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TMCNet:  Epazz Files 3rd Quarter Form 10Q; Company Continues to Progress Toward Financial Targets

[December 20, 2012]

Epazz Files 3rd Quarter Form 10Q; Company Continues to Progress Toward Financial Targets

CHICAGO, Dec. 20, 2012 /PRNewswire via COMTEX/ -- Epazz Inc., (OTCQB: EPAZ) a leading provider of cloud based business software solutions announced today that the Company has filed its third quarter Form 10Q with the Securities and Exchange Commission (SEC). Epazz, Inc. continues to progress toward its financial goal of attaining $2 million in revenue over the next 9-12 months.

Specifically, the Company reported a 50 percent increase in revenues for the three month period ending September 30, 2012. The Company's revenues were $308,881 compared with $205,724 for the same period in 2011. For the nine month period ending 30 September, 2012, Epazz, Inc. reported revenue of $856,248 versus revenue of $646,023 for the same period in 2011. Additionally, Epazz's Asset value grew by 38% to $1,425,248 during the nine month period ending on September 30, 2012.

Acquisitions made by Epazz in 2012 are boosting revenues for the Company. These acquisitions included K9 Bytes, kennel software and MSHealth, behavioral health software. Additionally, Project Flex, a patent pending new technology that will change the way cooling technology is used will come online as a wholly owned subsidiary. Currently, Project Flex is in beta testing. Within the next few weeks, an effective date of the spinoff will be announced to shareholders and the investment community with regard to Project Flex.

"As time goes on, we expect our business including our subsidiaries to increase their financial performance. And, we are very excited about bringing Project Flex into the mix which will substantially increase revenues going forward in 2013 and beyond. We are not stopping there however, we have identified additional companies that are synergistic with our business model which will make excellent acquisition targets in 2013, " said Shaun Passley, CEO of Epazz, Inc.

About Epazz Inc.

Epazz Inc. is a leading cloud based software company that specializes in providing customized cloud applications to the corporate world, higher education institutions and the public sector. Epazz BoxesOS(TM)v3.0 is the complete business web-based software package for small to mid-size businesses, Fortune 500 enterprises, government agencies and higher education institutions. BoxesOS provides many of the web-based applications organizations would have to otherwise buy separately. Epazz's other products are AgentPower(TM), a workforce management software and AutoHire(TM), an applicant tracking system.

CMHCi offers server based, internet, and secure cloud computing allowing you to access your information as you require.

MS Health, mental health software, By maintaining a complete electronic client record, including data collection and reporting across multiple programs, locations, episodes of care, and service providers, CMHCi helps eliminate redundant record keeping. The scheduler tracks client, staff, and group appointments. Easy to use, it interfaces seamlessly with service authorization tracking, service history, and billing. Integrated financial reporting provides the basis for an efficient and comprehensive accounting system, including electronic claims and remittance, third party insurance, and client, municipality, and grantor billing.

Software as a service, secure cloud computing, and networked application options K9 Bytes® has been developing innovative technology solutions for the pet care industry for over 20 years.

K9 Bytes, kennel software, was founded in 1988 with the first version of the K9 Koordinator management system for DOS. The K9 Koordinator was one of the first software tools designed specifically for the pet care industry in the world. Today, K9 Bytes® offers a variety of products for the pet care industry, including complete software management systems for boarding kennels, grooming shops, doggy daycare centers, dog walking, and pet sitting services. K9 Bytes® employs experienced software developers and pet care specialists coming from different academic backgrounds and having a broad set of skills and solid experience. Each member is constantly working hard to design, create, and support the next generation of software for the pet care industry.

SAFE HARBOR"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of forward-looking statements such as "may," "expect," "intend," "estimate," "anticipate," "believe," or "continue" (or the negative thereof) or similar terminology. Such forward-looking statements are subject to risk, uncertainties and other factors that could cause actual results to differ materially from future results or implied by such forward-looking statements. Investors are cautioned that any forward-looking statements are not guarantees of future performance and that actual results may differ materially from those contemplated by such forward-looking statements. Epazz assumes no obligation and does not intend to update these forward-looking statements and takes no obligation to update or correct information prepared by third parties that is not paid for by Epazz. Investors are encouraged to review Epazz's public filings on SEC.gov, including its unaudited and audited financial statements, and its Registration Statement, Form 10-K's and Form 10-Q's, which contain general business information about the Company's operations, results of operations and risks associated with the Company and its operations. Penny stock picks need to be research. Do your homework. Please review all of our filings.

For more information please contact:Epazz Inc.Investor Relationsinvestors@epazz.net (312) 955-8161www.epazz.com SOURCE Epazz Inc.

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