SmartVideo Technologies Announces Landmark Distribution Agreement with Microsoft and Content Agreements with NBC Universal and the Weather Channel.

LAS VEGAS -- Company Will Deliver Highest-Quality Live TV Over Smartphones and Showcase New Service at CES 2005

Richard E. Bennett, Jr. president and CEO of SmartVideo Technologies, Inc. (OTCBB: SMVD), today unveiled landmark agreements that will allow SmartVideo to deliver high-quality television broadcasts from NBC Universal and The Weather Channel to cellular-internet enabled mobile devices ("Smartphones") using Microsoft's WindowsMedia Mobile technology. For the first time, consumers with Smartphones will be able to view live television anywhere, anytime on Pocket PC, Mobile PDA and Smartphone mobile devices.

First, as part of its new Marketing and Cooperation Agreement with Microsoft Corporation, Microsoft has agreed to distribute SmartVideo's live television programming lineup to consumers through its WindowsMedia Mobile Portal. SmartVideo was also invited by Microsoft to become part of the software giant's MCX Partner Pavilion and will showcase the new service at CES 2005 (Booth #70225, Innovations Plus Pavilion).

Second, SmartVideo Technologies has secured licensing agreements with NBC Universal and The Weather Channel to offer their content as part of the SmartVideo TV programming lineup. The agreements with NBC Universal and The Weather Channel are the first of their kind content-delivery agreements secured by SmartVideo.

The cellular phone business is ready for explosive growth; more than 22 million television-enabled Smartphones are in use currently around the world, with projections by the ARC Group market research firm that the number will grow to 250 million by 2008. Poised to capitalize on increased Smartphone consumer adoption, SmartVideo offers technology that enables fluid motion, fully synced live video and audio broadcasts, making it the only such service able to be called television in the true sense. Just as important, the company's Content Delivery Network (CDN) protects the content owners intellectual property as well as manage the geographic rights associated with syndicated television, which is extremely critical for content providers.

About the Deal With Microsoft

Microsoft (NASDAQ: MSFT) signaled its belief in SmartVideo's ability to deliver top-quality broadcasts by making its content accessible globally through www.windowsmedia.com/mobile. Services will include the streaming of live TV, on-demand video and audio on devices using Microsoft Mobile software. SmartVideo's live and on-demand content will be available for Windows Mobile-based Smartphones and Windows Mobile-based Pocket PCs beginning January 6, 2005.

The www.windowsmedia.com/mobile portal ensures that consumers who visit the site have a convenient and easy way to access a rich media experience on their mobile devices. With Windows Powered Smartphones, subscribers to the SmartVideo service now can watch and enjoy a diverse choice of high quality live and on-demand television on their handsets, with subscription packages starting as low as $12.95 per month. SmartVideo expects to announce additional content distribution relationships in the early part of 2005 that will bring sports, entertainment, cartoons and music videos to subscribers, along with content specifically targeted for the financial community, families, children, the Hispanic community, and teenagers.

"We are very excited to see a mobile television service built using Windows Media and Windows Server technology become a reality for Windows Mobile-based devices," said Michael O'Hara, general manager, service provider business, Communications Sector, Microsoft. "We look forward to working closely with SmartVideo to deliver these new services and solutions to mobile users and operators alike.

"Working with Microsoft, SmartVideo has developed consumer-focused products and services, and will continue developing services for deployment on Windows Mobile-based devices. We are delighted to be working with Microsoft to deliver an exceptional viewing experience to mobile users around the world," Bennett said. "The market potential is enormous and our collaboration with Microsoft will enable us to tap into that huge opportunity."

About the Deals with NBC Universal and The Weather Channel

NBC Universal

The agreement with SmartVideo means that all Smartphone cellular users will now be able to watch MSNBC and CNBC live, 24 hours a day on their handsets. In addition, the NBC offering will include NBC Mobile, NBC Universal's customized content for mobile phones, which includes multiple broadcasts throughout the day, in-depth reports and breaking news as it happens.

"With this offering, we're keeping pace with consumer demand for accurate news and information in real time," said Brandon Burgess, executive vice president for digital media, international channels and business development. "Our relationship with SmartVideo will allow NBC Universal to extend our reach and enable even more mobile consumers to access NBC Universal content anytime, anywhere."

Currently available to Sprint customers throughout the country, NBC Mobile was the first - and continues to be the only - customized, video news content for mobile phones.

The Weather Channel

In its deal with The Weather Channel, SmartVideo's package of services will initially offer consumers access to live coverage of national weather and shortly thereafter, regular local updates. Launched in 1982, The Weather Channel now reaches more than 87 million subscribers in the U.S. alone. Weather Channel programming includes on-location live reports and updates by experts in addition to special programs for primetime, mornings and weekends. The Weather Channel also produces and airs original programs such as Storm Stories with eyewitness accounts, historic perspective, expert commentary, and compelling video relating to dramatic memorable weather events. SmartVideo is the only company in the world to offer a full-motion, fully synced video and audio live weather feeds of these programs over cell phones.

"We are experiencing first hand a shift in the way people receive their weather information. This enhanced service offering allows our customers to view up-to-date weather reports 24 hours a day right in the palms of their hands," said Louis Gump, Vice President Mobile Products and Services of The Weather Channel. "This development further demonstrates our commitment to providing access to weather content on a variety of platforms no matter where our viewers are. By making our weather programming available on cell phones we can help people avoid dangerous weather conditions; potentially saving thousands of lives every year."

"SmartVideo's technology is absolutely unique, because it actually looks like real television," Mr. Bennett said. "The emerging mobile television industry defines 'high-quality' as actual live streams of a television signal. We deliver fluid motion video, at a high frame-rate and we are not limited to just short videos requiring extensive waiting times. Our streaming video is live and is the ultimate in mobile television."

Media Consulting Associates

These groundbreaking agreements between SmartVideo, NBC Universal and The Weather Channel were negotiated by Media Consulting Associates (MCA), a leading entertainment consultancy based in Los Angeles consisting of well-known television and motion picture executives specializing in content placement, distribution and production. MCA members include Herman Rush (former CEO, Columbia Pictures Television Group), Robert L. Friedman (former President, The AMC Entertainment Motion Picture Group), Joe Indelli (former Vice President, Orion Television Distribution), Jerry Katzman (former President, William Morris Talent Agency), and Ave Butensky (former President, Television Bureau of Advertising).

"There was a time when portable radios that could fit in your pocket were a phenomenon. Television in the palm of your hand, amazing!" said Rush who is also a member of the SmartVideo Advisory Board. "Technology is advancing so rapidly that today you can literally have a television at your fingertips. I believe SmartVideo's mobile entertainment solution has the potential to have a similar impact on the cellular industry as the introduction of the automobile did on travel."

About NBC Universal

NBC Universal is one of the world's leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information to a global audience. Formed in May 2004 through the combining of NBC and Vivendi Universal Entertainment, NBC Universal owns and operates the No. 1 television network, the fastest-growing Spanish-language network, a valuable portfolio of news and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group and world-renowned theme parks. NBC Universal is 80%-owned by General Electric, with 20% controlled by Vivendi Universal.

About The Weather Channel

The Weather Channel, a 24-hour weather network, is viewed by over 87 million U.S. households. Weather.com, the Company's popular Web site, attracts over 25 million unique users per month and is currently ranked number 11 by Nielsen//NetRatings. The Weather Channel is the leading weather information provider utilizing emerging technologies and operates The Weather Channel Radio Network, The Weather Channel Newspaper Services and Weatherscan, a 24-hour, all-local weather network distributed to almost 7 million households. Customers can reach The Weather Channel through broadband and interactive television applications and wireless weather products; accessible through high-speed Internet services, phones, cellular phones, pagers, Palm Pilots, and other personal digital assistants. The Weather Channel is owned by Landmark Communications, Inc., a Norfolk, VA-based, privately held media company.

About SmartVideo

Based in Norcross, Georgia, SmartVideo Technologies, Inc., a Microsoft (NASDAQ: MSFT) Windows Media(R) 9 Series Certified Hosting Provider, is a leading provider of turnkey digital media solutions that allows for the management and distribution of live, on-demand, or the download and play of high quality video to mobile devices. SmartVideo now offers the world's first cross platform/cross carrier service for aggregating live content and download and play programming for consumers around the globe. SmartVideo's mobile video solutions provide exceptional image quality on all existing 2.5g and Edge cellular networks, as well as future 3g networks. SmartVideo clearly provides great value to both consumers and carriers. The Company's stock is traded on the OTC Bulletin Board under the symbol SMVD.OB. For additional information and to subscribe to SmartVideo's Live TV content packages visit our Web site at www.smartvideo.com or using your Smartphone visit www.windowsmedia.com/mobile.

Forward Looking Statements

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "intend," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the inability of SmartVideo to obtain the additional financing needed to fund operations, the failure of SmartVideo to convert its present and future customer contracts into profitable arrangements for SmartVideo, unexpected costs, delays and other difficulties related to the timing and success of product development and marketing plans, adverse changes in the market for the delivery of full-motion, streaming video content, the failure of SmartVideo's hosting infrastructure, the complexity of SmartVideo's services and delivery network, pricing and other activities by competitors, difficulties involved in retaining and motivating key personnel and other risks detailed in SmartVideo's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, SmartVideo undertakes no obligation to update these statements for revisions or changes after the date of this release.