SmartServ Signs Letter of Intent to Acquire nReach; Wireless Content Distribution Company To Add To SmartServ Content

Business Wire, Dec 16, 2003

Business Editors/High-Tech Writers

PLYMOUTH MEETING, Pa.--(BUSINESS WIRE)--Dec. 16, 2003

SmartServ Online, Inc. (OTC: SSRV) has signed a letter of intent and is negotiating definitive agreements to acquire nReach, Inc., a Golden, Colo.-based provider of mobile commerce solutions and services for the retail channel.

nReach is a pre-eminent marketer of a broad portfolio of popular mass-market mobile phone content including ringtones, images, games, applications and video direct to consumers. Licensed ringtone content includes American Idol, The Matrix, Eminem, Britney Spears, 50 Cent, The Beatles, Elvis Presley, 2Pac, Snoop Dogg and Frank Sinatra. The company's 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. The potential acquisition will form a key component of SmartServ's bundled product offerings.

According to Robert Pons, interim chief executive officer and a SmartServ director, "The completion of this acquisition will provide SmartServ with direct access to the largest mass merchants in the nation with a rich catalog of content." nReach's current marketing and distribution agreements include Best Buy (NYSE: BBY), Radio Shack (NYSE: RSH) and CVS /pharmacy (NYSE: CVS).

SmartServ also recently announced a Letter of Intent to purchase Mobile Airwaves, Inc., developers of Aqivo(R) Wireless Software Solutions. Aqivo enables the delivery of e-mail and data applications over wireless networks to practically any data-enabled device including cell phones, PDAs and smart phones and allows users to access e-mail on their enterprise networks.

"These potential acquisitions will enhance our ability to address the new and evolving cellular industry marketplace. We continue to deliver data and branded content that can increase wireless data revenue and customer retention," said Mr. Pons. "Through these acquisitions and our internal development, we are building a wide array of premium content that we will offer through our pre-existing carrier distribution channels, as well as through new bundled offerings including pre-paid voice minutes," he added.

Mike Stemple, founder and chief executive officer of nReach said, "The explosive growth of mobile phones presents a new opportunity - the ability to provide a new channel of distributing and monetizing mobile phone content and applications. Our current product catalog and our distribution outlets, combined with SmartServ's current offerings, should allow us to take a leadership position in the mobile content industry."

There can be no assurance, however, that SmartServ will be able to complete definitive agreements and close the contemplated acquisition.

About nReach, Inc.

nReach, Inc. is the leading provider of mobile commerce solutions and services for the retail channel. The Company's turnkey solution provides retailers a comprehensive set of tools to capitalize on the growing market of mobile commerce. The nReach solution is private labeled and consists of online ecommerce, retail PIN card sales, and the industry's first Mobile Content Vending Machine for in-store unattended sales. The Company's solution also provides the largest selection of content, as well as, the broadest carrier and mobile phone support. For more information on nReach, visit www.nReach.biz or visit our online store at www.nReach.com.

About SmartServ Online

SmartServ (OTC: SSRV) is a wireless applications service provider offering applications, development and hosting services. SmartServ's customer and distribution relationships exist across a network of 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.