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Solar VTG Strengthens Offerings with Smart Online's Onebiz Suite of SaaS Applications Through Parallels Business Automation Platform

SaaS Applications Provide Increased Revenue Potential, Added Value Opportunity for Hosting Providers

Parallels and Smart Online announced today that Solar VTG, a platinum Parallels partner, will add the Onebiz suite of SaaS applications to its product platform, providing added value to its hosting customers and increased revenue potential.

“The small business software tools from Smart Online’s Onebiz application aligned with our enterprise class hosting solutions enabled us to offer our customers an affordable, turnkey business management solution,” said Ross Brouse, CEO of Solar VTG. “The significant value to our customers, ease of implementation, and additional revenue opportunities made the decision to implement Onebiz an easy one.”

Onebiz applications, powered by Smart Online and offered through the Parallels Automation systems, are designed specifically for the small business end user and include business productivity applications such as Accounting, Human Resources (HR), Customer Relationship Management (CRM) and Sales Force Automation (SFA).

“The Onebiz suite of SaaS applications is a natural fit for hosting providers looking for additional revenue or added customer value without the high cost, maintenance or upfront investment required to purchase or develop it themselves,” said David Colburn, CEO, Smart Online. “By partnering with Parallels, hosting providers have easy access to a scalable, affordable and fully customizable SaaS solution.”

“We are very pleased that using Parallels Automation Solar VTG will be able to build deeper customer loyalty and engagement through Smart Online's Onebiz platform," said Serguei Beloussov, CEO of Parallels. "We encourage all hosting providers to follow Solar VTG’s lead and explore the benefits of SaaS.”

About Parallels - Optimized Computing

Parallels (formerly SWsoft) is a worldwide leader in virtualization and automation software that optimizes computing for consumers, businesses, and service providers across all major hardware, operating systems, and virtualization platforms. Founded in 1999, Parallels is a fast-growing company with 900 employees in North America, Europe, and Asia. For more information, please visit www.parallels.com.

About Smart Online

Smart Online, Inc. (OTCBB: SOLN) delivers private-label, Software-as-a-Service (SaaS) applications designed to enable its corporate partners to acquire and retain small business customers. Smart Online’s applications help partners increase their recurring revenue, while aiding their small business customers to more efficiently start, manage and grow their businesses. To learn more, please visit www.smartonline.com.

About Solar VTG

Established in 2005, Solar VTG was founded on the concept of a virtualized business infrastructure. Using the power of Parallels virtualization and automation software, it has quickly become a global hosted applications service provider. Through its practice of optimized computing and strong business partnerships with industry leaders, Solar VTG delivers a fully automated service platform that enables a focus on personal client relationships and superior customer support.

Smart Online and the Smart Online logo are trademarks and/or registered trademarks of Smart Online Inc. in the United States.Other marks belong to their respective owners.

Forward-Looking Statements

Statements in this press release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties.Actual results could differ materially because of many factors, including, but not limited to, delays in development schedules, changes in market conditions, product announcements by other companies, Smart Online’s ability to raise capital to increase its sales and marketing budget, customer perception of the value of Smart Online’s enhanced products, Smart Online’s dependence on corporate partners to market its products, and its ability to effectively manage expenses.For further information regarding risks and uncertainties associated with Smart Online’s business, please refer to the Risk Factors section of Smart Online’s SEC filings, including, but not limited to, its Annual Report on Form 10-K for the year ended December 31, 2006 and the Quarterly Reports on Form 10-Q, copies of which may be obtained on the web site of the Securities and Exchange Commission.All forward-looking statements in this press release are based on information available to Smart Online on the date hereof.Smart Online undertakes no duty to update any forward-looking statement or to conform the statement to actual results or changes in Smart Online’s expectations.

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