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SMITH MICRO'S INTERNET SOLUTIONS DIVISION EXPANDS WEB AND eCOMMERCE DEVELOPMENT SERVICES INTO FOUR NEW GEOGRAPHIC MARKETS

Jan 24, 2000
Addition of Local Consulting Sales Force Extends Company's Internet Solution Expertise

Aliso Viejo, CA -- Smith Micro Software, Inc. (Nasdaq: SMSI), a developer and marketer of Internet communication software, announced today that it is expanding its web and eCommerce development services by staffing all of the company's branch offices around the country with web/eCommerce sales consultants. The strategy represents a key component of Smith Micro's plan to parlay its strength in Internet and eCommerce software into a position as one of the industry's premier e-business consulting arms.

"With the recent formation of our Internet Solutions Division in San Diego, this step represents our continuing efforts to merge our five-plus years of eCommerce expertise with the resources of the new company as a whole," said William W. Smith, Jr., President and Chief Executive Officer of Smith Micro. "By adding dedicated web/eCommerce sales consultants in each office, we will be able to leverage that talent and expertise for the benefit of companies around the country who prefer to have face-to-face strategic and tactical support for their web development efforts. We believe this is an important step in raising our profile and building this segment of our business."

The consultants will operate out of Smith Micro's offices in Beaverton (Portland), Oregon, Boulder (Denver), Colorado, Lee's Summit (Kansas City), Missouri and Plano (Dallas), Texas. Additional staff will also be added to the Internet Solutions Division headquarters in San Diego, California. Technical personnel will be cross-trained to support the sales efforts.

"We anticipate that expanding the reach of the Internet Solutions Division into the Dallas, Denver, Kansas City and Portland markets will significantly accelerate our revenue growth and drive us to our goal of overall corporate profitability at a faster rate," Mr. Smith added.

Smith Micro's focus on web consulting is part of a strategy that began with the acquisition of San Diego-based Pacific Coast Software last September. In addition to packaged software solutions for creating online storefronts, Pacific Coast offered six years of web/eCommerce consulting experience and a brand-name customer base including such well-known organizations as Ben & Jerry's, the Pillsbury DoughBoy Shop and the NCAA Final Four.

Drawing on the acquired experience, the web consulting capabilities of Smith Micro's Internet Solutions Division include strategic planning, site design, implementation, hosting and a wide range of services that allow companies to harness the power of the Internet for sales, marketing and distribution purposes. For example, the company recently helped execute an online promotion for Ben & Jerry's that generated unprecedented traffic for the Vermont-based ice cream maker.

"Our recent effort on behalf of Ben & Jerry's is a good example of the wide-ranging role that we can play for our clients," said Chris Lippincott, General Manager of the Internet Solutions Division of Smith Micro Software. "We can assist in special promotions and campaigns as well as overall site development and strategy. Opening up direct sales coverage in these four additional markets allows us to leverage our corporate strengths and rapidly grow our divisional revenues." Smith Micro's web development team uses the company's internally developed products, WebCatalog and WebMerchant, as well as standard third-party products from Oracle, Microsoft and other major industry players.

About Smith Micro
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, broadband and modem-based technologies, the company designs integrated, easy-to-use software that enables fax, data, voice and video communication to personal computer users around the world. The company also provides powerful solutions for Internet commerce. Smith Micro's complete line of products is available through 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.

For more information on Smith Micro Software, via fax at no charge,
please call 1-800-PRO-INFO and enter ticker symbol SMSI.

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 affecting 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.

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