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Philips Consumer Electronics Extends Bundling Agreement with Smith Micro's Wireless and Broadband Division

Sep 11, 2000
Philips Consumer Electronics to Bundle VideoLink Software with New Video Cameras

Aliso Viejo, CA - Smith Micro's Wireless and Broadband Division (Nasdaq NMS:SMSI) has announced that Philips Consumer Electronics, a unit of Philips Electronics N.V(PHG-NYSE)., has extended its agreement to purchase Smith Micro's VideoLink Mail products and bundle them with Philips USB PC Desktop Video Cameras. The agreement, which gives Philips the option to bundle Smith Micro's software has been extended an additional 24 months, and covers the existing line of USB PC Video Cameras, future USB cameras and the right to sublicense the software.

With hot-swappable, plug-and-play USB convenience, the Philips USB desktop cameras offer brilliant image capture, vibrant colors, and high frame rates. Combined with the Smith Micro software, the Philips USB cameras provide fully integrated, high-quality, cost effective solutions for recording, saving, and e-mailing high-resolution video images and messages over the Internet.

"We believe the decision by such a renowned technology leader as Philips to extend the agreement to bundle our VideoLink Mail software with their line of USB PC Video Cameras reconfirms the value-added properties of our video software products," stated William W. Smith, President and CEO of Smith Micro.

VideoLink Mail allows Philips USB desktop camera users that are running Windows to record a video and audio message, save it as a highly-compressed file, and attach it to their everyday email for transmission over the Internet or intranets. This product features a 32-bit design for high-speed video and audio performance, and offers users the ability to import .AVI files. A VideoLink Mail player is included with every file, permitting anyone with e-mail access and a Windows computer to receive the audio/video message. Audio files can also be sent to Macintosh users. Advanced compression techniques enable VideoLink Mail to send a 30-second, high-quality audio and video file in less than 300K of space, with the player included.

On March 15, 2000, Smith Micro Software, Inc. announced it has received U.S. Patent No. 6,014,689 for a video email system. The patent relates to techniques for generating and playing encoded video, audio and text sequences that are sent as email messages over digital communications networks such as the Internet. Products in this area of technology are generally referred to as Video Email or Video Mail applications. This patent is particularly important to the wireless market where bandwidth is at a premium.

"The Smith Micro software has significantly contributed to the extraordinary popularity of the Philips USB camera line," added Geoff Wanless, General Manager, Philips PC Camera Group, Philips Electronics. "Their applications complement our leading-edge camera technology to provide consumers with an extremely attractive package."

About Philips
Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of $33.5 billion (EUR 31.5 billion) in 1999. It is a global leader in color television sets, lighting, electric shavers, color picture tubes for televisions and monitors, and one-chip TV products. Its 226,900 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, medical systems, and IT services (Origin). Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges.

About Smith Micro
Smith Micro Software, headquartered in Aliso Viejo, CA, is a leading developer and marketer of eCommerce and communication software products and services. The company designs integrated, cross platform, easy-to-use software for personal computing and business solutions around the world. With a focus on the Internet, Wireless, and Broadband technologies, the company's products enable eCommerce, Internet communications (voice-over-IP), video conferencing, wireless communications, and network fax, along with traditional computer telephony.

Smith Micro's complete line of products are 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.

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