MVE Smart Move,

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 +303-262-2054. 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., +1-303-339-9558, Web site: http://www.gosmartmove.com/

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