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Televation Authors: Lori MacVittie, Cliff Beek, Elizabeth White, Pat Romanski, Carmen Gonzalez

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SMF Energy Corporation Posts Profit as Financial Results Continue To Improve

CONFERENCE CALL SCHEDULED FOR FEBRUARY 17, 2010 AT 4:30 P.M. ET

FT. LAUDERDALE, Fla., Feb. 17 /PRNewswire-FirstCall/ -- SMF ENERGY CORPORATION, (Nasdaq: FUEL) (the "Company"), a leading mobile fueling and energy logistics company providing efficient, just in time distribution of petroleum products and chemicals, today announced its financial results for the three and six-months ended December 31, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090513/SMFENERGYCORPLOGO )

During the second quarter of fiscal 2010, the Company reported quarter over quarter improvements in its financial results, including quarterly operating income of $708,000 and net income of $445,000, versus $25,000 operating income and a net loss of $660,000 in the same period last year.

Richard E. Gathright, Chairman, Chief Executive Officer and President, commented:

"We are pleased to report continued improvement in our financial results with a $1.1 million increase in net income in the second quarter of fiscal 2010 versus last year. While these results included a net $748,000 recovery in the current quarter of legal and professional fees from the settlement of the three year FAS litigation, there was a comparable non-recurring benefit a year ago, based on a one time cost reduction of $490,000 resulting from the elimination of certain personnel benefits reported in the same period last year. After accounting for the approximately $258,000 net impact of these two non-recurring items, we achieved an $847,000 year to year improvement in net income in this quarter versus the same period a year ago.

During the second quarter of fiscal 2010, we continued to grow our business by completing an expansion into three new markets, including Knoxville, TN, Spartanburg, SC, and North Augusta, GA, and by a further expansion of our business in existing North Carolina markets projecting to add 4 million gallons annually from this expansion. The roll-out into all of these markets took place for the most part in late December, with full run rates achieved during the third fiscal quarter.

While our new customer business is brisk, we have yet to see any recovery of the 14% reduction in demand from our historical customers that we experienced during fiscal 2009 when the national economy collapsed. However, with over 4,000 customers in virtually every industry sector spread across 11 states and 34 markets, we still expect to be at the forefront of any future economic recovery. We have very strong leverage on any such volume recovery, with an increase of as much as 60% in financial performance based on a complete restoration of the 14% reduction at similar margins."

Gathright on strategy:

"We are currently focused on our growth strategy, which includes not only organic growth in new and existing markets, but also growth via acquisition of other businesses. We have taken steps to position ourselves for such growth, including the stabilization of our existing business; completion of our enterprise resource management system and other infrastructure changes to facilitate rapid and efficient growth, including the integration of acquired operations. We have taken steps to maintain our NASDAQ Capital Markets listing via the October 2009 reverse stock split; and last summer's recapitalization of our debt and equity which strengthened our balance sheet and financial position, lowering total debt by $4.5 million, increasing shareholders' equity by $4.1 million and reducing our debt to equity ratio from approximately 9:1 to 2:1 over the prior year.

We believe that the current market valuation of the Company, as reflected by the prevailing stock prices on the Nasdaq Capital Market, is far less than the Company's real enterprise value and have initiated a series of investor relations campaigns to actively stimulate awareness and interest in our stock. Hopefully, through the continued exercise of telling our story and making the market aware of our bottom-line financial performance, we will drive the stock price to reasonable levels which will in turn permit us to accelerate our overall growth to the "supernormal" levels achievable via acquisitions."

Highlights of Second quarter Fiscal Year 2010 vs. Second quarter Fiscal Year 2009

  • We are reporting a continuation of positive operating income and net income of $708,000 and $445,000, respectively, for the three months ended December 31, 2009, compared to operating income of $25,000 and a net loss of $660,000 for the same period in the prior year, improvements of $683,000, or 2,732%, and $1.1 million. In the prior fiscal year, based on our recognition of the impending economic crisis, we permanently eliminated certain personnel costs in order to better respond to the anticipated deterioration of business conditions. This action resulted in a one time reversal of previously expensed charges in the second quarter of last year that favorably impacted operating income and reduced our net loss by approximately $490,000. While there was no corresponding elimination of personnel costs this year, we did achieve another one time financial benefit from our settlement of a lawsuit, in which we recovered a substantial portion of our expended legal and professional fees, lowering our SG&A costs during the current quarter by approximately $748,000 and favorably impacted operating income and net income by the same amount.

  • The $445,000 net income during the three months ended December 31, 2009, included $641,000 in non-cash charges, such as depreciation and amortization of assets, debt costs, stock-based compensation, and the provision for doubtful accounts. The net income also included stated interest expense associated with servicing of our debt of $216,000, public company costs of $282,000, and the recovery thru our settlement of a lawsuit of some of our expended legal and professional fees, thereby lowering our SG&A costs during the current quarter by approximately $748,000.

  • In the second quarter of fiscal 2010, we achieved EBITDA of $1.3 million compared to $690,000 in the same period a year ago, an improvement of approximately $599,000, and an improvement of approximately $155,000 when compared to the $1.1 million EBITDA of the first quarter of fiscal 2010. Additionally, during the quarter we generated $660,000 in cash contribution after fixed charges, which reflects the cash that is generated by the business after deducting cash payments incurred to service debt obligations and pay for capital expenditures. Our fixed coverage ratio as of December 31, 2009 was a twelve month cumulative of 2.04 compared to the required 1.1 that we need to maintain per covenants with the bank.

  • The net margin in the second quarter of fiscals 2010 and 2009 was $3.6 million and $3.5 million, respectively, on 17.0 million and 16.6 million gallons sold during those periods. The increase in the net margin is the result of the increase in gallons sold of 2%. The net margins per gallon in the second quarter of fiscals 2010 and 2009 were 21.3 cents for both periods.

  • As a result of the Recapitalization, our interest expense was substantially lower in the second quarter of fiscal 2010 compared to the same period last year. We incurred interest expense of $261,000 this quarter compared to $680,000 in the same quarter in the prior year, a decrease of $419,000, or 62%, of which $216,000 is related to lower debt and lower costs to service our existing debt.

Highlights of First Six Months of Fiscal Year 2010 vs. First Six Months of Fiscal Year 2009

  • Net income was $465,000 in the six months ended December 31, 2009, as compared to a net loss of $148,000 in the same period in the prior year. The approximate $613,000 increase was partially attributable to lower selling, general and administrative expenses of $1.4 million. The net income results were favorably impacted by cost cutting and business restructuring steps that were taken beginning in late November 2008 to meet the decrease in customer demand due to the national economy, and also by lower interest expense of $872,000 as a result of the reduction in our long term-debt outstanding and lower balances in the line of credit primarily the result of the June 2009 Recapitalization and lower fuel prices. Additionally, the net income results were positively impacted by the settlement of a lawsuit whereby we recovered part of our expended legal and professional lowering our SG&A costs during the current year by approximately $587,000. The increase in net income was offset by the lower gross profit of $1.6 million resulting from the decrease in margin contribution from the emergency response services provided in the first quarter of fiscal 2009 in Louisiana and Texas for Hurricanes Gustav and Ike, from the decrease of 4% in volumes resulting from the contraction of the economy which impacted us starting in the second quarter of fiscal 2009, and the one time benefit last year from the elimination of certain personnel benefits expense.

  • EBITDA was $2.4 million in the six months ended December 31, 2009, as compared to EBITDA of $2.7 million in the same period of the prior year, a decrease of $257,000. The decrease in EBITDA was partially due to the lower gross profit of $1.6 million resulting from the decrease in margin contribution from the emergency response services provided in the first quarter of fiscal 2009 in Louisiana and Texas for Hurricanes Gustav and Ike and from the decrease in volumes resulting from the contraction of the economy which impacted us starting in November of 2008. The decreases were partially offset by the lower selling, general and administrative expenses of $1.4 million as a result of the cost cutting and business restructuring steps taken beginning in late November 2008 to meet the decrease in customer demand, the recovery of certain professional fees related to the settlement of a lawsuit which decreases were partially offset by the increase in personnel benefits expense due to the one time benefit last year when a benefits reserve was eliminated.

  • Gross profit was $7.5 million in the six months ended December 31, 2009, as compared to $9.1 million in the same period of the prior year, a decrease of $1.6 million, or 18%. The net margin per gallon for the six months ended December 31, 2009 and 2008 was 23.4 cents and 27.6 cents, respectively, a decrease of 4.2 cents. The decreases were primarily due to the emergency response services provided in Louisiana and Texas for Hurricanes Gustav and Ike during the first quarter of fiscal 2009. These decreases were partially offset by the stabilization of customer demand that we saw emerging in the third quarter of fiscal 2009 which has continued in fiscal 2010, and partially due to increases in new customer business and prospective business as companies seek to reduce their costs of operation with mobile fueling and our other services.

  • Interest expense was $491,000 in the six months ended December 31, 2009, as compared to $1.4 million in the same period of the prior year, a decrease of $872,000, or 64%. The decrease was primarily due to lower interest expense as a result of the reduction in our long-term debt outstanding, and improved interest rate terms due to the June 2009 Recapitalization. Our interest rate terms have improved, as we replaced the high 11.5% former Secured and Unsecured debt with the term loan which is at interest rates currently around 4.75%. We also negotiated for more favorable rates on the line of credit.

    Highlights of Results for Quarterly Periods ending June 30, 2008 through
    December 31, 2009  

    The following table portrays the financial trends for the Company's seven
    most recent quarters:

    All amounts in thousands of dollars, except net margin per gallon

                                     For the Three Months ended,
                                     ---------------------------
                                             
                          December 31,  September 30,    June 30,    March 31,
                             2009           2009           2009        2009
                             ----           ----           ----        ----

    Revenues              $46,305        $43,686         $39,884     $34,982
    Gross profit           $3,381         $4,097          $3,539      $3,790
    Selling, general
     and administrative    $2,673         $3,839          $3,401      $3,455
    Operating income         $708           $258            $138        $335
    Interest expense
     and other income, net  $(255)         $(230)          $(454)      $(570)
    Non-cash ASC
     470-20 (formerly
     FAS No. 84)
     inducement on
     extinguishment (3)       $ -            $ -         $(1,651)        $ -
    Gain on extinguishment
     of promissory notes      $ -            $ -             $27         $ -
    Net income (loss)        $445            $20         $(1,948)      $(243)
    Less: Non-cash
     write-off of
     unamortized
     acquisition costs        $ -           $187             $ -         $ -
    Less: Non-cash
     stock options
           Repricing costs    $ -            $93             $ -         $ -
    Less: Non-cash
     ASC 470-20
     (formerly FAS No. 84)
     inducement on
     extinguishment (3)       $ -           $  -          $1,651         $ -
    Adjusted net
     income (loss)
     before non-cash,
     non-recurring
     charges (4)             $445           $300           $(297)      $(243)

    EBITDA (1)             $1,289         $1,134            $876        $974

      Net margin           $3,609         $4,333          $3,795      $4,027
      Net margin per
       gallon (2)           $0.21          $0.26           $0.23       $0.25
      Gallons sold         16,956         16,945          16,709      16,041



                                  For the Three Months ended,
                                  ---------------------------
                             December 31,   September 30,    June 30,
                                 2008           2008           2008
                                 ----           ----           ----

    Revenues                   $45,112        $79,271        $82,036
    Gross profit                $3,292         $5,819         $4,290
    Selling, general
     and administrative         $3,267         $4,632         $3,845
    Operating income               $25         $1,187           $445
    Interest expense
     and other income, net       $(677)         $(667)         $(811)
    Non-cash ASC 470-20
     (formerly FAS No.84)
     inducement on
     extinguishment (3)            $ -            $ -            $ -
    Gain on extinguishment
     of promissory notes           $ -            $ -            $ -
    Net income (loss)            $(660)          $512          $(366)
    Less: Non-cash write-
     off of unamortized
     acquisition costs             $ -            $ -            $ -
    Less: Non-cash
     stock options
           Repricing costs         $ -            $ -            $ -
    Less: Non-cash ASC 470-20
     (formerly FAS No. 84)
     inducement on
     extinguishment (3)           $  -           $ -             $ -
    Adjusted net income
     (loss) Before non-cash,
     non-recurring charges (4)   $(660)          $512          $(366)

    EBITDA (1)                    $690         $1,990         $1,154

      Net margin                $3,534         $6,161         $4,611
      Net margin per gallon (2)  $0.21          $0.33          $0.24
      Gallons sold              16,602         18,550         19,024


    (1) EBITDA is defined as earnings before interest, taxes, depreciation,
    and amortization, a Non-GAAP financial measure within the meaning of
    Regulation G promulgated by the Securities and Exchange Commission.  To
    the extent that gain or loss and the non-cash ASC 470-20 (formerly FAS No.
    84) inducement on extinguishment of promissory notes constitute the
    recognition of previously deferred interest or finance cost, it is
    considered interest expense for the calculation of certain interest
    expense amounts.  Both stock-based compensation amortization expense and
    the write-off of unamortized acquisition costs are considered amortization
    items to be excluded in the EBITDA calculation.  We believe that EBITDA
    provides useful information to investors because it excludes transactions
    not related to the core cash operating business activities.  We believe
    that excluding these transactions allows investors to meaningfully trend
    and analyze the performance of our core cash operations.

    (2) Net margin per gallon is calculated by adding gross profit to the cost
    of sales depreciation and amortization and dividing that sum by the number
    of gallons sold.

    (3) Non-cash ASC 470-20 (formerly FAS No. 84) inducement on extinguishment
    is a charge we incurred strictly as a result of the June 29, 2009
    Recapitalization.  The Company extinguished a portion of  the August 2007
    and the September 2008 Notes ("the Notes") through the issuance of
    approximate 1.2 million shares and approximate 278,000 shares,
    respectively, at the negotiated price of $1.71 per share, which was
    greater than the $1.67 per share closing bid  price the day prior to the
    Recapitalization, but lower than the conversion price applicable to the
    convertible debt instruments, which resulted in the issuance of more
    shares in the exchange than would have been issued upon a conversion.  The
    practice of accounting in the interpretation of FAS No. 84 is that an
    inducement occurs any time when additional shares are issued in the
    extinguishment of convertible debt regardless of the absence of an
    economic loss or economic intent of the parties to the transaction. 
    Irrespective of the economic reality of the transaction, FAS No. 84
    required the recording of a non-cash "conversion inducement" charge of
    $1.7 million, based on the difference between the approximate aggregate
    471,000 common shares issuable to the applicable note holder under the
    original conversion rights that existed upon a conversion and the
    approximate 1.5 million common shares exchanged at $1.71 cents in the
    transaction that extinguished all of the Notes.  This non-cash charge is
    deemed a financing expense to extinguish the Notes. To the extent that the
    non cash FAS 84 inducement on extinguishment of promissory notes
    constitutes the recognition of a finance cost, it is considered interest
    expense for the calculation of certain interest expense amounts.

    (4) Adjusted net income (loss) before non-cash, non-recurring charges is
    shown to provide the reader with information regarding the true economic
    performance of the Company before the impact of charges that do not
    reflect the on-going performance of the operations such as of the
    technical non-economic substantive accounting charge of $1.7 million in
    the fourth quarter of fiscal 2009 and the first quarter of fiscal 2010
    write-off incurred as new accounting ruling was applied and stock
    compensation expense that resulted from repricing stock options.  We
    believe that this is a meaningful Non-GAAP representation of the ongoing
    performance of the operations.



    Adjusted net income (loss) before non-cash, non-recurring charges (Non-
    GAAP measure) Reconciliation to the Net income (loss) for Quarterly
    periods ending June 30, 2008 through December 31, 2009

    All amounts in thousands of dollars

                              For the Three Months ended,
                              ---------------------------
                       December 31,  September 30,  June 30,    March 31,
                           2009         2009         2009         2009

    Net income (loss)      $445          $20       $(1,948)      $(243)
    Less: Non-cash write-
     off of unamortized
     acquisition costs      $ -         $187           $ -         $ -
    Less: Non-cash
     stock options
     repricing  costs       $ -          $93           $ -         $ -
    Less: Non-cash
     ASC 470-20 (formerly
     FAS No. 84)
     inducement on
     extinguishment         $ -         $ -         $1,651         $ -
    Adjusted net income
     (loss) before
     non-cash, non-
     recurring charges (1) $445         $300         $(297)      $(243)
                           ====         ====         =====       =====



                                       For the Three Months ended,
                                        ---------------------------
                                   December 31, September 30,     June 30,
                                       2008        2008            2008

    Net income (loss)                 $(660)       $512           $(366)
    Less: Non-cash write-
     off of unamortized
     acquisition costs                  $ -         $ -             $ -
    Less: Non-cash stock
     options repricing costs            $ -         $ -             $ -
    Less: Non-cash ASC 470-20
     (formerly FAS No. 84)
     inducement on
     extinguishment                     $ -         $ -             $ -
    Adjusted net income (loss)
     before non-cash, non-
     recurring charges (1)            $(660)        $512          $(366)
                                      =====         ====          =====


    (1) Adjusted net income (loss) before non-cash, non-recurring charges is
    shown to provide the reader with information regarding the economic
    performance of the Company before the impact of charges that do not
    reflect the on-going performance of the operations such as the technical
    non-economic substantive accounting treatment charge of $1.7 million in
    the fourth quarter of fiscal 2009, and the first quarter of fiscal 2010
    write-off incurred as new accounting ruling was applied and stock
    compensation expense that resulted from the repricing of stock options. We
    believe that this is a meaningful Non-GAAP representation of the ongoing
    performance of the operations.



    EBITDA (Non-GAAP measure) Reconciliation to the Net income (loss) for 
    Quarterly periods ending June 30, 2008 through December 31, 2009

    All amounts in thousands of dollars

                                          For the Three Months ended,
                                          ---------------------------
                               December 31, September 30,  June 30,  March 31,
                                   2009       2009           2009        2009
                                   ----       ----           ----        ----

    Net income (loss)             $445         $20        $(1,948)      $(243)
    Add back:
    Interest expense               261         230            545         575
    Income tax expense               8           8              8           8
    Depreciation and  amortization
     expense within:
       Cost of sales               228         236            254         239
       Selling, general
        and administrative
        expenses                   316         320            344         334
    Stock-based compensation
     Expense                        31         133             49          61
    Write-off of unamortized
     acquisition costs
     ASC 805                        -          187              -           -
    Non-cash ASC 470-20
     (formerly FAS No. 84)
      inducement on 
      extinguishment                -            -          1,651           -
    Gain on extinguishment
     of promissory notes            -            -            (27)          -
                                  ---          ---            ---         ---
    EBITDA (1)                 $1,289       $1,134           $876        $974
                               ======       ======           ====        ====



                                            For the Three Months ended,
                                            ---------------------------
                                      December 31,    September 30,   June 30,
                                          2008           2008           2008
                                          ----           ----           ----

    Net income (loss)                    $(660)          $512          $(366)
    Add back:
    Interest expense                       680            683            720
    Income tax expense                       8              8              -
    Depreciation and amortization
     expense within:
      Cost of sales                        242            342            321
      Selling, general and
       administrative expenses             342            341            357
    Stock-based compensation
     Expense                                78            104            122
    Write-off of unamortized
     acquisition costs ASC 805               -              -              -
    Non-cash ASC 470-20 (formerly
     FAS No. 84) inducement
     on extinguishment                       -              -              -
    Gain on extinguishment
     of promissory notes                     -              -              -
                                           ---            ---            ---
    EBITDA (1)                            $690         $1,990         $1,154
                                          ====         ======         ======


    (1) As noted above, EBITDA is a Non-GAAP financial measure within the
    meaning of Regulation G promulgated by the Securities and Exchange
    Commission.  EBITDA is defined as earnings before interest, taxes,
    depreciation, and amortization, a Non-GAAP financial measure within the
    meaning of Regulation G promulgated by the Securities and Exchange
    Commission.  The stock-based compensation amortization is considered an
    amortization item to be excluded in the EBITDA calculation.  We believe
    that EBITDA provides useful information to investors because it excludes
    transactions not related to the core cash operating business activities. 
    We believe that excluding these transactions allows investors to
    meaningfully trend and analyze the performance of our core cash
    operations.



    Selected Income Statement and Financial Data   

    The following tables present comparative financial data for the periods
    noted:

    All amounts in thousands of dollars, except per share, and net margin per
    gallon

                        For the Three Months           For the Six Months
                         ended December 31,            ended December 31,
                        --------------------           ------------------
                         2009            2008           2009         2008
                         ----            ----           ----         ----

    Petroleum product 
     sales and 
     service revenues   $40,458       $39,876       $78,583       $112,838
    Petroleum product 
     taxes                5,847         5,236        11,408         11,545
                          -----         -----        ------         ------
    Total revenues       46,305        45,112        89,991        124,383
                         ------        ------        ------        -------
    Cost of petroleum
     product sales
     and service         37,077        36,584        71,105        103,727
    Petroleum
     product taxes        5,847         5,236        11,408         11,545
                          -----         -----        ------         ------
    Total cost of
     sales               42,924        41,820        82,513        115,272
                         ------        ------        ------        -------

    Gross profit          3,381         3,292         7,478          9,111

    Selling, general 
     and
     administrative
     expenses             2,673         3,267         6,512          7,899
                          -----         -----         -----          -----

    Operating income        708            25           966          1,212

    Interest expense       (261)         (680)         (491)        (1,363)
    Interest and
     other income             6             3             6             19
                            ---           ---           ---            ---

    Net income (loss) 
     before income taxes    453          (652)          481           (132)

    Income tax expense       (8)           (8)          (16)           (16)
                            ---           ---           ---            ---
    Net income (loss)      $445         $(660)         $465          $(148)
                           ====         =====          ====          =====

    Basic and diluted 
     net income (loss)
     per share
     computation:
    Net income (loss)      $445         $(660)         $465          $(148)
    Less:
     Preferred stock
     dividends                -          (132)            -           (328)
                            ---          ----           ---           ----
    Net income (loss)
     attributable to 
     common shareholders   $445         $(792)         $465          $(476)
                           ====         =====          ====          =====

    Net income (loss) 
     per share
     attributable to
     common shareholders:
          Basic           $0.05        $(0.24)        $0.06         $(0.14)
                          =====        ======         =====         ======
          Diluted         $0.05        $(0.24)        $0.05         $(0.14)
                          =====        ======         =====         ======

    Weighted average 
     common shares
     outstanding:
          Basic           8,557         3,320         8,404          3,287
                          =====         =====         =====          =====
          Diluted         8,781         3,320         8,691          3,287
                          =====         =====         =====          =====

    EBITDA (non-GAAP 
     measure) (1)        $1,289          $690        $2,423         $2,680
                         ======          ====        ======         ======

    Gallons sold         16,956        16,602        33,901         35,152
                         ======        ======        ======         ======

    Net margin           $3,609        $3,534        $7,942         $9,695
                         ======        ======        ======         ======
    Net margin per
     gallon (in
     cents) (2)            0.21          0.21          0.23           0.28
                           ====          ====          ====           ====


    (1) EBITDA is defined as earnings before interest, taxes, depreciation,
    amortization, and is a Non-GAAP financial measure within the meaning of
    Regulation G promulgated by the Securities and Exchange Commission.  To
    the extent that gain or loss and the non-cash ASC 470-20 (formerly FAS No.
    84) inducement on extinguishment of promissory notes constitute the
    recognition of previously deferred interest or finance cost, it is
    considered interest expense for the calculation of certain interest
    expense amounts.  Both stock-based compensation amortization expense and
    the write-off of unamortized acquisition costs are considered amortization
    items to be excluded in the EBITDA calculation.  We believe that EBITDA
    provides useful information to investors because it excludes transactions
    not related to the core cash operating business activities.  We believe
    that excluding these transactions allows investors to meaningfully trend
    and analyze the performance of our core cash operations.

    (2) Net margin per gallon is calculated by adding gross profit to the cost
    of sales depreciation and amortization and dividing that sum by the number
    of gallons sold.



    Condensed Consolidated Balance Sheets 

                                                        As of
     (All amounts in thousands of                       -----
      dollars)                          December 31, 2009    June 30, 2009
                                        -----------------    -------------
                                           (Unaudited)
    ASSETS
         Current assets                       $17,567             $18,732
         Property, plant and equipment, net     7,880               8,569
         Other assets, net                      2,575               2,817
                                              -----               -----
                                              $28,022             $30,118
                                              =======             =======

    LIABILITIES AND STOCKHOLDERS' EQUITY
         Current liabilities                  $16,215             $18,336
         Long-term debt, net and other
          liabilities                           4,701               5,253
         Stockholders' equity                   7,106               6,529
                                                -----               -----
                                              $28,022             $30,118
                                              =======             =======

CONFERENCE CALL

Management will host a conference call on Wednesday, February 17, 2010, at 4:30 P.M. Eastern Time ("ET") to further discuss the results of the Company's three and six months ended December 31, 2009. Interested parties can listen to the call live on the Internet through the Company's Web site at www.mobilefueling.com or by dialing 866-788-0547 (domestic) or 857-350-1685 (international), using Pass Code 15855477. Listeners should dial in to the call at least 5-10 minutes prior to the start of the call or should go to the Web site at least 15 minutes prior to the call to download and install any necessary audio software. The Web cast is also available through Thomson's investor portals. Individual investors can listen to the call at www.earnings.com, Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (www.streetevents.com). A telephone replay of the conference call will be available from February 17, 2010, at 7:30 P.M. ET until midnight ET on February 24, 2010, by dialing 888-286-8010 (domestic) or 617-801-6888 (international), using Pass Code 33769595. A web archive will be available for 30 days at www.mobilefueling.com.

ABOUT SMF ENERGY CORPORATION (NASDAQ: FUEL)

The Company is a leading provider of petroleum product distribution services, transportation logistics and emergency response services to the trucking, manufacturing, construction, shipping, utility, energy, chemical, telecommunication and government services industries. The Company provides its services and products through 34 locations in the 11 states of Alabama, California, Florida, Georgia, Louisiana, Nevada, Mississippi, North Carolina, South Carolina, Tennessee and Texas. The broad range of services the Company offers its customers includes commercial mobile and bulk fueling; the packaging, distribution and sale of lubricants and chemicals; integrated out-sourced fuel management; transportation logistics and emergency response services. The Company's fleet of custom specialized tank wagons, tractor-trailer transports, box trucks and customized flatbed vehicles delivers diesel fuel and gasoline to customers' locations on a regularly scheduled or as needed basis, refueling vehicles and equipment, re-supplying fixed-site and temporary bulk storage tanks, and emergency power generation systems; and distributes a wide variety of specialized petroleum products, lubricants and chemicals to our customers. More information on the Company is available at www.mobilefueling.com.

FORWARD LOOKING STATEMENTS

This press release includes "forward-looking statements" within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. For example, predictions or statements of belief or expectation concerning the future performance of the Company, the future trading prices of the Company's common stock and the potential for further growth of the Company are all "forward looking statements" which should not be relied upon. Such forward-looking statements are based on the current beliefs of the Company and its management based on information known to them at this time. Because these statements depend on various assumptions as to future events, they should not be relied on by shareholders or other persons in evaluating the Company. Although management believes that the assumptions reflected in such forward-looking statements are reasonable, actual results could differ materially from those projected. In addition, there are numerous risks and uncertainties that could cause actual results to differ from those anticipated by the Company, including but not limited to those cited in the "Risk Factors" section of the Company's Form 10-K for the year ended June, 30, 2009.

    Contact:    Robert W. Beard
                 Senior Vice President and Investor
                 Relations Officer
                954-308-4200

SOURCE SMF Energy Corporation

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