ZIM CORPORATION ANNOUNCES THE SALE OF ITS CANADIAN SMS GATEWAY

Ottawa, Canada - July 23 , 2007 - ZIM Corporation (OTCBB: ZIMCF), has signed an agreement to sell certain mobile messaging assets to SilverBirch Inc. (TSX.V: SVB). The assets include ZIM’s Canadian mobile gateway technology, customer contracts and proprietary web to text applications. The mobile gateway customers include the Ontario Lottery and Gaming Corporation, Pitney Bowes and Rogers Wireless.

"We are very pleased with this transaction as it is consistent with our business strategy of focusing on our current Mobile Content, Internet TV and database applications. Silverbirch is the ideal purchaser for these assets as it will ensure the continuity and quality of our Canadian gateway services to our customers and partners going forward" said ZIM CEO, Michael Cowpland.

As consideration for the acquisition, Silverbirch will pay $75,000 in cash on closing, additional $100,000 cash (all figures in Canadian Funds) and 500,000 common shares of SilverBirch after certain conditions of purchase are completed. The transaction is subject to regulatory approvals and is expected to complete within the next 30 days.

"This acquisition will significantly strengthen our Canadian market position both in terms of customers and capabilities," said SilverBirch CEO Derek van der Plaat.

About ZIM

ZIM is a provider of internet TV programming and services (also referred to as IPTV) and a mobile content and service provider. For more information on ZIM and its customers, partners and products, visit: www.zim.biz and www.zimdatabase.com.

About SilverBirch Inc.

Toronto-based SilverBirch Inc. is a fully integrated developer, publisher and distributor of high quality interactive media content and, through its SilverBirch Mobile division, provides mobile marketing and direct-to-consumer mobile content to its media partners. In addition the company is a multi-platform video game developer and plans to launch an English-language MMORPG game (massive multiplayer online role-playing game) called Metin 2 (see www.metin2.us) this summer. For more information, please visit www.silverbirchstudios.com and www.silverbirchmobile.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to the success of ZIM’s aggregation services and ZIM’s ability to enter the mobile content market. All forward-looking statements made in this press release relating to expectations about future events or results are made as of, and are based upon information available to ZIM as of, the date hereof. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those described or implied by any forward-looking statements. Factors that might cause such a difference include, but are not limited to, ZIM’s limited operating history, ZIM’s history of operating losses and expected future operating losses, ZIM’s ability to obtain additional financing when needed, ZIM’s ability to continue as a going concern, ZIM’s reliance on wireless carriers to market and use its applications and services, possible fee increases by third party service providers, the potential loss of services of Dr. Michael Cowpland and other key personnel, rapid developments in technology, including developments by competitors, possible internal controls deficiencies and possible accounting adjustments resulting from our year-end accounting and review procedures, ZIM's ability to maintain current reporting under the Securities Exchange Act of 1934, and ZIM’s ability to successfully integrate any acquisition. Please refer to ZIM’s filings with the SEC for additional information regarding risks and uncertainties. Copies of these filings are available through the SEC's website at www.sec.gov. ZIM assumes no obligation to revise or update publicly the forward-looking statements included in this news release, other than as required by law.

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For more information:

investorrelations@zim.biz
ZIM Corporation