SmartPros: Knowledge for Professionals

FOR IMMEDIATE RELEASE -- HAWTHORNE, N.Y. -- August 9, 2006-- SmartPros Ltd. (AMEX:PED), a leader in the field of accredited professional education and corporate training, today announced its second quarter financial results for the three and six months ended June 30, 2006.

Financial highlights for the three months ended June 30, 2006 compared to the three months ended June 30, 2005:

Net revenues increased 7.9% to $2.92 million, up from $2.71 million.
Excluding a non-repetitive fee and usage charge approximating $200,000 booked in the second quarter of 2005, SmartPros' core subscription-based business grew nearly 16.7% in the second quarter of 2006.
Working Values' revenues improved 26.7% to $147,000 from $116,000.
Revenues from non-subscription project work in the accounting division increased 50% to $257,000 from $171,000.
Gross profit margin improved, rising to 58.3% from 57.2%.
Net income rose 8.1% to $188,000, or $0.04 per diluted share, from $174,000, or $0.03 per diluted share.

Financial highlights for the six months ended June 30, 2006 compared to the six months ended June 30, 2005:

Net revenues declined 1.8% to $5.45 million from $5.56 million.
Gross profit margin remained relatively stable at 59.6% compared to 59.7%.
Net income decreased 13.3% to $338,000, or $0.07 per diluted share, from $390,000, or $0.08 per diluted share.

As of June 30, 2006, the Company had approximately $7.35 million in cash and cash equivalents; $1.40 million in accounts receivable; working capital of $4.35 million; and $7.40 million in total stockholders' equity. For the current six month period, SmartPros generated net cash of $604,000 from its operating activities, compared to $389,000 for the same six months in 2005.

"In the second quarter, SmartPros once again delivered profitable results and achieved steady progress in strengthening our Company's overall growth platform," stated Allen Greene, Chairman and CEO of SmartPros. "Moreover, newly acquired Skye Multimedia contributed $370,000 in revenues during the second quarter, making this acquisition accretive sooner than we anticipated. I'm also pleased to confirm that Working Values performed well and is showing promising potential in the second half of 2006 due to a number of custom consulting projects currently in progress. In addition, Working Values has a number of prospective projects that it is also currently pursuing."

"It is important to note that SmartPros' quarterly results continue to be challenged by the timing of custom project work, which can vary greatly from quarter to quarter. We have a pipeline of projects that we expect will begin to generate revenue in the third and fourth quarters of this year," concluded Greene.

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 800-366-7640. 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 in 1981, SmartPros Ltd. is an industry leader in the field of accredited professional education and corporate training. 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, banking, engineering, and ethics and compliance. SmartPros is a leading provider of professional education products to 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: 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 particular, the Company cannot make any assurances that any existing projects will generate revenues or be profitable or that any prospective projects that it is currently pursuing will lead to definitive agreements. 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

Dodi Handy
CEO and President
Elite Financial Communications Group, LLC
407-585-1080
ped@efcg.net


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