Smart Holdings Announces Direct to Consumer Reseller Agreement with AAG to Offer NAC’s “Best Of Class�?? Extended Service Agreements Nationwide

MARIETTA, Ga.--Smart Holdings, Inc. (SMHS.PK), dba Assurance Group Direct, today announced that it has finalized agreements with Automotive Assurance Group and is now fully approved to sell extended auto service plans direct to consumers nationwide. The deal allows the Company to be one of an exclusive group of direct-to-consumer resellers. The administrator, National Auto Care, is a 26-year old company who is backed by American Bankers and underwritten by Assurant.

“because so many repairs are caused by failed seals or gaskets and or normal wear and tear.”

Customers will be getting the stability and experience service of an administrator who has been in business over 26 years who has serviced over 1 million extended service agreements and, in the past year alone, processed over $25 million in paid claims. Smart Holdings will be able to market a wide variety of Extended Auto Service Plans direct to consumer, but also have the ability to develop sales through dealers on the B-to-B side through the more traditional Brick and Mortar channels.

Consumers have been keeping their cars longer. The median number of cars in operation is 9.4 years up from 9.2 according to R.L. Polk & Co; 2008 from 2007. The median number of trucks according to same study was 7.6 years up from 7.3 in 2008 from 2007 respectfully. 13.2 million automobiles were sold in 2008 by new car dealers, and 10 million by used car dealers. In 2005 there were 241,000,000 Cars registered in the US according to the 2007 Statistical Abstract of the United States http://www.census.gov/compendia/statab/files/enercomm.html.

“This has left a tremendous opportunity for a company to target this market in excess of 100 million strong each year,�?? said Nick D’Amico, President and CEO of Automotive Assurance Group who is the representing agency provider for Smart Holdings, Inc. “We are excited to complete this transaction because we know how much demand there is in the extended auto warranty business.�??

“There are a lot of policies out there with exclusionary clauses that specifically don’t cover things like normal wear and tear or seals and gaskets�?? said D’Amico. Smart Holdings “Best Of Class�?? policies will cover normal wear and tear and seals and gaskets because they are underwritten by one of the largest AM Best A Rated insurance Companies in the country. “This is a big advantage over most of the competition,�?? added D’Amico, “because so many repairs are caused by failed seals or gaskets and or normal wear and tear.�?? For Smart Holdings extended auto coverage plans go to www.assurancegroupdirect.com.

Smart Holdings plans include marketing direct to consumer on TV and through the Internet as well as through traditional auto dealer groups, auctions, finance companies, used car dealers, as well as large groups and organizations.

About Smart Holdings, Inc.

Headquartered in Marietta, GA, Smart Holdings, Inc., through its wholly owned subsidiary, Assurance Group Direct, is in the business of selling automotive extended service plans on a nationwide basis directly to consumers through national television advertising and internet marketing as well as traditional wholesale distribution channels such as the brick and mortar auto dealers, used car dealers, service drives, auctions and through organizations and finance companies.

For more information, please visit: www.smartholdingsinc.com.

Forward Looking Statements

This press release includes statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Smart Holdings, Inc. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," or "anticipates," and do not reflect historical facts. Specific forward-looking statements contained in this press release include, but are not limited to: our successful integration of diversified growth companies, impact of the company's expansion plan, and new business development success, future financial results, development and acquisition of new product lines and services, the impact of competitive products or pricing from technological changes, the effect of economic conditions and other uncertainties.