Synchronica Signs Up Third Russian Operator

ROYAL TUNBRIDGE WELLS, United Kingdom, Dec. 17 /CNW/ - Synchronica plc ("Synchronica") (AIM: SYNC) (TSX Venture: SYN), the international provider of next-generation mobile messaging services, has added to its success in the fast-growing CIS region by receiving a purchase order for deployment of its carrier-grade IMPS mobile Instant Messaging infrastructure software with the Russian subsidiary of a pan-European mobile operator group.

Highlights:

• Synchronica has received a purchase order from the Russian subsidiary of a large pan-European mobile operator group.
  
  
• This first customer win through the reseller agreement with Acision, a global leader in messaging infrastructure, underlines scalability of Synchronica's reseller network.
  
  
• The operator will launch an Instant Messaging (IM) service based on Synchronica's carrier-grade IMPS infrastructure software.
  
  
• This deal cements Synchronica's strong position in Russia, where two of the country's top three mobile operators already use Synchronica's messaging products.

With the initial order, the operator purchased professional services and licenses worth $246,000 (U.S.). In addition, the operator will pay Synchronica a recurring service fee based on the registered user base each month. This is the first purchase order that Synchronica has secured in concert with its new global reseller partner, Acision.

The operator is part of a pan-European mobile operator group which owns GSM licenses across 37 Russian regions, and covers an addressable population of approximately 61 million. This purchase order represents Synchronica's first deal with a subsidiary of the group. The operator will use Synchronica's IMPS infrastructure to offer their own carrier-branded Instant Messaging service to their 18 million subscribers, in addition to providing access to mainstream IM communities. Synchronica is scheduled to deliver the service in early 2011, with the Operator launching shortly thereafter.

With its messaging infrastructure products already being used by two of the country's top three operators, Synchronica is becoming a strong player in the Russian mobile market. Synchronica's IMPS technology enables operators to provide a complete, scalable and OMA standards-compliant service which subscribers can connect to from IMPS-enabled handsets. This appealing, carrier-branded service acts as a churn inhibitor, because defecting to a rival carrier would mean the loss of a customer's mobile IM identity.

Portio Research expects that by 2012, there will be 867 million worldwide mobile IM users generating $12.4 billion in revenues. Mobile IM is still in its infancy stage in Russia, according to Visiongain, but has been widely accepted, especially amongst the youth segment.

Carsten Brinkschulte, CEO of Synchronica, said, "We are pleased to secure this deal in collaboration with our new partner Acision, demonstrating again the strategic importance of our global reseller network. With Synchronica's solutions already being used by two of Russia's top three operators, we are now in the pole position of this important market. We're committed to using our experience to help our new customer launch an innovative, popular and indeed lucrative 'churn-busting' IM service."

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.

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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