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SMITH MICRO AND SOFTMART SIGN DISTRIBUTION AGREEMENT Leading Reseller to Corporate and Government Markets will Now Distribute Smith Micro's New "PLUS" Corporate Licensing Program

Jan 20, 1998

ALISO VIEJO, CA -Smith Micro Software, Inc. (Nasdaq NMS: SMSI) announced today that it has signed a distribution agreement with Softmart, a leading reseller to both corporate and government markets.

Under the terms of the agreement, Softmart will now sell and distribute Smith Micro's new "PLUS" corporate licensing program-an innovative licensing approach that was designed to make it as easy and cost-effective as possible for organizations to acquire and upgrade Smith Micro software products.

"We are delighted to have the support of a leading reseller like Softmart that is so widely recognized for its expertise in selling to both corporate and government markets," said Robert Caggiano, Vice President of Sales & Marketing for Smith Micro Software, Inc. "This agreement enables us to open up another distribution channel for our entire line of PC communications software."

Organizations can take advantage of the Smith Micro PLUS program to license as few as 50 Smith Micro products on a mix-and-match basis with a choice of two basic licensing options, a Single Purchase Option and a Commitment Option.

The Single Purchase Option was created especially for those organizations that prefer to purchase a specific quantity of Smith Micro software products at one time. This option not only offers the most substantial discounts available under the program, but also provides the greatest amount of flexibility without contract commitments, reporting requirements, or prerequisites to purchase media and documentation. With the Single Purchase Option, all orders must be placed through a designated Smith Micro Reseller.

The Commitment Option was designed for those organizations that choose to budget their software acquisition costs over a period of time. It is a two-year agreement that allows companies to benefit from large cost savings on Smith Micro products, without the need to purchase them all at one time. The total amount of software that an organization commits to purchase can be implemented at any time during the two-year period, with the organization then being billed in equal amounts, once per quarter. In addition, any increase or decrease in the commitment level during the two-year period leads to appropriate changes to the discount percentages that are applied to volume purchases.

Upgrade Protection allows licensed Smith Micro users to upgrade to the latest versions, and is available as part of the Single Purchase Option, Commitment Option, or as a stand-alone PLUS purchase. A tremendous value, Upgrade Protection is a two-year agreement that is invoiced at 15% of the purchase amount under both the Single Purchase Option and the Commitment Option. It is handled through a designated Smith Micro reseller, and includes free upgrades, customized training materials, one set of media and documentation for each upgrade licensees, licenses for home and office use, and priority technical support and customer service.

For more information contact Bruce T. Quigley, director of corporate communications for Smith Micro Software (714) 362-2308, fax (714) 362-2300 or e-mail at You can also visit the company's Web site at Sales inquiries can be directed to the company at (800) 964-7674.

Smith Micro is a leading developer and marketer of software products that make person-to-person 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. Headquartered in Aliso Viejo, California, the company markets its products worldwide through a network of OEMs and retail distributors. The company is publicly traded on the Nasdaq National Market under the 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 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,, FAXstf and STF Technologies are registered trademarks or trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective companies.