FOR IMMEDIATE RELEASE -- HAWTHORNE, N.Y. -- May 11, 2005 -- SmartPros Ltd. (AMEX: PED), a leader in the field of accredited professional education and corporate training, today reported first quarter results for the period ended March 31, 2005.

For the three months ended March 31, 2005 compared to the three months ended March 31, 2004:

• Revenues increased 28.4% to $2.85 million from $2.22 million.
• As a percentage of revenue, operating expenses decreased to 55.3% from 61.1%.
• Net income was $216,000, or $0.04 per share, compared to a net loss of $7,360 in the first quarter of 2004.
• Net cash generated by operating activities was $248,000 compared to $230,000.
  

As of March 31, 2005, the Company had approximately $6.92 million in cash and investments, working capital of $3.70 million and stockholders' equity of approximately $6.64 million.

Allen Greene, Vice Chairman and Chief Executive Officer of SmartPros, noted, "Our first quarter results reflect the ongoing success of our strategy to build our core business while remaining focused on controlling costs. We are particularly pleased with the uptrend we are seeing in year-over-year revenue growth and in overall profitability."

Continuing, Greene added, "Despite its strong organic growth, the Company remains committed to its goal of expanding into new verticals and markets through acquisitions. We continue to evaluate acquisition opportunities that are presented to us. We have specific criteria that must be met and are considering only those opportunities that best fit our needs."

SmartPros will host a teleconference this afternoon beginning at 4:15 p.m. Eastern, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progression and other meaningful developments. The conference call can be accessed via telephone by dialing toll free 1-800-240-2134. A replay of the call will be available on the Company's Web site approximately one hour after the live broadcast at http://ir.smartpros.com. A copy of this news announcement is immediately accessible via http://ir.smartpros.com.

About SmartPros Ltd.
Founded 1981, SmartPros Ltd. is an industry leader in the field of accredited professional education. Its products and services are primarily focused in the accredited professional areas of corporate accounting, financial management, public accounting, governmental and not-for-profit accounting, ethics and compliance, and engineering. SmartPros' customers include over half of Fortune 500 companies, as well as the major firms and associations in each of its professional markets. SmartPros provides education and content publishing and development services in a variety of media including Web, CD-ROM and video. Our subscription libraries feature hundreds of course titles and 1,000+ hours of accredited education. SmartPros' proprietary Professional Education Center (PEC) Learning Management System (LMS) offers enterprise distribution and administration of education content and information. In addition, SmartPros produces a popular news and information portal for accounting and finance professionals that services 300,000+ visitors and 100,000+ subscribers per month. Visit: http://www.smartpros.com

Safe Harbor Statement
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Results reported within this press release should not be considered an indication of future performance. Except for any historical information, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve risks and uncertainties, including activities, events or developments that the Company expects, believes or anticipates will or may occur in the future. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in our filings with Securities and Exchange Commission.


Visit SmartPros' Investor Relations section for additional information.


For more information, please contact:
Shane Gillispie
Marketing and eCommerce
SmartPros Ltd.
253-863-8280
shanegillispie@smartpros.com

Andrea Strittmatter
Account Executive
Elite Financial Communications Group, LLC
407-585-1080
ped@efcg.net