Expansion of Groupwide Operator Contract in Latin America

Highlights:

- Synchronica has signed an expansion contract with a tier one multinational mobile operator group in Latin America
- The operator group has already rolled out Synchronica's instant messaging solution; the expanded contract adds Synchronica's push email and synchronization technology
- Synchronica will receive additional recurring revenue from a monthly fee per active email user
- Push email and synchronization services will be deployed across all subsidiaries of the group and will be hosted and maintained by Synchronica

Synchronica plc (AIM: SYNC, TSX-V: SYN), the international provider of next-generation mobile messaging solutions, has signed an expansion to an existing groupwide contract with a multinational tierone mobile operator group.

The expanded contract will see Synchronica extend the functionality of the group's existing mobile instant messaging (IM) services to provide mass market push email and synchronization. The contract, which Synchronica gained with the acquisition of Colibria's IMPS instant messaging business in April 2010, provides Synchronica with a strong and growing recurring revenue stream.

The enlarged service is scheduled to be deployed across all of the group's subsidiaries in Latin America and will allow subscribers to access an email address provided by the operator's own-branded webmail service from any mobile phone.

IM Records a 68 Percent Penetration Rate in the Region

In addition, users will be able to connect with mainstream consumer email communities, such as Windows Live Hotmail and Yahoo, as well as synchronize enterprise email systems, such as Microsoft Exchange or Lotus Domino.

Email and IM services are gaining popularity in the Latin American region. According to a recent study conducted by the online marketing research company ComScore, IM records a 68 percent penetration rate in the region compared with the global average of 35 percent; while email records a 76 percent penetration versus 63 percent globally.

Carsten Brinkschulte, CEO of Synchronica, comments: "This contract expansion illustrates perfectly how Synchronica can provide complementary services to existing customers and in turn benefit from increased commercial value. We are confident that the addition of push email and synchronization to the group's messaging portfolio will help to increase overall revenues while also acting as a strong churn inhibitor."