SmartVideo Completes $9 Million Private Placement

Company Enhances Working Capital as the Mobile Video Category Continues to Gain Momentum across the Globe

ATLANTA--(BUSINESS WIRE)--July 17, 2006--SmartVideo(TM) Technologies, Inc. (OTCBB: SMVD.OB), a leader in the delivery of high quality mobile video, today announced that it has completed a securities purchase agreement to issue and deliver 7,200,000 shares of common stock and five-year warrants to a group of accredited investors, raising $9 million in gross proceeds. The amount greatly exceeds SmartVideo's target of $8 million and is expected to be used towards the Company's continued development of cutting-edge applications for delivering live, on-demand or downloaded content to wireless subscribers using handsets, PDAs and laptops worldwide.

As the mobile video category continues to gain widespread adoption, SmartVideo has continued to work towards establishing itself as one of the leading content providers by partnering with more than 25 live TV channels and on-demand video programming partners, such as ABC News, Fox Sports, MSNBC, Fashion TV, E! Entertainment Television, The Weather Channel and others. SmartVideo is compatible with Microsoft Windows Mobile 2003 and 5.0, Smartphones, PDAs/Pocket PCs, and Symbian OS devices with Real Player. The Company is also developing and testing software that will enable compatibility on a larger selection of phones.

In addition, SmartVideo is pioneering the ad-supported mobile environment by being the first company in the mobile entertainment industry to offer interstitial advertising on mobile devices. SmartVideo's technologies and applications for dynamic ad insertion within mobile video have been instrumental in positioning SmartVideo as a leader in the ad supported space and most recently, the Company completed a successful Beta test with a major national portal.

"Mobile video has emerged as one of the biggest growth categories in the wireless industry with some of the biggest media companies in the world looking to capitalize on the space," said David Ross, President of SmartVideo. "This new round of funding enables SmartVideo to obtain and create new exciting content in addition to new custom-built applications that will benefit subscribers and mobile partners alike."

Glenn Singer, Chairman of the Board of SmartVideo, added, "This financing provides us with enhanced working capital and will assist us in the continued execution of our business plan. These funds will allow us to expand our marketing and service activities which will help us to form a world-class global company."