Smith Micro Software / Allume Systems Inc.

Smith Micro Software Inc., a developer and marketer of a wide range of software and services for the wireless market, today announced it has acquired Allume Systems, Inc., a wholly owned subsidiary of International Microcomputer Software Inc. (IMSI). Allume is a leading provider of compression software solutions that enable state of the art compression, security and archiving of data including JPEG, MPEG and MP3 platforms. The Company's pioneering product suite known as StuffIt® has been a de facto industry standard since 1986.

Through the agreement, Smith Micro will pay $11 million in cash and $1.75 million in Smith Micro shares to purchase all outstanding shares of Allume. During the first calendar quarter of 2005, Allume contributed $2.5 million to IMSI's $6.4 million net revenue. We believe the acquisition is accretive immediately to Smith Micro.

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