Investor Contact:
Brett Maas
Hayden Communications
646-536-7331
pr@glowpoint.com
www.glowpoint.com

 

 

Glowpoint Signs Branded Telepresence VNOC Service Agreement

Selected by One of the Leading Manufacturers of Video Communications Equipment



HILLSIDE, N.J. December 4, 2007 Glowpoint, Inc. (OTC:GLOW.OB), a premiere, broadcast-quality IP-based managed video service provider, announced today that it has signed a three-year agreement with one of the worlds leading manufacturers of video communications equipment to use Glowpoint as an underlying provider for a branded, managed service offering tailored specifically for Telepresence rooms. The Video Network Operation Center (VNOC) service is actually a suite of services that address the demand for a single point of contact to provide scheduling, support, and management of Telepresence rooms and the associated equipment.

 

Telepresence is a term used to describe the next generation of video communications solutions being marketed by the top manufacturers. The most popular representation of the telepresence concept is a specially designed room configured to support a true to life meeting environment. Everything from multiple monitors, special furniture, strategic camera placement, and sound panels are deployed to create an immersive experience so that participants feel as though they are all sitting in the same physical room - even though they may be continents apart.

 

Glowpoint has long held the belief that a large number of customers prefer to have a managed solution for their own video infrastructure in order to maximize their investment. This is especially true with Telepresence rooms, said Michael Brandofino, Glowpoint president and CEO. The selection of Glowpoint by a major global player in the video space is confirmation that manufacturers are seeing the benefit of offering managed services bundled with their hardware solutions. It is also validation that Glowpoint is best positioned to provide these services on a global basis. In essence, Glowpoint provides a white glove service for Telepresence rooms, thereby taking the support burden off of the customer and increasing the ability of the Telepresence equipment vendor to sell more rooms.

 

The agreement establishes Glowpoint as an underlying provider of the VNOC services, and opens the door for Glowpoint to introduce its QOS (Quality of Service) network offering as well, since Telepresence rooms have significant bandwidth requirements. Glowpoint anticipates generating revenue from this relationship beginning in the second calendar quarter of 2008, as the company expects to get involved in opportunities with the manufacturers resellers starting in January 2008. The agreement is not exclusive and Glowpoint can continue to offer its managed solutions for any of the other Telepresence equipment providers, such as Cisco, Tandberg or HaiVision.

 

Glowpoint's VNOC service offering includes:

The Glowpoint Telepresence VNOC Solution may be bundled with Glowpoints own Quality of Service (QoS) managed network service, or offered on its own by Glowpoint-enabling another network service.

 

Glowpoint has already shown good momentum in recent quarters with over 20 percent growth in revenue from our core services, which is a monthly recurring revenue stream. The VNOC service is also a monthly recurring model and can add as much as $3 to 4 million in annualized revenue if the sales of Telepresence rooms continues to grow, said Mr. Brandofino.

 

About Glowpoint

 

Glowpoint, Inc. (OTC:GLOW.OB) 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. Glowpoints managed-video services are available bundled with Glowpoints 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.