CHICAGO, April 12, 2017 -- Epazz, Inc. (OTC: EPAZ), a leading provider of cloud-based business software solutions, has announced that the Company has recorded record revenue for the year ending in 2016. The Company recorded revenues of just over 1.8 million dollars unaudited numbers which represented an increase of over twenty percent from 2015 numbers.

Epazz recorded an operating income of $308,000 unaudited numbers. The company has been entering into debt settlement agreements. It is using a combine of investors’ funds and cashflow to pay off its debts.  Many of the settlement agreements include a reduction of principal, zero interest and waive of legal fees.

Additionally the Company’s net losses have been pared substantially. Losses in 2014 totaled over $7.6 million, $1.6 million in 2015 and for 2016 losses dropped to $592 thousand. This represents a two-year decrease in net losses of 92 percent.

Epazz is currently developing a new payment system, which will be announced shortly. The Company is also in negotiation with an interested party in creating websites and mobile applications for the 420 Industry.

Epazz, Inc.'s CEO, Shaun Passley, Ph.D., said, "In 2017, we expect to become a profitable Company. It has taken a lot of software development and cost cutting measures but we are moving the Company in the right direction very quickly."

About Epazz, Inc. (www.epazz.com)

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™ 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 otherwise need to purchase separately. Epazz's other products are AgentPower™ (a workforce management software) and AutoHire™ (an applicant-tracking system).

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 can generally be identified by the use of forward-looking statements such as "may," "expect," "intend," "estimate," "anticipate," "believe" and "continue" (or the negative thereof) or similar terminology. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results or those 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, Inc. assumes no obligation and has no intention of updating these forward-looking statements, and it takes no obligation to update or correct information prepared by third parties that is not paid for by Epazz, Inc. Investors are encouraged to review Epazz, Inc.'s public filings on SEC.gov, including its unaudited and audited financial statements as well as its Form 10-Ks, and Form 10-Qs, which contain general business information about the company's operations, results of operations, and risks associated with the company and its operations.

CONTACT: For more information, please contact:

         Investor Relations

         mailto:investors@epazz.net

         (312) 955-8161

         www.epazz.com