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SMITH MICRO's INTERNET SOLUTIONS DIVISION ANNOUNCES INCENTIVE PROGRAM

Jan 18, 2000
WebCatalog Affiliates Earn Cash for Displaying Logo

Aliso Viejo, CA -The Internet Solutions Division of - Smith Micro Software, Inc. (Nasdaq: SMSI), a developer and marketer of Internet communication software, today announced an aggressive new incentive program aimed at increasing awareness and sales of its popular WebCatalog eCommerce and Web publishing software. Through the program, current and potential WebCatalog users have the ability to earn hundreds of dollars in cash or credit toward an additional software license, by becoming an affiliate and simply displaying the "Powered by WebCatalog" logo on their web sites.

Smith Micro will pay a commission to each affiliate each time a Web surfer links to Smith Micro's Web site through the "Powered by WebCatalog" logo and then downloads a demo of the company's WebCatalog software. The commission will be based on the current WebCatalog retail price, $2,495.95. Every purchase of WebCatalog software resulting from the display of the "Powered by WebCatalog" logo will generate additional compensation for the company's affiliates. Even more, affiliates can triple their rewards by applying them to purchases of additional licenses of WebCatalog software, giving them a potentially huge discount on the cost of establishing or upgrading their online retail operations. Additionally, Smith Micro affiliates will also benefit by the ability to advertise their Web sites on Smith Micro's conexs.com Internet service at a discounted rate.

"WebCatalog is the eCommerce software of choice for many award winning Web sites, both large and small, all over the world," said Chris Lippincott, General Manager of Smith Micro Software's Internet Solutions Division. "Our "Powered by WebCatalog" affiliates program is a smart way for partners to grow their businesses by displaying the brand name responsible for their site's user-friendliness and ease of use, while earning valuable cash and credit in the process."

Leading online retailers such as the Pillsbury Doughboy Shop, Jamminlink.com, MacTreasures.com, Ancestor.com, DigitalCarpenters.com, NokiaAccessories.com, American-Gear.com, Pop-Art.com, CyberLive.com and Electronic-E-Commerce.com are just some of the names participating in the incentive program, which begins today. "WebCatalog has helped us ship tens of thousands of orders over the past two years," said Mike Lundeby, President of Creative Resource Center, operators of the Pillsbury Doughboy Shop at www.doughboyshop.com. "It's great to see the public awareness raised for such a quality product, and we're delighted to take part in the program."

WebCatalog and its sister products, WebMerchant and WebCatalog Builder, are powerful products designed to make it easy for companies of all sizes to build a retail presence on the Internet. The full line of products help etailers build online storefronts, display products, and automate order processing, payment verification, order notification, and electronic delivery.

"This innovative, exciting program is just one of the ways we're reaching beyond traditional marketing strategies to introduce our powerful products to a new group of customers," said William W. Smith Jr., Chief Executive Officer of Smith Micro. "We plan to continue developing fresh and original approaches to introducing and promoting our products."

To sign up for the "Powered By WebCatalog" affiliates program, or to receive more information, users should email webcataffiliate@smithmicro.com, or visit Smith Micro Software's Internet Solutions Division home page at http://www.smithmicro.com/isd.

About Smith Micro Software:
Headquartered in Aliso Viejo, California, Smith Micro is a leading developer and marketer of software products that make communications simple. With a focus on the Internet, particularly broadband technologies, the company designs integrated, easy-to-use software that enables fax, data, voice and video communication to personal computer users and enables eCommerce solutions for businesses around the world. Smith Micro's complete line of products is available through Internet direct sales, retail stores, value-added resellers (VARs) and original equipment manufacturers (OEMs). Smith Micro's common stock trades on The Nasdaq Stock Market under the symbol SMSI. For more information, contact Smith Micro at 949/362-5800 or visit http://www.smithmicro.com.

This release may contain forward-looking statements that involve risks and uncertainties. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements are economic, competitive, governmental and technological factors effecting the company's operations, markets, products, services and prices, as well as, other factors detailed in the company's filings with the Securities and Exchange Commission including its recent filings on Forms 10-K and 10-Q.

Smith Micro, the Smith Micro logo, WebCatalog and WebMerchant are trademarks or registered trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective companies.

For more information on Smith Micro Software, Inc., via fax at no charge, please call1-800-PRO-INFO and enter ticker symbol SMSI.

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