Press Release - February 08, 2001

Smith Micro Reports 66% Increase in Fourth Quarter Revenues Over the Same Period a Year Ago

Marking 5th Consecutive Quarterly Increase in Revenues

Aliso Viejo, CA -- Smith Micro Software, Inc. (NASDAQ:SMSI), a developer and marketer of a wide range of software andservice solutions for the Internet and wireless markets, todayreported its fifth consecutive quarter of revenue growth.

The company reported net revenues for the quarter ended December31, 2000, of $4.1 million, an increase of 66 percent from the samequarter last year. The company's net revenues in the fourth quarterincreased 21 percent quarter over quarter, making the fifthconsecutive quarter of revenue growth. In the fourth quarter, thecompany reported a net loss of $989,000, or ($0.06) per dilutedshare, compared with a net loss of $980,000, or ($0.06) per dilutedshare in the same quarter last year. In the third quarter, thecompany reported a net loss of $873,000, or $0.05 per dilutedshare.

For the full year, net revenues rose to $13.7 million in 2000,up 28 percent from $10.7 million in 1999. The net loss for the fullyear was cut nearly in half to $3.2 million, or ($0.20) per dilutedshare, from $6.1 million, or ($0.40) per diluted share, in1999.

"Virtually all business divisions showed significant revenuegrowth from the fourth quarter of 1999, with our largestunit-wireless & broadband-increasing 22 percent year-over-year.Our retail sales grew by 76 percent, and our Internet Solutionsbusiness was up more than three-fold. In addition, sales of ourcombined retail products ranked in the top 100 of all softwarepublishers' retail products sold during 2000, both in volume anddollars sold, according to PC Data," said William W. Smith, Jr.,Chairman and Chief Executive Officer.

He added that "the revenue improvements and reduction in the netloss for 2000 coupled with early indications of strong receptionfor substantially all of the Company's new products introducedduring 2000, provide for a strong base for our business in 2001. Weare targeting significant increases in revenues, approximately halfof which we believe should come from the wireless and broadbandsector under new marketing agreements with wireless providers.Although it is still early in the year, we believe that if ourmarkets continue to develop and strengthen through 2001, ourresults of operations will become profitable sometime during thesecond half of the year although we will not necessarily beprofitable on an annualized basis in 2001."

Investor Conference Call

Smith Micro will hold an investor conference call to discuss thecompany's results at 4:30 p.m. eastern time later today. Investorsmay access the conference call via telephone, or over the Internetvia the company's website www.smithmicro.com or www.vcall.com. To listen to the live call bytelephone, please dial 800/633-8516 or go to either web site atleast 15 minutes early to register, download, and install anynecessary audio software. For those who cannot listen to the livebroadcast, a replay will be available through February 19 bydialing 800-633-8284 and entering reservation number 17764795.

About Smith Micro Software

Smith Micro Software, headquartered in Aliso Viejo, California,is a developer and marketer of Intranet and Internet Framework,communication and diagnostic software products and professionalservices. The company designs integrated, cross-platform,easy-to-use software for personal computing and business solutionsaround the world. With a focus on the Internet, wireless, andbroadband technologies, the company's products and professionalservices enable eCommerce and eBusiness, Internet communications(voice-over-IP), video conferencing, wireless communications andnetwork fax, along with traditional computer telephony. SmithMicro's complete line of products is available through directsales, retail stores, value-added resellers (VARs) and originalequipment manufacturers (OEMs). Smith Micro's common stock tradeson The Nasdaq Stock Market® under the symbol SMSI. For more information, contact Smith Micro at (949)362-5800.

This press release contains forward-looking statementsregarding the Company's projections for increased revenues, reducedlosses and profitability in 2001. These forward-looking statementsinvolve risks and uncertainties and actual results may differmaterially from those described herein. Specific facts that couldcause the actual results to differ include, but are not limited tonew and changing technologies and customer acceptance of thosetechnologies; fluctuations or cancellations in orders fromdistribution customers; the company's ability to competeeffectively with other software companies; as well as other factorsdetailed in the company's filings with the Securities and ExchangeCommission including its recent filings on Forms 10-K and10-Q.

Smith Micro and the Smith Micro logo are trademarks orregistered trademarks of Smith Micro Software, Inc. All othertrademarks and product names are the property of their respectivecompanies.

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