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Smith Micro to Provide Video Capabilities to New Matsushita-Bayer Joint Venture

Apr 17, 2003
Software Development Kit to Drive Video Component of Remote Monitoring of Patients by Medical Professionals; Technology to be shown at the American Telemedicine Association Show

Aliso Viejo, CA - The Wireless and Broadband Division of Smith Micro Software, Inc. (NASDAQ: SMSI), a developer and marketer of a wide range of software and service solutions for the wireless market, entered into a license agreement with Matsushita Electrical Industrial Co., Ltd. to provide a full-featured video-conferencing software for a telehealth product offered by Viterion TeleHealthcare LLC, a joint venture between Matsushita and Bayer HealthCare LLC.

Smith Micro's proprietary Software Development Kit (SDK) provides H.324 video-conferencing and the means to link patients in remote locations to medical professionals.

Matsushita in Osaka, Japan, best known in the U.S. by its Panasonic brand, and the Tarrytown, N.Y.- based Diagnostics Division of Bayer HealthCare formed Viterion TeleHealthcare LLC in January 2003 to market products and services for the rapidly growing telehealth market. Viterion is introducing its remote patient-care device embedded with Smith Micro's SDK during this week's American Telemedicine Association exposition.

Telehealth products are ideal for patients recovering at home from acute episodes that required hospitalization and the disease management of chronic illnesses such as diabetes, asthma and congestive heart failure. Healthcare professionals are able to monitor the daily vital signs and specific health conditions of these patients from remote locations, which can result in fewer in-home nursing visits, improve the quality of patient care and lead to a reduction in medical expenses.

Smith Micro's SDK will provide Viterion's remote patient-care device with the means to conduct video conferencing between a healthcare professional and a patient in a remote location via an H.324-compliant telephone connection, a technology that does not require an expensive broadband or Internet connection. Smith Micro's real-time H.324 video conferencing technology will allow health practitioners using Viterion's product to make visual assessments of the patient's physical and cognitive condition as well as to conduct individualized requests and/or instructions. H.324 is an industry standard that defines how video conferencing is implemented via POTS (plain old telephone system). Smith Micro has been an industry leader in the H.324 arena since 1996.

"Smith Micro's expertise in video technology allows Viterion to further expand the unique capability of our products, making them customizable for specific patient requirements," said Pramod Guar, Ph.D., President and CEO of Viterion TeleHealthcare LLC.. "H.324 video technology will allow doctors and other medical professionals to see their patients over a standard telephone line, an alternative that is simple, easy to use and can be implemented without additional expense. It has the potential to improve the quality of medical care for thousands of people, while reducing costs for both healthcare providers and patients in the process."

Smith Micro's telemedicine solutions include customized SDK's, customized applications and source-code licenses, offering the largest possible flexibility to companies designing their own patient-monitoring products. Smith Micro provides solutions for both H.324 and H.323 (Internet-based video conferencing), and adheres to industry standards such as V.80 modems, USB cameras, video compression algorithms - H.263 and H.261, and audio compression algorithm - G.723.1. The company holds patents for video e-mail functionality and computer-based video security functionality.

Viterion TeleHealthcare, a Bayer-Panasonic company, markets products and services for the growing telehealth market in the United States. The company offers comprehensive yet flexible solutions, which can be tailored to individual needs. For more information on Viterion TeleHealthcare, visit www.viterion.com.

"Telehealth is a practical, cost-effective alternative for many people," said William W. Smith, Jr., President and CEO of Smith Micro. "Our expertise in video conferencing technology, applied to Viterion's telehealth product, will be a significant advancement in quality care for those who need it most."

Smith Micro is exhibiting its full range of video teleconferencing applications at the 2003 annual meeting and exposition of the American Telemedicine Association, April 27-30 in Orlando, FL., at booth 324. Viterion will also showcase its telehealth product incorporating Smith Micro's enabling video technology at booth 321.

For more information about Smith Micro's video teleconferencing applications as well as its other OEM and custom software solutions for the wireless, broadband and dial-up markets visit www.smithmicro.com.

About Smith Micro Software:

Smith Micro Software, Inc., headquartered in Aliso Viejo, CA, is a developer and marketer of wireless communication and utility software products for multiple OS platforms. 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 and Wireless and Broadband technologies, the company's products and services enable wireless communications, eCommerce, eBusiness, Internet communications (voice-over-IP), video conferencing, network fax, and traditional computer telephony. Smith Micro's complete line of products is available through original equipment manufacturers (OEMs), direct sales, retail stores, and value-added resellers (VARs). 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.

This release may contain forward-looking statements that involve risks and uncertainties, including without limitation risks and uncertainties relating to the company's financial prospects and projections, the company's plans for returning to sustained profitability and the company's ability to increase its business in the Wireless and Broadband segments. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are new and changing technologies, customer acceptance of those technologies, fluctuations or cancellations in orders from distribution customers, new and continuing adverse economic conditions, and the company's ability to compete effectively with other software companies. These and other factors could cause actual results to differ materially from those presented in any forward-looking statement and are discussed in the company's filings with the Securities and Exchange Commission including its recent filings on Forms 10-K and 10-Q.

Smith Micro and the Smith Micro logo are trademarks or registered trademarks of Smith Micro Software, Inc.

Viterion is a trademark of Viterion TeleHealthcare LLC.

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