Synchronica Signs Contract for Operator in the Middle East

ROYAL TUNBRIDGE WELLS, United Kingdom, Dec. 23 /CNW/ - Synchronica plc ("Synchronica") (AIM: SYNC) (TSX Venture: SYN), the instant messaging and data synchronisation provider, announces that it has signed an agreement for a Mobile Network Operator (MNO) in the Middle East worth approximately US $1.5 million for its first year.

Under the terms of the agreement, Synchronica will provide its award winning mobile push email and IM (Instant Messaging) software, professional services and support from late 2010. The agreement was signed with a reseller in the UAE and includes an initial volume of perpetual licenses worth US $1,198,000, and US $75,000 of additional professional services. The agreement also includes recurring support and maintenance fees of US $215,640 over each 12 month period for the life of the licenses.

Mobile penetration in the Middle East has risen from 53% in 2005 to 88% at the end of 2009, and is expected to soar to up to 130% by 2015. Mobile subscribers in the Middle East rose from 53 million in 2005 to over 185 million in 2009, and are expected to cross the 200 million milestone this year before skyrocketing to 296 million by the end of 2015. (Source: Dataxisnews.com, April 2010).

Synchronica's Mobile Gateway provides push email and mobile synchronisation services and has recently been expanded to include instant messaging, news feeds and access to popular social networking sites. Mobile Gateway is based on industry standards and requires no additional software client to be downloaded to the handset and enables push email for the broadest range of handsets, from high-end Smartphones to low-cost, entry-level devices.

Carsten Brinkschulte, CEO of Synchronica, said, "We are delighted to have signed this agreement for yet another network operator within the Middle East and the addition of a reseller within the UAE certainly adds to the Company's scalability across the region. Recent forecasts suggest there is huge potential for significant mobile market growth across the Middle East with appetite for mobile push email and instant messaging rapidly increasing. Synchronica believes it can play a significant role in the development of this market due to our unique technology platform, which positions the company well as national security concerns regarding other mobile email technology providers increase across the region."

About Synchronica

Synchronica plc is a leading developer of next-generation mobile messaging solutions based on open industry standards. The award-winning product portfolio includes the flagship product Mobile Gateway, providing push email, synchronization, instant messaging, backup & restore and mobile connectivity to social networks. Synchronica's products are white-labeled and offered by mobile operators in emerging and developed markets to provide mass-market messaging services, increasing data revenues and reducing churn.

Synchronica's Mobile Gateway provides a unique multi-protocol gateway combining Push IMAP, SyncML, ActiveSync, Email-to-MMS and Email-to-SMS, delivering push email and synchronization to literally any mobile phone currently in the market without requiring an additional client to be downloaded. Expanding Instant Messaging to mobile devices, Mobile Gateway establishes carrier-branded IM communities using the industry-standard XMPP and provides gateways to popular Internet IM communities connecting any IMPS enabled handset.

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

Cautionary Statements

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.   No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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