EXHIBIT 99.1
[GLOBALSCAPE LOGO]
NOTICE TO SHAREHOLDERS OF GLOBALSCAPE, INC.
June 11, 2001
Dear Shareholder,
In accordance with Sections 211 and 228 of the Delaware General
Corporation Law, please accept this letter as notice of the election of the
following individuals as Directors of GlobalSCAPE, Inc. effective June 1, 2001:
Arthur L. Smith
H. Douglas Saathoff
Tim Nicolaou
These individuals were elected by the written consent of ATSI
Communications, Inc., which holds 73.24% of the outstanding shares of
GlobalSCAPE, Inc. The written consent was adopted in lieu of an annual meeting
of shareholders to re-elect directors.
GlobalSCAPE's Annual Report on Form 10-K for the year ended December 31,
2001 was filed with the U.S. Securities and Exchange Commission (the "SEC") on
April 2, 2001, and our Quarterly Report on Form 10-Q for the quarter ended March
31, 2001 was filed on May 15, 2001. Both of these reports may be found on
GlobalSCAPE's Web site at WWW.GLOBALSCAPE.COM/SEC FILINGS. We will be happy to
send you a copy if you call our Investor Relations liaison at (210) 547-1066.
As these reports show, we have continued to produce positive operating
cash flows and achieve profits (exclusive of non-cash charges) during this
challenging period in the Internet markets. We believe we are in a position not
only to survive the "dot-com" shakeout, but to prosper. We are proud of the
milestones we have achieved this year toward the execution of our strategic plan
as described in our Annual Report:
o In April we released our secure FTP product, CuteFTP Pro, which has
received favorable reviews by software critics and appears to have
achieved early market acceptance. This product targets advanced FTP
users concerned with security and advanced functionality.
o We have begun demonstrating our browser-based file transfer product.
Although the browser is the default interface to the Internet, it
has very limited file transfer capabilities. Our Java based transfer
product overcomes these limitations and we believe it will open new
markets for us by embedding superior file transfer functionality
within web-based applications, allowing e-commerce sites to provide
robust file transfer capabilities to their customers.
o In May we executed an exclusive distribution agreement with
SoftChina, the largest software distributor in Greater China, for
the Taiwan and Hong Kong markets. We expect to begin distribution of
the Chinese-language version of our flagship product, CuteFTP, in
August 2001. In addition to Chinese, the most current version of
CuteFTP will be available in French, German, Spanish, and Japanese,
advancing our globalization efforts. We will begin offering these
international versions on our English Web site in the month of
August, with an international web presence to follow this fall. We
expect to increase market share by penetrating these high growth
markets with native language versions and support from local
distributors.
o We are in the final development phase of an enterprise level secure
FTP server and expect to release the program this summer. This
product will provide a complete secure file transfer solution when
used in conjunction with Cute FTP Pro and targets corporate users
who are willing to pay a premium for their solutions.
o We have explored various relationships and opportunities for our
collaborative peer-to-peer technology but have been unable to
develop a viable business model to date. We will continue to watch
this market in order to gain insight into private business
applications for this technology. However, it is unlikely that we
will realize this opportunity in the current fiscal year.
o In June 2001 we signed an agreement with Trellix Corporation to
integrate their Web site development technology, authored by Dan
Bricklin. Dan, co-inventor of Visicalc, the world's first
spreadsheet, has had a profound impact on the evolution of the PC
and the Internet. GlobalSCAPE will expand its current Web
development product line by introducing a graphical Web site
building tool that allows users of all skill levels to easily create
and publish high quality Web sites without having to learn HTML or
Web site design. We expect to release the product under the "Cute"
brand this summer. For more information on Trellix and Dan Bricklin,
refer to the cover story of the May edition of INTERNET WORLD
magazine.
GlobalSCAPE is committed to increasing shareholder value by maintaining
our leadership position in the consumer and business file transfer markets and
developing new applications for our Web authoring and content management
technologies.
Sincerely,
GlobalSCAPE, Inc.
By: /s/ Tim Nicolaou
------------------------
Tim Nicolaou
Chief Executive Officer
This shareholder notice contains forward-looking statements. These statements
describe management's beliefs and expectations about the future. We have
identified forward-looking statements by using words such as "expect," "believe"
and "should." Although we believe our expectations are reasonable, our
operations involve a number of risks and uncertainties, and these statements may
turn out not to be true. Risks that could cause these statements not to be true
include non-acceptance of new products, loss of talented personnel, overseas
economic volatility, failure to remain competitive, and other Risk Factors
discussed in our filings with the SEC.