Smart Move, Inc. Reports Second Quarter 2008 Revenue Increase

Comparable Revenue Increase of 30%



DENVER, Aug. 14  /PRNewswire-FirstCall/ -- Smart Move, Inc. (AMEX:MVE) today reported financial results for its second quarter ended June 30, 2008.

Highlights and items of significance for the second quarter of 2008 include:

  --  Revenues increased 30% to $1,747,135 for the 2nd Quarter 2008 as
      compared to 2nd Quarter 2007.
  --  Moves in progress increased 96% to $2,294,000 at June 30, 2008.
  --  The Company began providing its services to third party corporate
      relocation companies in June 2008 adding an additional revenue
      channel.
  --  Smart Move now maintains strategic business relationships with five
      major van line operators as contrasted with only one van line partner
      in 2007.




"I am pleased to report that each quarter Smart Move has consistently increased bookings and sales thanks to the efforts of our internal sales team," commented Chris Sapyta, President and Chief Executive Officer. "To put these sales developments in perspective, we are just now in our third full moving season and the company is beginning to benefit from brand recognition, referrals and repeat customers. This momentum, combined with our improved web presence, has increased internal sales opportunities. Operationally we continue to aggressively monitor and reduce our costs of moving and storage. I think it important to note that our sales have increased by 30% this quarter over prior year 2007's comparable sales during the same three month period, while our direct costs of sales have increased by only 6% over the same three month period as compared to second quarter 2007.  In addition, our selling, general and administrative costs have remained flat as compared with the prior year periods, demonstrating the success of our efforts to increase operating leverage on these expenses." (see table below).

Sapyta also added that "We continue to face hurdles in funding our operations. Securing the additional capital we need to implement and advance our business model continues to command our urgent attention, as we've discussed in our 10-Q for the quarter ended June 30, 2008."

The Company believes another true benchmark of growth is the 96% increase in its moves in progress over the comparable period ending June 30, 2007. (Moves in progress represent the anticipated future revenue of the Company for existing customer contracts that for accounting purposes cannot be recognized in the current period until the move has been completed.)

  Reported Sales and Cost of Operations for the Second Quarter 2008

                                                                      %
                               3 months ended June 30,  Increase/  Increase/
                                   2008         2007   (Decrease) (Decrease)
                               (unaudited)  (unaudited)

  Sales                        $1,747,135    $1,344,171   $402,964    30%

  Cost of moving and storage
   (excluding depreciation
   and amortization)            1,700,403     1,609,526     90,877     6%

  Gross profit (loss) excluding
   depreciation and amortization   46,732      (265,355)   312,087  -118%

  Total selling, general and
   administrative expenses      1,595,739     1,573,461     22,278     1%

    Operating loss including
     depreciation and
     amortization              (2,162,112)   (2,716,524)   554,412   -20%

  Net loss                    $(3,058,204)  $(2,454,639) $(603,565)   25%



  Second Quarter 2008 Results


Smart Move's comparable revenue for the second quarter increased by $402,964 to $1,747,135, an increase of 30%.  The operating loss for the three month period decreased by $554,412 compared to the operating loss incurred in the three months ended June 30, 2007.  The net loss increased $603,565 to $3,058,204 at June 30, 2008.  The increase in the net loss is due primarily to:

  --  An income tax benefit of $1,387,000 in 2007 compared to none in 2008
  --  Increase in non-cash compensation of $52,618
  --  Decrease in depreciation expense of $268,418
  --  Decrease of interest expense of $279,236


  Conference Call


The Company will host a conference call to discuss second quarter 2008 financial results on Friday, August 15, 2008 at 12:00pm (noon) Eastern. Hosting the call will be Chris Sapyta, Chief Executive Officer.

The conference call can be accessed live over the phone by dialing 800-240-5318, or for international [phone].  A replay will be available one hour after the call and can be accessed from the Company's website at http://www.gosmartmove.com/ under the investor relations section.

About Smart Move, Inc.

Smart Move is an innovative logistics company providing services through deployment of a fleet of Company-owned, SmartVault(TM) shipping containers to execute the movement of goods. Smart Move utilizes its proprietary and licensed technologies to efficiently manage its fleet of assets, providing superior security, scheduling flexibility and expedited service on behalf of its customers and alliance partners. Smart Move sells its services direct to moving consumers, and provides moving capacity and guaranteed logistic services to van lines and agents nation wide. Smart Move has operations in the top 60 cities in the USA and can service over 92 percent of the US population. http://www.gosmartmove.com/

Safe Harbor Statement Under The U.S. Private Securities Litigation Reform Act Of 1995

Certain statements in this release which are not historical facts are forward-looking statements such as statements relating to future operating results, existing and expected competition, financing and refinancing sources and availability and plans for future development or expansion activities and capital expenditures. These "forward-looking statements" are within the meaning of the Private Securities Litigation Reform Act of 1995. In many but not all cases you can identify forward-looking statements by words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "indicate", "may," "plan," "potential," "should," "will" and "would" or the negative of these terms or other similar expressions.  These forward-looking statements include statements regarding the company's expectations, beliefs, or intentions about the future, and are based on information available to the company at this time. Smart Move assumes no obligation to update any of these statements and specifically declines any obligation to update or correct any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Such forward-looking statements involve a number of risks and uncertainties that may significantly affect our liquidity and results in the future and, accordingly, actual results may differ materially from those expressed in any forward-looking statements.  Such risks and uncertainties include, but are not limited to, those related to effects of competition, leverage and debt service financing and refinancing efforts, general economic conditions, changes in laws or regulations and risks related to development activities as described in our registration statement on Form SB-2 filed for Smart Move's initial public offering, and other risk factors described from time to time in the company's periodic reports, including its annual report filed on Form 10-KSB  for the year ended December 31, 2007.

   Contact:
   Smart Move, Inc.
   Pete Bloomquist, 303-339-9558, 



  Balance Sheet

                                                                December 31,
  Condensed Balance Sheet                      June 30, 2008        2007
                           ASSETS               (unaudited)
  Current assets:
    Cash and cash equivalents                     $156,433        $369,189
    Accounts receivable trade, net of allowance
     of $32,000 and $45,000, respectively          282,028          80,112
    Packing supplies                                90,905          94,437
    Contracts in process                           952,258         517,485
    Prepaids and other                             132,866         146,259

      Total current assets                       1,614,490       1,207,482

    Property and equipment, net                 14,474,454      15,942,718
    Other assets                                   190,921         113,546
                                                14,665,375      16,056,264

  Total assets                                 $16,279,865     $17,263,746

       LIABILITIES AND SHAREHOLDERS' EQUITY
  Current liabilities:
    Accounts payable and other current
     liabilities                                $2,276,378      $2,550,281
    Accrued interest                               822,668         435,804
    Deferred revenue                               827,356         456,247
    Current portion of long-term debt and notes
     payable, net of discounts of $3,199,227
     and $1,051,310, respectively                1,934,440         409,070
    Derivative liability                         1,607,340               -
    Current portion of obligations under
     capital leases                                 95,655          91,648

        Total current liabilities                7,563,837       3,943,050

    Long-term liabilities:
    Long-term debt and notes payable, less
     current portion, net of discounts of
     $3,207,424  and $3,552,103, respectively    6,777,031       6,353,045
    Obligations under capital leases, less
     current portion                                92,984         145,653
  Total long-term liabilities                    6,870,015       6,498,698
    Total liabilities                           14,433,852      10,441,748

  Commitments and contingent liabilities

  Shareholders' equity:
  Preferred stock, $0.0001 par value,
   10,000,000 shares authorized; no shares
   issued                                                -               -
  Common stock, $0.0001 par value, 100,000,000
   shares authorized 12,399,623 and 10,979,699
   issued and outstanding, respectively              1,239           1,097
  Additional paid-in-capital                    22,062,391      20,807,395
  Accumulated deficit                          (20,217,617)    (13,986,494)
    Total shareholders' equity                   1,846,013       6,821,998
    Total liabilities and shareholders'
     equity                                    $16,279,865     $17,263,746




  Statements of Operations
                                              Three Months Ended June 30,
                                                   2008           2007
                                                       (unaudited)

  Sales                                         $1,747,135     $1,344,171

  Cost of moving and storage                     1,700,403      1,609,526
    Depreciation and amortization                  613,105        877,708
  Total cost of moving and storage               2,313,508      2,487,234

      Gross loss                                  (566,373)    (1,143,063)


  Selling, general and administrative expenses   1,561,447      1,535,354
    Depreciation and amortization                   34,292         38,107
  Total selling, general and administrative
   expenses                                      1,595,739      1,573,461
    Operating loss                              (2,162,112)    (2,716,524)

  Other income (expense):
    Interest income                                    443        110,654
    Interest expense                              (956,533)    (1,235,769)
    Gain on value of derivative liability           59,998              -
      Total other expense                         (896,092)    (1,125,115)

  Loss before income tax benefit                (3,058,204)    (3,841,639)
  Income tax benefit                                     -     (1,387,000)
  Net loss                                     $(3,058,204)   $(2,454,639)

  Net loss per share:
    Basic and diluted                               $(0.25)        $(0.23)
  Shares used to compute net loss per share:
    Basic and diluted                           12,399,623     10,476,941



  Statements of Operations
                                                Six Months Ended June 30,
                                                   2008           2007
                                                       (unaudited)

  Sales                                         $2,892,425     $2,292,119

  Cost of moving and storage                     2,893,396      2,665,131
    Depreciation and amortization                1,374,519      1,310,725
  Total cost of moving and storage               4,267,915      3,975,856

      Gross loss                                (1,375,490)    (1,683,737)


  Selling, general and administrative expenses   3,237,484      3,214,353
    Depreciation and amortization                   69,297         67,620
  Total selling, general and administrative
   expenses                                      3,306,781      3,281,973
    Operating loss                              (4,682,271)    (4,965,710)

  Other income (expense):
    Interest income                                  4,294        259,730
    Interest expense                            (2,043,080)    (1,639,918)
    Gain on value of derivative liability          851,915              -
    Loss on debt extinguishment                   (361,981)             -
      Total other expense                       (1,548,852)    (1,380,188)

  Loss before income tax benefit                (6,231,123)    (6,345,898)
  Income tax benefit                                     -     (2,367,000)
  Net loss                                     $(6,231,123)   $(3,978,898)

  Net loss per share:
    Basic and diluted                               $(0.51)        $(0.39)
  Shares used to compute net loss per share:
    Basic and diluted                           12,282,926     10,324,861


DATASOURCE: Smart Move, Inc.



CONTACT:  Pete Bloomquist of Smart Move, Inc., [phone],





Web site:  http://www.gosmartmove.com/ 

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