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This paper proposes an exception handling mechanism for developing reliable smart process-based applications in pervasive computing environments. With Smart Process-based application model that we have proposed, a smart process is generated automatically according to the execution of composite web services to better meet user's individual requirements. The specification model for smart process-based applications is defined based on activities and goals. In this paper, we focus on the failures occur in pervasive environments while a smart process is running. Exceptions can be handled correctly according to the Execution Transition Diagram which illustrates rational transitions in a SP. The mechanism is applied in the architecture of IPVita project that we are developing.