Exhibit 99.1
MEDIA CONTACT: INVESTOR CONTACT:
Dawn Orlinsky Dave Gentry or Chris Bermudez
Glowpoint, Inc. Aurelius Consulting Group
(971) 391-2062 (407) 644-4256
dorlinsky@glowpoint.com dave@aurcg.com
www.runonideas.com
GLOWPOINT RECEIVES NASDAQ NOTIFICATION
HILLSIDE, N.J., AUGUST 18, 2005 -- Glowpoint, Inc., (NASDAQ: GLOWE) the world's
leading broadcast quality IP-based video communications service provider, today
announced that because the Company has not yet filed its Quarterly Report on
Form 10-Q for its quarter ended June 30, 2005, it received on August 16, 2005 a
Nasdaq Staff Notification stating that the Company is not in compliance with
Nasdaq's Marketplace Rule 4310(c)(14), and that its securities are, therefore,
subject to delisting from the Nasdaq National Market. The delisting notification
is standard procedure when a Nasdaq listed company fails to complete a required
filing in a timely manner.
As previously announced, Glowpoint's Audit Committee has begun an independent
review of certain financial accounting matters affecting previously reported
financial information, requiring the Company to restate certain financial
statements. The restatement is expected to relate to transactions that
principally occurred when the Company was primarily a reseller of video
conferencing equipment. The restatement items that have been identified to date
generally involve the capitalization of costs associated with purchases of video
conferencing equipment, telecommunications circuits used in the Company's
network and third party software that should have been expensed.
In accordance with Nasdaq rules, Glowpoint intends to request a hearing before a
Nasdaq Listing Qualifications Panel for continued listing on the Nasdaq Stock
Market. Pending a decision by the Panel, the Company's securities will remain
listed on Nasdaq. There can be no assurance the Panel will grant the Company's
request for continued listing. Additionally, Nasdaq's notification stated that
at the opening of business on August 18, 2005 it will add an "E" to the end of
the Company's ticker symbol until the Company has fulfilled its SEC reporting
obligation. As such, starting at the opening of business on August 18, 2005,
Glowpoint will trade under the ticker symbol "GLOWE."
We are working diligently to complete the restatement process and become current
with our SEC filings; however, since our review is ongoing, we cannot at this
time provide dates for announcing financial results for the quarter ended June
30, 2005, or for the filing of our Form 10-Q.
ABOUT GLOWPOINT
Glowpoint, Inc. (NASDAQ: GLOWE) is the world's leading broadcast quality,
IP-based video communications service provider. GlowPoint offers video
conferencing, bridging and IP broadcasting services to enterprises, SOHOs,
broadcasters and consumers worldwide. The GlowPoint network spans three
continents and has carried over 23 million IP video minutes, with an average of
more than 20,000 video calls per month worldwide. GlowPoint is headquartered in
Hillside, New Jersey. To learn more about GlowPoint, visit us at
www.glowpoint.com.
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The statements contained herein, other than historical information, are or may
be deemed to be forward-looking statements and involve factors, risks and
uncertainties that may cause actual results in future periods to differ
materially from such statements. These factors, risks and uncertainties include
market acceptance and availability of new video communication services; the
nonexclusive and terminable-at-will nature of sales agent agreements; rapid
technological change affecting demand for our services; competition from other
video communications service providers; and the availability of sufficient
financial resources to enable us to expand our operations, as well as other
risks detailed from time to time in the our filings with the Securities and
Exchange Commission.
"GlowPoint" is a registered trademark or service mark of Glowpoint, Inc. in the
United States and certain foreign countries.
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