Glowpoint Reports Record $5.8 Million in Second Quarter Revenue

Files Second Quarter 2007 Results

HILLSIDE, N.J. August 14, 2007 – Glowpoint, Inc. (OTC:GLOW.PK), a premiere broadcast-quality IP-based managed video service provider, announced today that it has filed its quarterly report for the six and three month periods ended June 30, 2007.

The company will host a conference call on Tuesday, August 14 at 4:30 pm EDT to discuss the results and field questions from investors. Interested participants should call (866) 831-6247 and use passcode 91839909. International participants should call (617) 213-8856 and use the same passcode.

 “This is the highest quarterly revenue Glowpoint has achieved to date and it demonstrates the business momentum we are gaining. When you consider that our business is a recurring revenue model, and that a good portion of our revenue growth in a quarter is the result of closed business from the previous two quarters or so, this growth is clearly an indication that we are seeing increased demand for our service solutions,” said Michael Brandofino, Glowpoint’s president and CEO . “With the restatement process now completed, Glowpoint has eliminated a significant financial and personnel strain that prevented resources from focusing on growth. Yet despite this distraction, Glowpoint has still been able to grow its revenue. We realized more than a 73 percent increase in signed contracts for new business in the second quarter of 2007, as represented by new monthly recurring revenue during the same period in 2006. We believe our company has firmly established its position in the high-growth IP video and telepresence sector. Based on the current business environment, we anticipate that Glowpoint will continue to increase its recurring revenue and profit margins for the foreseeable future.”

The following are some of Glowpoint’s achievements through June 30^th, 2007, which are qualified in their entirety by the financial statements included in the Form 10-Q:

Overall revenue increased $1,806,000, or 18.6%, in the six months ended June 30, 2007 to $11,508,000 from $9,702,000 in the 2006 period. Subscription and related revenue increased $757,000, or 11.8%, in the 2007 period to $7,185,000 from $6,428,000 in the 2006 period.  In addition, multi-point conferencing (bridging) services increased $360,000, or 28.4%, in the 2007 period to $1,628,000 from $1,268,000 in the 2006 period. 

Revenue increased $866,000, or 17.4%, in the three months ended June 30, 2007 to $5,847,000 from $4,981,000 in the 2006 quarter. Subscription and related revenue increased $486,000, or 14.9%, in the 2007 quarter to $3,738,000 from $3,252,000 in the 2006 quarter. In addition, multi-point conferencing (bridging) services increased $180,000, or 29.5%, in the 2007 second quarter to $791,000 from $611,000 in the 2006 quarter.

Gross margin increased $836,000, or 29.2%, to $3,702,000 in the six months ended June 30, 2007 from $2,866,000 in the 2006 period.  For the 2007 period, gross margin increased to 32.2% from 29.5% in the 2006 period.  For the three months ending June 30, 2007, gross margin increased $319,000, or 19.6%, to $1,950,000 from $1,631,000 in the 2006 quarter with the quarterly gross margin increasing to 33.4%. 

Glowpoint, Inc. (OTC:GLOW.PK) is a premiere broadcast-quality, IP-based managed-video services provider. Glowpoint offers video conferencing, bridging, technology hosting, and IP-broadcasting services to a vast array of companies, from large Fortune 100^® enterprises to small and medium-sized businesses. Glowpoint’s managed-video services are available bundled with Glowpoint’s quality-network offering or as a value-added managed-video service across other networks. Glowpoint is exclusively focused on high-quality, two-way video communications, and has been supporting millions of video calls since its launch in 2000. Glowpoint is headquartered in Hillside, New Jersey. To learn more about Glowpoint, visit www.glowpoint.com.

The statements contained herein, other than historical information, are or may be deemed to be forward-looking statements and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. These factors, risks, and uncertainties include market acceptance and availability of new video communication services; the nonexclusive and terminable-at-will nature of sales agent agreements; rapid technological change affecting demand for our services; competition from other video communications service providers; and the availability of sufficient financial resources to enable us to expand our operations, as well as other risks detailed from time to time in our filings with the Securities and Exchange Commission.