Smart Online Expands Leadership Team to Better Manage Growth and Improve Execution

Business Wire, July 16, 2008

Timothy Krist Named Chief Financial Officer

RESEARCH TRIANGLE PARK, N.C. -- Smart Online (OTCBB: SOLN), a leading provider of Software-as-a-Service (SaaS) applications for the small business market, today announced the appointment of Timothy Krist as its Chief Financial Officer.

"I am pleased to welcome Tim to Smart Online, as we continue to build out and further strengthen our management team," said David E. Colburn, Smart Online's chief executive officer. "We will draw on his experience as Director of Finance at publicly traded firms such as KB Home and Blackboard to help us improve the strategic management of Smart Online's finance operations.."

Along with financial management posts at KB Home and Blackboard, Krist held positions at International Fibercom and Deloitte & Touche. He holds a BA in Accountancy from Miami University and an MBA from Arizona State University.

About Smart Online

Smart Online, Inc. (OTCBB: SOLN) delivers private-label, Software-as-a-Service (SaaS) applications designed to enable its corporate partners to acquire and retain small business customers. Smart Online's applications help partners increase their recurring revenue, while aiding their small business customers to more efficiently start, manage and grow their businesses. To learn more, please visit www.smartonline.com.

Smart Online and the Smart Online logo are trademarks and/or registered trademarks of Smart Online, Inc. in the United States. Other marks belong to their respective owners.

Forward-Looking Statements

Statements in this press release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of many factors, including, but not limited to, delays in development schedules, changes in market conditions, product announcements by other companies, the potential impact of current litigation or any future litigation, customer perception of the value of Smart Online's enhanced products, Smart Online's dependence on corporate partners to market its products, and its ability to effectively manage expenses. For further information regarding risks and uncertainties associated with Smart Online's business, please refer to the Risk Factors section of Smart Online's SEC filings, including, but not limited to, its Annual Report on Form 10-K for the year ended December 31, 2007 and the Quarterly Report on Form 10-Q, copies of which may be obtained on the web site of the Securities and Exchange Commission. All forward-looking statements in this press release are based on information available to Smart Online on the date hereof. Smart Online undertakes no duty to update any forward-looking statement or to conform the statement to actual results or changes in Smart Online's expectations.