SMITH MICRO SOFTWARE ANNOUNCES ACQUISITION OF ALLUME SYSTEMS INC.

Company Combination Will Offer Wireless Carriers and Handset Manufacturers
Industry Leading Compression Technology in an Offering to be Known as
StuffIt Wireless

ALISO VIEJO, Calif.–(July 05, 2005) — Smith Micro Software Inc. (NASDAQ:
SMSI), a developer and marketer of a wide range of software and services
for the wireless market, today announced it has acquired Allume Systems,
Inc., a wholly owned subsidiary of International Microcomputer Software
Inc. (IMSI) (OTC BB: IMSI). Allume is a leading provider of compression
software solutions that enable state of the art compression, security and
archiving of data including JPEG, MPEG and MP3 platforms. The Company’s
pioneering product suite known as StuffIt has been a de facto industry
standard since 1986.

Allume recently announced the development of a new JPEG compression
technology that reduces the size of JPEG images up to 30% in size without
any additional reduction of image quality. The company is planning to
expand the technology to provide similar compression for MPEG and MP3
files. This technology plays directly into Smith Micro’s strategy of
broadening its wireless product offerings and provides for the first time
to carriers and handset manufacturers enhanced compression technology that
could reside directly in the handset.

“We are very excited to bring Allume Systems, Inc. into the Smith Micro
family, said William W. Smith, Jr., Smith Micro’s President and CEO.
“Allume’s compression technology and their talented employees bring us a
new opportunity as we continue to expand our product offerings to wireless
carriers and handset providers. With the explosive expansion of camera
wireless phones and mobile devices, handset providers continue to need
additional storage for all of this data, be it pictures, full motion video
or audio. The patent pending technology from Allume provides a very cost
effective answer for our customer base.”

Through the agreement, Smith Micro will pay $11 million in cash and $1.75
million in Smith Micro shares to purchase all outstanding shares of Allume.
During the first calendar quarter of 2005, Allume contributed $2.5 million
to IMSI’s $6.4 million net revenue. We believe the acquisition is accretive
immediately to Smith Micro.

About Allume Systems, Inc.

Founded in 1988, Allume Systems, Inc., develops and publishes award-winning
software solutions for Macintosh and Windows. Allume’s leading brands are
StuffIt, Internet Cleanup(TM) and Spring Cleaning, Personal
ImageManager(TM). Formerly known as Aladdin Systems, Allume enables people
and businesses to communicate and manage their ideas and information.
Allume’s software offers a range of solutions, empowering people and
businesses in the areas of information access, removal, recovery, security,
productivity and Internet distribution.

About Smith Micro Software

Smith Micro Software, Inc., headquartered in Aliso Viejo, CA, is a
developer and marketer of wireless communication and utility software
products for multiple OS platforms. The company designs integrated cross
platform, easy-to-use software for personal computing and business
solutions around the world. With a focus on the Internet and Wireless and
Broadband technologies, the company’s products and services enable wireless
communications, eCommerce, eBusiness, Internet communications
(voice-over-IP), video conferencing, network fax, and traditional computer
telephony. Smith Micro’s complete line of products is available through
original equipment manufacturers (OEMs), direct sales, retail stores, and
value-added resellers (VARs). Smith Micro’s common stock trades on The
Nasdaq Stock Market under the symbol SMSI. For more information, contact
Smith Micro at (949) 362-5800 or visit the company’s Web site at
www.smithmicro.com.