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October 29, 2008 – ACTON, MA – Tatara Systems, the leader in SIP-based femtocell convergence, today announced that it has sold its Mobile Broadband product line to Smith Micro Software. Under the terms of the sale, Smith Micro Software purchased assets associated with the Tatara Service Manager client software and the Tatara Subscriber Gateway, which performs client management. Smith Micro also assumed responsibility for the company’s facilities and employees based in Vancouver, Canada. The amount of the transaction was not disclosed.

“We are very pleased with this transaction, as it enables Tatara to monetize the value of our Mobile Broadband products and apply those resources to the exciting opportunities in femtocell convergence and applications enablement,” said E.Y. Snowden, chairman and CEO of Tatara Systems. “We also are delighted that Smith Micro, a global leader in the space, will be assuming the strong customer relationships, excellent products and able work force we have built in our Mobile Broadband business, reflecting well on the Tatara brand and our commitment to innovation and advanced technology.”

Snowden continued, “With the proceeds from the sale of the mobile broadband business and our most recent round of funding, Tatara is well positioned to build on our technology leadership position in the femtocell and converged applications enablement marketplace.” On May 8, 2008, Tatara Systems raised an additional $6.5 million in venture funding from Highland Capital Partners and North Bridge Venture Partners, bringing the amount of total capital raised by the company to $43.5 million.

Femtocells are a disruptive technology that promises to improve mobile voice coverage and deliver new enhanced services to home and enterprise users, while dramatically reducing cost. According to ABI Research, total market revenue for femtocells is expected to grow to more than $5 billion by 2013.

The Tatara Convergence Server, a critical element of the femtocell ecosystem, is the industry’s first fixed-mobile convergence application server to leverage a SIP-based integration approach for femtocells. Other radio access network-based approaches for deploying femtocells add to the load on and cost of the operator’s legacy circuit-switched mobile core. Tatara’s flexible SIP-based architecture allows for the most cost-effective end-to-end femtocell deployment option, supporting either a VoIP or IMS infrastructure and delivering full service parity with the macro network. As many analysts have noted, IP-based femtocell deployment better provides the capacity needed to deliver 3G services and the OPEX/CAPEX optimization to recognize substantial savings – since it is the only method that offloads the legacy mobile core infrastructure.

About Smith Micro Software, Inc.

Smith Micro Software, Inc., headquartered in Aliso Viejo, California, with offices in Europe and Asia, develops smart communication solutions that enable people to connect, share, distribute and manage information over wireless and wired networks. Smith Micro's complete lines of products are available through Smith Micro's Wireless, OEM, and Enterprise Sales groups and direct from its websites, retail and value-added reseller (VARs). Smith Micro's common stock trades on the NASDAQ Global Market. For more information, please visit: http://www.smithmicro.com.

About Tatara Systems

Tatara Systems is the first vendor to deliver a SIP-based solution for femtocell network integration, and a leader in enabling network operators to offer converged mobile services. The Tatara Convergence Server leverages a VoIP or IMS core to give any SIP-based end point presence on a mobile operator’s network. For femtocell applications, this ensures service parity with the macro network, while eliminating the need to tie radios directly into the mobile core, circumventing the attendant scalability and interoperability challenges. Tatara is working with its customers and partners to speed the deployment of femtocells worldwide. For more information, visit www.tatarasystems.com.

For Further Information, Contact:

Kelly Friedland
Tatara Systems
Phone: +1 978-206-0831
E-mail: kfriedland@tatarasystems.com

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