General -------

Smart SMS Corp. (the "COMPANY") was incorporated in Florida on June 3, 1997 as Future Projects VIII Corp. On July 20, 2000, we changed our name to AMERICAN IDC CORP. Subsequently, on October 31, 2005, we changed our name to SMART SMS CORP. There have been no bankruptcy, receiverships, or similar proceedings by or us. There has been no material reclassification, merger, consolidation, or purchase or sale of any significant assets not in the ordinary course of business.

Our principal executive offices are located at: 11301 Olympic Boulevard, Suite 680, Los Angeles, CA 90064.

Business History ----------------

At December 31, 2004, we were a development-stage company focused on developing online interactive businesses, such as dating sites, portals, and music downloading sites. Between 2001 and December 31, 2004, we focused on creating and providing the platforms for Internet businesses, where others pay to use our sites and provide their own content. During 2004, we generated no revenues from our products or services. Subsequent to December 31, 2004, we abandoned our online interactive business and entered the text messaging business.

LICENSING AGREEMENTS

On April 27, 2004, we entered into a Exclusive License Agreement with Timeless Video, Inc., a California corporation ("TVI/CSI"), Digital Continuum, Inc., a California corporation ("DCI") and ETV, Inc., a California corporation ("ETV"), (collectively, the "LICENSOR"), whereby we agreed to license a library of over 10,000 classic films and television programs and a digital technology solution for encoding, encrypting and broadcasting over the Internet, including a proprietary Digital Continuum software. Under the licensing agreement, we will license the Library and DC Software for use in North America for a period of five years, renewable by mutual agreement of the parties. In consideration for the license, we paid to the Licensor $10,000 in cash, and issued 5,000,000 shares of our restricted common stock, valued at $250,000. The license also included an exclusive two-year option to purchase the licensed assets for $5,000,000 payable in cash or common stock, as determined by the parties. Following the closing of the acquisition, there were no revenues generated or further developments from this Exclusive License Agreement as of December 31, 2004.

On October 28, 2004, we entered into a License Agreement with Omni Media Distribution, Inc. ("OMNI"), a Nevada corporation. Omni acquires independent feature films, TV Series, documentaries, short films, animations and family programming from numerous worldwide sources. Pursuant to the License Agreement, we agreed to license Omni's content library for a period of five years in exchange for 3,000,000 shares of restricted common stock and a 49% royalty paid to Omni from the net revenue derived from the use of the licensed assets. These restricted shares, valued at $180,000, were issued to Omni in November 2004. As of December 31, 2004, there were no revenues generated or further developments from this License Agreement.

On December 11, 2004 we signed a letter of understanding with Smart Entertainment Inc. ("SEI") incorporated under the laws of the County of Iceland. We subsequently renegotiated with SEI and amended the terms on various occasions. Subsequently, we entered into a final and definitive licensing agreement with SEI, which agreement superseded any and all previous agreements and understandings.

Subsequent to the year ended December 31, 2004 we renegotiated the terms of our agreements with SEI and its sole shareholder Halldor Sanne, as follows:

i) We agreed to acquire a 10% of equity interest in the capital stock of SEI, for a total consideration of $200,000. SEI had no assets and liabilities and no operations at the date of the acquisition.

ii) Effective March 1, 2005 SEI and its sole shareholder, Halldor Sanne, granted exclusive rights to us for a 99 year period to utilize the Smart SMS technical platform, logo, and marketing and promotional material for North America, Central America and South America. As consideration for the licensing rights we issued 40,000,000 shares of common stock to SEI.

iii) We issued 5,000,000 shares of common stock to Halldor Sanne and made a payment of $4,700 in exchange for fees due to SEI and Halldor Sanne for technical services rendered.

Employees and Consultants -------------------------

During 2004, we had no full time employees. Our research and development costs were not meaningful.