SOURCE: Epazz, Inc.

May 17, 2010 10:00 ET

Epazz, Inc. Shows Profits in Fourth Quarter Despite Challenging Economic Times

CHICAGO, IL--(Marketwire - May 17, 2010) - Epazz, Inc. (OTCBB: EPAZ), a leading provider of office productivity workforce solutions, today announced its company's fiscal performance showing growth in the fourth quarter of 2009, which reflects a better performance than for the same period in 2008. During this period under review, Epazz, Inc. has been able to continue its growth strategy allowing the company to use its acquisitions to cross sell customers on Epazz's BoxesOS, DeskFlex and Agent Power software products.

The net profits for 2009's fourth quarter were $58,362. This is a positive sign for the company when compared to its net loss for the same period under review last year of $86,118. "Our growth strategy and the need to be profitable are beginning to show results. We have increased our revenue and decreased our cost. We anticipate that there will be continued growth during 2010 as we increase our marketing efforts and add new products into our company," said Shaun Passley, CEO of Epazz, Inc. Epazz, Inc. continues to market its products that have been endorsed by highly regarded national and international organizations which signed new agreements and renewed ongoing ones for 2010.

About Epazz, Inc.

Epazz Inc. is an enterprise-wide software company that specializes in providing customized web applications to the corporate world, higher education institutions and the public sector. Epazz BoxesOSv3.0 is the complete business web-based software package for small to mid size businesses, Fortune 500 enterprises, government agencies and higher education institutions. BoxesOS provides many of the web-based applications organizations would have to buy separately. Epazz's other products are AgentPower, workforce management software and AutoHire, applicant tracking system.

About DeskFlex, Inc.

DeskFlex, Inc.'s proprietary room scheduling software supports the use of shared workspaces by multiple employees. Mobile workers are often absent from the office leaving their desks vacant. By establishing a pool of shared resources and a reservation system, companies can materially reduce real estate expenses by limiting the space needed for offices, desks, meeting rooms and even reserved parking spaces. DeskFlex creates an easy to navigate web site allowing employees to reserve workspace in advance and interacts with popular telephone systems to enable phone calls to be routed to the employee's temporary desk.

BoxesOS allows for employees to view announcements online. Employees are able to share documents from multiple locations throughout the world. With BoxesOS employees are able to take training courses and their supervisors are able to view the results online. Companies are able to create self-service portals for their customers to pay for their invoice and download instructions. Companies can also create self-service portals for their partners to request new marketing materials or view a demo. BoxesOS connects to companies' databases to easily bring all of their information together.

BoxesOS includes an intranet, portal, extranet, central knowledge repository, document management, workflow engine, website management, web collaboration, email system, and learning management system into one complete web-based solution which connects to organizations' backend systems.

BoxesOS allows the organization to start-up by implementing elegant web-enabled information dashboards for each stakeholder group. Functionality with administrative systems can be swiftly completed using BoxesOS connectors to other back-end systems. Business applications that require upgrading can be upgraded on a prioritized basis as desired, and easily linked to BoxesOS and its personal information system.

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"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:

Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of forward-looking statements such as "may," "expect," "intend," "estimate," "anticipate," "believe," or "continue" (or the negative thereof) or similar terminology. Such forward-looking statements are subject to risk, uncertainties and other factors that could cause actual results to differ materially from future results or implied by such forward-looking statements. Investors are cautioned that any forward-looking statements are not guarantees of future performance, and that actual results may differ materially from those contemplated by such forward-looking statements. Epazz assumes no obligation and does not intend to update these forward-looking statements and takes no obligation to update or correct information prepared by third parties that is not paid for by Epazz. Investors are encouraged to review Epazz's public filings on SEC.gov, including its unaudited and audited financial statements, and its Registration Statement, Form 10-K's and Form 10-Q's, which contain general business information about the Company's operations, results of operations and risks associated with the Company and its operations.

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