Gawk Inc. Issues State of The Company Letter to Shareholders

LOS ANGELES, CA--(Marketwired - Feb 23, 2016) - GAWK Inc. (OTC PINK: GAWK) CEO Scott Kettle reviews the past fiscal year with a letter to all shareholders.

Dear Shareholder:

The State of your Company is strong! GAWK, Inc. (OTC PINK: GAWK) is bottom line profitable and our prospects couldn't be brighter. In a press release February 2, 2016, GAWK announced that is has acquired Connexum, LLC (www.connexum.com), bringing our annual revenue up from $2 million to just under $6 million. At the beginning of the past fiscal year, we were averaging $19K per month in revenues. With the completion of our most recent acquisition we are rapidly approaching $19K in revenue a day, while simultaneously becoming a cash flow positive company, thus eliminating the need for outside capital.

Connexum marks the third acquisition by GAWK, after adding WebRunners, Inc. (www.webrunners.com) Irvine, CA-based data center, on November 5, 2014, and NetD Consulting, Inc. (www.netdinc.com) on May 1, 2015 furthering our strategy of growth through acquisition. Connexum's robust position in the VoIP sector will nearly triple our revenue, and gives GAWK greater scope within our cloud-communication services.

The Company filed its quarterly report with the Securities & Exchange Commission on December 17, 2015, in which GAWK reported that year to date revenue was significantly higher, up 1089%, for the first nine months of 2015, over the same period in 2014. Operating expenses decreased by 374% and liabilities were reduced in the last quarter by $1,239,571.

Our business plan calls for a national chain of GAWK data centers, and expanding internationally from there. The Company has identified 21 data centers as potential acquisitions, including the U.S. Brazil, Australia, Singapore and Canada.

We now are a Full Service business class telecom provider, and via Hosted PBX, we now compete directly with 8X8, Vonage, etc. GAWK has expanded our service offerings to Call Centers, not just auto dialer clients, so we can handle inbound as well as outbound, reaching 100 million people each month in 21 Countries and 31 Major Cities for Cloud and Edge Data Center Services.

GAWK continues to roll up customers, having signed up nine new clients, in addition to many others, in the last 15 months, including San Juan Capistrano, CA- based Coach House Concerts San Juan Inc., Mills Video Productions, BioAdaptives, Inc. (OTCBB: BDPT), WAHLCO, Inc. (Wahlco), Irvine-based Oakshire Trading Company, Merchant.ly, and their strategic partner, Bank Card USA, HEMP, Inc. (OTC PINK: HEMP), manufacturers of clean, green American agricultural and industrial products, Curse Inc. (Curseinc.com), and Utah State University YES! Program.

On October 26, 2015, GAWK announced the successful implementation of its Wireless technology 'Last Mile' connection service by securing roof rights of the office tower wherein it's data center, WebRunners, in The Irvine Spectrum, in Orange County, California is located. This project brings a new dimension to the delivery capabilities of our Hosted Communications services, and highlights the competitive and economic advantages of using Wireless technology for the delivery of broadband services to business within the surrounding area of our data center. Our Wireless technology 'Last Mile' gives us a clear line of sight to several thousand businesses.

GAWK exhibited its superior technology, dependability and redundancy during a planned power outage at its WebRunners data center at the Spectrum Center, in Irvine, CA last November 15 & 16. Our high technological standards were tested and we passed with great success, showing how the Company's investment in infrastructure strength and service make us invaluable to our clients. In another example, we assisted the Utah State University Trisped YES! Project by intercepting and remediating a potential interruption of service. GAWK maintains a strong investment in infrastructure power and service. We are always ready for any emergency.

GAWK is approaching the national committees of both the Republican and Democratic parties to successfully repeat GAWKTALK, its proprietary Direct to Consumer Voice Broadcasting program in time for the national elections. GAWKTALK also benefits small to-medium businesses to increase visibility and build sales volume.

GAWK's business plan is further buttressed by a story by Ben Spencer, science reporter for the Daily Mail, who wrote on May 3, 2015, "It's possible the Internet is on the brink of collapse. That the web could reach its limit in just eight years and use all of Britain's power supply by 2035. Storing information in large 'server farms', rather than transferring it, would take the strain off the network." Professor Ellis, of Aston University in Birmingham, told the Daily Mail: "We are starting to reach the point in the research lab where we can't get any more data into a single optical fiber. Internet speeds have increased by 50-fold in the last decade alone, Optical fibers have reached capacity and cannot transfer any more light, and laying down more cables may solve problem, but will increase costs. The boom of Internet television, streaming services and ever-more powerful computers has increased the strain on our communications infrastructure."

Unusual for an organization of GAWK's size, the Company has attracted analyst coverage. Shayne Heffernan, of LiveTradingNews www.livetradingnews.com, posted on November 13, 2015; Gawk Inc. assists in both technical and productive aspects, and unlike the case several years ago where these companies used to pay a fortune to build the IT infrastructure Gawk Inc. can build out the platform at a very reasonable price. Gawk Cloud computing technologies have helped in reducing some expenses and eradicating others that are paid by these companies. Using Gawk, companies in some instances will not need server hardware for e-mail productivity applications and databases, or even devices' operating systems. Therefore, companies using Gawk cloud computing technologies now have great competitive market opportunities that might become a vital factor for their success in financial resources management, and providing innovative products and services to their customers.

Gawk Cloud computing technology enables companies' immediate expansion in terms of adding or reducing computing capacities according to their need, which makes the management of technical resources more effective. This also provides an opportunity for existing companies that have previously invested in building their technical infrastructure to expand and add new and innovative services to their range. This allows them to take advantage of their past investments and strategically plan gradual transformation toward cloud computing services.

Gawk Cloud computing services can be divided into three groups; the first is providing software as a service (SaaS) such as e-mail services productivity applications databases and customer service programs. The second group includes providing platforms as a service (Paas). The third group includes providing infrastructure as a service, such as providing server hosting and data storage services through cloud computing centers, where the customer no longer needs to buy servers or data storage devices at their buildings, and can rent it remotely instead. These cloud services cater to the needs of the majority of users and contribute in speeding up the delivery of technical projects, as they have all the basic and advanced services.

Gawk Cloud services promotes the company employees' mobility and their ability to access all computer services from any location connected to the Internet anytime and with a high level of security confidentiality and privacy. This highly contributes to the productivity of these companies.

Gawk Cloud computing services provide innovative new services that are not available in traditional information centers, from unlimited data storage exchange and transfer of data securely between parties to cloud computing platform programs, like Windows Azure. These cloud services help reduce licensing costs dramatically, build corporate cloud databases, provide corporate e-mail hosting services, as well as electronic payment portals that facilitate mobile e-commerce for SMEs'. They are also capable to facilitate huge data analysis systems, called 'Business Intelligence', specialized in analyzing customer usage trends, which helps in adjusting business strategies and create smarter opportunities at a faster rate.

Gawk, Inc., incorporated on January 6, 2011, provides a suite of cloud communications, cloud connectivity, cloud computing and managed cloud-based applications solutions to small, medium and large businesses. The Company also offers domestic and international voice services to communications carriers around the world. The Company offers a suite of data center and cloud-based services, including fault tolerant, high availability cloud servers, which includes platform as a service (PaaS), infrastructure as a service (IaaS) and a global content delivery network (CDN). The Company's managed network services converge voice and data applications, structured cabling, wireless, security services and includes Internet access through Ethernet or fiber at speeds ranging from 10 megabits per second (Mbps) to 10 gigabits per second (Gbps). The Company's data center solutions include cloud services, colocation services and business continuity services, such as storage and security. The Company's cloud computing service centralizes information management, hardware, network and infrastructure in an off-premise location, hosted and managed by it. The Company delivers a storage and data back-up assessment service as part of its storage offering, measuring growth and duplication. The Company operates a carrier-grade network and infrastructure that delivers diverse and secure connections to its cloud services.

Thank you for your continuing confidence in GAWK and its management. As I said, the State of your Company is strong.

Sincerely,
Scott Kettle
CEO

About GAWK, Inc.

Gawk, Inc. offers a suite of cloud communications, cloud connectivity, cloud computing, and managed cloud-based applications solutions to small, medium, and large businesses; and offers domestic and international voice services to communications carriers worldwide. It offers a suite of advanced data center and cloud-based services, including fault tolerant, high availability cloud servers, which comprise platform as a service, infrastructure as a service, and a content delivery network; managed network services that converge voice and data applications, structured cabling, wireless, and security services, as well as include Internet access via Ethernet or fiber at speeds ranging from 10 Mbps to 10 Gbps; and data center solutions, including cloud services, colocation services, and business continuity services, such as storage and security. www.gawkinc.com

Forward-Looking Statements

All statements in this release that are not strictly historical facts are "forward-looking statements." Such forward-looking statements are based on GAWK's current assumptions, beliefs and expectations, and involve risks, uncertainties and other factors that may cause GAWK's actual results to be materially different from any results expressed or implied by such forward-looking statements. Some can be identified by the use of words such as "expect," "plan," "possibility," "offer," "if," "negotiate," "when," "believe," "will," "estimate," "continue," and similar expressions. Risks, uncertainties, and other factors that could cause or contribute to such differences include, but are not limited to: ongoing and future intellectual property enforcement actions; the ability to successfully litigate or settle claims of patent infringement; GAWK's ability to obtain necessary financing, generate sufficient cash flow, and maintain appropriate indebtedness; and the increasing development of market competition in the area of telecommunications. These factors and others are described in more detail in GAWK's public filings with the Securities and Exchange Commission, including the risks discussed in the "Risk Factors" section in GAWK's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of these reports can be found on GAWK's website (http://gawkinc.com) under the heading "Investor Relations." GAWK is providing this information as of the date of this release and, except as required by law, does not undertake any obligation to update any forward-looking statements contained herein as a result of new information, future events or otherwise.