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Smith Micro's Active Images Technology Expands Its Reach to the International Promotions Market

Dec 12, 2006
@Life Singapore Selects Smith Micro's Patented Active Images® Technology To Create Next Generation Mobile Phone Promotions for A Major Fast Food Retailer in Singapore

ALISO VIEJO, CA - Smith Micro Software, Inc. (NASDAQ: SMSI), a company that markets and develops a wide range of software products and services for the wireless market, today announced that Singapore-based @Life Pte. Ltd has selected its Active Images patented technology to enable a series of new wireless mobile promotions using text and multi-media messaging for a major fast food retailer in Singapore.

Active Images is an intuitive JPEG messaging system that turns static photos into active images and allows users to add captions, voice, music or video and to send the new rich media message to another user or, in this case, to an @Life multimedia server to verify promotion results.

How Active Images Works:
The consumer purchases a food item at a restaurant and receives an SMS code to send from their cell phone. The Active Image Sweepstake Generator then generates a "digital scratch card" displaying a series of pictures and sends it via @Life'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 Smith Micro Active Images-based Sweepstakes Generator automatically allows prizes to be allocated at random to participants in the promotion. The application also includes a front-end interface creating a "digital scratch card" that is sent to a customer's mobile phone or computer via MMS or to their email respectively.

This "paperless sweepstakes" technology not only drives increased cell phone usage for carriers, but is also a complimentary channel to more traditional media including print, broadcast, mail and online. Active Images technology transforms a one-way marketing program into a dynamic interactive experience. With a large and growing global base of mobile phone users, the Active Images technology represents an exciting opportunity for marketing agencies worldwide - and the brands they represent - to build stronger customer relationships and to more efficiently reach a wider audience.

Dale McAllister, CEO of @Life praised the Smith Micro solution as "offering a platform from which we can develop exciting and interactive solutions for our clients." He further stated, "In the coming months, we look forward to launching a number of high profile promotions for our clients. We also anticipate that in the near future, Active Images will underpin many original concepts to be developed for both mobile phones and web access."

William W. Smith, Jr., President and CEO of Smith Micro Software, Inc. welcomed @Life as a new client. "@Life is an important client for us given their enormous reach in the Pacific Rim as well as their ability to combine creative marketing promotions with technologically- savvy executions. This is an enormous vote of confidence in the ability of our Active Images product line to power promotions in a secure, imaginative and cost-effective manner."

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:

Smith Micro Software, Inc., headquartered in Aliso Viejo, CA, is a developer and marketer of wireless communications and utility software products for multiple OS platforms. The company designs easy-to-use software for personal computing and business solutions around the world. With a focus on wireless and broadband technologies and the Internet, the company's products and services enable wireless communications, file and image compression, digital image and music management. In addition, Smith Micro develops and publishes award-winning software solutions for Windows and Macintosh, empowering users in the areas of information access, removal, recovery, security, and Internet distribution. Smith Micro's leading brands are QuickLink®, StuffIt®, CheckIt®, Internet Cleanup™ and Spring Cleaning®. Smith Micro's complete line of products is available through retail stores, Value-Added Resellers (VARs), Smith Micro's consumer, enterprise, wireless OEM sales groups and the company's websites. Smith Micro's common stock trades on The NASDAQ Global Market® under the symbol SMSI.

About @Life Pte. Ltd:

About @Life Pte Ltd: @Life is a privately held company based in Singapore. It operates a television program which has over 480,000 members and a web/mobile site which offers a range of services and products to its members.

Safe Harbor Statement: This release may contain forward-looking statements that involve risks and uncertainties, including without limitation, forward looking statements relating to the successful introduction of the Active Images product by @Life, Smith Micro's financial prospects and projections, and Smith Micro's ability to increase its business. 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 Smith Micro'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 our filings with the Securities and Exchange Commission including our recent filings on Forms 10-K and 10-Q. Smith Micro assumes no obligation to update any forward looking statements to reflect events or circumstances after the date of this press release.

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