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SmartDisk Announces Patent Infringement
Judgment In Its Favor

Fort Myers FL, 12/16/2003 – SmartDisk Corporation today announced that a patent infringement case filed against the company and Fuji Photo Film U.S.A. has been resolved in its favor by the United States District Court for the Middle District of Florida Ft Myers Division, which recently entered a final judgment of non-infringement. The lawsuit, filed in June 2000, alleged that SmartDisk's Smarty and FlashPath products infringed a patent asserted by PC Connector Solutions, LLC. PC Connector Solutions LLC has recently filed a Notice of Appeal to the United States Court of Appeals for the Federal Circuit.

"We are pleased that the Court has agreed with SmartDisk that there was no infringement by our products. The Court's Summary Judgment ruling resolves at the District Court level the legal issue between the parties and allows us to focus on our new products," commented Michael S. Battaglia, President and Chief Executive Officer of SmartDisk.

About SmartDisk Corporation
SmartDisk is a leading provider of portable, network and multimedia storage products and technologies that enable people to enjoy, 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 more information, go to http://www.smartdisk.com.

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For further information contact:|
Crystal Revak
SmartDisk Corporation
239/425-4072
Crystal.Revak@smartdisk.com




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