SmartVideo and BSS Sign Teaming Agreement.

Business Editors

ATLANTA--(BUSINESS WIRE)--May 29, 2003

SmartVideo Technologies Inc. (OTCBB: SMVD), the leading provider of high-quality full motion streaming video content to broadband, dial-up, and wireless Internet users, today announced it has entered into a Teaming Agreement with Bowhead Support Services (BSS) to pursue critical communication contracts.

According to William Breighner, President of BSS, "SmartVideo provides a critical, must-have communications capability that is in wide demand by many of our current clients. As we've all seen in the recent war, streaming video adds a much-needed critical dimension to information distribution - it's a real force multiplier. These lessons have not been lost on our government clients; SmartVideo's timing could not have been better."

"By teaming with BSS, we gain critical advantages in responding to service requests by various U. S. Government Agencies; and, as a Microsoft Certified Solution Provider, BSS adds great value to our product offerings," according to Richard Bennett, President of SmartVideo. "Within the Government, BSS has earned a stellar reputation as demonstrated by its consistent, outstanding and exceptional ratings on CPARS, as well as in 2001 and 2002 being named MDBE Contractor of the Year at the Department of Transportation."

Bowhead has hundreds of personnel working within the government, providing vital services for critical programs. Our Teaming Agreement opens the door to many new markets within the government and associated private sectors. This partnership will allow Bowhead, using SmartVideo's technology, to pursue millions of dollars of communications contracts.

About Bowhead Support Services

Bowhead Support Services (BSS) is an Alaska Native Corporation (ANC), certified 8(a) by the Small Business Administration (SBA). Incorporated in 1999, BSS Corporate Headquarters is located in Dahlgren, Virginia. As an ANC, we have several unique contracting advantages beyond those of standard 8(a) companies. For instance, as an ANC we are exempt from the $3 million dollar sole source limit, which allows us to develop long-term customer relationships and commitments. We are exempt from A-76 cost analysis requirements. In addition, we are allowed to operate multiple 8(a) companies, which provides a greater breadth of knowledge and resources. Our Information Technology support services range from basic Data Entry/Management to Systems Engineering, Vertical Lift Risk Analysis, Help Desk Support and Local Area Network Design. We support multiple government agencies in a variety of geographic and technical areas. With an experienced staff in a wide range of Information Technology disciplines, BSS consistently performs at the highest levels of expertise. BSS currently has active contracts within the US Navy, Department of Transportation, NASA, and General Services Administration. For additional details, link to the www.bowheadsupport.com.

About SmartVideo

SmartVideo is a leading provider of solutions allowing live or on-demand high-quality video presentations to be streamed over the Internet at speeds as low as 23K and at minimum rates of 15 frames per second, which allows our clients to reach more than 95% of all Internet users.

Companies around the world are actively seeking innovative solutions to harness the power of video and audio on their websites and in their businesses. SmartVideo believes it is uniquely positioned to help fill this need. We expect that the demand for, and use of, our services will grow at a faster rate than most other Internet applications. Additional information and sample Demos can be found at our web site: www.smartvideo.com.

SmartVideo expects to make other announcements in coming days.

This release contains forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the effects of future operational plans and quotes from SmartVideo's president and CEO. These statements are based on current estimates and actual results may differ materially due to risks, including: unexpected costs, delays or 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 networks; pricing and other activities by competitors; and difficulties involved in retaining and motivating key personnel. Words such as "intend," "expects," "anticipates," "projects," "estimates", and similar expressions are intended to identify forward-looking statements. Forward-looking statements include statements concerning plans, objectives, future events or performance and assumptions and other statements that are not statements of historical fact. Any projections in this release are based on limited information currently available to SmartVideo, which is subject to change. Although the company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. Actual events or results could differ materially and no reader of this release should assume later that the information provided today is still valid. Such information speaks only as of the date of this release.