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Sendmail failing to resolve IP address of the Smart Host



Hie All,
I have two LAN sites with one site running Exchange 5.5 and this site is the
gateway to the Internet. The problem is the other site is running Sendmail
8.12.8 and I defined the Exchange as the smart host name being mailserver,
but Sendmail fail to relay mail saying: DEFERRED. Connection time out. Could
not resolve host name. 
I have put mailserver in my /etc/hosts file ad I can ping the exchange
server  using its name(mailserver). These servers are on the same net i.e.
192.168.1.0

What could be the problem and how can I solve it?

TIA
Regards





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