Smart Move 8-K Smart Move, Inc. Reports First Quarter 2007 Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

Smart Move, Inc. Reports First Quarter 2007 Results

Comparable Revenue Increase 28%

Denver, Colorado–(Business Wire)–May 21, 2007–Smart Move, Inc. (AMEX: MVE) today reported financial results for its first quarter ended March 31, 2007.

Highlights for the first quarter of 2007 as compared to the first quarter of 2006 include:

• Revenues increased 28% to $947,948

• Property and equipment increased over $3.7 million, including the addition of $2.3 million in new SmartVault^TM containers.

• Signed Arpin Van Lines as Smart Move’s second national van line customer

• Smart Move successfully launched its local Denver storage service offering at quarter end. Acceptance has been strong and we have quickly established a base of revenue producing customers. The Denver warehouse also includes an on-site inventory and distribution system to begin selling moving supplies to customers as well as local moving and storage companies in the 61 cities currently served by the Company.

“We have had an overwhelmingly positive response with regards to the roll out of the new design version of our SmartVault^TM container. The SmartVault^TM is the only container in the industry that has a GPS tracking device and no wood components in the design, which is a significant industry point of difference. Both our customers and industry partners have been impressed and have voiced high levels of satisfaction with its performance to date. I would like to point out that our reported revenue only reflects those moves actually completed during the quarter, in addition at March 31^st, 2007, the company has advanced billings and active jobs in process, which have combined future revenues of approximately $772,000, those revenues will be reflected in future reporting periods. We continue to see that our forward bookings are picking up as we enter the traditional high moving season. The execution of an agreement with our second major national van line, Arpin Van Lines, is a significant milestone. Arpin Van Lines was established in 1900 and we are excited to be working with the Arpin family of agents as they bring a new segment of the market to Smart Move with their customer base. At the same time our service relationship with Atlas continues to progress; we are particularly encouraged by Atlas’s sales efforts and penetration in the corporate relocation market place,” said Chris Sapyta, President and Chief Executive Officer. He added, “We continue to explore new sales and marketing channels, and are very excited about the progress of these discussions and how our services are being viewed and accepted in the market place as more national van lines are inquiring about utilizing our services, as well as other commercial possibilities.”

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First Quarter 2007 Results

Smart Move’s comparable revenue for the first quarter increased by $206,093 to $947,948, an increase of 28%. The net loss for the first quarter decreased to $1,524,259 compared to a net loss of $2,210,423 incurred in the first quarter of 2006. The decrease in the net loss is due primarily to an income tax benefit of $980,000, offset by an increase in total selling, general and administrative expenses of approximately $112,014. Additional expenses associated with Smart Move’s nationwide rollout and related asset additions included an increase in depreciation expense relative to the comparable period of $221,518 to $462,500.

As compared to the same period in 2006, total property and equipment increased during the quarter by over $3.7 million to $15 million. These additions included acquisition of newly manufactured SmartVault^TM units at $2.3 million, additional GPS units at $712,000 and additional container components at $500,000.

Net cash consumed in operations was approximately $1.4 million for the three months ended March 31, 2007, as compared to $1.2 million in the comparable prior year period. Cash was consumed by the net loss of $1,524,259, less non-cash expenses of $462,530 for depreciation, $113,584 of amortization of debt discounts, $62,650 of non-cash compensation, offset by a non cash costs of deferred income tax benefit of $980,000 and a bad debt recovery of $15,274. As compared with the quarter ending March 31, 2006, cash was also consumed by increases in accounts receivable of $50,788 and deferred revenue of $29,365 during the period. An increase in accounts payable of $177,116, an increase in accrued interest of $261,821, decrease in contracts in process of $79,894 and a decrease in prepaid of $58,184 provided cash during the period as compared to the same period in 2006..

The company had cash balances of $10.3 million on March 31, 2007.

Conference Call

The Company will host a conference call to discuss first quarter 2007 financial results on Tuesday, May 22, 2007 at 9:30am Eastern standard time. Hosting the call will be Chris Sapyta, Chief Executive Officer, and Edward Johnson, , Chief Financial Officer.

The conference call can be accessed live over the phone by dialing 800-366-7640, or for international +303-262-2138. A replay will be available one hour after the call and can be accessed from the Company’s website atwww.gosmartmove.com under the investor relations section.

About Smart Move, Inc.

Founded in 2004, Smart Move, Inc. is an asset management company that provides a unique, revolutionary, and increasingly popular alternative method of transporting household and commercial goods securely and on a time guaranteed basis. The company uses a GPS equipped, proprietary shipping container, the SmartVault™, to execute the movement of goods and utilizes its technologies to efficiently manage the fleet of assets. Smart Move currently offers moving services available to over 92% of the USA population from its operations in the 61 largest U.S. metropolitan areas in the USA. Our business model offers specific competitive advantages over the traditional van line agencies that perform the majority of the long distance moves in the U.S. today through: superior security, scheduling flexibility and expedited service. The company automatically includes superior replacement value insurance coverage for its customers, a unique feature of its offering within the asset transport and household goods industry. For more information and latest updates on available services, visit Smart Move’s web site atwww.gosmartmove.com.

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Safe Harbor Statement Under The U.S. Private Securities Litigation Reform Act Of 1995

Certain statements in this release which are not historical facts are forward-looking statements such as statements relating to future operating results, existing and expected competition, financing and refinancing sources and availability and plans for future development or expansion activities and capital expenditures. These “forward-looking statements” are within the meaning of the Private Securities Litigation Reform Act of 1995. In many but not all cases you can identify forward-looking statements by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will” and “would” or the negative of these terms or other similar expressions.  These forward-looking statements include statements regarding the company’s expectations, beliefs, or intentions about the future, and are based on information available to the company at this time. Smart Move assumes no obligation to update any of these statements and specifically declines any obligation to update or correct any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Such forward-looking statements involve a number of risks and uncertainties that may significantly affect our liquidity and results in the future and, accordingly, actual results may differ materially from those expressed in any forward-looking statements. Such risks and uncertainties include, but are not limited to, those related to effects of competition, leverage and debt service financing and refinancing efforts, general economic conditions, changes in laws or regulations and risks related to development activities as described in our registration statement on Form SB-2 filed for Smart Move’s initial public offering, and other risk factors described from time to time in the company’s periodic reports, including its annual report filed on Form 10-KSB for the year ended December 31, 2006.

Investor Relations
Contact: Pete Bloomquist
Smart Move, Inc.
303-339-9558
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Statements of Operations

	Three Months Ended March 31,
	2007			2006
	(unaudited)
Sales	$	947,948		$	741,855
Cost of moving and storage (exclusive of depreciation and amortization shown separately below)		1,055,605			860,712
Depreciation and amortization		433,017			215,190
Total cost of moving and storage		1,488,622			1,075,902
Gross loss		(540,674	)		(334,047	)
Selling, general and administrative expenses (exclusive of depreciation and amortization shown separately below and including noncash compensation of $62,650 for the three months ended March 31, 2007 and $750,000 for the three months ended March 31, 2006)		1,678,999			1,523,676
Depreciation and amortization		29,513			25,822
Impairment of note receivable		—			47,000
Total selling, general and administrative expenses		1,708,512			1,596,498
Operating loss		(2,249,186	)		(1,930,545	)
Other income (expense):
Interest income		149,076			36,193
Interest expense		(404,149	)		(316,071	)
Total other expense		(255,073	)		(279,878	)
Loss before income tax benefit		(2,504,259	)		(2,210,423	)
Income tax (benefit)		(980,000	)		—
Net loss	$	(1,524,259	)	$	(2,210,423	)
Net loss per share:
Basic and diluted	$	(0.15	)	$	(0.49	)
Shares used to compute net loss per share:
Basic and diluted		10,171,092			4,470,506

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Balance Sheets

	March 31, 2007			December 31, 2006
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	10,360,560		$	14,235,823
Account receivable trade, net of allowance of $25,000 and $40,274		187,342			121,280
Contracts in process		287,994			367,888
Prepaid and other		56,641			114,825
Total current assets		10,892,537			14,839,816
Property and equipment, net		12,947,405			9,662,213
Other assets		105,341			89,006
		13,052,746			9,751,219
Total assets	$	23,945,283		$	24,591,035
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,399,563		$	797,508
Accrued interest		577,012			315,191
Deferred revenue		84,099			113,464
Deferred income tax		87,000			122,000
Current portion of long-term debt and notes payable, (face amount of $930,916 and $816,238) net of discounts of $579,387 and $522,599		351,529			293,639
Current portion of obligations under capital leases		84,130			84,130
Total current liabilities		3,583,333			1,725,932
Long-term liabilities:
Long-term debt and notes payable, less current portion, (face amount of $9,899,411and $10,179,971) net of discounts and offering costs of $5,528,716 and $5,695,423		4,370,695			4,484,548
Obligations under capital leases, less current portion		235,867			250,666
Deferred income tax		1,300,000			2,165,000
Total long-term liabilities		5,906,562			6,900,214
Total liabilities		9,489,895			8,626,146
Commitments and contingent liabilities
Shareholders’ equity:
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued		—			—
Common stock, $0.0001 par value, 100,000,000 shares authorized; 10,171,092 issued and outstanding		1,017			1,017
Additional paid-in capital		17,159,565			17,064,807
Accumulated deficit		(2,705,194	)		(1,100,935	)
Total shareholders’ equity		14,455,388			15,964,889
Total liabilities and shareholders’ equity	$	23,945,283		$	24,591,035

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