SmartDisk Announces Partnership with Visa International --Asia Pacific-- and Singapore's NETS CashCard Program.

Business Editors, Technology Writers

NAPLES, Fla.--(BUSINESS WIRE)--June 13, 2000

Partnership to Deliver Electronic Purse Services with Visa Cash

CashCard and NETS CashCard

SmartDisk Corporation (Nasdaq:SMDK), a company whose products simplify the digital lifestyle, today announced a planned June roll-out of its Smarty(R) smart card reader/writer for use with the Electronic Purse Services Program in Singapore.

As a result of this initiative, the Smarty will now be deployed with two of the most popular cash cards in that country, the Visa Cash CashCard and the Network for Electronic Transfers (NETS) CashCard.

"Electronic cash is becoming increasingly popular in Asia and other parts of the world," said Quresh Sachee, Vice President, Marketing and Sales, SmartDisk Corporation. "Through NETS, the Smarty becomes associated with one of the most popular electronic cash networks in Singapore. Visa already is offering Smarty to its Platinum smart card program members in Latin America, so this new rollout represents the broadening of that relationship on a global scale."

"We believe that our customers will view Smarty's ease-of-use as an added benefit in conducting online transactions," said David Chan, Director of Stored Value Products and Alliances, Asia Pacific Region for Visa International. "We also believe it will help attract newcomers to electronic cash."

"NETS is constantly exploring ways to promote CashCards and the introduction of a user-friendly smart card reader, like the Smarty, will help further accelerate the acceptance of the payment mode," said Chan Kah Khuen, General Manager, Development, NETS.

Using Smarty, NETS CashCard and Visa Cash CashCard users will be able to shop online for games, eyewear, educational materials, groceries and other products from a variety of merchants. Smarty, which is the size and shape of a 3.5-inch floppy disk, allows consumers to access e-commerce products and services through a computer. One simply inserts the CashCard into the Smarty and then slips the Smarty into the computer's floppy drive. Transactions are then subtracted and recorded on the card. Users can load electronic cash onto the cards at automated teller machines, NETS Kiosks and designated gas stations.

Smarty will be available at retail outlets this June throughout Singapore, as well as through SmartDisk's web site (www.smartdiskdirect.com/smarty.html).

In addition to Internet shopping, the Smarty can also be used for a range of other smart card applications. Smarty permits fast, 24-hour online electronic funds transfers for home banking customers. It also enables health care customers and providers to store and transfer important patient data over the Internet. Finally, Smarty is used with network security applications, allowing PC and network access control and authentication, secure storage of data and much more.

The Smarty already plays an important role in Visa International's Visa Platinum initiative, a smart card program in Visa's Latin America and Caribbean region that enables cardholders to gain access to their account information over the Internet.

About Smarty

The Smarty smart card reader/writer acts as a bridge between a smart card and a PC. Smarty has the same dimensions as a 3.5-inch floppy disk and includes a slot into which a smart card can be inserted. A smart card is inserted into the Smarty and then placed into a PC's floppy drive. Increasing use of smart cards in Asia, Europe and the U.S. is fueling a need for a versatile, economical card reader. Smarty fulfills this need, supporting electronic commerce, banking, health care, and government applications, and the high-level security that such transactions require including access control, network authentication and data certification.

About Visa

Visa, "the world's best way to pay," is the preferred payment brand and the largest consumer payment system worldwide with more volume than all other payment cards combined. Visa plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions and their cardholders. Visa has more than 80 smart card programs in 35 countries and on the Internet, with 23 million Visa chip cards, including over eight million Visa Cash cards. Visa is pioneering Secure Electronic Transaction (SET) programs to enable and advance Internet commerce. There are more than one billion Visa, Visa Electron, Visa Cash, Interlink and PLUS cards in the market. Visa-branded cards generate US $1.6 trillion in annual volume and are accepted at more than 19 million worldwide locations, including at over 627,000 ATMs in the Visa Global ATM Network. Visa's Internet address is www.visa.com.

About NETS

NETS was founded in 1985 by five major banks, namely DBS Bank, OCBC Bank Group, Overseas Union Bank, POSBank and United Overseas Bank to operate and manage an online debit payment service. TatLee Bank (since merged with Keppel Bank to form Keppel TatLee Bank) and Keppel Bank joined as NETS shareholder banks in 1990 and 1992, respectively.

With the formation of Keppel TatLee Bank and the acquisition of POSBank by DBS Bank, NETS's current shareholder banks are DBS Bank, Keppel TatLee Bank, OCBC Bank, Overseas Union Bank, and United Overseas Bank.

Through the years, NETS has developed a comprehensive range of electronic payment services such as EFTPOS, Shared ATM service, FEDI (Financial Electronic Data Interchange), NETS Kiosk, CashCard, SET Payment Gateway, CashCard for Open Network E-commerce (C-ONE), Business-to-Business Internet Payment service, HomeNETS, e-bill service and Trade Finance service. For more information, please go to www.nets.com.sg.

About SmartDisk Corporation

SmartDisk designs, develops, manufactures and markets digital connectivity products and personal storage systems that allow consumers to easily access and exchange digital data. The company is using its proprietary and patented technologies to capitalize on the growing demand for digital applications and increased usage of the Internet. SmartDisk's investors and partners include Apple, Hitachi, IBM, NEC, SanDisk, SCM Microsystems, Sony, Toshiba and others. For more information, go to www.smartdisk.com.

This press release includes statements, which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although SmartDisk Corporation believes the expectations contained in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. These statements may involve risks and uncertainties that could cause actual results to differ materially from the expected results. Such risks include, but are not limited to our dependence on a limited number of contract and offshore manufacturers, our dependence on OEMs to promote our products, our ability to develop commercially viable products on a timely basis and other risk factors, all as more fully described in SmartDisk's Registration Statement on Form S-1 and in other reports and periodic filings made from time to time with the Securities and Exchange Commission.

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