Attention Business Editors:

SilverBirch Appoints New President and CEO as Company Refocuses Exclusively On Gaming
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- New CEO brings extensive global marketing experience
- Strategic shift leverages company's core strengths in the fast-
growing gaming sector
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TORONTO, Nov. 5 /CNW/ - SilverBirch Inc. (TSX-V:SVB), a leading digital
entertainment company, today announced the appointment of Mr. Kevin Astle as
interim President and Chief Executive Officer. Under Mr. Astle, a seasoned
business and marketing strategist with extensive global experience,
SilverBirch will refocus exclusively on the fast-growing gaming sector. Mr.
Astle succeeds Derek van der Plaat, who resigned today as President and CEO,
and as a Director of the company.
The refocused strategy leverages SilverBirch's core strengths in gaming.
The company's primary goal will be to become a premier publisher and operator
of Massive Multiplayer Online Games (MMOG) as well as video games for PCs and
leading console platforms. The new corporate focus will build upon the
company's existing operations including video game developer SilverBirch
Studios, Netherlands-based interactive entertainment publisher Lighthouse
Interactive, and a co-venture to operate licensed English language online
multiplayer games. The company is also acquiring Red Mile Entertainment,
publisher of console games Sin City and Heroes Over Europe, in a deal expected
to close in early 2009, subject to shareholder, legal and regulatory
approvals.
SilverBirch has initiated a restructuring plan that is expected to
deliver significant savings and drive profitable revenue growth and earnings.
The plan's first phase has been completed with the elimination of 6 staff
positions. SilverBirch is considering options to divest its mobile business
and will continue to review operations of all its business units to further
reduce costs, improve margins, and enable more strategic investment in online
multiplayer games and original game content development. The company's MMOG
business unit, currently comprising Metin2 and CrossFire, is expected to
generate a significant portion of its future revenues and earnings. As a
result of these changes, the company believes the guidance on financial
performance issued by the previous CEO on October 1, 2008 is no longer
applicable.
Mr. Astle is the founder of Marketing Imperatives International, a
marketing and management consultancy that specializes in mergers,
acquisitions, alliances and strategic business growth initiatives. As
Executive Vice President and Managing Director of The Marketing Store
Worldwide, a global marketing agency, he provided multi-disciplined
communications services to major brand marketers such as McDonalds, Shell and
Coca-Cola, throughout North and South America and launched its Canadian
operation, now one of the top ten largest marketing firms in Canada. During
his career he was recognized as Promotion Marketer of the Year both in Canada
and globally. Mr. Astle was appointed a director of SilverBirch Inc. on
October 16, 2008.
In conjunction with the restructuring, the Company has entered into
multiple two-year contracts with three MMOG consulting companies, A&P
Entertainment, Escalada International Limited, and Morsonwell Inc. who are all
leaders in strategy and business development in the MMOG sector. They will
provide consulting services in online game development, marketing and
operations. The consulting agreements, which have no cash component, provide
for the issuance of an aggregate of 10 million SilverBirch common shares,
which will vest over the term of the contracts, as services are rendered on a
quarterly basis, and will be subject to final documentation and TSX Venture
Exchange approval.

About SilverBirch Inc.

Toronto-based SilverBirch Inc. is a leading digital entertainment company
operating in the fastest growing sectors of the video game market. The
company's video game operations include SilverBirch Studios, a video game
developer; Red Mile Entertainment, a San Francisco based publisher of console
games such as Heroes Over Europe(*) and the exclusive worldwide license holder
for Sin City; Lighthouse Interactive, a Netherlands-based publisher of PC
games; and a co-venture with G4Box Inc. to operate licensed English language
online multiplayer games. For more information see www.silverbirchinc.com.
(*) The Red Mile Entertainment acquisition is subject to shareholder, legal
and regulatory approvals.

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The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved the
contents of this news release. The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of the content of this news
release.
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Forward-Looking Statements - Certain information set forth in this news
release, including management's assessment of future plans, contain
forward-looking statements that involve substantial known and unknown risks
and uncertainties. These forward-looking statements are subject to numerous
risks and uncertainties, certain of which are beyond management's control,
including the impact of general economic conditions, industry conditions, and
currency fluctuations. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance should not
be placed on forward-looking statements.

%SEDAR: 00020946E

For further information: Terence M. Donnelly, Chairman, SilverBirch
Inc., Tel: (416) 922-5600 Ext 252

http://www.newswire.ca/en/releases/a...