Video Conferencing Growth In Cloud Managed Video Service Exceeds 20% - Profit Metrics Show Continued Momentum MURRAY HILL, N.J., October 18, 2011 - Glowpoint, Inc. (OTCBB: GLOW), a leading global provider of cloud managed video services, today reported its financial results for the third quarter ended September 30, 2011. Total revenues for the third quarter were $6.8 million. Cloud-based managed video service (MVS) revenues for the quarter were $3.2 million, an increase of 20% over the same period last year. Cloud-based MVS revenues were 46% of total revenues in the quarter, up from 38% in the prior year period. Network revenues for the quarter were $3.3 million, a decrease of 18% over the same period last year.

1. INVESTOR RELATIONS:
Glowpoint, Inc.
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Glowpoint Reports Third Quarter 2011 Results
Growth In Cloud Managed Video Service Exceeds 20% - Profit Metrics Show Continued Momentum
MURRAY HILL, N.J., October 18, 2011 - Glowpoint, Inc. (OTCBB: GLOW), a leading global provider of cloud managed video services,
today reported its financial results for the third quarter ended September 30, 2011.
Total revenues for the third quarter were $6.8 million. Cloud-based managed video service (MVS) revenues for the quarter were $3.2
million, an increase of 20% over the same period last year. Cloud-based MVS revenues were 46% of total revenues in the quarter, up
from 38% in the prior year period. Network revenues for the quarter were $3.3 million, a decrease of 18% over the same period last year.
Adjusted EBITDA (as defined and reconciled to GAAP) for the third quarter was $837,000, an increase of $1.2 million over the same
period last year. Adjusted EBITDA margin was positive 12% compared to a negative 5% in the same period last year. Net income was
$36,000, an increase of $880,000 over the same period last year.
For the nine months ended September 30, 2011, total revenues were $20.8 million. Cloud-based MVS revenues for the nine-month
period were $9.3 million, an increase of 24% over the same period last year. Network revenues for the nine-month period were $10.2
million, a decrease of 17% over the same period last year.
"We continue to see growing demand for our OpenVideo™ suite of services, and these revenues are expected to become a majority of
overall revenues in the fourth quarter," said Joe Laezza, Glowpoint's President and Chief Executive Officer. "The leverage in our
business model is producing sequential improvement in all profit metrics, and we are well positioned to maintain the pace of our strong
operating results. The network services component of our business performed as expected, and we anticipate that revenue from this
lower margin business will decline moderately or remain flat in the coming quarters."
Adjusted EBITDA for the nine months ended September 30, 2011 was $1.7 million, an increase of $2.7 million over the same period last
year. Adjusted EBITDA margin was positive 8% compared to a negative 5% in the same period last year. Net income for the nine months
ended this period was $85,000, an increase of $2.3 million over the same period last year.
"Three consecutive quarters of positive earnings and $2.4 million of operating income improvement for the year sets a new milestone for
Glowpoint," commented John McGovern, Glowpoint's Executive Vice President and Chief Financial Officer. "The revenue mix shift to a
majority of cloud managed video services, combined with strong operating leverage, puts us in a position to continue on a positive
trajectory."
Key business metrics
Sales bookings (defined as new sales to be delivered over a current average contract term of 21 months) in the third quarter were
$1.8 million in contract value. Year to date sales bookings increased 14% to $8.8 million in contract value compared to the same
nine-month period last year.
Number of managed telepresence and video conferencing rooms increased 120% to 1,097 compared to 498 in the same period
last year.
Managed conferences on a trailing twelve-month basis increased 68% to 113,550, compared to 67,730 in the same period last
year.
Number of certified enterprise video systems on OpenVideo™ increased 24% to 42,438, compared to 34,355 in the same period
last year.
"The pipeline growth continues to be strong and usage is appreciating as we exit the third quarter, which is traditionally slower due to
seasonality. We are maintaining our baseline position that annualized revenue growth rates for our cloud managed service business will
be in the 20%-30% range and expect profitability to continue on a positive trajectory. Additionally, we are working on a number of
initiatives that we believe could accelerate our growth rates in 2012," added Laezza.

2. Q3 Highlights
Reached new milestones with 450 enterprises connected to OpenVideo™ for B2B exchange services.
Announced breakthrough growth in immersive telepresence usage across OpenVideo™ cloud.
Launched OpenVideo Mobile™ app for enterprise mobile workforce use of cloud managed video services.
Launched enhanced cloud managed video service offering for Cisco enterprise communities.
Simplified capital structure by eliminating substantially all convertible preferred stock and warrants outstanding.
For the nine months ended September 30, 2011, capital expenditures were $793,000 and as of October 17, 2011, there were 25,143,750
shares of common stock issued and outstanding.
"Our partners and prospects recognize the value that our services offer to the mission-critical nature of visual communications as the
industry continues to evolve and grow. With the deployment of new (and management of existing) enterprise video environments rapidly
shifting from enterprise hosted and managed to more cloud based and outsourced support, our OpenVideo™ suite of services is
perfectly positioned to capitalize on these trends," added Laezza.
The company plans to announce a date for a management presentation webcast event in the near future.
Supporting Resources
Glowpoint Investor Information
Recent Glowpoint News and Events
Glowpoint on Twitter
About Glowpoint
Glowpoint, Inc. (OTCBB: GLOW) provides cloud managed video services that make the delivery of consistently high-quality video
conferencing and telepresence service as simple as using the internet, between any technology, network and business. Using our Open
Video™ cloud architecture, Glowpoint enables organizations of all sizes to adopt business-class video easily, scale instantly and
collaborate openly, yet securely across technology boundaries – to realize the full value of visual communications. To learn more please
visit http://www.glowpoint.com.
Non-GAAP Financial Information
Adjusted EBITDA is defined as net income or loss from continuing operations before depreciation, amortization, interest expense,
interest income, sales taxes and regulatory fee expense or benefit, loss on extinguishment of debt, changes in fair value of derivative
financial instruments and stock-based compensation, and severance. Adjusted EBITDA is not intended to replace operating income
(loss), net income (loss), cash flow or other measures of financial performance reported in accordance with generally accepted
accounting principles. Rather, Adjusted EBITDA is an important measure used by management to assess the operating performance of
the company. Adjusted EBITDA as defined here may not be comparable to similarly titled measures reported by other companies due to
differences in accounting policies. Additionally, Adjusted EBITDA as defined here does not have the same meaning as EBITDA as
defined in our SEC filings prior to this date. A reconciliation of Adjusted EBITDA to net loss is shown below.
Forward Looking Statements
Some statements set forth in this release, other than historical information, constitute forward-looking statements for purposes of the safe
harbor provisions under The Private Securities Litigation Reform Act of 1995. Statements that include words such as "anticipate,"
"believe," "estimate" or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements
are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set
forth in the forward-looking statements. Certain factors that could cause our results to differ materially from our expectations are
described in our filings with the Securities and Exchange Commission. We do not undertake, and specifically disclaim any obligation, to
publicly release the results of any revisions that may be made to any forward-looking statements in order to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date of such statements.

3. GLOWPOINT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
(Unaudited)
September 30, December 31,
2011 2010
ASSETS
Current assets:
Cash $ 1,359 $ 2,035
Accounts receivable, net of allowance for doubtful accounts of
$214 and $250, respectively 2,655 2,706
Net current assets of discontinued operations - 15
Prepaid expenses and other current assets 397 377
Total current assets 4,411 5,133
Property and equipment, net 5,051 3,148
Other assets 75 83
Total assets $ 9,537 $ 8,364
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,589 $ 2,333
Accrued expenses 1,106 1,352
Net current liabilities of discontinued operations 50 -
Accrued sales taxes and regulatory fees 511 739
Revolving loan facility 750 750
Customer deposits 151 243
Current portion of capital lease 161 -
Deferred revenue 266 242
Total current liabilities 4,584 5,659
Noncurrent liabilities:
Capital lease, less current portion 351 -
Total liabilities 4,935 5,659
Commitments and contingencies - -
Stockholders' equity:
Preferred stock Series B-1, non-convertible; $.0001 par value 10,000 10,000
Preferred stock Series A-2, convertible; $.0001 par value 297 3,354
Common stock, $.0001 par value 2 9
Additional paid-in capital 159,286 154,410
Accumulated deficit (164,983) (165,068)
Total stockholders' equity 4,602 2,705
Total liabilities and stockholders' equity $ 9,537 $ 8,364

4. GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
and GAAP to Non-GAAP Reconciliation
(In thousands, except per share data)
(Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
2011 2010 2011 2010
Managed video services combined (Cloud-based MVS) $ 9,344 $ 7,547 $ 3,164 $ 2,629
OV Connect (Network services) 10,162 12,165 3,282 3,984
Professional and other services 1,258 829 383 331
Total revenue 20,764 20,541 6,829 6,944
Network and infrastructure 7,156 8,768 2,273 2,896
Global managed services 5,671 6,203 1,798 2,049
Sales and marketing 2,627 3,187 803 1,086
General and administrative 4,180 3,860 1,492 1,504
Depreciation and amortization 981 812 408 270
Total operating expenses 20,615 22,830 6,774 7,805
Income (loss) from operations 149 (2,289) 55 (861)
Interest/Financing 93 107 30 51
Net income (loss) from continuing operations 56 (2,396) 25 (912)
Income from discontinued operations 29 180 11 68
Net income (loss) 85 (2,216) 36 (844)
Redemption of preferred stock - (934) - (156)
Net income (loss) attributable to common stockholders $ 85 $ (3,150) $ 36 $ (1,000)
Net income (loss) attributable to common stockholders per share:
Continuing operations $ - $ (0.16) $ - $ (0.04)
Discontinued operations $ - $ - $ - $ -
Basic net income (loss) per share $ - $ (0.16) $ - $ (0.04)
Continuing operations $ - $ (0.16) $ - $ (0.04)
Discontinued operations $ - $ - $ - $ -
Diluted net income (loss) per share $ - $ (0.16) $ - $ (0.04)
Weighted average number of common shares:
Basic 21,590 18,630 23,324 19,891
Diluted 22,643 18,630 24,396 19,891
ADJUSTED EBITDA - GAAP to Non GAAP Reconciliation
Net income (loss) from continuing operations $ 56 $ (2,396) $ 25 $ (912)
Interest/Financing 93 107 30 51
Depreciation 981 812 408 270
Stock-based compensation 181 445 34 216
Severance 351 - 340 -
Adjusted EBITDA $ 1,662 $ (1,032) $ 837 $ (375)

5. GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
2011 2010
Cash flows from Operating Activities:
Net income (loss) $ 85 $ (2,216)
Adjustments to reconcile net income (loss) to net cash provided by (used in)
operating activities:
Depreciation and amortization 981 812
Amortization of deferred financing costs 46 18
Loss on disposal of equipment 1 (11)
Bad debt expense 44 345
Stock-based compensation 181 445
Increase (decrease) attributable to changes in assets
and liabilities:
Accounts receivable 7 (706)
Prepaids and other current assets (20) (197)
Other assets (38) (86)
Accounts payable (744) (193)
Customer deposits (92) (52)
Accrued expenses, sales taxes and regulatory fees (423) 225
Deferred revenue 24 (35)
Net cash provided by (used in) continuing operating activities 52 (1,651)
Net cash provided by discontinuing operating activities 65 88
Net cash provided by (used in) operating activities 117 (1,563)
Cash flows from Investing Activities:
Purchases of property and equipment (793) (959)
Net cash used in investing activities (793) (959)
Cash flows from Financing Activities:
Proceeds from preferred stock offering - 4,008
Proceeds from revolving loan, net - 750
Receivable from sale of Series A Preferred Stock - (1,000)
Costs related to private placement - (307)
Net cash provided by financing activities - 3,451
Increase (decrease) in cash (676) 929
Cash at beginning of period 2,035 587
Cash at end of period $ 1,359 $ 1,516