FOR IMMEDIATE RELEASE -- HAWTHORNE, N.Y. -- August 10, 2005 -- SmartPros Ltd. (AMEX:PED), a leader in the field of accredited professional education and corporate training, today reported second quarter results for the period ended June 30, 2005.

For the six months ended June 30, 2005 compared to the six months ended June 30, 2004:

• Revenues increased 21% to $5.56 million from $4.59 million.
• As a percentage of revenue, operating expenses decreased to 53.9% from 58.8%.
• Net income increased 124% to $390,211, or $.08 per fully diluted share, compared to net income of $174,216, or $.05 per fully diluted share.
  

For the three months ended June 30, 2005 compared to the three months ended June 30, 2004:

• Revenues were $2.71 million, representing a 14% increase over revenues of $2.37 million.
• As a percentage of revenue, operating expenses decreased to 52.4% from 56.7%.
• Net income decreased 4.1% to $174,119 compared to $181,576.
  

As of June 30, 2005, the Company had approximately $6.98 million in cash and investments, working capital of $3.95 million and stockholders' equity of approximately $6.83 million.

"Our company has made steady progress through the first half of 2005, both in financial and strategic terms," said Allen Greene, Vice Chairman and Chief Executive Officer of SmartPros. "In addition, we remain committed to identifying and qualifying acquisition candidates that meet our specific acquisition criteria."

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 1-800-240-4186. 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
f 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: www.smartpros.com

Safe Harbor Statement
This release may contain or identify forward looking statements. These statements are based on assumptions and estimates, which are inherently subject to uncertainty and contingencies that are beyond our control and are based on future business decisions that may change.


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