EXIBIT 99.2


SMARTSERV                     Investor Contact:         Media Contacts:
[LOGO]                        Robert Pons               Yin Chang/Henry Feintuch
                              Chief Executive Officer   KCSA Public Relations
                              SmartServ Online, Inc.    212-896-1228 / 896-1212
                              610-397-0689, Ext. 202    ychang@kcsa.com /
                              rpons@smartserv.com       hfeintuch@kcsa.com
                              www.smartserv.com

                                                           FOR IMMEDIATE RELEASE

              SMARTSERV COMPLETES PRIVATE PLACEMENT OF $10 MILLION

PLYMOUTH  MEETING,  PA.,  MARCH 1, 2004 - SmartServ  Online,  Inc.  (OTC:  SSRV)
announced that it has completed closing of $10 million in the aggregate in gross
proceeds in its private  offering of  investment  units  consisting of shares of
Series A Convertible Preferred Stock and warrants to purchase Common Stock.

On Friday,  February 27, 2004,  SmartServ completed the second and final closing
in the  amount of  approximately  $6 million in gross  proceeds  in its  private
offering.  Previously,  on February  13,  2004,  SmartServ  completed  the first
closing of approximately $4 million in gross proceeds.

SmartServ  had  increased  the  maximum  amount of its  private  offering to $10
million from the initial maximum amount of $6 million (exclusive of up to 30% to
cover any over allotments).

The Units were privately placed with accredited investors pursuant to Regulation
D under the Securities Act of 1933, as amended. SmartServ expects to use the net
proceeds of this offering for repayment of outstanding  obligations,  completion
of strategic acquisitions and general working capital.

In  addition to the Units sold in the first  closing,  Units were also issued to
holders of SmartServ's  convertible  debentures totaling $3 million plus accrued
interest, in a conversion of such debentures into Units.

The Units and underlying  securities issued in this offering were not registered
under the  Securities  Act of 1933, as amended,  or state  securities  laws, and
unless so  registered,  may not be offered or sold in the United  States  except
pursuant to an applicable  exemption from the  registration  requirements of the
Securities Act and applicable state securities laws. This press release is being
issued  pursuant to and in accordance with Rule 135c under the Securities Act of
1933, as amended.

                                     (more)


SMARTSERV / 2

ABOUT SMARTSERV
SmartServ  (OTC:  SSRV) is a wireless  applications  service  provider  offering
applications,   development  and  hosting  services.  SmartServ's  customer  and
distribution relationships include wireless carriers,  strategic partners, and a
major financial  institution.  Our  applications can be delivered via Java(TM) 2
Platform,  Micro Edition  (J2ME(TM)),  QUALCOMM's Binary Runtime Environment for
Wireless(TM)  (BREW(TM))  solution,  WAP and SMS, as well as RIM  Blackberry and
Pocket PC devices. For more information, please visit 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.

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