that it has raised £2.0 million, before expenses, via a placing of 28,571,429 new ordinary shares of 1p each (“Placing Shares”) at a price of 7p per share (“Placing Price”) with private and institutional investors (the “Placing”). The funds raised will be used for working capital and in particular to expand Synchronica’s sales and marketing capabilities in emerging markets in order to capitalize on the outstanding opportunity presented by fundamental changes in the capabilities of mobile telephony.

The Placing expands the Company’s investor base, as two institutions new to Synchronica have invested. Additionally, management has further demonstrated its commitment to the Synchronica story by deepening its investment in the Company. Carsten Brinkschulte, Synchronica’s CEO, has subscribed for 285,714 shares as part of the Placing, bringing his personal holding to 762,136 shares, representing 0.52 % of the issued share capital on admission of the Placing Shares. This is on top of recent share purchases by Directors in January.

Commenting on the placing, Mr Brinkschulte said: “The new funds will enable Synchronica to take advantage of the exceptional opportunities for our products, especially in the emerging markets. In these countries, mobile phones are becoming powerful tools for economic development. They are changing from simple devices that just make calls to more useful tools that can give access to the Internet and key services, such as email, to millions of people. Synchronica’s Mobile Gateway 3.5 software is geared to the specific requirements of emerging markets and can deliver email to over 3 billion phones worldwide. It has the capacity to improve lives around the world as it will help people to connect and develop their businesses.”

Use of Proceeds

The funds raised from the Placing will be used to:

1. provide working capital;
2. strengthen the balance sheet to demonstrate financial stability and ability to execute to operators, device manufacturers and OEM partners;
3. expand Synchronica's sales function to better handle the strong pipeline of potential customers and to secure additional orders;
4. invest in product development to further improve the Company's competitive position;
5. increase numbers of support and pre-sales staff to better serve customers and OEM partners; and
6. continue the successful and cost-effective marketing strategy in order to generate additional prospects

Update on trading

Synchronica had a very successful GSMA Mobile World Congress exhibition, generating significant interest for its products from both potential OEM partners and network providers. The Company expects some of this interest to convert in to solid orders and is in active discussions regarding a number of important opportunities. Synchronica recently signed an important global distribution deal with Brightstar, a global leader in distribution and supply chain solutions for the mobile industry, for the distribution of its award-winning mobile push email and synchronization technology, Mobile Gateway.

Synchronica will provide further information on customer wins in due course and is pleased to announce that trading for the year ended December 2007 was in line with market expectations. The Company will, subject to audit, report revenue of £2.1million for the year ended December 2007, double that for 2006, and a much reduced loss before tax of £3million for 2007, down from a loss before tax of £5.7million in 2006. Following the Placing the Directors believe that the Company has sufficient cash to meet its present needs. Results for the year are expected to be announced in early May 2008.

The Placing Shares are expected to commence trading on 25 February 2008. The total number of shares in issue and therefore the total number of voting rights upon admission of the 28,571,429 Placing Shares will be 145,592,481 ordinary shares.

Information Source:    Business Wire