS messaging VAS like IM are a strong trend in LatAm, and the opportunity exists for operator-owned IM communities. For the next five years we expect solid growth of IM in the region, with IM revenues growing from around US$1.3billion at end-2010 to US$3.3billion at end-2015."

Carsten Brinkschulte, CEO of Synchronica, added: "Claro Argentina is now the third operating subsidiary of América Móvil to launch the Claro Messenger instant messaging service. Our solution enables Claro to reduce churn and protect its market leadership by creating its very own branded IM community that will prove popular and addictive. Our experience shows that once users sign up for a mobile IM service and spread their IM identity online, it is much less likely that they will churn to a competing carrier and lose this online ID."

Latin America is well ahead of the world average in mobile phone penetration, having reached an average of 93% penetration in mid-2010 against a global rate of around 73%. Over 80% of the region's mobile subscribers are on prepaid plans (Source: BuddeComm). Argentina's mobile market is the third largest in Latin America, after Brazil and Mexico. In terms of mobile penetration, Argentina is the leader in South and Central America.

About Synchronica

Synchronica plc is a leading developer of next-generation mobile messaging solutions. Mobile Gateway, Synchronica's flagship product, provides push email, synchronization, instant messaging (IM), and social networking services to any mobile phone currently in use. Synchronica's patented transcoding engine uses advanced streaming to download email attachments and can dramatically reduce the consumption of network bandwidth by as much as 90 percent.

Mobile operators and device manufacturers from emerging and developed markets rely on Synchronica's white-labelled product for providing mass market messaging services across the entire customer base, diversifying revenues and reducing churn.

Headquartered in England, Synchronica also maintains a development centre in Germany and the Philippines in addition to a regional presence in Canada, the USA, Hong Kong, Spain, and Dubai. Synchronica plc is a public company traded on the AIM list of the London Stock Exchange (SYNC) and the Venture Exchange of the Toronto Stock Exchange (SYN). For further information, please visit www.synchronica.com

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The foregoing information may contain forward-looking statements relating to the future performance of Synchronica plc. Forward-looking statements, specifically those concerning future performance or results, are subject to certain risks and uncertainties, and actual results may differ materially from Synchronica's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the public filings and announcements made by Synchronica, including those made with AIM, a market of the London Stock Exchange, with the TSX Venture Exchange or with securities regulators.  Synchronica does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

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