The financial information presented above is preliminary, based upon the Company's internal estimates and subject to the Company's ongoing assessment of revenue recognition, the Audit Committee's independent review of the Company's financial statements, and completion of the Company's financial closing procedures and issuance of its financial statements as of and for the year ended December 31, 2017. The Company's final financial results and other financial data to be included in the Company's Form 10-K as of and for the year ended December 31, 2017 (the "2017 Form 10-K") could differ materially from this preliminary financial information.

Subject to management's completion of the restated financial statements and related disclosures for the restatement periods, as well as the reviews and audit to be conducted by the Company's independent registered public accounting firm, Weaver and Tidwell, L.L.P., the Company currently anticipates filing, on or before June 15, 2018, the amendment to its 2016 Form 10-K, the amendment to the March 2017 10-Q and its quarterly reports on Form 10-Q for the periods ended June 30, 2017 and September 30, 2017 and the 2017 Form 10-K. However, because of the nature and amount of work that needs to be completed to file these reports, the Company cannot be certain how much time will ultimately be required to complete the restatement process and accordingly, there remains a substantial risk that additional time will be required.

• the development of more detailed revenue recognition practices and policies;
• the strengthening of overall controls and disclosure processes and systems; and
• the implementation of financial accounting and reporting literacy training for the accounting, finance, and sales teams, including acceptable business practices.

The Fort Worth, Texas Regional Office of the United States Securities & Exchange Commission (the "SEC") has opened a formal investigation of issues relating to the restatement, with which the Company is cooperating fully. At this time, the Company is unable to predict the duration, scope, result or related costs associated with the SEC's investigation. The Company is also unable to predict what, if any, action may be taken by the SEC, or what penalties or remedial actions the SEC may seek. Any determination by the SEC that the Company's activities were not in compliance with existing laws or regulations, however, could result in the imposition of fines, penalties, disgorgement, equitable relief, or other losses, which could have a material adverse effect on the Company's financial position, liquidity, or results of operations.

"After a long and arduous process, we're encouraged that the investigation is substantially behind us, and that we are focusing on completing the final stages of our financial statements audit. Throughout this entire process, we've kept the company moving in a forward direction, while maintaining our healthy track record of profitability and strong cash flow generation. We've also remained committed to executing on our strategy of transitioning GlobalSCAPE into a cloud-first company, as evidenced by our corporate rebranding and the launch of EFT Arcus earlier this year. Both initiatives are receiving positive reception in the marketplace, and we are actively filling the pipeline with new business, made possible by our expanded suite of cloud-first solutions. Overall, our long-term outlook hasn't changed, and we continue to remain optimistic about staying ahead of the industry's shift to the cloud, and our ability to capture a larger share of the Managed File Transfer (MFT) and integration platform-as-a-service (iPaaS) markets."

GlobalSCAPE, Inc. (NYSE American: GSB) is a pioneer in securing and automating the movement and integration of data seamlessly in, around and outside your business, between applications, people and places, in and out of the cloud. GlobalSCAPE provides cloud services that automate your work, secure your data and integrate your applications – while giving visibility to those who need it. GlobalSCAPE makes business flow brilliantly. For more information, visit http://www.globalscape.com or follow the blog and Twitter updates.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "would," "exceed," "should," "anticipates," "believe," "expect," and variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company's current expectations and are subject to a number of risks, uncertainties and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company's Annual Report on Form 10-K for the 2016 fiscal year, filed with the SEC on March 27, 2017; the discovery of additional information relevant to the internal investigation; the conclusions of the Company's Audit Committee (and the timing of the conclusions) concerning matters relating to the internal investigation; the timing of the review by, and the conclusions of, GlobalSCAPE's independent registered public accounting firm regarding the internal investigation and GlobalSCAPE's financial statements; the possibility that additional errors may be identified; the risk that the completion and filing of the Company's reports to be filed with the SEC will take longer than expected; pending litigation and the possibility of further legal proceedings adverse to GlobalSCAPE resulting from the restatement or related matters; and the costs associated with the restatement.