Merrill Lynch Initiates Research Coverage On SmartDisk With an Accumulate Recommendation

Business Wire, July 19, 2000

Business Editors/High-Tech Writers

NAPLES, Fla.--(BUSINESS WIRE)--July 19, 2000

SmartDisk Corporation (Nasdaq:SMDK), a company whose products simplify the digital lifestyle, today announced that Merrill Lynch, one of the world's leading financial management and advisory companies with offices in 43 countries and total client assets of about $1.8 trillion, initiated research coverage on the Company. Merrill Lynch's Steve Fortuna, 1st Vice President of Research who covers companies such as Apple, Dell, Compaq and Gateway, issued the Accumulate rating on SmartDisk's common stock. Mr. Fortuna has also provided Apple, Compaq and Gateway with accumulate ratings.

About SmartDisk Corporation

SmartDisk designs, develops, manufactures and markets digital connectivity products and personal storage systems that allow consumers to easily access and exchange digital data. The Company is using its proprietary and patented technologies to capitalize on the growing demand for digital applications and increased usage of the Internet. SmartDisk's investors and partners include Apple, Hitachi, IBM, NEC, SanDisk, SCM Microsystems, Sony, Toshiba and others. For more information, go to www.smartdisk.com.

The Company does not endorse the contents of any research report, estimate, forecast or analysis prepared by securities analysts or other third parties. Copies of information prepared by the Company, including its most recent Annual Report on Form 10-K and other public documents, may be obtained without charge by writing to SmartDisk Corporation, Investor Relations Department, 3506 Mercantile Avenue, Naples, FL 34104.