EXHIBIT 99.1
SMARTSERV
[LOGO]
Investor Contact: Media Contacts:
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 ACQUISITON OF NREACH
Mobile Phone Content Company to Expand
SmartServ's Distribution into Retail Channels
PLYMOUTH MEETING, Pa., March 2, 2004 - SmartServ Online, Inc. (OTC: SSRV)
announced today that it has completed the acquisition of Golden, Colo.-based
nReach, Inc., creating the industry's first complete suite of wireless
applications and the technologies to bring them to market, spanning the entire
mobile phone industry from the consumer to the enterprise.
The acquisition brings together two leading mobile technology companies and
marks a significant development for the mobile phone industry. The combined
SmartServ and nReach technology platforms and distribution channels create a
turn-key opportunity for retailers, brands and entertainment properties. It
extends the current SmartServ product suite with the addition of
entertainment-based mobile content products such as ringtones, images, games,
applications and video. The combined companies now provide a complete solution
for creating, distributing, marketing, managing and monetizing mobile phone
content across the carrier, retail and enterprise channels.
SmartServ has acquired all of the stock of nReach in exchange for 500,000
shares of SmartServ common stock. In addition, SmartServ has assumed up to
$100,000 of nReach's obligations and nReach shareholders may also earn up to
916,667 additional shares of SmartServ common stock in the event SmartServ
reaches certain revenue targets within the next five fiscal quarters.
Robert Pons, SmartServ's president and CEO said, "This acquisition
perfectly complements our existing strategy. With nReach's broad portfolio of
popular, mass-market mobile phone content - including ringtones, images, games,
applications and video - we now have access to a large consumer base through
nReach's marketing agreements with some of the nation's largest retailers
including Best Buy, RadioShack and CVS."
"As nReach continued to add more and more clients, we needed to find a
solution for distributing their products into the carrier and enterprise
channels," said Mike Stemple, founder and President of nReach. "SmartServ is the
perfect solution, and now being part of the SmartServ family, we plan to
leverage our distribution expertise in order to further monetize mobile phone
content and applications on behalf of our customers."
(more)
SMARTSERV ACQUIRES NREACH / 2
About nReach
nReach (www.nReach.com; www.nReach.biz) provides the retail, marketing and
entertainment industries with a comprehensive technology platform to capitalize
on the growing market for mobile phone content. Its private label solutions
consists of online ecommerce, retail packaged goods/ PIN card sales and the
industry's first Mobile Content Vending Machine for in-store unattended sales.
nReach's solution also provides the largest selection of content, as well as,
the broadest carrier and mobile phone support. Licensed ringtone content
includes American Idol, The Matrix, Eminem, Britney Spears, 50 Cent, The
Beatles, Elvis Presley, 2Pac, Snoop Dogg and Frank Sinatra. Its catalog also
includes MAXIM and Corbis images and games such as Tom Clancy's Splinter Cell,
NHL Power Shot Hockey, Spiderman, Wheel of Fortune, Jeopardy, Charlie's Angels,
Q*Bert, and Rayman.
About SmartServ
SmartServ (OTC: SSRV) has a complete suite of wireless applications and the
technologies to bring them to market, spanning the entire mobile phone industry
from the consumer to the enterprise. 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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