SMITH MICRO ANNOUNCES ACQUISITION OF PCTEL’S MOBILITY SOLUTIONS GROUP

Smith Micro
Software, Inc. (NASDAQ: SMSI [1]),
a leading developer and marketer of software and services for the wireless
market, and PCTEL, Inc., a developer of wireless broadband solutions, announced
a definitive asset purchase agreement for Smith Micro Software to acquire
PCTEL’s Mobility Solutions Group (“MSG”) for $59.7 million,
to be paid at closing of the transaction.

PCTEL’s MSG, with their innovative technologies, has
pioneered mobility solutions for cellular and IP wireless networks including
advanced support for technologies such as 3G, Wi-Fi, WiMax, VoIP and IMS
software for converged mobile handsets. The richly-featured portfolio of
products serves wireless carriers, device manufacturers, network solution
providers and enterprise customers with a complete range of communication clients
for PC and mobile handset platforms.  

William W. Smith, Jr., President and Chief Executive Officer of
Smith Micro Software, commented, “PCTEL’s Mobility Solutions Group
is the ideal complement to our existing technologies and plays to our strength
in key growth markets in the wireless software universe.  This acquisition not
only expands our technology portfolio, but it is a significant step in the
evolution of our business.   This transaction will enable us to significantly
broaden our customer base.”

Mr. Smith continued, “The Smith Micro Mobility Solutions portfolio
of products including connection managers for PCs and mobile handsets with new support
for WiMax and our next generation IMS application framework will serve to
strengthen our overall leadership position in the wireless software space.  We
believe that with the integration of PCTEL’s customers, technologies and
personnel, we will have achieved a significant milestone for the Company and
expect to see continued growth of our core business in the coming years.”