The Demm Smily, Scout, (European) Dove, and mini PingPong mopeds were made by Moto Demm Milano, an Italian motorcycle manufacturer lacated in Milano, Italy from 1953 to 1988. They also produced more models of mopeds in Italy that were never imported to the U.S. A large amount of Demm mopeds and motorcycles were imported to Australia as well.
The Smily and Scout models are identical. Although the Smily and Scout frame and motor appear very similar to other Italian mopeds, the Demm bike is specific to itself. One strange particular of the Demm mopeds is their extremely short front forks; being significantly shorter than all other Italian mopeds. The Demm engine appears to the eye to be a cross breed between a Moto Morini and Minarelli motors, but rather uses it's own unique piston, L-rings, cylinder and head. Although the intake manifold and intake port are only 9mm, the transfer ports and exhaust port are very large, allowing this motor to reach speeds of 30mph. Some minor parts on the bike and very little parts of the motor are interchangelable with other Italian brands. The clutch, and certain internal motor parts are believed to be interchangeable with Moto Morini, but this has not been confirmed..
Text from back of original Smily owners manual:
S.p.A. F.LLI DALDI & MATTEUCCI
Ufficio Commerciale Moto MILANO Via Pirelli 16/A
Tel. 653.651/2/3/4/5 - Telex 32276 DEMM. MI.
Stabilimenti in PORRETTA TERME (BO) - Tel. 22.212
Telex 51171 DEMM. PO