MLM Holdings Enhances Affiliate Marketplace with Addition of Personal Websites, On-Demand Business Applications from Smart Online

RESEARCH TRIANGLE PARK, N.C. (June 30, 2008) – Smart Online, Inc. (OTCBB: SOLN), the leading provider of private-label Software-as-a-Service (SaaS) applications for the small business market, today announced MLM Holdings, Inc. and its subsidiary, Escape International, Inc., one of the largest network marketing organizations in the United States, has entered into a new, more extensive relationship to enhance its existing affiliate marketplace, Aisle 19, as well as make available a Website platform that can be personalized and includes business management tools for its independent business owners (IBOs).

Under the terms of the agreement, Smart Online’s comprehensive suite of daily use applications and business tools will be made available to the network marketer’s IBOs under the Escape International brand.  The platform includes capabilities such as Web site personalization tools, domain name processing, business cards, accounting, shared group calendar, contact management, sales force automation and customer relationship management.  The Smart Online platform is designed to assure consistent presentation of the Escape corporate brand and its product and service brands as well as a turnkey marketing package that can be customized for each IBO.

“Smart Online’s on-demand software has proven itself in the network marketing industry and we believe it will be an exceptional business-building device for our IBOs as well as a real value builder for Escape International,” said David A. Rutz, MLM Holding’s founder and chief executive officer.  “We decided to broaden our relationship with Smart Online as we believe the quality and effectiveness of its Platform-as-a-Service (PaaS) is well-designed and well-suited for the needs of our associates as we expand around the world.  It will help our IBO’s to grow their businesses and, in the process, move us closer to our goal of one day having more full-time independent business owners than the largest employer in the world has employees.”

 “Smart Online is pleased Escape International will offer even more of our services to the IBOs in its network,” said David E. Colburn, Smart Online’s chief executive officer.  “This agreement serves as powerful evidence of the appeal and utility of Smart Online’s services that are tailored to the needs of specific types of small businesses, yet offer the same functionality of similar applications used in large-scale enterprises.”

About MLM Holdings, Inc.

MLM Holdings is a holding company which concentrates its holding positions in the Network Marketing Supplier and Sales Industry.  MLM Holdings currently owns:  Xymetri, Inc. a Wellness Company focusing on medically endorsed Nutraceutical grade nutrition products (http://www.xymetri.com) ; Makaila Morgan, Inc., a high end skin care and anti-aging product line with functional, proven, patented ingredients; (http://www.makailamorgan.com); Aisle19, Inc., a FREE online savings portal that offers its members cash back and special offers from over 600 online stores such as Wal-Mart, Home Depot, Macys, Kohls, etc. (http://www.aisle19.com), and Escape International, a rapidly growing direct sales company (#688 INC5000 2007) that offers a FREE startup model for new Independent Business Owners(http://www.escapeinternational.com).

MLM Holdings and Escape are located in Bloomfield Township, Michigan. For additional company information, visit the Escape International Website at: http://www.escapeinternational.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.

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, 2007 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, 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.

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.