HILLSIDE, N.J., May 13, 2009 -- Glowpoint, Inc. (OTC BB: GLOW), a leading provider of advanced video communications solutions, today announced financial results for the quarter ended March 31, 2009.

Total revenue for the quarter was $6.44 million, an increase of over 7.4% from the same period a year ago and nearly 8% from the last quarter. Monthly recurring subscription and related revenue for the quarter was $4.8 million of such amount, up approximately 12.4% year-over-year and 6.1% sequentially. Gross profit for the quarter increased to $3.03 million, a year-over-year increase of 14.4% and 26.2% sequentially. Gross margin continued to substantially improve in the first quarter, growing to 47% from 44% in the quarter a year ago and 40% in the previous quarter. The first quarter loss from operations was $0.96 million, which was an improvement from last quarter's loss of $1.7 million but up from the loss of $0.36 million from the year ago period. This first quarter loss from operations was primarily attributable to one-time, non-recurring charges of approximately $0.4 million associated with expenses relating to the management and board changes in the quarter, along with investments of approximately $0.6 million to expand service capabilities to support existing contracts, the full revenue impact of which will commence in the second quarter of 2009 with strong recurring revenue expected in subsequent quarters.

Key highlights for the first quarter of 2009 include the following:

-- Recurring Revenue Model with Continued Strong Growth Trends: Quarterly revenue of $6.44 million in the first quarter, driven by continued growth of managed service solutions and other services billed on a monthly recurring basis.

-- Improved Gross Margin: Margins for the first quarter of 2009 improved 6.8% over the comparable quarter in 2008 and 17.5% over the prior quarter. The increase was driven by a combination of factors including increased scale, improved operating efficiencies and reduced costs. We expect to realize additional operating efficiencies in the coming quarters, which should result in further margin and profitability improvements.

-- Additional Strategic Relationships Established and Enhanced Services Offered: Glowpoint established additional global wholesale relationships, such as the previously announced agreement with AVI/SPL, and offered new bundled services to meet growing market demand.

-- Continued the Development of the Telepresence interExchange Network (TEN) for Secure Business-to-Business Video Communications: Glowpoint rolled out additional interoperability features for its TEN service offering, which will enable secure business-to-business video communications in a manner that is both network and equipment agnostic.

-- Debt-Free; Additional Financing: In March, Glowpoint exchanged or paid off all of its outstanding senior secured convertible notes and raised additional equity capital with gross proceeds of approximately $1.8 million by selling shares of its newly-created Series A-1 Convertible Preferred Stock and Series A-3 Warrants.

"We're especially excited about the margin improvement," said David Robinson, Glowpoint's Co-CEO. "With growing revenue and planned operating efficiencies that are already underway, we expect even better gross margin in the coming quarters."

Joe Laezza, Glowpoint's Co-CEO and President, added, "The favorable conditions supporting video communications continue to add up. From emerging global health-related concerns to continued government initiates involving cost cutting and environmental responsibility, there are many compelling reasons that present long term lasting effects on behavior in business practices in favor of wider adoption of video communications."

Teleconference

Glowpoint will host a conference call at 4:30 pm ET today to discuss the results and field questions from investors. Interested participants should call 866-804-6926 and use passcode 44066374. International participants should call 857-350-1672 and use the same passcode.

A recording of the conference call will be available beginning May 13 and will remain archived through May 20, 2009. To listen to the playback, please call 888-286-8010 and use passcode 40272315. For the international playback, dial 617-801-6888 and use the same passcode.

This call is being audio webcast by Thomson Financial and can be accessed at Glowpoint's website at http://www.glowpoint.com. The audio webcast will also be distributed over Thomson Financial's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson Financial's individual investor center at http://www.earnings.com or by visiting any of the investor sites in Thomson Financial's Individual Investor Network, such as America Online's Personal Finance Channel, Fidelity Investments(R) (www.fidelity.com), and others. Institutional investors can access the call via Thomson Financial's password-protected event management site, StreetEvents: http://www.streetevents.com.

About Glowpoint

Glowpoint, Inc. (OTC BB: GLOW.OB) is a leading provider of advanced video communications solutions. Glowpoint's suite of advanced and robust telepresence and video communications solutions enable organizations to communicate with each other over disparate networks and technology platforms. Glowpoint supports thousands of video communications system in over 35 countries with its 24/7 video management services, powering major broadcasters, Fortune 500 companies, as well as global carriers and video equipment manufacturers and their customers around the world. To learn more, visit www.glowpoint.com.