Hairy Houseguest

We recently acquired a houseguest.  The best kind of houseguest--the furry kind, with four paws, and droopy ears.
Her name is Annie and we're watching her for a few weeks while her humans try to find housing that allows her to live with them.
She's a german shepherd mix, Amber's age, and she has stinky breath and a sensitive nose.  She's been with us for a couple of weeks now and seems to fit right in with everyone.  Except Smudge.
Annie's never been around a cat before and really wants to "meet" Smudge.  Unfortunately, Smudge, for whatever reason, took an immediate dislike to Annie and refuses to come out of her room.
Smudge is acting like I did when Mom & I moved into Dad's house--hissing, running away from, and generally trying to ignore the new reality.  Poor kitty....