Sixth Contract Win in Latin America

Royal Tunbridge Wells, May 19, 2010. - Synchronica plc, the AIM-listed mobile email, instant messaging, and data synchronization provider (AIM: SYNC.L), announced today that a leading mobile operator in Panama has signed a contract to offer the award-winning mobile email product Mobile Gateway to its more than 1.6 million user subscriber base.

The agreement with the operator is for the first subsidiary of a multinational group and has led to discussions about a groupwide framework agreement with the headquarters of the group. The contract has been secured through Synchronica's distributor Brightstar Corp. and is the sixth mobile operator win in Latin America and the seventh contract announced by Synchronica in 2010.

Under the contract, the operator will pay Synchronica a perpetual license fee of up to USD 4.56 per registered user. Synchronica will receive further revenues from professional services for customization and training on Synchronica's products, as well as recurring revenues for hosting and support services.

Synchronica's industry-standard technology requires no additional software to be downloaded to the handset and enables push email for the broadest range of handsets, from high-end smartphones to MessagePhone, http://www.message-phone.com, and low-cost-level devices.

This contract is the fourth win through Synchronica's strategic distribution partner Brightstar Corp., a global leader in value-added distribution and services and solutions in the wireless industry.

Being one of the most advanced telecommunications markets in Latin America, Panama's mobile telecommunications market has recently increased with the emergence of new operators and the consumption boom in Panama (Source: Panama Economy Insight, November 2009).

The Panama economy grew 3 percent, 2.2 percent, and 1.1 percent in the first, second, and third quarter of 2009 respectively, and Panama remains one of the few countries in Latin America that grew in 2009 (Source: Panama Economy Insight, February 2010).

As such, Panama is a market Synchronica sees as having growth potential for its technology.

Carsten Brinkschulte, CEO of Synchronica, says: "We are pleased with this new contract win as we feel there is very good potential for further demand from this operator, in particular as this contract win can lead to a groupwide framework agreement covering all subsidiaries."

The CEO adds: "Latin America is key to our strategy of becoming a market leader for next-generation mobile messaging services in emerging economies, and hence we are very pleased to further increase our market share in this region."

"This contract win further illustrates that operators are increasingly recognizing the value of our products as a way to address declining average revenue per user (ARPU) and to combat the level of churn that plagues emerging markets."

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 (IM), backup and 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 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 center 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 http://www.synchronica.com

For more information, please contact:

Nicole Meissner
Chief Operating Officer
Tel.: +44 1892 552 780
Mobile: +44 7977 256 412
Fax: +44 1892 552 721
nicole.meissner@synchronica.com