November 08, 2007 10:45 ET

Research Coverage Initiated on GlobalSCAPE, Inc. (AMEX: GSB)

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by

MADISON, MS--(Marketwire - November 8, 2007) -, a new and unique small cap research service, is pleased to announce new research coverage on GlobalSCAPE, Inc. (AMEX: GSB). In the same edition, also provided positive analysis on: EBS, ORS, RMTI, MTRX and STRN.

The complete ORS report, first published to subscribers on 10/08/2007, is available at:

Information Security Threats Transfer Growth & Opportunity for GSB

ABSTRACT: If you are looking for small cap growth in the technology sector, look no further than GlobalSCAPE, Inc. (AMEX: GSB). Information security used to be a luxury; now it is a mandate across a number of industries and government. GSB used to be a consumer-oriented FTP software provider; now the Company is fast becoming a leader in secure file management to enterprise-class customers and even the U.S. Government. A few years ago, GSB began to shift its focus from the consumer segment, where its CuteFTP software had become the most popular file transfer application on the market, to medium and enterprise commercial customers. And guess what? The move is paying off big-time. For the last three years in a row, GSB has grown revenues at strong double-digit rates and we expect FY07 earnings to double FY06. Despite impressive earnings growth (that we expect to continue), GSB trails other software provider multiples, with less growth, by -50% or more. The growing number of mandates and data security scrutiny is opening up tremendous opportunities like the Company has never seen, and GSB's reputation and referral business grows with every successful customer experience. We expect to see a surge in both government and corporate spending relating to secure file management over the next few years, and GSB is perfectly positioned to capture a leadership position in this marketplace and continue providing investors with excellent results.

In the same edition, we also highlighted the following small caps watch in our Bonus Bullets section:

-- Emergent BioSolutions, Inc. (NYSE: EBS)

-- Matrix Service Company (NASDAQ: MTRX)

-- Sutron Corporation (NASDAQ: STRN)

ABOUT SMALLCAPBULLETS provides institutional-quality research on U.S. small cap stocks under $1 billion in marketcap. Every week we scour 10,000 small caps to find the most compelling risk/reward opportunities using solid fundamental, technical and valuation analysis. Each weekly edition provides concise research and analysis on one new Feature Stock along with a downloadable financial spreadsheet and projections. Every edition also provides a single-paragraph analysis of several other interesting small cap stocks to watch. Our research is produced solely for the benefit of our paying subscribers, and is completely independent and conflict-free.

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