Smartlinx Inc., is pleased to announce that its wholly owned subsidiary, Smartlinx VoIP Networks Private Limited, signed a memorandum of understanding with Nettlinx Limited (?Nettlinx?), an ISP and STPI registered service provider in India, to collaborate on the development of biometric based eGovernance system. Under the memorandum of understanding, Smartlinx has granted Nettlinx the right to use and market its SmartVM technology, an eGovernance application to be used with biometric systems, in the state of Andhra Pradesh, India. Smartlinx will retain the rights to market and use SmartVM outside of the state of Andhra Pradesh, India.

Nettlinx has obtained a work order from the Forest Department of the Government of Andhra Pradesh to develop a biometric based voting machine for pilot implementation. The parties anticipate that Nettlinx will initially use SmartVM in its development of this biometric based voting machine. Smartlinx has agreed to assist Nettlinx in the customization of SmartlinxVM with biometric based hardware and will also provide maintenance and support services to Nettlinx.

The term of the memorandum of understanding is for a period of one year. Each party may terminate the memorandum of understanding upon providing one month?s written notice to the other party.