EXHIBIT 99.1
SMARTSERV(R)
[LOGO] Investor Contact: Media Contact:
Robert Pons Neil Vineberg
Chief Executive Officer Vineberg Communications
SmartServ Online, Inc. 631-288-6933 / 235-8963
610-397-0689, Ext. 202 Neil@VinebergCommunications.com
rpons@smartserv.com
www.smartserv.com
SMARTSERV ENTERS INTO LETTER OF INTENT TO ACQUIRE
PREPAID TELCOM DISTRIBUTOR KPCCD, INC. ;
Acquisition Expected To Add As Much As $2 Million Per Month in Revenue
PLYMOUTH MEETING, PA (July 28) - SmartServ Online, Inc. (OTCBB:SSRV), the
innovative leader in mobile content, technology and applications, announced
today that it has signed a Letter of Intent and is negotiating definitive
agreements to acquire KPCCD, Inc., a New York City-based distributor of
international prepaid calling cards. The deal, which is expected to close before
August 30.
The acquisition of KPCDD is expected to add as much as $2 million in monthly
revenue based on KPCDD's financial information
Founded in 1998, KPCCD distributes prepaid calling cards through a network of
hundreds of retail outlets along the East Coast.
"The completion of this acquisition will provide SmartServ with direct access to
KPCCD's retailers and expand our existing distribution network for SmartServ's
wireless products, services, and mobile content," said Robert Pons, CEO,
SmartServ.
"KPCCD's calling card business will also allow SmartServ to enter the overall
international prepaid phone card market, which is expected to reach $2.75
billion in revenues by 2008," added Nick Patel, founder and president of KPCCD.
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page 2 - SMARTSERV TO ACQUIRE KPCCD
The closing this transaction is subject to customary closing conditions for
these types of transactions, as well as the following closing conditions: (i)
execution of the stock purchase agreement, (ii) SmartServ's satisfaction with
the results of its due diligence investigation of each company, and (iii)
execution of employment agreements with key individuals in each company.
There can be no assurance that SmartServ will be able to complete definitive
agreements and close the contemplated acquisition.
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About SmartServ
Founded in 1993, SmartServ (OTCBB: SSRV), a mobile marketing company, helped
launch the mobile marketplace with its breakthrough content and enabling
applications. Today SmartServ continues to be a market innovator as a Mobile
Virtual Network Operator (MVNO) that is pioneering an "enhanced service
bundling" strategy. SmartServ bundles the best in flexible minute plans with the
latest in mobile content through its UPHONIA.COM web site and its UPHONIA(TM)
content kiosks. The combination of services delivers added value for mobile
consumers. 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 are described from time to time in the
Company's filings with the Securities and Exchange Commission, including but not
limited to, the "Risk Factors" described under the heading "Certain Factors That
May Affect Future Results" in the Company's Annual Report on Form 10-KSB/A for
the year ended December 31, 2003.