ABC NEWS AND SMARTVIDEO SIGN AGREEMENT TO STREAM ON DEMAND AND LIVE TV NEWS OVER SMART PHONES

Service to offer live programming and daily on-demand reports from 'World News Tonight with Peter Jennings,' 'Good Morning America' and more

LAS VEGAS, NV and NEW YORK, NY - - January 6, 2005 - SmartVideo Technologies, Inc. (OTCBB: SMVD) and ABC News announced today that ABC News will provide live news coverage and video on demand via cellular Smartphones to SmartVideo subscribers. SmartVideo President and CEO Richard E. Bennett, Jr. and ABC News Digital Media Group senior vice president and general manager Bernard Gershon announced this at CES 2005 (Booth #70225, Innovations Plus Pavilion).


Mobile phone subscribers will now have access to ABC News Now, a 24/7 streaming news channel, and daily on demand video from ABC News, including reports from "World News Tonight with Peter Jennings" and "Good Morning America." SmartVideo is the only company in the world that can deliver state -of -the -art, high -quality live television at an average of 15 frames per second to low bandwidth devices operating on today's existing 2.5g cellular network. This collaboration is an innovative way of delivering news to millions of people worldwide.

"ABC News Now is the first news channel built for digital distribution. As more mobile consumers rely on cell phones for news and information, teaming with SmartVideo brings the breadth and depth of our on demand content and ABC News Now, with the latest, live developments in domestic and international news stories, to the ABC News audience anywhere, anytime," said Gershon.

"I am extremely pleased ABC News has recognized the significant value we bring to the table," Bennett said. "Our ability to deliver a dynamic, high quality viewing experience over cell phones will further enhance the public's growing dependence on their cell phones for news and information. It has become increasingly important for people everywhere to have access to news as it is happening, and SmartVideo has the perfect medium to deliver it."

The agreement was negotiated by Media Consulting Associates (MCA), Los Angeles, for SmartVideo.

As part of its previously announced Marketing and Cooperation Agreement with Microsoft Corporation, SmartVideo Technologies will develop consumer -focused mobile video products and services for operators and end users of Windows Mobile -based devices. The www.windowsmedia.com/mobile portal ensures the more than 9 million consumers who visit each month 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.

About SmartVideo

Based in Norcross, Georgia, SmartVideo Technologies, Inc., a Microsoft (NASDAQ: MSFT) Windows Media® 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.

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