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Sep 15, 1999
Sharpens Smith Micro's Focus on Providing Internet Communication Solutions

Aliso Viejo, CA - Smith Micro Software, Inc. (Nasdaq: SMSI), a leading worldwide developer and marketer of Internet communication software, today announced the formation of a new Internet Solutions Division. The new operational structure enables Smith Micro to more efficiently combine and direct its existing and recently acquired technology and resources toward the growing Internet market.

"Smith Micro possesses a robust pipeline of Internet products and applications. Through the creation of this division, we plan to put the proper infrastructure in place to leverage our Internet expertise and capture additional marketplace opportunities," said William W. Smith, Jr., President and Chief Executive Officer of Smith Micro.

Strategic Importance

The new Internet Solutions Division will focus on bringing additional innovative, cutting-edge Smith Micro products to the Internet community. Leveraging the resources in the new division, the company will be able to provide and support upgrades of these products, provide quality consultation services, and host Web stores, as well as introduce new products that offer value-added functionality to its customers.

"The creation of this new division allows us to better allocate our resources toward the Internet market, which has become Smith Micro's primary focus," said Mr. Smith. "We see tremendous opportunity for growth in this area, given our solid line of products and services, including the new technology we just acquired from Pacific Coast Software."

Internet Solutions Division

The Internet Solutions Division will be lead by Chris G. Lippincott, 28, who was recently named General Manager of the new division. Prior to the appointment, he had been Director of North American Sales for the company since 1998. Mr. Lippincott has been with Smith Micro since 1993 when he began his career with the company as a sales representative. Mr. Lippincott, who majored in business administration at the University of California at Berkley, will oversee the sales, marketing, R&D and consulting services functions within the Internet Solutions Division. Mr. Lippincott will report to Mr. Smith.

"Our long-term Internet strategy is multi-faceted," said Mr. Lippincott. "Our plans include:

Developing New Products and Upgrading Current Products -- The research and development team at Smith Micro is focused on developing products and services that meet the fast changing needs of Internet users.

Building Brand Awareness -- Smith Micro will build brand awareness by providing its basic Internet products and services through a mass deployment strategy, while offering software upgrades and premium services for a fee.

Generating Advertising Revenue -- The company expects to generate advertising revenue by pushing banner advertising to registered users of the company's freely-downloadable, popular Internet telephony application, conexs.comTM.

Forging Strategic Relationships -- Smith Micro has developed a strong distribution network for its products, including over 1,000 value-added resellers, or VARs. The new division will work to develop additional distribution relationships with Internet Portals, Internet content providers, corporate end-users, broadband manufacturers and new VAR channel partners.

"Our goal is to have 250,000 registered customers by the end of this year, giving us a very large installed base from which to work. The new Internet Solutions Division is committed to bringing these customers, and others, the most up-to-date, cutting-edge technology available."

The company's current products include Internet CommSuiteTM, which enables real time, person-to-person Internet communications, including Internet phone service with a video conferencing option; Internet fax; multimedia e-mail; Internet chat; and an Internet answering machine. Internet CommSuite is an upgraded version of, which permits secure PC-to-PC telephone service over the Internet, without paying long-distance phone charges. The company currently markets its products to OEMs, small-to-medium-sized businesses, ISP's, Internet Portals and individual Internet users.

The company also offers its customers eCommerce products, WebCatalogTM and WebMerchantTM, consulting and Web store hosting services via the recently announced acquisition of Pacific Coast Software, giving the company an important edge in the growing eCommerce market. The company's WebCatalog product allows customers to easily design an online storefront, with quick installation and multiple storefronts from which to choose. Its WebMerchant product works in conjunction with WebCatalog to provide automated credit card payment and authorization, order notification and electronic delivery information to an online storefront owner.

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.

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, Internet CommSuite,, 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.