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Mercedes-Benz Canada Inc. Selects SmartVideo to Provide Its Internet Based Training and Marketing

ATLANTA--July 12, 2004--SmartVideo Technologies, Inc. (OTCBB: SMVD.OB) today announced that SmartVideo Canada Inc., its Canadian distribution channel, has signed a multi-task agreement with Mercedes-Benz Canada Inc. to coordinate their Canada-wide dealer training and marketing programs. SmartVideo will use its unique Internet based technology to assist Mercedes-Benz Canada Inc. in developing a complete online training solution for all its dealers, including the introduction of their full range of vehicles, throughout Canada.

"We envision using SmartVideo for our dealer training and marketing programs as the first step in the integration of our company wide Internet based solutions. SmartVideo's technology gives us the ability to deliver our information in a clear and timely manner throughout Canada, without having to deal with barriers relating to the viewer's connection speed. We are looking forward to expanding our use of SmartVideo's technology and services into our internal communications medium," said Jeremy Henson, Sales Trainer, Mercedes-Benz Canada Inc.

"I am pleased to welcome Mercedes-Benz Canada Inc. a premier customer of SmartVideo, a Microsoft Windows Media(R) 9 Series Certified Hosting Provider. By choosing SmartVideo's innovative technology as their communications tool, Mercedes-Benz Canada Inc. can now deliver their information more effectively, more efficiently and more frequently to its entire dealer network across Canada," said Mark Webster of SmartVideo Canada Inc.

Jeremy Henson of Mercedes-Benz Canada Inc. further stated, "Over the next 36 months Mercedes-Benz Canada Inc. will be introducing an unprecedented number of new products to the Canadian marketplace, and it is therefore important to have a comprehensive and cost effective new training strategy in place. To that end, the collaboration of Mercedes-Benz Canada Inc. with SmartVideo Canada Inc. offers us the capability to significantly improve our product and employee training efficiency. We feel that in SmartVideo Canada we are collaborating with the best company available for our immediate training needs. We are hopeful that the combination of SmartVideo Canada's innovative video streaming technologies and Mercedes-Benz' `class-leading' products will offer continued market success and growth for both our companies in the future."

About Mercedes-Benz Canada Inc.

Mercedes-Benz Canada Inc. is a wholly owned subsidiary of DaimlerChrysler AG headquartered in Stuttgart, Germany. Mercedes-Benz Canada Inc. is the distributor and importer of Mercedes-Benz group passenger cars which also include Maybach and the "soon-to-be-available" smart for two coupe and roadster products into Canada. The company's headquarters are based in midtown Toronto with regional offices in both Vancouver and Montreal, and have a national dealer network of 56 dealers across Canada. The sales of Mercedes-Benz products in Canada reached a volume level of 13,876 units in 2003.

About SmartVideo

Based in Norcross, GA and with offices in Mississauga, ON, Canada, SmartVideo Technologies, Inc., a Windows Media(R) 9 Series Certified Hosting Provider, is a leading provider of turnkey digital media solutions that allows for the management of live or on-demand high quality video presentations delivered via the Internet, cellular or wireless devices. SmartVideo's proprietary technology enables video content to be viewed on both broadband and dial-up Internet connections. SmartVideo's Internet solutions can be streamed over the Internet at speeds as low as 23Kbps and at an average of 15 frames per second, allowing its clients to reach more than 95% of all Internet users. The Company's stock is traded on the OTC Bulletin Board under the symbol SMVD.OB. Additional information on SmartVideo including sample demos can be found on the Company's Website at www.smartvideo.com or www.smartvideo.ca.

Forward Looking Statements

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "intend," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the inability of SmartVideo to obtain the additional financing needed to fund operations, the failure of SmartVideo to convert its present and future customer contracts into profitable arrangements for SmartVideo, unexpected costs, delays and other difficulties related to the timing and success of product development and marketing plans, adverse changes in the market for the delivery of full-motion, streaming video content, the failure of SmartVideo's hosting infrastructure, the complexity of SmartVideo's services and delivery network, pricing and other activities by competitors, difficulties involved in retaining and motivating key personnel and other risks detailed in SmartVideo's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, SmartVideo undertakes no obligation to update these statements for revisions or changes after the date of this release.