EXHIBIT 99.1

FOR IMMEDIATE RELEASE

             SMARTSERV COMPLETES $3.5 MILLION EQUITY FINANCING AND
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               RESTRUCTURES DEBT WITH THE HEWLETT-PACKARD COMPANY
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STAMFORD, CT - September 10, 2002 - SmartServ Online, Inc. (NASDAQ: SSOLC), a
leading Web and wireless applications and services provider, today announced it
has completed a $3.5 million round of financing from a group of accredited
investors, consisting of the private placement of common stock and warrants.

In addition to the financing, SmartServ has restructured approximately $7
million in vendor financing debt with the Hewlett-Packard Company ("HP").
Pursuant to the new loan terms, HP will forgive all outstanding principal and
interest in exchange for (a) the payment of $1 million in cash over the next six
months, (b) a warrant to purchase 50,000 shares of SmartServ common stock, and
(c) the return of certain unused HP equipment.

"The new financing and debt restructuring will allow us to continue to build
upon our recent momentum and successes," said Sam Cassetta, CEO of SmartServ.
"We can now focus on our plan to generate profitability and enterprise value by
servicing our current client and distribution base, including major telecom
carriers in North America, as well as pursuing further business development
initiatives."

As previously announced, SmartServ is currently trading on the Nasdaq SmallCap
Market under a temporary exception to the net tangible asset/shareholders'
equity requirement. "We expect that these two transactions will provide
SmartServ with sufficient capital to satisfy this requirement and maintain its
listing on the Nasdaq SmallCap Market. We will provide further information about
our listing status as it becomes available to us," concluded Mr. Cassetta.

SmartServ also announced that as part of its overall expense reduction program,
and in an effort to focus its resources on meeting growing demand for its
products and services throughout North America, it has closed its sales offices
in Hong Kong and the United Kingdom, and will be terminating its previously
announced agreements in Hong Kong.

ABOUT SMARTSERV
SmartServ (NASDAQ:SSOLC), founded in 1993, is a B2B wireless technology leader
with a focus on providing financial institutions and network service providers
with potent, real-time financial applications and transaction routing systems
for virtually any portable device, such as PDAs, RIM and mobile handsets, over
any wireless network, including GSM, CDMA and the future 3G. SmartServ's
products include sophisticated engines capable of routing high-volume
transactions, alerts, real-time global market quotes, and news to multiple
destinations; proprietary W2W Middleware(TM) that configures content and
applications for a wide array of devices and networks; and a suite of
applications designed so that businesses and their customers can access
real-time or streaming information in order to make critical financial
decisions. Visit SmartServ at http://www.smartserv.com.

FORWARD-LOOKING STATEMENTS
This news release may contain forward-looking statements that involve risks and
uncertainties. Forward-looking statements in this document and those made from
time-to-time by the Company are made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
concerning future plans or results are necessarily only estimates and actual
results could differ materially from expectations. Certain factors that could
cause or contribute to such differences include, and are not limited to,
potential fluctuations in quarterly results, the size and timing of awards and
performances on contracts, dependence on large contracts and a limited number of
customers, dependence on wireless and/or internet networks of third-parties for
certain products and services, lengthy sales and implementation cycles, changes
in management estimates incident to accounting for contracts, availability and
cost of key components, market acceptance of new or enhanced products and
services, proprietary technology and changing technology, competitive
conditions, system performance, management of growth, the risk that the
Company's current and future products and services may contain errors or be
affected by technical problems that would be difficult and costly to detect and
correct, dependence on key personnel and general economic and political
conditions and other



factors affecting spending by customers, and other risks described in the
Company's filings with the Securities and Exchange Commission.