Trading Update

Synchronica PLC
26 January 2006


Embargoed until 0700h. 26 January 2006


                                Synchronica plc

                       ("Synchronica" or "the Company")

                                Trading Update

London, 26 January 2006 - Synchronica, an international developer and provider
of mobile device management and synchronisation solutions, announces that
revenues for the year to 31 December 2005 are expected to be in line with the
market forecast of £3.0 million. The Board is confident that Synchronica can
deliver increased revenues in the current financial year.

During the past four months, Synchronica has rationalised its business offering,
concentrating on four core products in order to establish a more focused
business. As a result of the strategic change of direction, Synchronica's
customer offering is now centred on the Synchronica SyncML Gateway, the SyncML
DM (Device Management) Server, MobileManager (previously known as Enterprise
Assistant), and ROM BuilderTM. In each of these four areas, the Company believes
it has a competitive edge and unique technology, endorsed by significant
customer wins. Synchronica will continue to invest in development, marketing and
sales of all four products to further improve its competitive position.

In December, Synchronica released version 2.1 of the Synchronica SyncML Gateway,
which provides an advanced synchronisation solution for mobile operators and
enterprises, including push-email. Unlike competing solutions, the SyncML
Gateway is based on open industry standards (OMA) and does not require software
installation on the device or behind the corporate firewall. In addition to
Microsoft Exchange, the latest release of the product is also available for Sun
Java Enterprise Server - and currently provides the only known SyncML
synchronisation solution for calendar, contacts, notes and e-mails on this
platform. The first live installation of the SyncML Gateway 2.1 for Sun's JES in
an operator environment was successfully launched this month with mobile
operator SETAR.

The Synchronica SyncML DM (Device Management) Server offers customers a number
of advantages including firmware updates over the air and, resulting from
Synchronica's development of a proprietary scripting language, a unique ability
to build automated hotlines - a feature which can offer significant cost saving
potential to mobile operators and handset manufacturers. The DM Server is live
with a leading international device manufacturer.

The development of Synchronica MobileManager version 1.0 - targeted at
enterprises and mobile operators - was completed in December 2005 four months
ahead of schedule. MobileManager provides the ability to configure, update, and
wipe and lock a fleet of smartphones including the latest generation of Windows
Mobile phones, via an easy to use and high quality web interface. MobileManager
is already installed and live at a leading UK blue chip retailing company.

Finally, the Synchronica ROM Builder product has been successfully implemented
with a leading Tier 1 US handset manufacturer as part of the contract win
announced in January 2005. The implementation gives the customer the ability to
substantially reduce the time to market of its Windows Mobile phones.

The contract with the US Tier 1 mobile operator announced in June 2005 is
continuing. We are successfully delivering carrier-grade device management
technology to this customer.

The Company's marketing and sales functions have been professionalised and
expanded. An OEM strategy has been instituted and is proving to be an important
route to market with a partnership agreement in place with SmartTrust, who are
providing increased opportunities for Synchronica to access new customers and
markets. The Company has also recruited five new sales and marketing people and
commenced a programme to raise the corporate profile of Synchronica as well as
its four branded products. In addition, the Company is currently implementing a
CRM (Customer Relationship Management) system in order to provide increased
visibility and enhance the management of the sales cycle. This, expected to be
completed in the first quarter of the current financial year, will allow
Synchronica to produce more consistent sales forecasts and provide a more
accurate outlook for the business going forward.

Carsten Brinkschulte, CEO of Synchronica, comments: "We are making good
progress. I am particularly pleased to report that the restructuring is on
course and having a real, positive effect on the business. We expect this
process to be completed within the first half of this financial year. We now
have a focused suite of products, all with significant competitive advantages,
and we are gaining market traction. I am confident that the Company's financial
performance will improve in 2006 and that we can begin to restore value for
investors."
-ends-

For more information please visit www.synchronica.com or contact:

Carsten Brinkschulte, Chief Executive      Nicole Meissner, Chief Marketing
Officer                                    Officer
Synchronica plc                            Synchronica plc
Tel: [phone]                      Tel: [phone]

Simon Hudson / Clemmie Carr
Tavistock Communications
Tel: [phone]




                      This information is provided by RNS
            The company news service from the London Stock Exchange