InterCloud Continues to Reduce Balance Sheet Liabilities

InterCloud Systems

announced today that using proceeds received as a result of investors exercising warrants issued in its recent public offering, and with the consent of its senior lender, InterCloud has been able to redeem and cancel $3 million worth of its Series F Preferred Stock. The redemption also eliminates the potential conversion of the shares of Series F Preferred Stock into over 300,000 shares of common stock, based upon current price levels. Series F Preferred Stock was issued in lieu of cash consideration to the sellers of our TNS, Inc. subsidiary as part of the purchase price for that entity, which was acquired in September 2012.  TNS, Inc. revenues for the twelve month period following its acquisition by InterCloud have increased by approximately 60%, from $3.1 million to $4.9 million, with a corresponding increase in net income of $0.8 million to $1.0 million, from $0.2 million for the twelve month period ended September 30, 2012. TNS, Inc. revenues for the nine month period ended September 30,