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Smith Micro Announces It's New 'Paperless' Mobile Sweepstakes Generator

Mar 26, 2007
Smith Micro's Patented Active Image® Technology Creates Next Generation Sweepstake Promotions to Increase SMS Usage on Mobile Devices

CTIA Wireless IT & Entertainment 2007 - Orlando, FL - Smith Micro Software, Inc. (NASDAQ: SMSI), a leading provider of a wide range of software and services for the wireless market, today announced it's new Mobile Sweepstakes Generator, an intuitive 'digital scratch card' technology that transforms a one-way marketing program into a dynamic interactive experience via MMS.

Smith Micro's Mobile Sweepstakes Generator can power advertising promotions in a secure, imaginative and cost-effective manner by allowing the consumer to engage with the company sponsoring the sweepstakes via their mobile phone. This "paperless sweepstakes" technology not only drives increased SMS cell phone usage for carriers, but also serves as a complimentary channel to more traditional media including print, broadcast, mail and online.

The Mobile Sweepstakes "scratch and reveal" interface powered by the Smith Micro's Active Images technology will enable companies to design and deliver exciting new marketing campaigns to reach a new generation of mobile consumers. The value for the consumer is interactive entertainment and of course a chance to win; the value for the company hosting the mobile promotion is to continue to build brand awareness through maintained dialogue with the consumer. With more than half of the world population carrying mobile phones, leading marketing agencies and the brands they represent can benefit from this innovative technology to build a stronger customer relationship and reach a wider audience effectively and efficiently.

"Mobile promotions require consumers to become more attentive to the promotion and allow companies to integrate their brand messaging as a part of the promotion," said William W. Smith, Jr., President and CEO of Smith Micro Software. "Where consumers used to skip through commercials on prerecorded programs (e.g., TiVo), for example, or run to the kitchen during TV commercial, they now focus on the brand's promotion and watch for keywords or information that will help ensure their success in the promotional campaign. Mobile Sweepstakes presents a new opportunity for brands to engage interactive entertainment, and hopefully reward their customers for playing along."

Content and related data services are a significant and growing component of carrier revenues. Carriers can utilize Smith Micro's Mobile Sweepstakes Generator to establish a broader awareness of music, gaming and other digital products throughout the subscriber base.

In addition to an increase in SMS messaging traffic over wireless networks, the Mobile Sweepstakes Generator unlike lottery tickets, does not involve paper. This eliminates any negative environmental impact and allows for a greener world.

Currently, the Mobile Sweepstakes Generator is in test promotion phase in the Asia markets.

How Mobile Sweepstakes Works:
The consumer purchases an item and receives an SMS code to send from their cell phone. The Mobile Sweepstake Generator then generates a random "digital scratch card" displaying a series of pictures and sends it via the company's Multi-Media Server gateway back to the consumer's cell phone. The user's goal is to match the pictures by clicking on the image. A "digital scratch" similar to scratching a lottery ticket is animated and the user continues to click until the prize is revealed or the game is over. The consumer then gets an SMS to their mobile phone or email instructing them to call a phone number to arrange delivery/redemption of the prize.

About Active Images:
Active Images JPEG Multimedia Messaging System turns any JPEG file into a self-contained multimedia system that can be received and viewed by any hardware device that supports JPEGS. Users can store and access text, sound, music, objects, Internet links, portable wallets and even video in a single JPEG file. Active Images uses Smith Micro's patented Active-Caption™ technology to provide true portability solutions. The Active Image application is available for mobile devices that run Symbian, MS Smart Phone, Palm or are J2ME-capable.

About Smith Micro Software, Inc.:

Smith Micro Software, Inc., headquartered in Aliso Viejo, California, designs integrated cross-platform, easy-to-use software for personal and business computing worldwide. With a focus on wireless, broadband and Internet technologies, the company's products and services enable wireless communications, file and image compression and multimedia management. The company's award-winning software solutions empower Windows and Macintosh users in the areas of information access, removal, recovery, security, and Internet distribution. Smith Micro's complete line of products is available through Smith Micro's Enterprise, Channel, OEM Sales Groups, and direct from our websites, retail and value-added resellers (VARs) partners. Smith Micro's common stock trades on The NASDAQ Global Market under the symbol SMSI.

Safe Harbor Statement: This release may contain forward-looking statements that involve risks and uncertainties, including without limitation forward-looking statements relating to the company's financial prospects and projections, the company's ability to increase its business and the anticipated timing and financial performance of new products and potential acquisitions. 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 customers, new and continuing adverse economic conditions, and the company's ability to compete effectively with other software companies. These and other factors discussed in the company's filings with the Securities and Exchange Commission, including its filings on Forms 10-K and 10-Q, could cause actual results to differ materially from those presented in any forward-looking statements. Smith Micro assumes no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of this press release.

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

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