Final Results

Synchronica PLC
12 April 2007




                                Synchronica plc
                        ("Synchronica" or "the Company")

                      Full year results to 31 December 2006
                                        
Synchronica, the mobile e-mail and wireless device management software group,
announces its preliminary results for the year to 31 December 2006.

Highlights

   • Synchronica's transformation from services provider to software product
    provider completed.


   • Successful completion of £3.5m fund-raising in March 2007, conditional
    upon EGM approval today.


   • Synchronica Mobile Gateway push e-mail product gaining traction with
    operators and device manufacturers; sales contracts signed with tier one
    customers and partners including Netcom, IXI Inc, T-Mobile Hungary.


   • Appointment of new CFO, Chief Sales Officer and Chief Technology Officer
    completes assembly of a senior management team with extensive industry
    experience, while David Wickham's appointment as Chairman maintained the
    Company's strong Board.


   • Software development consolidated around Java platform, bringing it in
    line with customer requirements and producing significant cost reductions
    for Synchronica.


   • Synchronica software won several industry awards, including "Best of
    Cebit 2006" for Mobile Gateway


   • Turnover £1.1m (2005; £3.1m), loss before tax £7.0m (2005: £2.8m)



Commenting on progress in 2006, Carsten Brinkschulte, CEO of Synchronica, said:
"Transitioning Synchronica from a professional services business to a software
product provider was difficult but essential. In the past 18 months we have put
in place the foundations upon which to build a strong, dynamic business which is
well-placed to capitalise on the growing demand for wireless e-mail and device
management solutions. Our products are now gaining traction in the market and
Synchronica can look to the future with confidence and optimism."

Enquiries:

Synchronica plc
Carsten Brinkschulte, CEO                  [phone]
                                           [phone]

Angus Dent, CFO                            [phone]
                                           [phone]

Corfin Communications
Ben Hunt, Harry Chathli                    [phone]

Seymour Pierce Limited
David Newton                               [phone]


Operational review

Chairman's statement

Over the past 15 months Synchronica has undergone a complete transformation of
its structures, operations and personnel. The DNA of the group has been changed
from top to bottom as a company focused on the provision of professional
services has been replaced by one that offers wireless software products
appropriate for a world increasingly geared to personal and professional
mobility.

The transformation has been difficult for shareholders, employees and management
alike and has taken longer than was anticipated and the rate of adoption of our
software has been lower in 2006 than we expected. Throughout the board has been
focused on building a business that offers the prospect of long-term shareholder
value by reducing the cost base and maintaining focus on those products which
we, and industry analysts, believe will be in most demand.

The Board believes that a products-based company, focused on two core offerings,
Synchronica Mobile Gateway, which offers push e-mail and synchronisation for the
mass market based on industry standards, and Synchronica Mobile Manager, a
device management suite featuring over-the-air configuration, update and
security, has the potential to provide a scalable business offering long-term
recurring revenues with good margins. The previous services model offered none
of these features.

Following a review of our progress we have focused the company on one
development platform, Java, and around two products Synchronica Mobile Gateway
and Synchronica Mobile Manager Suite. Both products have been well received in
the industry, winning several prestigious awards. Mobile Gateway, under its
previous name SyncML Gateway was labelled "Best of Cebit 2006" by industry
publication TeleTalk, while also gaining silver and gold Mobile Village awards.

Mobile Gateway has proved, so far, to be our best selling product and we
believe, supported by the opinion of independent analysts, that it has
significant potential for the future.

The refocusing of our business on one development platform has allowed us to
reduce our operating costs for 2007 and beyond. Our head count has been almost
halved and the number of offices reduced from three to two.

There have been a number of changes to the Board during 2006, Allan Jonnes our
former Chief Finance Officer retired and was replaced by Angus Dent whilst Terry
Page the former Chief Operating Officer left to pursue other business interests.
I was elected Chairman on 1st June 2006 when John Gunn stepped down but
continued as a non-executive director. John has now decided that his other
business commitments no longer allow him to dedicate the time he would like to
Synchronica and will therefore, regretfully, resign at the forthcoming AGM. I am
grateful to John for his work as a Board member and his continuing support.

Synchronica has also strengthened its senior management during 2006. In August,
Kim Hartlev joined as Chief Technology Officer from Mobilethink, bringing with
him a strong track record in the mobile device management industry, while
Joachim Gmeinwieser, who joined as managing director of Synchronica's German
operations in January became Chief Operating Officer. The arrival of Sascha
Beyer as Chief Sales Officer from Pointsec completed a strong, experienced and
dynamic senior management team with complementary skill-sets and experience
ideally suited to our industry.

I would like to take this opportunity to thank the whole team at Synchronica,
and I believe we now have a team that is functioning very well, for their
dedication and hard work during 2006. I am sure with this commitment we will
continue to make progress in 2007.

As we have already advised the Stock Market we confidently expect to be able to
announce soon an OEM licence for Mobile Gateway with a major hardware
manufacturer. This deal will be an important factor in the development of our
business in 2007 and this, together with a strong and growing pipeline of sales
leads gives us confidence for the future.

David Wickham, Non-Executive Chairman
11 April 2007

Strategy

During 2006, Synchronica completed the reorganisation of its business model
around our two distinct but complementary product lines, Mobile Gateway and
Mobile Manager, both of which the company believes have unique features and
competitive advantages in the rapidly-expanding but highly competitive wireless
mobility sectors.

The Company's route to markets for these products is through device
manufacturers and wireless network operators who are in turn selling services to
enterprises and consumers and to each other. During 2006 Synchronica has
recruited a sales team that will service those customers in Europe, the
Americas, the Middle East and Africa.

In order to serve our target customers better in December 2006 the Company
consolidated its technology around a single development platform based on the
Java programming language, which will allow Synchronica to support the Unix
operating system preferred by network operators and address the entire
Smartphone market as well as mass market feature phones.

These moves have already begun to bear fruit for Synchronica. Mobile Gateway and
Mobile Manager have enjoyed a high level of visibility in the wireless industry
and the Company is now covered by major research organisations in the sector,
such as IDC, Gartner and Ovum.

More significantly (as detailed below) both products are gaining traction in our
target markets as the Company has secured live installations with operators and
has a strong pipeline of deals with mobile network operators and OEM partners.

Commercial progress

Mobile Gateway

Synchronica Mobile Gateway addresses the growing need in the wireless mass
market for an affordable and easy-to-use push e-mail system that will satisfy
demand from the consumer and small business market.

Although the high end enterprise user has been well catered for by proprietary
push e-mail solutions offered by a number of vendors and principally accessed
using Smartphones or dedicated e-mail handsets, such devices account for only
about 20 per cent of the mobile phones in circulation worldwide.

In contrast Mobile Gateway addresses both the Smartphone market and the mass
market features phones that account for the other 80 per cent of devices in
circulation.

Based on industry standards, Mobile Gateway is accessible to small business
users and consumers both because it does not involve the high licence fees
characterised by many proprietary solutions and does not require the user to
download client software onto either their phone or their PC, making set-up easy
and quick.

Synchronica expects Mobile Gateway to appeal particularly to consumers and small
businesses in emerging economies where under-developed wireline infrastructure
has left a gap in the market for the mobile phone to play the role of primary
e-mail access point for users that in developed economies is more usually
occupied by the PC. The Company has deployed its sales resources accordingly to
capitalise on this opportunity.

Synchronica's approach to a nascent push e-mail mass market that analysts at
Forrester expect to grow from 12.3m users in 2005 to 62.7m users in 2008 (which
contrasts with 7m users of RIM's BlackBerry solution at the end of 2006) has
been validated by a number of encouraging commercial developments in the last 15
months.

In May the Company licensed its synchronisation software SyncML Gateway to IXI
Mobile Inc., the developer of the Ogo(TM) family of mobile messaging solutions
for the mass market. The agreement enables IXI Mobile to offer mobile email and
synchronisation for its Ogo devices, brought to market by mobile operators and
Internet Service Providers, and already launched in several countries worldwide.
This agreement contributed to revenues in the second half of 2006 and is
expected to continue to do so in 2007 and 2008.

The Company also has live deployments of Mobile Gateway with Netcom in Norway,
MTN Nigeria and T-Mobile Hungary.

As previously announced, the Company is in the process of securing an OEM 
agreement for Synchronica Mobile Gateway with a major international hardware 
manufacturer. These negotiations are expected to be concluded over the coming 
weeks. However, given the size and complexity of the customer, it is possible 
that, although a delay is not currently expected, negotiations could extend 
beyond that time-scale.

Mobile Manager

The increasing importance to enterprise customers of offering mobility to their
workforces has resulted in the distribution of millions of wireless devices that
are carrying outside the office information which previously would have been
tightly held within premises.

This change in working practice presents technology managers and device
manufacturers with time-consuming and expensive new challenges, including
maintaining and updating software and services on devices and safe-guarding
information and data that is often sensitive when a device is stolen or lost.
The result is usually high customer care costs.

Synchronica's Mobile Manager addresses these concerns with a cost-effective
suite of functions that offer an over-the-air firmware update facility,
automated hotline, and security features including wipe and lock.

Analysts VDC forecast that the device management sector will grow to US $1.5bn
in 2008.

Synchronica achieved commercial success with Mobile Manager in 2006 with the
licensing of the software to a UK wireless network operator, and now has 180
enterprises actively managing their Smartphones using our products, and several
more in the pipeline.

The Company is also pleased to announce that, in April 2007, it signed a
contract with a top four accountancy firm in the UK for the deployment of Mobile
Manager. Synchronica believes that this validation of Mobile Manager technology,
from a customer for whom the security and integrity of information is critical,
should increase the momentum behind the product,

Financial review

Synchronica's revenues fell from £3.1m in 2005 to £1.1m in 2006 reflecting the
Company's changing operational focus. Whilst the majority of revenues in 2005
were generated by Synchronica's legacy professional services business, in 2006
more than 62 per cent of the sales were generated by the Company's products,
demonstrating the progress being made by the reformed business.

Operating loss amounted to £7.1m (2005 £2.9m) reflecting a non-cash impairment
loss, £0.6m, site closure costs, £0.5m, recruitment fees, £0.3m mostly to
recruit a new sales team giving a total restructuring cost of £1.5m (of which
£1.1m is viewed as being exceptional) incurred in the transformation of the
business. The reorganisation of the business is expected to result in cost
savings of £1.75m in 2007.

Loss before tax was £7.0m compared to a loss of £2.8m in 2005.

Basic and diluted losses per ordinary share were 18.3p (2005: 12.7p).

The cash balance of the business at 31st March (and therefore before the
proceeds of the placing announcement on March 29) was £444,000.

Placing

The Company announced on March 29 that it had 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, conditional upon gaining  
shareholder approval at an Extraordinary General Meeting to be held today, 
these shares will be admitted to AIM on 16th April 2007. 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.

Outlook

The steps taken to transform Synchronica from a legacy professional services
business based on project work into a product-based business have now been
completed.

While these changes have resulted in falling revenues in 2006 the Board is
confident that the strategy, structures, technology, personnel and business
model that have been put in place over the past 15 months will offers the
Company an opportunity to build a scalable, growing business with recurring
revenue streams.

Initial commercial activity validates that confidence. Our products have
attracted considerable favourable attention in the wireless industry and the
agreements and contracts we have already signed are an indication that our
target customers regard them as robust, commercially-attractive products that
they can sell on to their customers.

With the successful completion of the conditional placing, which will be put
before an extraordinary general meeting, which has been convened for today,
Synchronica will have the resources to handle our growing sales pipeline by
expanding and improving our sales team and its support and pre-sales activity as
well as continuing to invest in product development.

Given the contracts already concluded, such as the software licence to IXI
Mobile, the promising and growing pipeline of sales leads and the expected
translation of the OEM negotiations with the hardware manufacturer noted above
into a substantive contract, the Board believes that Synchronica is well
positioned to deliver a return to growth in 2007.


Preliminary Results for the Year Ended 31 December 2006

Consolidated Profit and Loss Account

                                           Note             2006           2005
                                                            £'000   (Unaudited
                                                       (Unaudited)   & Restated)

Turnover                                     1            1,068          3,078
Cost of sales                                              (735)        (1,796)

Gross profit                                                333          1,282
Administrative expenses
------------------------------            -----         --------     ----------
- Other administrative expen                             (6,296)        (4,222)
- Exceptional items: restructuring and
impairment loss                              2           (1,128)             -

                                                         (7,424)        (4,222)
------------------------------            -----         --------     ----------

Operating loss                                           (7,091)        (2,940)
Interest receivable and similar inc                         189            167
Interest payable and similar charges                        (49)            (1)

Loss on ordinary activities before taxation              (6,951)        (2,774)
Tax on loss on ordinary activities           3              296              4

Loss for the year                                        (6,655)        (2,770)

Basic and diluted loss per ordinary share    4            (18.3)p        (12.7)p


There are no recognised gains or losses other than those passing through the
profit and loss account.



Preliminary Results for the Year Ended 31 December 2006


Reconciliation of movements in shareholders' funds

                                                         2006            2005
                                                     (Unaudited)    (Unaudited
                                                                    & Restated)
                                                       £ '000          £ '000

Loss for the year                                      (6,655)         (2,770)
New share issues                                          173           5,334
Expenses of share issue offset against share
premium                                                     -            (288)
Capital to be issued released                            (173)              -
Capital to be issued                                        -             173
Adjustment for share based payments                        86              40

                                                       (6,569)          2,489

Opening shareholders' funds                             7,582           5,093

Closing shareholders' funds                             1,013           7,582




Preliminary Results for the Year Ended 31 December 2006

Consolidated Balance Sheet

                                                          2006            2005
                                                    (Unaudited)     (Unaudited)
                                                        £ '000          £ '000

Fixed assets
Intangible assets                                          143             862
Tangible assets                                            147             100

                                                           290             962

Current assets
Stocks and work in progress                                  3              19
Debtors                                                    498             888
Cash at bank and in hand                                 2,086           6,615

                                                         2,587           7,522

Creditors: Amounts falling due within one year          (1,645)           (902)

Net current assets                                         942           6,620

Total assets less current liabilities                    1,232           7,582

Provisions for liabilities and charges                    (219)              -

Net assets                                               1,013           7,582

Capital and reserves
Called up share capital                                    364             364
Share premium account                                   10,066           9,893
Capital to be issued                                         -             173
Profit and loss account                                 (9,417)         (2,848)

Equity shareholders' funds                               1,013           7,582





Preliminary Results for the Year Ended 31 December 2006

Consolidated Cash Flow Statement

                                                            2006          2005
                                                      (Unaudited)   (Unaudited)
                                                          £ '000        £ '000

Net cash outflow from operating activities       5        (4,779)       (3,518)

Returns on investments and servicing of
finance
Interest received                                            195           156
Interest paid                                                  -            (1)
Foreign exchange losses                                      (49)            -
Interest element of finance lease rentals                     (2)           (6)

                                                             144           149
Taxation
UK corporation tax received                                  300             -
Foreign tax paid                                               -            (6)

                                                             300            (6)

Capital expenditure and financial investment
Payments for intangible fixed assets                           -           (89)
Payments for tangible fixed assets                          (160)          (90)
Receipts from sale of tangible fixed assets                    6             1

                                                            (154)         (178)

Acquisitions
Consideration for subsidiary undertaking                     (25)         (349)

Cash flow before financing                                (4,514)       (3,902)

Financing
Issue of ordinary share capital                                -         5,334
Expenses of share issue of ordinary share
capital                                                        -          (288)
Capital element of finance lease repayments                  (15)          (41)

                                                             (15)        5,005

(Decrease) / increase in cash                             (4,529)        1,103



Preliminary Results for the Year Ended 31 December 2006

1.               Turnover By Geographical Market

                                                       2006               2005
                                                 (Unaudited)        (Unaudited)
                                                     £ '000             £ '000

United Kingdom                                           67                341
European and other foreign markets                      647                628
North America                                           354              2,109

                                                      1,068              3,078



2.               Operating exceptional items - restructuring and impairment loss

The exceptional administrative expenses represent the costs of redundancy
(£300,000, 2005: £nil) and onerous contracts (£229,000, 2005: £nil) resulting
from the company restructuring in December 2006 and £599,000 (2005: £nil) of
impairment losses deducted from intangible assets.


3.               Taxation

Taxation credit for the year

The taxation credit for the year is analysed below:

                                                         2006             2005
                                                       £ '000           £ '000
                                                   (Unaudited)      (Unaudited)

Current taxation
Overseas corporation tax (charge) / credit                 (4)               2
Research and Development Tax Credit                       300                -

                                                          296                2

Adjustment in respect of prior years:
Overseas corporation tax credit                             -                2

Current taxation                                          296                4



4.                Loss per ordinary share

The loss per ordinary share has been calculated based on the weighted average
number of ordinary shares in issue during the year.
                                              
                                           2006                         2005
                                       (Unaudited)        (Unaudited & Restated)

Loss for the financial period          £(6,655,000)                £(2,770,000)

Weighted average number of ordinary
shares                                  36,383,766                  21,777,390

Basic and diluted loss per ordinary
share                                        (18.3)p                     (12.7)p



5.                Reconciliation of Operating Loss to Net Cash Outflow From
                  Operating Activities

                                                          2006            2005
                                                        £ '000          £ '000
                                                    (Unaudited)     (Unaudited)
                                                                    & Restated)

Operating loss                                          (7,091)         (2,940)
Amortisation and impairment of intangible assets           744             114
Depreciation of tangible assets                            106              98
Loss on sale of tangible fixed assets                        1               5
Share options - value of employee services                  86              40
Change in stocks                                            16              10
Change in debtors                                          390            (194)
Change in creditors                                        969            (651)

Net cash outflow from operating activities              (4,779)         (3,518)





6.                  Preliminary Statement

This preliminary statement was approved by the Board on 11th April 2007; it has
been prepared using accounting policies that are consistent with those adopted
in the statutory accounts for the year ended 31 December 2005 with the exception
that the results reflect the initial adoption of FRS 20 "share-based payment".
The cumulative cost of the benefits relating to the previous years has been
recognised in the accounts. However, as the corresponding credit is taken to the
profit and loss reserve a prior year adjustment is not required. The comparative
figures for 2005 have been restated in this respect. The effect of implementing
the new accounting policy was to reduce trading profit for the year by £86,000
(2005:£40,000). There is no effect on the reserves of the company. This is the
only restated comparative amount in the financial statements for the year ended
31 December 2006.

The financial information set out in this announcement does not constitute the
Company's statutory accounts for the year ended 31 December 2006. The statutory
accounts for the period ended 31 December 2005 have been delivered to the
Registrar of Companies and Received an audit report which was unqualified and
did not contain statements under s237 (2) or (3) of the Companies Act 1985.

The preliminary statement has been prepared on a going concern basis. The
directors have a reasonable expectation that the going concern basis is
appropriate on the assumption that the resolutions permitting the completion of
the fund raising will be passed at the EGM today 12th April 2007.

A copy of this preliminary statement is available from the Company's registered
office; Synchronica plc, Mount Pleasant House, Lonsdale Gardens, Tunbridge
Wells, Kent , TN1 1NY.

A copy of the 2006 Report and Accounts, containing notice of the forthcoming
annual general meeting, will be posted to shareholders in May and will also be
available from the Company's registered office.




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