Placing

Synchronica PLC 29 March 2007 Synchronica plc ("Synchronica" or "the Company") Placing of 43.75 million new ordinary shares to Raise £3.5 million Trading Update Synchronica (AIM: SYNC) is pleased to announce that it has raised £3.5 million before expenses via a placing of 43,750,000 new Ordinary Shares of 1p each (the "Placing") at a price of 8p per share. The funds raised will be used for working capital and to accelerate the growth of the Company's core business of developing and delivering mobile synchronisation and device management solutions. Synchronica provides mobile synchronisation and device management products to operators and manufacturers worldwide. Its Mobile Gateway product offers push e-mail and synchronisation for the mass market while its Mobile Manager products provide mobile device management tools. Mobile Gateway is based entirely on open industry standards and can deliver Push Email and synchronisation services to mass-market devices without requiring additional client software installation on the device or behind the corporate firewall. Use of Proceeds The funds raised from the Placing will be used to: • provide working capital; • strengthen the balance sheet to demonstrate financial stability and strength to operators, device manufacturers and OEM partners; • expand Synchronica's sales function to better handle the strong pipeline of potential customers and to secure additional orders; • invest in product development to further improve the Company's competitive position; • increase numbers of support and pre-sales staff to better serve customers and OEM partners; and • continue the successful and cost-effective marketing strategy in order to generate additional prospects. Placement Details The Placing is conditional upon shareholder approval at an Extraordinary General Meeting (the "EGM"), which has already been convened to be held on 12th April 2007. Subject to the passing of the relevant resolutions at the EGM, the Company will apply for the Placing Shares, which will rank pari passu with the existing ordinary shares, to be admitted to trading on AIM and expects that admission will occur on 16th April 2007. Following the allotment, the total issued share capital of the Company will increase to 80,150,081 ordinary shares. Copies of the circular and notice convening the EGM have been despatched to shareholders and are available from the offices of the Company at Mount Pleasant House, Lonsdale Gardens, Tunbridge Wells, Kent TN1 1NY. Six members of Synchronica's senior management will be participating in the placing, including three directors of the Company whose dealings are as follows: Director Existing holding Shares acquired Total shares Total % holding Carsten Brinkschulte 19,461 312,500 331,961 0.4% Angus Dent 45,000 312,500 357,500 0.4% John Gunn 835,330 500,000 1,335,330 1.7% Commenting on the Placing, Carsten Brinkschulte, Synchronica's CEO, said: "We are pleased that so many of our current investors and our management team chose to support this placement. Mobile e-mail is now set to expand into the mass market and proprietary solutions are mostly limited to high-end devices in the business user segment. "I believe our industry standard products are very much in the right place at the right time, addressing both the business user as well as the mass market of consumers. This funding will enable us to better capitalise on the traction we have gained in the international marketplace and to further improve our competitive position. I look forward to reporting progress in the near future." Update on Trading As previously announced on 18 January 2007 and 15 March 2007, the Company is in the progressing an OEM agreement for Synchronica Mobile Gateway with a major international hardware manufacturer. The process is on track and in line with the previous announcement. In addition, the Company is in discussions with several mobile operators, device manufacturers and potential OEM partners, in varying stages, for licensing the Company's products. Given contracts already entered into, such as the software licence to iXi Mobile announced 31 May last year, and the expected translation of the negotiations noted above into a substantial contract, the directors believe that Synchronica will benefit from a growing and recurring revenue stream. The Company expects to announce our results for the year ended December 31, 2006 on April 12 and will update on developments at that time. Enquiries: Synchronica plc Carsten Brinkschulte, CEO +44 (0) 1892 552 799 +44 (0) 7977 256 406 Angus Dent, CFO +44 (0) 1892 552 760 +44 (0) 7977 256 347 Seymour Pierce Limited David Newton, Director Corporate Finance +44 (0) 20 7107 8000 Corfin Communications Ben Hunt, Harry Chathli +44 (0) 20 7929 8989 This information is provided by RNS The company news service from the London Stock Exchange
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