Smart Online’s Platform Further Extended to Conform to the Hosting Application Packaging Standard (APS) by SWSoft

RESEARCH TRIANGLE PARK, N.C.--Smart Online Inc. (OTCBB: SOLN), a leading provider of Software-as-a-Service (SaaS) for the small business market, announced that its onebiz^sm platform of small business productivity applications has been certified by SWSoft to be compliant with its Application Packaging Standard (APS). SWSoft designed the new APS to enhance its hosting platform used by clients, including 1&1 Internet, who has more than 6.0 million customers.

The APS standard enables Smart Online to sell the onebiz^sm applications through hosting providers and take advantage of the expanding market for SaaS applications - expected to surpass $19.3 billion by 2011 according to Stamford, Connecticut.-based research firm Gartner Inc.¹ The Gold Application Standard certification signifies that onebiz^sm is a unified, open platform with module applications that are “pluggable” and can be delivered by service providers with nominal integration costs and effort.

Smart Online’s onebiz^sm platform features integrated daily-use applications for small businesses, including accounting, customer relationship management (CRM), salesforce automation (SFA), human resources, shared calendars and contacts, dashboards, business plan and marketing plan writers, and more than 2,000 business forms and letters.

About Smart Online, Inc.

Smart Online, Inc. (OTCBB: SOLN) delivers private-label, software-as-a-service (SaaS) applications designed to enable its corporate partners to acquire and retain small business customers. Smart Online’s applications help partners increase their recurring revenue, while aiding their small business customers to more efficiently start, manage, and grow their businesses. To learn more, please visit http://www.smartonline.com.

Smart Online, the Smart Online logo, and OneBiz are trademarks and/or registered trademarks of Smart Online Inc. in the United States. Other marks belong to their respective owners.

About SWSoft

SWsoft is a global leader in virtualization and automation software that helps consumers, businesses, and service providers optimize their use of technology. The company's software powers more than 130,000 servers and 500,000 desktops worldwide. The SWsoft product line includes Virtuozzo - the leading operating system virtualization solution, Parallels - the leading desktop virtualization product, and Plesk - the leading server control panel. Founded in 1999, the company has offices throughout North America, Europe, and Asia. For more information, visit www.swsoft.com.