SOURCE: SMTP, Inc.

August 03, 2011 08:00 ET

SMTP, Inc. Announces Record Second Quarter 2011 Results

Net Revenue Increased 62% and Net Income Increased 169%

CAMBRIDGE, MA--(Marketwire - Aug 3, 2011) - SMTP, Inc. (OTCBB: SMTP), a provider of internet-based email delivery services, today announced record results for its quarter ended June 30, 2011.

For the second quarter of 2011, net revenues increased 62%, to $1,000,555, up from $616,243 in Q2 2010. Profit before taxes increased 185% to $384,213 from $134,918 in Q2 2010. Net income increased 169% to $202,927 in Q2 from $75,511 in Q2 2010.

"The market for email delivery continues to grow and we believe we are providing the right value to grow right along with it," commented Semyon Dukach, CEO of SMTP. "Our major service products all experienced growth with our dedicated services for larger customers increasing the most."

Email continues to be the primary communications channel for marketing, social media and ecommerce applications. Companies are expanding their web-based applications to reduce costs while increasing the ease of doing business with existing and potential customers. As a result, the reliance on email for transactional message delivery, such as sales confirmations, billing statements, account changes and service request acknowledgements becomes increasingly more important for businesses.

Popular social media sites, like Groupon, Facebook, LinkedIn and Google+, have proven to be heavy users of email as a means to engage with their users. Additional social applications and companies continue to appear adding fuel to the need for reliable email delivery capability.

"As companies recognize the challenges involved in getting critical messages delivered to their users' email inboxes, many are looking to outsource email delivery functions rather than doing it themselves," continued Dukach. SMTP has been able to attract new customers and increase sales and profits by providing high quality services with 24/7 support."

Recently, SMTP announced the opening of a new data center to enhance the quality of its cloud-based services. In addition, the company recently announced obtaining a large block of its own IPv4 addresses to support future customer growth and the needs of high volume senders.

About SMTP, Inc. (OTCBB: SMTP)
SMTP is a leading provider of cloud-based services to facilitate email deliverability, including bulk and transactional sending, reputation management, compliance auditing, abuse processing and issue resolution. Our services provide customers with the ability to increase the deliverability of email with less time, cost and complexity than handling it themselves. SMTP, Inc. is based in Cambridge, Massachusetts and on the web at www.smtp.com.

Safe Harbor Statement
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continues," "estimates," "projects," "intends," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing new customer offerings, changes in customer order patterns, changes in customer offering mix, continued success in technological advances and delivering technological innovations, delays due to issues with outsourced service providers, and various other factors beyond the Company's control.

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