SmartDisk and XIMETA Announce Partnership

SmartDisk to market XIMETA`s network storage and multimedia technologies through established and growing retail, web and distributor channels.

Fort Myers, Fla., January 5, 2005 - SmartDisk Corporation, a company that develops and markets portable storage and digital multimedia products that enable people to capture, organize, use and preserve digital content in easy and enjoyable ways, today announced a new partnership with XIMETA, Inc., headquartered in Irvine, California. This partnership will include leveraging XIMETA's network storage and multimedia technologies through SmartDisk's established and growing retail, web and distributor channels.


SmartDisk will provide a full range of NetDisk products that are based upon the world -leading Network Direct Attached Storage (NDAS) technology created by XIMETA. "We are delighted to expand our product line through this strategic partnership with XIMETA by bringing new SmartDisk products into the consumer and small office/home office (SOHO) network environments," stated Michael S. Battaglia, President and CEO of SmartDisk. "NDAS -based products are the market leaders in a rapidly growing and early -stage network storage market."

According to Edward Park, President and CEO of XIMETA, "The partnership with SmartDisk will enable us to further focus our energies and resources on conceiving and developing innovative, world -class technologies and products for the home and office network and consumer entertainment markets. We look forward to a bright and exciting future through this strategic alliance."

About XIMETA
XIMETA is the creator of Network Direct Attached Storage (NDAS) technology. Using patented chip and software technology, XIMETA offers the industry`s first high -performance, fully scalable and portable networked storage solutions for consumer and SOHO needs. The company focuses on the growing trend toward networked information storage, in which storage systems are linked on a network via Ethernet.

About SmartDisk Corporation
SmartDisk is a leading provider of a range of advanced consumer electronic and computer products that are enabling the digital age and simplifying the digital lifestyle. The company`s innovative products help users store, transfer, share and preserve digital music, video, pictures and data. Headquartered in the U.S., with operations in Europe and Asia, SmartDisk sells and supports its products worldwide. For more information, go to http://www.smartdisk.com.


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Contact: Crystal Revak, 239 -425 -4072

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