[MD1] Smith Micro Acquires Pacific Coast Software
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[MD1] Smith Micro Acquires Pacific Coast Software

SMITH MICRO ACQUIRES PACIFIC COAST SOFTWARE

Positions Smith Micro in the Growing eCommerce Market and Strengthens the
Company's Internet Offerings

September 13, 1999 -- Aliso Viejo, CA -- Smith Micro Software, Inc.
(Nasdaq: SMSI), a leading worldwide developer and marketer of Internet
communication software, today announced that it has acquired Pacific Coast
Software, a San Diego-based developer, service provider and marketer of
eCommerce and other custom software solutions for businesses.

Terms of the Acquisition

Smith Micro issued 1.0 million shares of its common stock as consideration
for the purchase, which was accounted for as a pooling of interests.
Pacific Coast Software will become a wholly owned subsidiary of Smith
Micro. Further terms of the acquisition were not disclosed.

Strategic Importance

"The addition of Pacific Coast clearly positions us in the growing field of
eCommerce and supports our continuing focus on offering Internet related
technologies, services and products," said William W. Smith, Jr., President
and CEO of Smith Micro. "The acquisition allows us to penetrate this
significant market while diversifying our current business model and
enhancing our overall Internet capabilities," said Mr. Smith. "Pacific
Coast's products, consulting and Web store hosting services help businesses
easily build and operate secure, web-based storefronts, allowing customers
to take advantage of the Internet as a sales, marketing and distribution
medium for their products and services.

"Our long-term strategy focuses, in part, on broadening our Internet
offerings, and we see this acquisition as a good opportunity to leverage
our expertise and experience in providing customers with value added,
web-based capabilities. In addition, as owners of Internet storefronts
continue to look for ways to make their sites stand apart from the crowd,
we expect an increase in the use of Internet telephony and video on these
sites," commented Mr. Smith. "Because Smith Micro is a leader in providing
these applications to Internet users, through our Internet CommSuite and
conexs.com products, we expect to be able to enhance Pacific Coast
Software's current offerings. In addition, the strong relationships we've
built with a wide range of distribution partners will help us effectively
market Pacific Coast's eCommerce products and services. These relationships
will allow us to pursue additional marketing opportunities for the
eCommerce product line, including product bundling through OEMs and retail
sales in the aftermarket."

"Pacific Coast's offerings substantially reduce the start-up costs and
amount of time and knowledge required to launch an online store, permitting
customers to publish a catalog and sell products online without investing
substantial amounts of capital," said Jay Van Vark, President of Pacific
Coast Software. "We are extremely excited to be a part of Smith Micro to
further enhance the products we can offer to our customers."

"Adding Pacific Coast to our family further strengthens our commitment to
bringing high quality products and services to the Internet community and
related markets," concluded Mr. Smith.

About Pacific Coast Software

Pacific Coast Software provides one of the most powerful solutions for
Internet commerce. The company's WebCatalog product allows customers to
easily design an online storefront, with quick 5- minute 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. Pacific Coast provides web hosting for its
eCommerce customers, as well as consulting services that provide a turnkey
approach from concept to site launch. Mr. Van Vark, as well as other
principals from Pacific Coast Software, will remain with Smith Micro.

Pacific Coast's customer base includes Ben and Jerry's, the Pillsbury Dough
Boy Shop, the NCAA Final Four and the Museum of Television and Radio.

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. 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. For more information on Pacific Coast
Software visit www.pacific-coast.com.

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.

 

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