Expanding its content offerings beyond mobile television and short films, SmartVideo Technologies, Inc. (OTCBB: SMVD.OB) announced today that five new games developed specifically for smartphones are now available for download and play through SmartVideo's links at the Microsoft WindowsMedia.com/mobile site, SmartVideo's Web site, and all partner sites. SmartVideo has purchased the intellectual property rights for these games from Pixiem, as well as the gaming engine necessary to build and distribute additional games under the SmartVideo brand. The first new games developed by SmartVideo will be available on June 15, 2005.

The 50 million smartphone users and millions more PDA owners around the world now have access to mobile games including Smart Golf Plus, Metalion, Fun2Link, Bubble Mania and Crash Bomb. These games are available for download and play at both www.smartvideo.com and www.Handango.com, for $5 per game or all five for $19.99. Despite the continuing explosive growth of video games, there have so far been few available for Web-enabled mobile devices. SmartVideo and Pixiem believe this alliance is the beginning of a booming market as gamers access their favorite contests anywhere and anytime they find themselves with spare time.

"We feel strongly about SmartVideo's ability in rolling out smartphone games due to the capabilities of its mobile entertainment offerings, and its strong distribution and marketing relationship with Microsoft," said Hongsuk Lee, president of Pixiem. "Smartphone games offer a high quality 3D look and feel compared to standard mobile games, giving serious gamers a quality experience, anywhere. SmartVideo is an ideal partner to introduce smartphone games. We plan to work more closely with SmartVideo in co-developing additional, well-known, branded smartphone games using SmartVideo's distribution channel."

According to research by Alexander Resources, games are set to become the largest and most important mobile entertainment application for cellular devices, with the increase in mobile gaming helping to drive the expansion of other new data-oriented wireless services. Additionally, Frost & Sullivan is projecting the market to reach $9.3 billion by 2008.

"The worldwide gaming market appears to be growing at an exceptionally fast pace, and the Pixiem technology we have purchased will enable us to capture a significant portion of that market by developing and offering unique games designed for smartphones and other mobile devices," said Richard E. Bennett, president and CEO of SmartVideo. "In addition, it appears from recent market research that gamers are early adopters of data-oriented wireless services. Gamers should prove to be a significant percentage of the estimated 250 million smartphone users in 2008, and having acquired the intellectual property for smartphone based games, we are looking forward to building a library of new exciting games for the smartphone market."

The addition of games to SmartVideo's lineup of mobile entertainment content continues to position the Company as a leader in this growing industry. SmartVideo is the only company in the world that can deliver state-of-the-art, high-quality live television at a minimum of 15 frames per second to low bandwidth devices operating on today's existing 2.5G cellular networks. Thanks to the successful launch and fast growth of the more robust 3G networks in the U.S., SmartVideo can provide 3G-capable phones with a minimum of 24 frames per second and virtual broadcast-quality of at least 28 frames-per-second on Wi-Fi-enabled devices.

Smartphone and PDA users who subscribe to SmartVideo's service - beginning at a monthly rate of $12.95 - have access to industry-leading mobile content from ABC News, ABC NewsNow, NBC Universal (CNBC, MSNBC and NBC Mobile), The Weather Channel, FOX Sports Network, IFILM, Fashion TV, DIC and dozens more.

For additional information and to subscribe to SmartVideo's Live TV content packages visit www.smartvideo.com or using your smartphone visit www.windowsmedia.com/mobile.

SOURCE: SmartVideo Technologies, Inc.