SmartDisk Acquires Zio Corporation

Dazzle, CameraMate and FoneMate brands added to SmartDisk product line

Fort Myers, Florida, September 1, 2005 - - SmartDisk Corporation, a leading provider of portable, network and multimedia storage products and technologies, today announced that it has acquired the business and certain assets of Zio Corporation, a privately held market leader in digital media readers, video editing and mobile telephone products. Terms of the acquisition were not disclosed.


Headquartered in San Jose, California, Zio's products include the Dazzle, CameraMate and FoneMate brands and are sold through leading retailers in the U.S. and Europe. Plans call for Zio's U.S. offices and operations to be consolidated into the SmartDisk Fort Myers, Florida headquarters location. Key management personnel will remain at Zio to aid in the integration of the business and sales activities.

"Zio's products broaden the SmartDisk line and add premier brands to our market offerings," said Michael S. Battaglia, President and Chief Executive Officer of SmartDisk Corporation. "Zio also adds valuable new partners, both retailers on one hand and suppliers on the other. The addition of Zio will increase SmartDisk revenues, enhance our profitability, and expand our share of the rapidly growing digital lifestyle market."

"Zio and SmartDisk are a natural fit, serving the same digital consumer market and reaching consumers through similar channels of distribution," noted Andrew Warner, Chief Executive Officer of Zio. "Zio's market leadership position with digital media readers and the potential of our video and mobile phone solutions, together with SmartDisk's size and scale, creates a winning combination."

About SmartDisk Corporation
SmartDisk is a leading provider of portable, network and multimedia storage products and technologies that enable people to enjoy, share and preserve digital content and information. 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.

###

For further information contact:
Crystal Revak
SmartDisk Corporation
239/425 -4072
Crystal.Revak@smartdisk.com


Featured Product

MIDLITE®'s SPEEDPORT Universal Cable Pass Thru, Fastening & Anchor System

MIDLITE®'s SPEEDPORT Universal Cable Pass Thru, Fastening & Anchor System

Use for any Low Voltage Cabling, A/V, Telecom, Data, Networking Ideal for : Sound Bars & Wall Speakers • Home Theater Cabling • A/V Furniture The SPEEDPORT™ is incredibly versatile and is ideal for wall mounted box speakers, sound bars and wireless access devices mounted in ceilings. It can accommodate almost any device needed to be hung on a wall or ceiling with cable pass thru and mounting. The ultra low profile design features a rubber grommet insert for bulk cable pass thru. Two mounting screws are hidden behind the grommet and offer a clean, unobtrusive presentation. Installation is quick & simple using a hole saw and attaches to acoustical ceiling tiles and/or gypsum board. Reducing labor and a whole lot of mess from hand cutting large rectangular holes - Low voltage brackets are no longer needed. Just cut your hole in the desired location, insert SPEEDPORT™ and tighten adjustable mounting arms to fasten securely.