SmartDisk Acquires Zio Corporation

Headquartered in San Jose, California, Zio's products include theDazzle, CameraMate and FoneMate brands and are sold through leadingretailers in the U.S. and Europe. Plans call for Zio's U.S. officesand operations to be consolidated into the SmartDisk Fort Myers,Florida headquarters location. Key management personnel will remain atZio to aid in the integration of the business and sales activities.

"Zio's products broaden the SmartDisk line and add premier brandsto our market offerings," said Michael S. Battaglia, President andChief Executive Officer of SmartDisk Corporation. "Zio also addsvaluable new partners, both retailers on one hand and suppliers on theother. The addition of Zio will increase SmartDisk revenues, enhanceour profitability, and expand our share of the rapidly growing digitallifestyle market."

"Zio and SmartDisk are a natural fit, serving the same digitalconsumer market and reaching consumers through similar channels ofdistribution," noted Andrew Warner, Chief Executive Officer of Zio."Zio's market leadership position with digital media readers and thepotential of our video and mobile phone solutions, together withSmartDisk's size and scale, creates a winning combination."

About SmartDisk Corporation

SmartDisk is a leading provider of portable, network andmultimedia storage products and technologies that enable people toenjoy, share and preserve digital content and information.Headquartered in the U.S., with operations in Europe and Asia,SmartDisk sells and supports its products worldwide. For moreinformation, go to http://www.smartdisk.com.